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Resource News
Helio Drills 39 Metres 2.56 g/t Gold in Tanzania
By James West
Tuesday, March 25, 2008

Helio Resource Corp.'s (TSX.V:HRC) first round of drill results are in from the Mbenge target, and they're solid.

A total of five holes (for 671 metres) were drilled into the Mbenge target, representing the first part of a 20,000-metre drill program planned for the SMP gold project for 2008. Mbenge is parallel to and located only 400 metres northeast of the Kenge SE zone, where results include 21.53 m at 3.62 grams per tonne (g/t) gold (Au) in hole SZD-056 (see news in Stockwatch on Nov. 13, 2007).

The best hole, SZD-076, intersected 39.17 m grading 2.56 g/t Au. With an inferred true width of 36.3 m, this is by far the thickest intersection over 2.5 g/t Au drilled to date on the SMP project.

The drilling confirms the presence of a thick zone of east-west-striking gold mineralization close to surface. The zone dips southward at approximately minus 60 degrees and the five holes were drilled at minus 48 degrees northward. Holes were drilled on an offset 50 by 50 m grid testing 100 m of strike length of the Mbenge structure. All of the holes intersected mineralization as shown in the table, and mineralization is open along strike in both directions and to depth.



A plan map and long section of the drilling results are posted on the company's website.

The zone thickens westward and no drilling has been conducted to the west of SZD-076. Hole SZD-074 was twinned with the discovery hole at the Mbenge Far West target; reverse circulation (RC) hole SZR-052, which intersected 24 m grading 1.14 g/t Au from a down hole depth of 24 m (see news in Stockwatch on Oct. 29, 2007). The intercept in the DD hole has a 45 per cent higher gold content than the RC hole in terms of Au by metre values.

The Mbenge target is a northwest-southeast-to-east-west-striking zone of geochemical and geophysical anomalies which can be traced on surface and under cover for approximately two kilometres. The zone is parallel to and shares geological similarities with the Kenge zone, where the company is currently conducting infill drilling to define a resource. Following completion of the Mbenge DD program, the drill rig was moved back to the Kenge target to continue infill drilling. More results from Kenge are expected in the coming weeks.

About the SMP gold project
Helio can earn a 100-per-cent interest in four contiguous licences, which cover a 27 km strike length of the Saza shear zone (see news in Stockwatch on Dec. 19, 2005, and Sept. 11, 2006). The project area covers the eastern part of the New Saza gold mine, which operated between 1939 and 1956, producing approximately 270,000 ounces of gold at an average grade of 7.5 g/t Au. It was the second largest colonial mine in Tanzania after the Geita mine, which is today operated by Anglogold Ashanti and hosts a deposit containing over 23 million ounces of gold (not NI 43-101-compliant, see Anglogold's website).

Since June, 2006, the company has drill tested 13 targets, 11 of which are hosted by the Saza shear zone. All 13 targets have returned gold mineralization, the most advanced being the Kenge target, which has returned up to 21.95 m grading 6.92 g/t gold (see news in Stockwatch on May 23, 2007).

Chris MacKenzie, MSc, CGeol, Helio's chief operating officer and a qualified person as designated by NI 43-101, supervises the sampling and quality assurance/quality control programs at the SMP program, and has reviewed the contents of this news release. Drill holes were oriented at minus 48 degrees northward and were drilled perpendicular toward the main structural trend. Core was halved with a rock saw and sample lengths between 0.3 m and 1.1 m within the mineralized zone (averaging 0.6 m) were submitted to the lab (with the duplicate half being retained). QA/QC includes the use of blanks and standards (one every 15 samples) and duplicates (one every 24 samples). Samples were assayed at the SGS Laboratory in Mwanza, Tanzania, by 50-gram gold fire assay. As well as the company's internal QA/QC program, SGS also applied its own internal QA/QC program, consisting of insertion of standards and duplicates. Except when otherwise stated weighted average intercepts are calculated between the uppermost and lowermost samples within the main mineralized zone over a 0.5 g/t cut-off and may include some internal waste. The average grade of the 174 samples within the mineralized zones was 2.47 g/t Au with a standard deviation of 4.34.

Find out more about Helio at the company's web site at http://www.helioresource.com.



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