Helio successfully completes earn-in on the Saza Licence - SMP Gold Project, Tanzania
Mon Nov 23, 3:35 PM
ca.news.finance.yahoo.com
TSX-V Trading Symbol: HRC
VANCOUVER, Nov. 23 /CNW/ - Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC.V) is pleased to announce that it has successfully earned a 100% interest in the Saza Licence, which forms part of the Company's SMP Gold Project in Tanzania (see news release dated December 19, 2005).
The option agreement for Saza required Helio, through its 100% owned Tanzanian subsidiary BAFEX Tanzania Ltd, to spend CAD$2,000,000 on exploration and make cash and/or share payments totalling CAD$400,000 over a 4-year period to Thorntree Minerals Limited ("Thorntree"), the licence holder.
Thorntree, a small Tanzanian mining company, retains a 2% royalty. Helio has the right to purchase 50% of the royalty for CAD$1,000,000 at any time prior to commercial production.
The completion of the agreement was the issuance of CAD$250,000 in Helio shares (416,667 shares) to Thorntree, based on the closing price of Helio's shares on November 19, 2009.
The Company has been successful in delineating a number of significant gold occurrences on Saza, the most advanced being the Kenge Target.
The Kenge Target currently comprises 6 zones of mineralisation, Kenge NW, Kenge Main, Kenge SE, Snakebite, Mbenge, and Mbenge E. All of the zones have been tested with a combination of diamond and reverse circulation drilling - details are presented in the link below:
- Map Showing Mineralized Zones at the Kenge Target
helioresource.com
In addition to Saza, the Company has options to earn a 100% interest,
subject to the same royalty conditions, in four other licences (see news
releases dated October 16, 2008, and September 11, 2006):
- Saza West - also optioned from Thorntree
- Gap, Kwaheri, and Ilunga - optioned from Dhahabu Resources and
Mining, another small Tanzanian mining company.
ABOUT THE SMP GOLD PROJECT
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Helio, through its 100% owned subsidiary BAFEX Tanzania Ltd., can earn a 100% interest in five contiguous licences, including the recently earned Saza licence, which cover a 35km strike length of the Saza Shear Zone.
Since June 2006, the Company has drill-tested thirteen targets, nine of which are hosted along the Saza Shear Zone. Twelve of the targets have intersected bedrock-hosted gold mineralisation, the most advanced being the Porcupine and Kenge Targets (see the Corporate Presentation on the Home Page of the Company's website at www.helioresource.com).
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams" "Chris MacKenzie"
Richard D. Williams, P.Geo Christopher J. MacKenzie, C.Geol.
CEO 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.
Contacts
Richard Williams
(604) 638-8005 or by e-mail to richard@helioresource.com |
