Helio Resource Corp.

Helio Resource Corp.

March 21, 2005 11:46 ET

Helio Options the Leicester and Otjimakuru Properties to Yale Resources Ltd


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HELIO RESOURCE CORP.

TSX VENTURE SYMBOL: HRC

MARCH 21, 2005 - 11:46 ET

Helio Options the Leicester and Otjimakuru Properties
to Yale Resources Ltd

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2005) - Helio
Resource Corp. (TSX VENTURE:HRC) ("Helio") is pleased to announce that
it has signed two Letters of Intent with Yale Resources Ltd. (TSX
VENTURE:YLL) on the Leicester and Otjimakuru properties in Namibia. Both
Letters of Intent allow Yale the right option to earn up to a 75%
interest in the properties.

Leicester

The 60,000 hectare (600 km2) Leicester Property is located approximately
350 km northwest of Namibia's capital city - Windhoek. To earn an
initial 51% interest Yale must spend CDN$2,900,000 on exploration and
issue 850,000 common shares of Yale to Helio over 4 years. The Year 1
exploration expenditure commitment is CDN$300,000. Upon vesting a 51%
interest Yale has the right to increase its interest to 75% by issuing
1,000,000 additional common shares to Helio and producing a bankable
feasibility study within an additional 3 years.

The property was explored for copper mineralization by Falconbridge in
the late 1960s. Falconbridge performed soil sampling over the entire 30
km of the Rehderstal Fault that runs through the centre of the property
and identified two high priority copper (+/- gold and silver) targets.
The Main Target is highlighted as follows:

- Located adjacent to a major regional structure - the 150km-long
Rehderstal Fault.

- A "jog" in the Rehderstal Fault coincides with a 7km x 4km copper in
stream sediment anomaly (2,449 samples covering 88km2), a 7km x 3km
magnetic anomaly, and a Landsat iron oxide anomaly;

- Copper mineralisation is hosted by deformed granites and Damara age
sediments;

- Falconbridge drilled eight diamond drill holes totalling 1,357m in
1970, seven of which intersected copper mineralization. The best drill
intersections from each of these zones - located 7.8km apart - were
19.3m @ 1.53% Cu & 35g/t Ag and 9.9m @ 0.71% Cu, respectively.
Mineralisation is open at depth and along strike, and gold was never
assayed for.

No additional drilling has been performed since that time.

Confirmatory chip channel sampling of copper oxide mineralization by
Helio in 2003 at three zones up to 8km apart within the Main Target
returned 4 metres averaging 6.47% Cu, 6 metres averaging 2.48% Cu, and
10 metres averaging 3.72% Cu.

The second high priority target is located some 8 km to the east of the
Main Target and is marked by a coincident copper-in-soil and a moderate
airborne magnetic-radiometric anomaly that is approximately 3 km in
length. Initial grab sampling of this early stage target by Helio
returned values that ranged from 19 ppm to 2,119 ppm Cu and from 12 ppb
to 798 ppb Au.

The Leicester Property is underlain by 2.0 billion year old basement
rocks that are intruded by mineralised mid-Proterozoic (1.7 Ga)
granitoids having a Au-Cu-Fe-Bi-Ba-P-K geochemical signature. A number
of sedimentary basins of lower Damaran age (700 - 550 Ma) also occur
along the fault, and these also host copper mineralisation. The presence
of hematite alteration and local magnetite veining suggests that the
mineralisation may have affinities with Iron Oxide Copper Gold (IOCG)
deposits. However, it is also possible that the copper-silver
mineralization tested by Falconbridge may represent copper
mineralisation of the 'Zambian Copper Belt'-type.

Forthcoming exploration at Leicester will include induced polarisation
(IP) geophysical and geochemical surveys followed by drilling of
priority targets.

Otjimakuru

The Otjimakuru Property covers 17,000 hectares (170 km2) and is located
approximately 150 km northwest of Windhoek. To earn a 75% interest, Yale
must spend CDN$1,800,000 on exploration and issue 775,000 common shares
to Helio over a 4 year period. The first year work commitment is
CDN$150,000.

The Otjimakuru Property is an earlier stage exploration target. The
exploration model at Otjimakuru is for a skarn-hosted sheeted-vein gold
deposit similar to the +5 million oz Navachab open pit gold mine
situated 90 km to the southwest, and the Otjikoto deposit located 110km
to the northeast. Navachab was placed into production in 1989 by
AngloGoldAshanti and is Namibia's first and only gold mine. Otjikoto is
an advanced exploration project with a 1 million ounce resource estimate
at the pre-feasibility stage that is being explored by AngloVaal (now
ARM). The mine life at Navachab was recently extended to 2013.

Otjimakuru is located immediately adjacent to Helio's Vredelus property,
where previous drilling of a magnetic anomaly intersected skarn-hosted
gold mineralisation with the following best grades:

- 9.53g/t gold over 11m,

- 12.85g/t gold over 5m;

- 5.54g/t gold over 12.35m.

The area of interest is a package of fault bounded sedimentary rocks
that coincide with a 4 km long by 1.5 km wide magnetic anomaly under
calcrete cover. An initial IP and gochemical survey is planned in order
to develop drill targets.

Chris MacKenzie, Chartered Geologist and Helio's Executive Chairman, is
the Qualified Person as designated by NI43-101 and has reviewed and
approved the content of this news release.

ON BEHALF OF THE BOARD OF DIRECTORS,

Richard D. Williams, P.Geo, President


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Helio Resource Corp.
    Richard Williams
    President
    (604) 668-8356
    (604) 668-8366 (FAX)
    richard@helioresource.com
    www.helioresource.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.