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.

HIGHLIGHTS

  • 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.

A total of 2,117 samples were analysed – results are described below.

GoldKop Grid Extension — the Snake River Anomaly

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).

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.

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.

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).

Twin Peaks Target

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.

Two grids, named Puff Adder and Courser, were sampled, each grid designed to cover an area of anomalous Au + Cu values in stream-sediments.

Puff Adder Grid

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.

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.

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

577 samples were taken on a 200m x 25m grid with sample lines oriented N-S. The grid covers an area of 2.56km2 .

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).

Summary

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.

About the DGP Project

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.

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.

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.