2000 Annual Report - Heron Resources Limited

Operations Review
2.0 Continued
RESOURCE STATUS UPGRADE
From the results compiled from the 80x80m drilling to date, the distribution of resources into Inferred and
Indicated Mineral Resource categories is as follows:
Table 3 - STRATEGIC ALLIANCE NICKEL LATERITE PROJECTS
Medium Grade Inferred and Indicated Mineral Resource 0.75% Ni Cut-off
Project Category Million Ni Co Ni4Co*
Tonnes % % %
Goongarrie Hill Inferred 15.7 1.09 0.06 1.33
Indicated 2.0 0.99 0.04 1.14
Sub-total 17.7 1.08 0.06 1.31
Goongarrie South Inferred 32.5 1.06 0.07 1.39
Indicated 30.5 1.10 0.11 1.53
Sub-total 63.0 1.08 0.09 1.44
Scotia Dam Inferred 9.1 1.10 0.11 1.56
Indicated - - - -
Sub-total 9.1 1.10 0.11 1.56
Ghost Rocks Inferred 18.0 0.98 0.08 1.30
Indicated - - - -
Sub-total 18.0 0.98 0.08 1.30
Kalpini Inferred 42.6 1.08 0.07 1.38
Indicated 1.8 1.12 0.06 1.37
Sub-total 44.4 1.09 0.07 1.38
SUB-TOTAL Inferred 117.9 1.07 0.07 1.35
SUB-TOTAL Indicated 34.3 1.09 0.10 1.51
TOTAL STRATEGIC ALLIANCE 152.2 1.07 0.08 1.40
* “Ni4Co%” is %Ni plus 4 times %Co.
Having the higher quality Indicated Ore can substantially increase an Independent Valuation for a resource inventory,
with a Yardstick Valuation typically doubling when the resource is upgraded from Inferred to Indicated status.
When compared to the original 400x80m drilling, the grades generated from the 80x80m infil drilling are slightly higher,
and the tonnes are slightly lower. This is the expected result of resource infill drilling.
50,000,000
1.5
Figure 4 -
GOONGARRIE PROJECT
Comparison between
400mx80m and 80x80m
Resource Drilling
Tonnes 400x80m
Tonnes 80x80m
%Ni 400x80m
%Ni 80x80m
Tonnage
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
41,600,000
0.91
44,850,000 1.32
1.31
1.12
1.09
0.90
27,190,000
24,630,000
13,870,000
13,740,000
1.4
1.3
1.2
1.1
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
% Nickel Grade
0
0.50 0.75 1.00
% Ni Cut-Off
0.0
Photo Strip: The drill samples are sieved and the drill chips are collected in chip trays as Heron’s reference set of the ore.
Heron has some 50,000 of these chip samples archived at its Kalgoorlie office. The hardest and most important job on the
rig is collecting the drill samples. A $1.4 billion investment decision hinges significantly on how well this job is done.
‘The Mullock Dump of Binduli Mine’ Merita Stevens “This painting represents the Binduli mine.
The big orange hill is the mullock dump.”
page 10
Heron Resources NL
Annual Report 2000