Namibia

DAMARA GOLD PROJECT (DGP)

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PROJECT SUMMARY

PROJECT SIZE: 72,200 Ha (722km2)
LICENSES: 2 Exclusive Prospecting Licenses (EPL's): Otjimbojo and Wilhelmstal
OWNERSHIP:  Damara - 22% Interest, Helio Resources Corp.- 60%% Interest , Osino Resources Corp. – 17.5% Interest
LOCATION: Central Namibia, licences are located 20km east and in the same geological terrain of the Navachab Gold Mine, which is in the process of being sold by AngloGold Ashanti to QKR, a private equity firm, for US$110M.

HIGHLIGHTS

  • 2 licences, 722km2, 20km east of AngloGold Ashanti's Navachab gold mine (~1.5Moz produced, 5.1 Moz non-NI 43-101 compliant resource, potential to grow significantly)
  • Same stratigraphy and geology as Navachab
  • Results from the Gold Kop target returned 50m @ 2.1g/t Au, 0.8% Cu and 14g/t Ag, incl. 7m @ 9.0g/t Au, 4.4% Cu, 73g/t Ag
  • Other highlights include 12m @ 6.8g/t Au, 14m @ 3.1g/t Au, 7m @ 3.6g/t Au, 4m @ 11.6g/t Au, 5m @ 6.0g/t Au, 6m @ 5.3g/t Au, and 1m@ 32.8g/t Au
  • Almost 10,000m of drilling on 100m-200m spaced lines confirms potential to locate a sizeable gold target at Gold Kop. Infill drilling required
  • Additional coincident gold-in-soil and IP geophysical targets are ready for drill testing
  • Old Tin Mine present within the DGP

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Damara Project - Otjimbojo and Wilhelmstal licences
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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.

Gold-Kop-Drill-Plan

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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.

Gold-Kop-Soil-Sampling

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Almost 10,000m of drilling on 100m-200m spaced lines confirms potential to locate a sizeable gold target at Gold Kop - infill drilling required. Numerous other gold±copper‐in‐soil anomalies within 20km of Gold Kop yet to be drill tested, including Bull's‐Eye and Twin Peaks.

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DGP TIN POTENTIAL

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  • 11 km Sw of Helio’s GoldKop Au target,
  • Within 1 km of a National Road, major river and power line,
  • 10 km from 33kV power line,
  • 15 km from railway siding,
  • Previously explored and mined by Iscor/ Imkor.

 

DGP TIN TARGET

Northern Mining Area

  • 60 m deep decline (silted up at base),
  • 30 m level at least 150 m of development, 2 raises (one holed). Not stoped out

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Sample 5068 Mineralized Granite from underground workings:

1.6% Sn; 349ppm Ta; 274ppm Nb

tin-potential

Rock Grab Sampling Peak Geochemical Response:

  • Sn: 1.6%
  • Ta: 349ppm
  • Nb: 512ppm
  • F: >1%
  • Cs: 0.14%
  • Rb: 0.22%
  • Au: 106ppb
  • Sn correlates with Be-Nb-Ta.

N and S Mining Areas: Dump Samples Average 0.14% Sn

2014 Objectives

  • Demonstrate potential for Navachab-sized gold deposit
  • Outline resource potential