2000 Annual Report - Heron Resources Limited

2.0 Continued
Operations Review
A geological evaluation of basal komatiite nickel-copper sulphide targets generated from Heron’s regional RC drilling was completed,
with laterite resource Zones 4 to 6 emerging as the optimum nickel sulphide target areas. Soil geochemistry within the broad target
area has coincident anomalies of 114-602ppm Cu and 788-1,941ppm Ni, notably at the Zone 4 Western Ultramafic. A soil anomaly
of 50-230ppb Pd occurs at Zone 6, again indicating a potentially favourable nickel sulphide setting. A proposed farm-in partner has
completed literature studies followed by field traversing to validate the Heron exploration model and target areas. Centaur has a preemptive
right on any nickel sulphide farm-out.
Heron’s expenditure to date at Kalpini has been $2.68 million.
2.2 SCOTIA KANOWNA PROVINCE
NICKEL LATERITE RESOURCES NOT WITHIN THE STRATEGIC ALLIANCE.
GOLD EXPLORATION JOINT VENTURES.
Nickel laterite projects have continued to be acquired by Heron in the Scotia Kanowna Province subsequent to the
formation of the Strategic Alliance. These projects are to assist a future Heron stand-alone processing operation, independent
of the Strategic Alliance.
2.2.1 Scotia Kanowna Project
Heron 100%.
Nickel (- gold).
The 62km 2 project area covering 7 recently pegged tenement applications is located 50-150km N of Kalgoorlie on the western flank
of the Scotia Kanowna Anticline.
The main target area is Vettersberg, adjoining the southern boundary of Heron’s Scotia Dam nickel laterite prospect. Grant of
tenements is awaited, at which stage blanket 160x80m RC drilling of all ultramafic horizons will commence.
Vettersberg Prospect
Vettersberg occurs at the granite-greenstone contact on the eastern flank of the Goongarrie Dome, covering a 4km strike length of the
nickel-prospective Walter Williams Formation. Previous drilling at Vettersberg confirms the presence of nickel laterite mineralisation.
Following field mapping, a potential nickel sulphide target has been defined by Heron at the komatiite basal contact.
Heron’s rockchip sampling of old costeans returned a peak value of 0.48% Ni from siliceous laterite. In terms of the lower nickel grades
normally expected at surface, this result is encouraging. This zone is a high priority target, and drilling will commence once the
tenements are granted.
2.2.2 Kurnalpi Nickel Project
Heron 100%.
Nickel (- gold).
The recently pegged 203km 2 project area covering 5 tenement applications is located 50-100km NE of Kalgoorlie on the western flank
of the Arcoona Granite in association with the Emu Fault. The project area adjoins the Kalpini Nickel Project, but is not part of the
Strategic Alliance. Three significant nickel targets have been generated, with potential for both nickel laterite and nickel sulphide
occurrences. Grant of tenements is awaited, at which stage blanket 160x80m RC drilling of the ultramafic horizons will commence.
Wyo Well Prospect
Heron has tenement applications at Wyo Well, providing access on grant to a 12km strike length of ultramafic lithologies. Previous
RAB intercepts include 12m at 0.84% Ni and 4m at 0.81%Ni. This previous exploration was not specifically targeted at the nickel
laterite potential. Good potential exists for a Kalpini-style resource development.
Heron Resources NL Annual Report 2000 page 19