VANCOUVER — A cashing-up Helio Resource (HRC-V, HELOF-O) is tentatively planning a 20,000-metre drill program at its SMP gold project in the Lupa Goldfields of Tanzania, says the company’s CEO, Richard Williams.
Helio has closed two private placements with a combined value of $5.25 million. In one, Dundee Securities and Primary Capital among others, underwrote a $2.8-million financing of 8 million units at 35¢ a unit and in the other, Macquarie Bank bought 7 million units at the same price for proceeds of $2.45 million.
In both private placements, each unit is worth one share and half a warrant. Holders can redeem a full warrant into a single share for 50¢ in the first year following the closing of the issue on April 7, and 60¢ in the next year.
Williams says with the proceeds of the financing, the company forecasts spending up to $3 million on a drill campaign this year that will largely focus on the eastern extent of its SMP gold project.
Though no final decisions have been made, Helio will probably run two drill rigs.
Williams says Helio has identified, largely through geochemistry and geophysics, about 8 km of what may be continuous strike length extending between the Porcupine, Gap, Reefski and Panya zones. Respectively, the zones run west to east and are each about 2 km apart.
Helio has drilled some of the property’s most promising holes at Porcupine, where it has so far defined a near-surface mineralized area that is 200 metres long and 200 metres deep. Intercepts from the zone have ranged from about 5 to 50 metres and have graded between 1 and 4 grams gold per tonne.
The company has also intercepted similar grades and widths at targets 15 km west in the Kenge and Mbenge zones.
Williams says Helio may proceed with a resource estimate at the conclusion of the planned drill program but at the moment, the company is concentrating on identifying and defining mineralized areas.
The SMP property is 230 sq. km in size and the company says it can earn 100% interests on the property through five individual licences.
On news of the private placement, Helio’s share price gained 2.5¢. It has 50.4 million shares outstanding.
Be the first to comment on "Helio Raising $5.3M For Tanzanian Drilling"