Monday, February 03, 2014
Helio Reports Updated Higher-Grade Resource for the Kenge and Porcupine Targets, SMP Gold Project, Tanzania
Results Support the Strategy to Focus on Higher-Grade Production Opportunities
Helio Resource Corp (TSX-V: HRC), ("Helio" or the "Company") is pleased to report that it has received an updated NI 43-101 compliant mineral resource estimate for its SMP Gold Project, Tanzania. The previous resource estimate (see Company news release dated February 14, 2012) was based on a 0.5g/t cut-off grade at a $1,450 gold price. The purpose of the work reported here is to identify the potential for higher-grade open pit and underground resources that are potentially economically minable in today's lower gold price environment.
| Cut off grade (g/t Au) |
Resource Classification |
Average grade (g/t Au) |
Tonnes (Millions) |
Contained Gold (oz) |
| 1.0 |
Indicated |
2.07 |
9.45 |
627,000 |
| 1.0 |
Inferred |
1.54 |
3.62 |
180,000 |
|
|
|
|
|
| 1.5 |
Indicated |
2.80 |
5.04 |
453,000 |
| 1.5 |
Inferred |
2.18 |
1.24 |
87,000 |
|
|
|
|
|
| 3.0 |
Indicated |
5.04 |
2.05 |
332,000 |
| 3.0 |
Inferred |
5.21 |
0.09 |
16,000 |
| |
|
|
|
|
| 4.0 |
Indicated |
5.86 |
1.32 |
249,000 |
| 4.0 |
Inferred |
5.45 |
0.08 |
14,000 | Table 1. Summary of the Resource Estimate at different cut-off grades.
This resource estimate is from the Kenge and Porcupine areas only (Figure 1 below). The Kenge Resource Area is located 6 km east of Shanta Gold's New Luika Mine, which reported production of 64,000 ounces of gold in 2013 and is projected to produce 80,000 ounces of gold in 2014 (see Shanta releases dated January 20, 2014). The Porcupine Resource Area is located a further 12 kilometres to the east.
Mr. Richard Williams, CEO of the Company commented: "This mineral resource estimate validates the work the Company conducted last year, and places the SMP Gold Project into a position where we can advance the project to a production decision. The current market is focussed on projects that can deliver low cost, higher-grade production opportunities, coupled with lower up-front capital expenditures, and we believe the Company can meet these requirements at SMP. Coupled to these resources, which are both open to depth, is a pipeline of seven additional, near surface, high-grade targets that are not currently included in the resource base. These targets represent future opportunities to significantly grow our resource base."
Background
In 2013 the Company identified the orientation of high-grade shoots within the Kenge and Porcupine Resource Areas. These shoots were successfully drill tested in October and November, 2013 (see Company news release dated November 29, 2013). The new interpretation and additional drill hole data provides the basis for the updated resource.
Highlights
- Using a 1.0 g/t cut-off, the Indicated Resource category contains 627,000 ounces grading 2.07 g/t Au, plus an additional 180,000 ounces at 1.54 g/t Au in the Inferred Resource category. This represents a 34% and 15% increase in grade compared to the respective categories from the 2012 resource estimate.
- At a 1.5g/t cut-off, the Indicated Resource category contains 453,000 ounces grading 2.8 g/t Au, plus an additional 87,000 ounces at 2.18 g/t Au in the Inferred Resource category.
- Identification of a high-grade resource potentially amenable to underground mining; at a 3.0g/t cut-off, the Indicated Resource category contains 331,000 ounces grading 5.0 g/t Au, plus a further 16,000 ounces grading 5.21 g/t Au in the Inferred Resource category.
- Using a $1,250 gold price, 491,000 Indicated Resource ounces grading 2.1 g/t Au plus 30,000 Inferred Resource ounces grading 1.9 g/t Au reports into an open pit shell. An additional 27,900 ounces grading 5.26 g/t Au lie outside the pits and are potentially minable by underground methods.
The accompanying NI 43-101 report will be made available on the Company's website and under its profile at www.sedar.com within 45 days of this news release.
Figure 1. Map showing the location of the Kenge and Porcupine Resource Areas and proximity to Shanta Gold's Bauhinia Creek Pit, New Luika Gold Mine.
The increase in grade compared to the previous resource estimate can be attributed to the following:
- Better constraining of the mineralisation zones;
- Inclusion of a high grade core domain for Kenge;
- New drilling at the Kenge Resource Area to confirm the new geological model;
- Use of 3D kriging at Kenge, as opposed to 2D kriging used by SRK, which is considered a more appropriate method of resource estimation for a narrow, shear-hosted gold system;
- Directional search ellipses and revised semi-variograms based on the revised model.
- New differential GPS (DGPS) survey of borehole collars and the use of a more accurate digital topography model (DTM) than previously.
Qualified Person
Mr. Desmond Subramani of CCIC MinRes (Pty) Ltd. of Johannesburg, South Africa compiled the resource estimate. Mr. Subramani is the Principal Geologist - Mineral Estimation for CCIC (Caracle Creek International Consulting), South Africa and is based in Johannesburg. He is a professional member of the South African Council for Natural Scientific Professions, the Geological Society of South Africa and the Geostatistical Association of South Africa. Mr. Subramani has expert knowledge in Geostatistical Resource Estimation, due diligence, audits, risk assessment, feasibility studies and Competent Person's Reports and training, and meets the requirements of a Qualified Person under NI43-101 guidelines. Mr Subramani has reviewed and approved the contents of this press release.
Chris MacKenzie, M.Sc., C.Geol., Helio's COO and a Qualified Person as designated by NI 43-101, is based in Africa and supervises the exploration at Helio's projects, including the sampling and quality assurance / quality control (QA-QC) programmes, and has reviewed and approved the contents of this news release.
About Helio Resource Corp.
Helio Resource Corp. is a resource company focused on advancing the 100% owned SMP Gold Project in Tanzania to a production decision, and outlining the resource potential at the DGP Gold Project in Namibia.
For additional information, please contact:
Irene Dorsman, Corporate Communications
irene@helioresource.com
T: +1 604 638 8007
|
OR |
Belinda Labatte
Capital Lab - Investor Relations
T: +1 647 436 2152 |
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams"
Richard D. Williams, P.Geo
CEO
|
"Chris MacKenzie"
Christopher J. MacKenzie, C.Geol.
COO |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Statements Regarding Forward-Looking Information
Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
You can also view this News Release on our website at:
http://www.helioresource.com/s/NewsReleases.asp?ReportID=621957 |
