Helio Resource Corp.

Helio Resource Corp.

March 15, 2005 11:29 ET

Helio Resource Corp.: RC Drilling at Otjitombo Confirms Historic Copper Results and Proves Significant Gold-Cobalt Mineralisation


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HELIO RESOURCE CORP.

TSX VENTURE SYMBOL: HRC

MARCH 15, 2005 - 11:29 ET

Helio Resource Corp.: RC Drilling at Otjitombo
Confirms Historic Copper Results and Proves
Significant Gold-Cobalt Mineralisation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2005) - Helio
Resource Corp. (TSX VENTURE:HRC) ("Helio") is pleased to announce
results from six reverse circulation (RC) drill holes from its 100%
owned Otjitombo property. All six holes intersected copper
mineralization, the most significant of which were:

- 32m grading 0.97% Cu and 0.11g/t gold from OTR 1

- 22m grading 1.06% Cu and 0.26g/t gold from OTR 5

Drill holes OTR 1 and OTR 5 are located almost 600m apart. A total of
531m were drilled in the six RC holes. Full results are tabulated below:



----------------------------------------------------------------------
Hole ID Length Dip From To Width Cu (%) Au (g/t) Co (%)
----------------------------------------------------------------------
OTR 1 90m -60 0 64 64m 0.62 0.08 -
Inc 0 32 32m 0.97 0.11 -
Inc 0 26 26m 1.11 0.16 -
----------------------------------------------------------------------
OTR 2 96m -60 12 56 44m 0.41 0.04 -
Inc 14 28 14m 0.74 0.07 -
----------------------------------------------------------------------
OTR 3 84m -60 0 40 40m 0.23 0.02 -
Inc 34 38 4m 0.52 0.03 0.05
----------------------------------------------------------------------
OTR 4 82m -60 0 44 44m 0.49 0.05 -
Inc 0 18 18m 0.74 0.06 -
Inc 30 40 10m 0.58 0.09 -
And 60 64 4m 0.58 0.06 -
----------------------------------------------------------------------
OTR 5 84m -60 22 44 22m 1.06 0.26 -
Inc 28 30 2m 7.11 0.80 0.01
----------------------------------------------------------------------
OTR 6 95m -60 16 18 2m 0.91 0.06 -
And 46 66 20m - - 0.02
----------------------------------------------------------------------


The Otjitombo property, located in northern Namibia, hosts a series of
copper in soil anomalies, separated by sand cover, that extend over a
7km+ distance. The style of mineralisation at Otjitombo exhibits
similarities to the Copperbelt of Zambia and DRC.

The RC holes reported here were drilled to confirm historic results from
work conducted in the 1970s, to test the gold content of the mineralised
zones, and to test new ideas regarding structural controls on
mineralisation. Secondary copper oxides, together with chalcocite and
dominant chalcopyrite in the sulphide zone, are hosted within veined and
brecciated sedimentary rocks.

Five of the holes were drilled on Target B, an area measuring 250m x
150m, which was drilled by Bantu Mining in the 1970s, and one hole (OTR
5) was drilled on Target A, approximately 500m south of Target B. The
ground between Targets A and B is covered by transported sand and has
never been drill tested. IP geophysical surveys conducted by Helio
indicate that mineralisation is continuous under the sand cover between
the two targets.

Holes OTR 1 to 3 were drilled on a 100m wide NNE-SSW section (To view
attached image please see note below). Hole OTR 4 was drilled due west
from the same section line. Hole OTR 6 was collared 100m east of the
section line and drilled towards the west. The results of this drilling,
coupled with the historical drill data, indicate that the main area of
copper mineralisation on Target B is located within a northwest plunging
breccia zone which is at least 30 to 60m thick and which is open to the
northwest and southeast. To the southeast of the drilled area lies an
800m x 400m IP anomaly, located under transported sand cover and having
the same trend as the main mineralised zone on Target B. This anomaly
will be drill tested in the ongoing diamond drill phase of the programme.

Current results compare well with historic results - the average grade
and thickness of 12 vertical holes drilled by Bantu Mining in 1976 to
40m depth within a 30m radius of OTR1 was 23m grading 1.06% Cu. In
addition the presence of significant gold and cobalt values in the drill
holes has now been confirmed.

Hole OTR 5 was collared adjacent to a trench which returned 71m grading
1.59% Cu, and was drilled northwards, perpendicular to bedding. The hole
intersected strong copper and gold mineralisation over a significant
width (22m @ 1.06% Cu and 0.26g/t Au). However, detailed mapping and
interpretation of the drill data indicates that mineralisation is
predominantly controlled by a northeast-dipping sheeted vein system
which occurs to the north of OTR 5, rather than by bedding. The optimum
orientation for testing the sheeted vein system is to drill southwards,
perpendicular to the veining, from a collar location 100m north of OTR
5. Helio intends to confirm this by way of the ongoing diamond drilling
programme.

DIAMOND DRILLING UPDATE

Having completed the RC drilling programme, Helio has commenced a phase
of diamond drilling at Otjitombo. The RC holes reported above were
planned to test previously known outcropping occurrences, and were
located outside the major IP targets generated by Helio. The current
diamond drill programme is mainly planned to test these IP anomalies.
Over 500m of diamond drilling has been completed in 4 holes to date. A
further 10 to 15 holes are planned. To date, all holes have intersected
sediment-hosted quartz-sulphide veining and disseminated, stringer or
breccia-hosted secondary copper and chalcopyrite dominant sulphide
mineralisation in altered zones. A second diamond drill rig has been
mobilised onto the property to increase drilling productivity.

Note of Caution - It is expected that results from the diamond drilling
programme will become available in the next two months.

SAMPLING AND QA-QC

Assay samples for the RC holes were made up from 2m pipe-sampling
composites. Pulp samples were prepared at the Analytical Laboratories
facility in Windhoek, Namibia. Assaying for gold and multi-element ICP
was conducted at both the Global Discovery Laboratories and ACME
Analytical Laboratories facilities in Vancouver, Canada. The
laboratories applied internal quality control checks and Helio
implemented a QA-QC programme consisting of duplicates (1 in 20-25
samples) and blanks/standards (1 in 30-40 samples). Chris MacKenzie,
Chartered Geologist and Helio's Executive Chairman, is the Qualified
Person as designated by NI43-101, and he is directly responsible for
overseeing all aspects of Helio's exploration activities, including
sampling integrity and the implementation of the quality control
programme.

ON BEHALF OF THE BOARD OF DIRECTORS,

Richard D. Williams, P.Geo, President

NOTE: To view the map of "West Looking Section Across Target B" please
click on the following link:
http://www2.ccnmatthews.com/database/fax/2000/0315hrc.jpg

-30-

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.