Helio – Developing Gold Projects in Tanzania and Namibia
Overview
Helio Resource Corp. (TSXV:HRC) is a Canadian-listed junior gold exploration company focused on substantially growing the NI 43-101 resource at its 238km² SMP Gold Project in Tanzania and demonstrating the potential for a 3Moz+ resource in short order.
Helio is also in the process of outlining the resource potential at its 100%-owned 3,185km² Damara Gold Project (DGP) in Namibia. The DGP is located 25km east of AngloGold Ashanti’s Navachab mine (which has produced approximately 1.5 Moz of gold and has a non-NI 43-101 compliant resource of 5.1 Moz grading 1.15g/t Au).
The company is lead by a focused management team with extensive African experience. The seasoned board also has experience in all stages of the mining industry, from exploration and development to production.
Helio enjoys a strong institutional support: approximately 65% is held by management, insiders and institutions including the IFC (member of the World Bank) (15%), CIBC Precious Metals (9.5%) and Macquarie Bank (6.5%).
Investment Highlights
- Active in Tanzania + Namibia – countries with strong track record for investment and mine development
- NI 43-101 resource of 1,020,000 ounces (24.1Mt @ 1.32g/t) in the Measured and Indicated category, plus 240,000 ounces (7.3Mt @ 1.05g/t) in the Inferred category (0.5g/t Au cut-off) at the SMP Gold Project in Tanzania.
- Tremendous upside for growth: all resource areas are open for additional ounces.
- PEA expected in June 2012.
- Metallurgical test work shows recoveries of up to 96%.
- Blue sky potential of the DGP Project in Namibia, where early drill results have confirmed Navachab-style mineralisation
Chief Properties
Key Property – SMP Gold Project in Tanzania
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With a current gold inventory of almost 1.3 million ounces, the 238 km2 SMP Gold Project in the Lupa Goldfields of SW Tanzania covers 35 km of the Saza Shear Zone, the main gold-bearing structure in the region. There are 6 old gold mines within the project area, including the New Saza Mine which was Tanzania’s second largest goldmine, producing 270,000 ounces of gold at an average grade of 7.5g/t Au between 1939 and 1956.
Mineralisation at all the 30 targets defined so far outcrops at surface, and varies from narrow, high-grade gold hosted in quartz veins and shear zones, to wide zones (up to 100m+) of lower-grade, bulk-mineable/open-pittable mineralisation.
The current resource will be expanded during 2012 and Helio believes that continued drilling will demonstrate the potential for a 3Moz+ resource.
In February 2012, Helio published an updated NI 43-101 compliant resource. Using a cut-off grade of 0.5g/t Au, SRK Consulting (Australia) Pty. Ltd. estimated Measured and Indicated Resources at 24.1 million tonnes grading 1.32g/t gold for 1,020,000 oz contained gold. An additional 7.2 million tonnes grading 1.05 g/t gold, for 240,000 oz contained gold, was categorized as an Inferred Resource. Metallurgical tests indicate recoveries of 94%-96% using conventional processing methods.
The Porcupine Target Area
The Porcupine Target hosts 650,000 oz of the Measured and Indicated Resource. Mineralization remains open along strike and at depth offering good expansion with further drilling. Recent shallow drill intersections of higher grade mineralization (e.g. 7.4m at 6.1g/t Au) were not included in the resource, but represent excellent potential to add higher grade material to the resource with further drilling as well. Additionally, the deepest drilled intercepts at Porcupine (53m grading 2.9g/t Au and 28m grading 5.1g/t Au) demonstrate the strong potential to add ounces at depth, beneath the current resource.
The Kenge Target Area
The Kenge Target hosts 370,000 oz of the Measured and Indicated Resource. The target has been tested to a depth of approximately 150m, and remains open to depth. Metallurgical results from the Kenge Target are very positive, with recoveries of up to 96% from conventional gravity and cyanidation processes.
The Konokono and Tumbili Target Areas
Drilling at the end of 2011 at the Konokono and Tumbili Targets demonstrated a strike potential for gold mineralization of at least 3,200m. Mineralisation outcrops at surface, and drilling to date has focussed on mineralisation within 50m of surface. Drill results vary from narrow high grade gold mineralization, e.g. 2m at 17.8g/t Au and 4m at 11.2g/t Au, to very wide zones of bulk tonnage gold mineralization (e.g. 112m at 0.5g/t Au). Infill drilling is planned for 2012 in order to to convert the known mineralization into resource ounces.
Plans for 2012
Helio expects to complete an initial scoping study (PEA – Preliminary Economic Assessment) on the updated resource for the SMP Gold Project by the end of Q2, 2012. Drilling this year will focus on converting existing drill intercepts into NI 43-101 compliant resources at the Gap, Tumbili, and Konokono Targets, as well as testing the depth potential for high-grade mineralization beneath the old Saza Gold Mine and other areas.
Damara Gold Project,Namibia
The 100%-owned DGP Gold Project, located in central Namibia comprises four licences (covering 3,185km2) and is located between AngloGold Ashanti’s Navachab Mine to the southwest and B2Gold’s Otjikoto Project to the northeast.
The Navachab mine has been in production since 1989 and, as of December 2011, has produced over 1.5 Moz of gold, and currently has a non-NI 43-101 compliant resource of 5.1 Moz grading 1.15g/t Au (source AngloGold Ashanti Resource Report, 30 June, 2011).
B2Gold’s Otjikoto Gold Project, recently acquired from Auryx Gold, and located approximately 150km northeast of Helio’s licences, has a NI 43-101 Indicated Resource of 15.78Mt grading 1.94g/t Au and an Inferred Resource of 8.37Mt grading 1.94g/t Au for a total of 1.5 Moz at a 0.8g/t cut-off (February 2011).
Gold Kop Target
Exploration in 2011 has mainly focused on the Gold Kop Target located 40km to the northeast of the Navachab mine. Exploration included drill-testing a 1.3km strike length of the main prospective horizon identified to date – a dolomitic marble hosting a combination of wide low-grade zones of mineralization and narrower zones of high-grade gold mineralization. Notable drill results include 50m grading 2.1g/t Au, 0.8% Cu and 14g/t Ag and 4m at 11.6g/t Au, 38m at 0.8g/t Au, and 1m at 32.9g/t Au. Mineralisation drilled to date shows many similarities to AngloGold Ashanti’s Navachab gold mine.
In Q4 2011, Helio completed a soil sampling program covering a 10km2 area over and adjacent to the Gold Kop Target. The results confirmed six distinct target areas over a 7km strike length, returning gold-in-soil results of up to 7.6g/t Au.
Plans for 2012
In 2012 Helio aims to demonstrate the potential for a Navachab-sized gold deposit at the DGP and outline the resource potential. Based on the 2011 drill results and new geochemical data, the company has designed a 10,000m RC drill program to test the potential of the Gold Kop Target. Helio sees excellent scope to outline a resource at the DGP quickly.
Management
Christopher J. Mackenzie, M.Sc., C. Geol. – Chief Operating Officer & Director - Chris MacKenzie is a Chartered Geologist who has worked widely in Africa, Europe, and the Americas. Chris holds a B.Sc. Honours Degree in Geology from Portsmouth University, UK and a M.Sc. Degree in Exploration Geology from Rhodes University, South Africa. In 2000, after completing his M.Sc., he and Richard Williams formed the BAFEX group of companies, the precursor to Helio Resource Corp.
Richard D. Williams, M.Sc., P.Geo – Chief Executive Officer & Director - Richard Williams is a Professional Geologist with 21 years experience in gold mining and precious and base metal mineral exploration in southern Africa, south, central and north America, and most recently in southern Europe. Richard graduated from Portsmouth University 1988. In 1993 he completed a Master’s degree in Mineral Exploration at Queen’s University, Ontario. Richard is based in Vancouver and is responsible for Helio’s corporate affairs.
Andrew MacRitchie, C.A. – Chief Financial Officer - Andrew MacRitchie holds a B.Sc. Honours degree from the University of British Columbia. He received his Chartered Accountant designation in 2003 while articling with PricewaterhouseCoopers. During that time, Andrew provided services to public companies in the technology and commodities industries. Prior to joining Helio in 2007, Andrew spent four years as the Corporate Controller for a group of exploration-stage companies with gold, silver, diamond and base-metals. Andrew volunteers as a member of the Board of Directors of the Kidney Foundation of Canada.
D. Grenville Thomas, P. Eng. – Chairman & Director – D. Grenville Thomas is best known as the founder (and held positions as Chairman, President and Director) of Toronto-based Aber Resources Ltd. (now Harry Winston Diamond Corporation). Harry Winston holds interests in various properties throughout the Northwest Territories, including the Diavik Diamond Mine, Canada’s second diamond mine. Mr. Thomas brings significant exploration experience and demonstrated exploration success to the Board.
Clifford T. Davis, CA – Director - Cliff Davis, Chartered Accountant, is the CEO of Nevsun Resources Ltd, which is operating the Bisha gold-copper-zinc mine in Eritrea. Mr. Davis brings to the Board his international business experience in operations and finance as well as his experience in accounting and corporate governance.
Stephen M. Leahy – Director - Mr. Leahy is a businessman who has participated actively in the formation, growth and financings of numerous mining and oil & gas companies in Canada and internationally. Since 1981 Mr. Leahy has served as President, Chairman, CEO or Director of numerous private and publicly traded companies with listings on the TSX Venture Exchange and TSX including Startech Energy, Wellco Energy Services and First Silver Reserve. Mr. Leahy is currently Chairman & CEO of North American Tungsten Corporation Ltd, which owns 100% of the CanTung Mine and MacTung deposit in the Yukon/NWT.
Colin Jones, B.Sc., MAusIMM – Director - Colin Jones is a graduate of Massey University, New Zealand and is also a Member of the Australasian Institute of Mining and Metallurgy. He has experience globally, having worked on producing mines, and managed large exploration and due diligence projects, and has undertaken numerous bankable technical audits, technical valuations, independent expert reports and due diligence studies worldwide. Mr Jones was Executive Vice President with Dundee Resources, Toronto, before working as an independent consultant to the mining industry. Mr. Jones brings significant technical and due diligence experience to the Board.
