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SHAREHOLDER
UPDATE
Helio Resource Corp. ("Helio" or the "Company")
(TSX-V: HRC) is pleased to provide an update on its corporate and
exploration activities. Current news is displayed in bold text.
TANZANIA
The Company's primary focus going forward is the advancement of the SMP
Gold Project in Tanzania, through Helio's 100% owned subsidiary BAFEX
Tanzania Ltd. Highlights for the project to date are:
- The Company has recently
added two additional diamond drill rigs to the SMP drill programme,
bringing the total to five.
- Currently, there are
three drill rigs working at the Kenge Target (one rig at the NW
Zone, one at the Main Zone, and one at Mbenge), and there are two
drill rigs working at the Porcupine Target. An RC drill rig has also
been contracted and is expected to begin work within the next month.
- 102 diamond drill holes
(15,451m) have been completed to date on the Kenge Target,
comprising the NW (up to 18m at 2.7g/t Au), Main (up to 22m at 7g/t
Au), SE (up to 21.5m at 3.6g/t Au), Snakebite (up to 8m at 20.8g/t
Au), and Mbenge (up to 39m at 2.6g/t Au) Zones. The five zones have
an aggregate strike length of approximately 2,000m. The target has
only been tested to a depth of approximately 200m.
- Metallurgical results
from the Kenge Target are very positive - up to 96% recovery from
conventional gravity and cyanidation processes.
- Results from diamond
drilling at the Porcupine Target (5 holes for 850m) have returned up
to 53m grading 3.3g/t Au.
- Golder Associates (UK)
Ltd has been retained by the Company to provide an initial resource
estimate for the Kenge Target (and possibly the Porcupine Target if
there is sufficient data), which is expected to be completed before
the year-end.
- The renewal of licence
PL 2580 and the issuance of a new licence to BAFEX Tanzania Ltd.
went smoothly, providing the Company with a high degree of
confidence in the title tenure process in Tanzania.
- The plan for the balance
of 2008 is to continue to demonstrate the significant resource
potential at SMP with our current aggressive drill programme.
The results
generated from the SMP Gold Project clearly support the Company's belief
that the project has the potential to realise a significant open pittable
gold resource. All eleven of the targets drilled to date, which occur
over a 20km strike length of the Saza Shear Zone and associated
cross-structures, have intersected bedrock gold mineralisation. Only two
of those targets (Kenge and Porcupine) have been subject to systematic
drill testing, and in both cases have yielded very positive results.
It is the Company's intention over the next 12 months to conduct
systematic drilling at all eleven targets, plus test some new
gold-in-soil anomalies which have evidence of artisanal bedrock mining on
them.
NAMIBIA
The Company continues to pursue Joint Venture partners to advance its
exploration projects in Namibia.
Currently, we have one active JV with Desert Minerals (UK) Ltd., a
privately funded company. Desert has informed the Company that it
plans to commence a 10,000m combined diamond and RC drill programme at
the Otjimbojo (8,600m) and Kunjas licences, located in central and
southern Namibia, respectively. Please refer to the Company's news
release dated September 24, 2007 for the terms of the agreement with
Desert.
The Company has decided to abandon the Fransfontein, and Borwa licences,
all of which were very early-stage projects.
The Joint Venture agreement with TransAfrican Minerals was terminated in
July 2008. The licences that were included in the TransAfrican JV host
several drill-ready gold, polymetallic and zinc targets, and management
will continue to work to find partners to advance these projects.
BOTSWANA
The Company has converted its interest in the Lokgwabe diamond project to
a 1% diamond royalty, and has no plans to undertake any work in Botswana
in the near future.
MOZAMBIQUE
The Company has decided to relinquish its interest in the early-stage
Balama project in order to focus its efforts on Tanzania and finding
partners for the Namibian projects.
CORPORATE
The Company has completed two financings, totalling $10,350,000, in
calendar 2008, with the bulk of proceeds earmarked for the advancement of
the SMP project in Tanzania.
As of the latest quarterly financial report, the Company had $9.4 million
in working capital, of which $8.6 million was cash. The Company is well
funded for its current work programmes, and expects to continue to
generate constant news flow of drilling results from its SMP drill
programme.
There was a warrant expiry on August 19, 2008. As a result of this the
Company now has 50,114,550 shares issued, and 7,040,000 warrants (priced
at $0.85 - $1.25) outstanding, all of which expire in 2010.
The Company held its AGM on August 27, 2008 and all resolutions were
approved unanimously (see the SEDAR filing of the Information
Circular, dated July 25, 2008).
At the subsequent Board of Directors meeting the following resolutions
were adopted:
1.
Grenville Thomas
was re-appointed Chairman of the Board.
2.
The Audit
Committee, comprising Cliff Davis (Chairman), Stephen Leahy, and Richard
Williams, was appointed.
3.
The Compensation
Committee, comprising Cliff Davis, Grenville Thomas, and Stephen Leahy,
was re-appointed.
Officers of the Company comprise Chris MacKenzie (Chief Operating
Officer), Richard Williams (Chief Executive Officer), Andrew MacRitchie
(Chief Financial Officer), and Stewart Lockwood (Corporate Secretary).
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as
designated by NI 43-101, supervises the exploration at the SMP project,
including the sampling and quality assurance / quality control
programmes, and has reviewed the contents of this news release. Data relating to drill hole
intercepts and metallurgical results referred to in this shareholder
update were previously reported in a series of press releases available
on the Company's website at www.helioresource.com.
Helio is a dynamic, technically-driven mineral exploration company,
focused on high-quality project generation in southern Africa. Helio's
main focus is the development of the SMP gold project in Tanzania. As
part of its strategic approach to project development, Helio has optioned
9 of its Namibian licences to Desert Minerals (UK) Ltd. and continues to
pursue joint venture partners for its other projects in Namibia.
For additional information, please contact Richard Williams or Irene
Dorsman at +1 604 638 8007 or by e-mail to richard@helioresource.com or irene@helioresource.com.
ON BEHALF OF THE BOARD OF DIRECTORS
HELIO RESOURCE CORP
"Richard D.
Williams"
Richard D. Williams, P.Geo
CEO
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"Chris MacKenzie"
Christopher J. MacKenzie, C.Geol.
COO
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The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of this
release.
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