Helio Intersects 7.4m Grading 6.1g/t Au at the Quill Zone, SMP Gold Project, Tanzania

TSX-V Trading Symbol: HRC

VANCOUVER, Dec. 7, 2011 /PRNewswire/ – Helio Resource Corp. (TSX-V: HRC) is
pleased to report additional results from the 2011 diamond drill
programme at the SMP Gold Project in Tanzania. Results are from the
Porcupine (Quill Zone) and Gap Targets, and confirm the presence of multiple new zones of mineralisation which are
open in all directions. The presence of high grade zones at both the
Gap Target and the Quill Zone is very encouraging. These new zones of mineralisation will be incorporated into an updated
NI 43-101 resource statement for the SMP Gold Project expected in early
2012.

Further drilling to test the strike continuation of these zones is
planned for 2012.

Highlights:

        --  Multiple zones of mineralisation at the Gap Target over a 1.2km
            strike length, open along strike;
        --  High grade intercepts at the east end of Gap (e.g. 3m at 7.2g/t
            Au) occur north of any previous drilling and open a new area
            for resource expansion;
        --  Up to 7.4m grading 6.1g/t Au at the Quill Zone at Porcupine
            highlight the presence of higher grade sections new to the
            Porcupine resource model.

At the Gap Target, the holes reported are all on a fence drilled on the
same section as GPD128, which intercepted 8m grading 1.5g/t Au.  Three
additional zones of significant mineralisation were intercepted, in
holes GPD130, GPD132 and GPD135.  All zones are associated with
shearing, quartz veining with pyrite, and sericite alteration along
granite-diorite contacts, and are related to the continuation of the
Porcupine magnetic structure and its intercept with a prominent NW
trending magnetic anomaly that covers a 5km strike length.

A plan map of the SMP Gold Project is presented in the following link:

http://www.helioresource.com/i/pdf/2011-12-07_NRM1.pdf

A map showing the location of the holes at Gap Target is shown below:

http://www.helioresource.com/i/pdf/2011-12-07_NRM2.pdf

The Quill zone is located approximately 250m NW of the Main Zone at the
Porcupine target, and is also associated with sulphidised,
quartz-veined, sericite-altered, granitic rock.  The mineralised zones
are all open to depth – little drilling beneath 100m has been conducted
at Quill.

The 14 holes (1,980m) reported herein conclude the balance of the 2011
diamond drilling programme at SMP.  Highlights are presented in the
table below:

     _____________________________________________________
    |Hole #|   Target  |From (m)|Width (m) |Au Grade (g/t)|
    |______|___________|________|__________|______________|
    |GPD113| Porcupine |   136  |      3   |        1.1   |
    |______|___________|________|__________|______________|
    |  and | Porcupine |   162  |      1   |        3.3   |
    |______|___________|________|__________|______________|
    |GPD115| Porcupine |    39  |      1   |        1.6   |
    |______|___________|________|__________|______________|
    |  and | Porcupine |    52  |      3   |        3.7   |
    |______|___________|________|__________|______________|
    |  and | Porcupine |    79  |      1   |         1    |
    |______|___________|________|__________|______________|
    |GPD121|Porcupine W|    39  |      1   |        1.5   |
    |______|___________|________|__________|______________|
    |GPD124|Porcupine W|   135  |      1   |        1.5   |
    |______|___________|________|__________|______________|
    |GPD126|    Quill  |     7  |      3   |        1.3   |
    |______|___________|________|__________|______________|
    |  and |    Quill  |    98  |      1   |        2.7   |
    |______|___________|________|__________|______________|
    |  and |    Quill  |   147  |7.4 (open)|        6.1   |
    |______|___________|________|__________|______________|
    |  inc |    Quill  |   147  |      2   |       20.9   |
    |______|___________|________|__________|______________|
    |GPD127|    Quill  |    41  |      1   |         1    |
    |______|___________|________|__________|______________|
    |  and |    Quill  |    47  |      1   |        1.6   |
    |______|___________|________|__________|______________|
    |GPD129|    Quill  |    21  |      1   |        1.9   |
    |______|___________|________|__________|______________|
    |  and |    Quill  |    74  |      1   |        1.9   |
    |______|___________|________|__________|______________|
    |  and |    Quill  |    79  |      1   |        1.4   |
    |______|___________|________|__________|______________|
    |GPD130|      Gap  |    54  |      1   |        8.2   |
    |______|___________|________|__________|______________|
    |GPD131|    Quill  |    28  |      1   |        1.2   |
    |______|___________|________|__________|______________|
    |GPD132|      Gap  |    40  |      10  |        0.5   |
    |______|___________|________|__________|______________|
    |GPD135|      Gap  |    48  |      3   |        7.2   |
    |______|___________|________|__________|______________|

The results of the drilling are available on the Company’s website www.helioresource.com and at www.corebox.net.

Drilling Update

Reverse Circulation (RC) drilling was completed at the Tumbili and
Konokono targets during November – the results will be reported in due
course.

About the SMP Gold Project

The SMP Gold Project covers an area of 238km(2).  Gold mineralisation has been identified in 30 targets within the
project area.  Two of these targets, Porcupine and Kenge, have been
advanced to the resource stage and both, especially Porcupine, still
have potential to grow significantly.  The unrestrained resource
calculation as released in November 2010 reported a Measured and
Indicated Resource of 588,749 ounces (11.82Mt grading 1.54g/t Au) plus
an Inferred Resource of 352,354 ounces (9.9Mt grading 1.10g/t Au) at a
cut off grade of 0.3g/t Au.

Mineralisation at all 30 targets outcrops at surface, and varies from
narrow, high grade gold mineralisation hosted in quartz veins and shear
zones, to wide zones (up to 90m in width) of lower grade, bulk mineable
/ open pittable mineralisation.

Helio owns a 100% interest in four of five licences, subject to a 2% NSR
to the vendors (Tanzanian small mining companies), and the Company is
in the process of earning a 100% interest in the fifth licence.

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 and approved the contents of this news
release.  Intercepts are reported as drilled widths, more drilling is
required to confirm true widths. Continuous 1m and 2m samples were
taken through the main mineralised zones, with variable sampling
outside this.  Samples were split with a core saw and one half was
retained on site.  All samples were submitted to the lab with internal
QA/QC checks including the use of blanks and standards (ave. 1 every 17
samples) and duplicates (ave. 1 every 25 samples).  Samples were
assayed at the SGS Laboratory in Mwanza, Tanzania by 50g gold fire
assay.  As well as the Company’s internal QA/QC programme, SGS also
applied their own internal QA/QC programme, consisting of insertion of
standards and duplicates.  Weighted average intercepts are calculated
using a 0.5g/t Au cut-off, unless otherwise stated and may include some
mineralised waste.  Any individual assays over 20g/t Au are
highlighted.

ON BEHALF OF THE BOARD OF DIRECTORS

              "Richard D. Williams"               "Chris MacKenzie"

              Richard D. Williams,                Christopher J. MacKenzie,
              P.Geo                               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

 

SOURCE Helio Resource Corp.