Helio Files Preliminary Economic Assessment of the Porcupine and Kenge Resource Areas - SMP Gold Project, Tanzania.

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[{"type":"text","content":"\n\n\n\n\n\nTSX-V Trading Symbol: HRC\nToll Free: +1 888 955 4728\nE-mail: [email protected]\nWebsite: www.helioresource.com\n\n\nVANCOUVER, Oct. 30, 2012 /CNW/ - Helio Resource Corp (TSX-V: HRC) is\n pleased to report that, following its news release dated September 13,\n 2012, it has filed with SEDAR the independent NI 43-101 compliant\n Preliminary Economic Assessment (\"PEA\") report for the SMP Gold Project\n in Tanzania.\n\n\nA full copy of the report can be found at: http://www.helioresource.com/i/pdf/NI43101_PEA_SMP.Sept.2012.pdf.\n\n\nThe PEA was authored by SRK Consulting (Australia) Pty. Ltd. and was\n conducted on Measured and Indicated Resources only, with production\n envisaged from the Porcupine, Kenge and Mbenge targets.\n\n\nIt is also important to note that the PEA evaluates only 3 of the 30\n targets within the SMP Gold Project area (Porcupine, Kenge, and\n Mbenge).\n\n\nSRK provided two scenarios for the PEA, a Base-Case outcome, and an\n Upside outcome.  The Upside case requires geotechnical work to confirm\n that a pit wall angle of 55 degrees is viable.\n\n\nSummary (all monetary values in US$)\n\n \n\n\nBase Case\n\n\nUpside Case\n\n\n \n\n\n \n\n\n \n\n\nGold Price (per ounce)\n\n\n$1,450\n\n\n$1,450\n\n\nNPV\n\n\n$85.7M\n\n\n$146.1M\n\n\nIRR\n\n\n24%\n\n\n23%\n\n\nPre-production CAPEX1\n\n$100M\n\n\n$127M\n\n\nSustaining Capital1\n\n$43M\n\n\n$61M\n\n\nTotal Gold Produced (ounces)\n\n\n510,000\n\n\n803,000\n\n\nLife of Mine (years)\n\n\n9\n\n\n10\n\n\nProcessing Capacity (ore / year)\n\n\n1.6Mt\n\n\n2.4Mt\n\n\nCash Operating Cost1,2 (US$/t processed)\n\n\n$34.64\n\n\n$31.47\n\n\nTotal Cash Cost (inc 5% Royalty and 15% contingency)\n\n\n$807.00\n\n\n$799.00\n\n\nDiscount Rate\n\n\n8%\n\n\n8%\n\n\n1 including 15% contingency  2 including royalty\n\n\n\n\n\nChris MacKenzie, the Company's COO, commented: \"We are very pleased with\n the outcome of the PEA which demonstrates the potential economic\n viability of the current resource.  We will use this as the basis for\n advancing the project through pre-feasibility.  The Upside Case\n requires confirmation that the enclosing rock can support a 55 degree\n pit wall.  Given that the country rock is competent massive granite we\n believe this is eminently possible.  In addition to the study, ...

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