2000 Annual Report - Heron Resources Limited

2.0 Continued
Operations Review
2.1 HERON RESOURCES NL - CENTAUR MINING & EXPLORATION LIMITED
STRATEGIC ALLIANCE
NICKEL LATERITE RESOURCE, PRE-FEASIBILITY STUDY FOR PROPOSED CAWSE STAGE II.
The priority for the Strategic Alliance during 2000 has been to drill out the various Goongarrie resources to an 80x80m pattern, for
inclusion in the Cawse Stage II PFS. This program, and the completion of Heron’s $3 million Strategic Alliance expenditure requirement,
should be finalised in 2001. After that point, the more detailed drilling patterns (at least 20x20m) required for a BFS would be to Centaur’s
account. There has been a seamless exchange of data and ideas between Heron and the Cawse minesite throughout 2000, which has
contributed to the success of the Heron-Centaur Strategic Alliance.
2.1.1 Goongarrie Nickel Project
Heron 100%. Heron Toll Milling rights for ore processing through Centaur’s proposed Cawse Stage II plant.
Nickel (- gold).
The 181km 2 contiguous project area covering 24 tenements is located 60-100km NNW of Kalgoorlie along the eastern flank of the
Goongarrie Dome. The western flank of this structure hosts the Cawse lateritic nickel mine. The lithological precursor of the Goongarrie
and Cawse lateritic nickel mineralisation is the Walter Williams Formation komatiite, which unit defines the margin of the Dome.
The Goongarrie Nickel Project is located 25km N of the Cawse processing plant. The Heron project area straddles the Kalgoorlie-
Leonora Highway and Railway, and Goldfields Gas Transmission natural gas pipeline is located immediately to the east. Infrastructure
is thus excellent in terms of Nickel Laterite mining and processing.
Heron’s Goongarrie expenditure to date has been $1.77 million.
Goongarrie Hill Prospect
During 2000, Heron completed 155 RC drill holes at Goongarrie Hill for 5,211 metres. Significant intercepts include:
Table 5 - GOONGARRIE HILL PROSPECT
RC Drilling Significant Intersections, 0.75% Ni Cut-off
Hole No. North East From To Interval Ni Co Ni4Co Ni4Co%*
m m m m m % % % x m
GWRC036 76,400 1,599 8 19 11 0.94 0.042 1.11 12.21
GWRC040 77,205 1,520 6 16 10 1.06 0.093 1.43 14.30
GWRC056 78,803 1,045 12 20 8 1.32 0.047 1.51 12.08
GWRC062 78,780 1,450 0 14 14 0.91 0.051 1.11 15.54
GWRC064 79,608 1,201 6 13 7 2.01 0.155 2.63 18.41
GWRC098 76,557 1,561 4 24 20 1.06 0.023 1.15 23.00
GWRC123 76,558 1,600 13 24 11 0.94 0.051 1.15 12.65
* ”Ni4Co% x m” for a drill intercept is the value of %Ni plus 4 times %Co of the interval multiplied by the intercept in metres.
Section interpretation and resource estimation has been completed for the area covered by the above drilling, with a current Inferred
Mineral Resource of 17.7 million tonne at 1.08% Ni and 0.06% Co at a 0.75% Ni cut-off.
Shallow high grade ore centred on drill holes GWRC088-091 (peak 2m at 1.97% Ni) has been targeted for processing through Cawse
Stage I. The ore zone is on a granted Mining Lease. Environmental Performance Bonds have been lodged with the DME, and a Notice
of Intent to Commence Mining is awaiting the final Flora and Fauna Survey report. Drill site rehabilitation outside the proposed mining
area has been completed.
Mineralised zones at Goongarrie Hill tend to consist of lower grade siliceous ore occurring at shallow depths. A total of 137 drill
composites were submitted for screen upgrade assessment. Screen upgrades for nickel and cobalt are both very good. At a -0.5mm
screen size, there is a 40% coarse (silica) reject, increasing both nickel and cobalt grades by 35%, with 76% of metal retained.
This result is comparable to the published data for the Cawse nickel project, and is typical of Walter Williams Formation Siliceous Ore.
Heron Resources NL Annual Report 2000 page 13