Four New Anomalies Discovered from Soil Sampling Programmes at the DGP Gold Project, Namibia !
JOINT NEWS RELEASE
Four New Anomalies Discovered from Soil Sampling Programmes at the DGP Gold Project, Namibia
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Vancouver,!October!28,!2014!
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Damara!Gold!Corp!(TSX?V:DMR)!and!Helio!Resource!Corp!(TSX?V:HRC),!!(the!“Companies”)!are! pleased!to!report!results!of!soil!sampling!programmes!at!the!GoldKop!Extension!and!Twin!Peaks! Targets!at!the!DGP!Gold!Project!in!the!central!Namibian!Gold!belt.!Figure!1!shows!the!location! of!the!DGP!Gold!project!and!the!new!soil!sampling!grids!in!relation!to!the!Navachab!Gold!Mine! (operated!by!QKR),!and!the!Companies’!GoldKop!target.!
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The!DGP!Gold!Project!is!part!of!an!option!agreement!whereby!Damara!Gold!Corp!can!earn!an! initial!51%!interest!by!spending!$1,500,000!over!three!years!and!by!issuing!1,500,000!shares!to! Helio!(see!Helio!news!release!dated!March!26,!2014).!Damara!has!the!option!to!increase!its! interest!to!60%!by!spending!a!further!$1,500,000!and!issuing!an!additional!500,000!shares!to! Helio!before!the!end!of!the!fourth!year.!
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HIGHLIGHTS!
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- Discovery!of!the!Snake!River!Target!on!the!GoldKop!Extension!Grid!?!a!2.5km!long,!NNE? SSW!trending,!Ag!±!Au!±!Bi!±!Cu!±!W!anomaly,!located!1km!north!of!GoldKop.!
- The!scale!of!polymetallic!geochemical!response!at!the!Snake!River!Target!is!significantly! greater!than!seen!at!GoldKop.!
- Three!new!Au!anomalies!discovered!in!the!Twin!Peaks!Target!–!an!area!with!the!same! geology!as!the!nearby!Navachab!gold!mine.!
- To!date,!only!~10%!of!the!prospective!geology!within!the!project!area!has!been!covered! by!soil!sampling.!
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A!total!of!2,117!samples!were!analysed!?!results!are!described!below.!!!
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GoldKop!Grid!Extension!–!the!Snake!River!Anomaly!
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A! total! of! 1,007! samples! (including! QA/QC! samples)! were! collected! on! a! 200! x! 25m! grid! covering!4.7km2!(Figure!1).!A!series!of!E?W!sample!lines!extended!the!coverage!of!the!GoldKop! grid,!where!Helio!had!previously!identified!the!GoldKop!Au?Cu!anomaly!(see!Helio!press!release! dated!January!23,!2012).!!!
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A!2.5km!long,!NNE?SSW!trending!Ag!±!Au!±!Bi!±!Cu!±!W!anomaly!has!been!discovered!–!the! Snake! River! Anomaly.! The! scale! of! this! new! anomaly,! which! remains! open! to! the! north,! is! significantly!greater!than!the!responses!seen!from!GoldKop!grid!–!see!Figure!2.!
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The!Snake!River!Anomaly,!located!1km!north!of!the!GoldKop!target,!overlies!a!bedded!meta? sedimentary! sequence! of! impure! carbonates! and! siltstones,! which! include! the! Snake! River! Skarn.!!!
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Peak! geochemical! responses! include! gold! values! to! 24ppb! (against! a! mean! of! 3.4ppb! Au),! copper! values! to! 294ppm! (mean! 27ppm! Cu)! and! nine! samples! with! tungsten! values! over! 100ppm!(the!upper!limit!of!detection!for!W!by!this!analytical!method!–!mean!3ppm!W).! !
The!results!are!significant!given!that!scheelite!and!chalcopyrite!are!associated!with!auriferous! drill!intercepts!at!GoldKop!(such!as!that!in!hole!OJD001,!which!intersected!7m!grading!9ppm! Au,!73ppm!Ag!and!4.4%!Cu).!!!
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Twin!Peaks!Target!
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The!Twin!Peaks!Target!is!located!midway!between!GoldKop!(20km!to!the!NE)!and!the!Navachab! gold!mine!(~30km!to!the!SW)!(Figure!1),!and!covers!the!exact!same!stratigraphic!sequence!and! domal!structural!setting!as!the!Navachab!mine.!!!
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Two!grids,!named!Puff!Adder!and!Courser,!were!sampled,!each!grid!designed!to!cover!an!area! of!anomalous!Au!+!Cu!values!in!stream?sediments.!
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Puff!Adder!Grid!
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533!soil!samples!were!taken!on!a!200m!x!25m!grid!with!sample!lines!oriented!N?S.!The!grid! covers!an!area!of!2.25km2.!
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Two!anomalies!were!discovered;!the!first!is!a!900m!x!300m!NW?SE!trending!zone!in!the!NW!of! the!grid;!the!second!is!a!700m!x!300m!NE?SW!trending!zone!in!the!S!of!the!grid.!!Both!zones!are! open!and!have!Ag?Au?Bi?Cu?Te?W!associations.!!
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The!peak!geochemical!responses!are!62ppb!gold!(against!a!mean!value!of!2.5ppb!Au),!23.5ppm! bismuth!(mean!value!1.1ppm!Bi)!and!101ppm!copper!(mean!value!29ppm!Cu)!–!see!Figure!3.! !
Courser!Grid!
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577!samples!were!taken!on!a!200m!x!25m!grid!with!sample!lines!oriented!N?S.!The!grid!covers! an!area!of!2.56km2.!
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One!main!anomaly!was!located!along!the!northern!portion!of!the!grid.!!It!trends!WNW?ESE!and! is!1,300m!long!and!up!to!400m!wide.!!Peak!geochemical!responses!are!113.5ppb!gold!(against!a! mean!of!4.9ppb!Au)!and!70ppm!copper!(mean!21.6ppm!Cu)!(Figure!3).!
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Summary!
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These!results!continue!to!demonstrate!the!substantial!exploration!potential!of!the!DGP!project.!! The!Companies!intend!to!conduct!more!detailed!follow!up!on!these!new!targets!and!advance! them!to!drill!testing!as!soon!as!possible.!
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About!the!DGP!Project!
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The! DGP! Project! includes! two! Exclusive! Prospecting! Licences! (EPLs)! covering! approximately! 722km2,!located!in!central!Namibia,!southern!Africa.!The!licences!are!located!20?30km!east!of! the! Navachab! Gold! Mine,! which! was! recently! acquired! from! AngloGold! Ashanti! by! QKR,! a! private!equity!firm,!for!US$110M.!
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The!GoldKop!target!is!the!most!advanced!target!within!DGP.!Here,!drill!results!from!the!2011! and!2012!RC!and!diamond!drill!programmes!returned!multiple!mineralised!intercepts,!including! 7m!@!9g/t!Au!from!54!meters,!12m!@!6.8g/t!Au!from!12!meters,!14m!@!3.1g/t!Au!from!2! meters!and!4m!@!11.6g/t!Au!from!30!meters,!over!a!1km!strike!length.!In!addition!some!high! grade!copper!and!silver!values!were!also!identified!–!best!intercept!7m!grading!9g/t!Au,!73g/t! Ag! and! 4.4%! Cu! from! 54! meters.! Intercepts! are! drilled! width;! more! drilling! is! required! to! establish!true!width.!Additional!coincident!gold?in?soil!and!IP!geophysical!targets!are!ready!for! drill!testing.!!
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Planned!exploration!on!the!DGP!includes!further!geophysics!(gravity!and!EM)!to!confirm!the! orientation! of!the!high?grade!auriferous! ore?shoots!plus!infill!drilling!at! GoldKop!to!define!a! maiden!resource.!Metallurgical!testwork!will!also!be!conducted.!In!tandem,!other!geochemical! targets!will!be!advanced!to!the!drill?ready!stage.!It!is!also!planned!that!the!Old!Tin!Mine!within! the!DGP!will!be!investigated!with!drilling!to!confirm!the!resource!potential!for!tin.!!
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Chris!MacKenzie,!M.Sc.,!C.Geol.,!Helio’s!COO!and!a!Qualified!Person!as!designated!by!NI!43?101,! is!based!in!Namibia!and!supervises!the!exploration!at!Helio’s!projects,!including!the!sampling! and!quality!assurance!/!quality!control!(QA?QC)!programmes,!and!has!reviewed!and!approved! the!contents!of!this!news!release.!50?100g!soil!samples!were!taken!and!sent!to!Bureau!Veritas! Mineral! Laboratories! in! Swakopmund! where! they! were! pulverised! and! the! resultant! sample! pulps!sent!to!for!onward!analysis!in!Vancouver,!Canada!using!the!AQ202!ICP?MS!method.! !
About Damara Gold Corp
Damara Gold Corp. is a TSX Venture listed Canadian public company with a Board of Directors seasoned in the mineral exploration industry with extensive and successful international experience with a focus on identifying and acquiring prospective and under-explored gold properties worldwide. Damara is currently focused on identifying and defining Cu-Au-W potential at the DGP project in Namibia. Damara Gold Corp has under its Option Agreement with Helio, appointed BAFEX Exploration (Pty) Ltd (Helio’s wholly-owned subsidiary) as operator of the DGP project until Damara has earned its initial 51% interest. Upon Damara exercising its option at 51% or 60% interest as the case may be, Damara and Helio will subsequently form a joint venture and further development costs will be shared proportionately.
About Helio Resource Corp
Helio Resource Corp is a resource company focused on advancing the 100% owned SMP Gold Project in Tanzania to a production decision, and outlining the resource potential at the DGP Gold Project in Namibia.
For Additional Information, Please Contact:
Helio Resource Corp Damara Gold Corp
Irene Dorsman, Corporate Communications Larry Nagy, CEO [email protected] [email protected] T: +1 604 638 8007 T: +1 250 768 1168 www.helioresource.com www.damaragoldcorp.com
ON BEHALF OF THE BOARDS OF DIRECTORS
“Lawrence Nagy” “Richard D. Williams” “Chris MacKenzie” Lawrence (“Larry”) Nagy Richard D. Williams Christopher J. MacKenzie, CEO, Director - Damara CEO, Director - Helio COO, Director - Helio
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.
Statements Regarding Forward-Looking Information
Certain( statements( contained( in( this( news( release( may( contain( forward3looking( information( within(the(meaning(of(Canadian(securities(laws.(Such(forward3looking(information(is(identified( by( words( such( as( “estimates”,( “intends”,( “expects”,( “believes”,( “may”,( “will”( and( include,( without(limitation,(statements(regarding(the(company’s(plan(of(business(operations((including( plans( for( progressing( assets),( estimates( regarding( mineral( resources,( projections( regarding( mineralization(and(projected(expenditures.(There(can(be(no(assurance(that(such(statements(will( prove( to( be( accurate;( actual( results( and( future( events( could( differ( materially( from( such( statements.(Factors(that(could(cause(actual(results(to(differ(materially(include,(among(others,( metal(prices,(risks(inherent(in(the(mining(industry,(financing(risks,(labour(risks,(uncertainty(of( mineral( resource( estimates,( equipment( and( supply( risks,( title( disputes,( regulatory( risks( and( environmental(concerns.(Most(of(these(factors(are(outside(the(control(of(the(company.(Investors( are(cautioned(not(to(put(undue(reliance(on(forward3looking(information.(Except(as(otherwise( required( by( applicable( securities( statutes( or( regulation,( the( company( expressly( disclaims( any( intent(or(obligation(to(update(publicly(forward3looking(information,(whether(as(a(result(of(new( information,(future(events(or(otherwise.!
Figure 1 Regional Map Showing New Geochemical Coverage
Figure 2 Cu and W in GoldKop and GoldKop Extension Grids
Figure 3 Au and Cu at the Puff Adder and Courser Grids, Twin Peaks.