2000 Annual Report - Heron Resources Limited

Operations Review
2.0 Continued
2.1.2 Ghost Rocks Nickel Project
Heron 100%. Heron Toll Milling rights for ore processing through Centaur’s proposed Cawse Stage II.
Nickel (- gold).
The 207km 2 contiguous project area covering 3 tenements is located 140km NNW of Kalgoorlie along the eastern
flank of the Goongarrie Dome. The Ghost Rocks area is located immediately west of the Kalgoorlie-Leonora Highway
and Railway, and natural gas pipeline. Infrastructure is very good. Ghost Rocks is 100km NNW of the Cawse
processing plant. The project area is 60km NNW of Goongarrie on the same Walter Williams Formation komatiite unit
that hosts Goongarrie South.
There are extensive areas of siliceous mineralisation at Ghost Rocks uniformly assaying 0.7-0.9% Ni with high cobalt.
This ore style has significant increases in grade through screening, being comparable to the upgrade for Cawse
mineralisation. An RC drill chip screen upgrade program was completed. At a -0.5mm screen size, Siliceous Ore has
a 41% coarse silica reject, increasing both nickel and cobalt grades by 32%, with 75% of the metal retained. Limonite
Ore upgrades 8% through screening, with 87% of the nickel retained. Limonite Ore thus does not require screening.
Section interpretation and resource estimation was completed with a current Inferred Mineral Resource of 18.0
million tonne at 0.98% Ni and 0.08% Co at a 0.75% Ni cut-off. In-fill drilling on an 80x80m pattern to upgrade
the resource status is proposed for late in 2001. Expenditure to date has been $0.26 million.
2.1.3 Kalpini Nickel Project
Heron 100%. Heron Toll Milling rights
for ore processing through Centaur’s
proposed Cawse Stage II plant.
Nickel (- gold).
M27/361
P27/1449
P27/
P27/
1450
1448
E27/185
M27/362
P27/
P27/1451
P27/1452
1453
0 5
KILOMETRES
The 519km 2 contiguous project area covering
17 tenements is located 65km NE of Kalgoorlie.
Infrastructure is good. Kalpini is 75km E of the Cawse
processing plant, and 45km NE of the Bulong Nickel Operation.
Having confirmed metallurgical viability through the 1999 test
program, detailed section interpretation and resource estimation
was completed, with an Inferred Mineral Resource of
44.4 million tonne at 1.09% Ni and 0.08% Co at a
0.75% Ni cut-off.
A comprehensive screen upgrade metallurgical program based on
RC drill chips was completed on all ore zones identified from
Heron’s previous drilling. Results indicate nickel upgrades ranging
from 10% for Limonite Ore to 20% for Siliceous Ore. Nickel metal
recovery is good at 82% for Siliceous Ore and 91% for Limonite Ore.
E27/129
E27/129
Infill drilling on an 80x40m pattern has recently been completed, with 17 holes for
442m at Wellington North, 8 holes for 236m at Wellington East and 19 holes for
523m at Acra North. Typical Kalpini Nickel Laterite profiles were intersected, but
no analytical results are as yet available.
Native Title negotiations for the grant of Mining Leases are current. Ethnographic
surveys have been completed in accordance with draft Native Title Heritage
agreements on the exploration tenements. Rehabilitation of historical drill areas has
been completed. The program was very ably completed by Brian Champion, an
Indigenous rehabilitation contractor.
M27/365
M27/
349
M27/
364
M28/169
M28/
206
M28/205
M28/
200
M28/
202
M28/
199
E27/185
M28/
201
Legend
Drill hole 0.5 - 0.99 % Ni
Drill hole >1.0 % Ni
Mining Lease application
Exploration Licence
Figure 8 -
KALPINI
NICKEL
PROJECT
Photo Strip: The bush in the future Goongarrie and Kalpini mine areas is a profusion of eucalypts,
acacia, eromophila and lesser quondong. The Flora Surveys have determined that widespread comparable habitats adjoin
the areas of proposed mining, so no environmental constraints exist for the projects.
‘The Two Waters in the Middle’ Natalia Tucker “The circle is the green water at the bottom of the mine.
The brown circle is the water at the bottom of the other mine.”
page 18
Heron Resources NL
Annual Report 2000