2000 Annual Report - Heron Resources Limited

2.0 Continued
Operations Review
2.2.4 Gindalbie Terrain Joint Venture Project
Nickel rights retained by Heron. Delta Gold Limited right to earn 70% in respect of gold through spending $1.0m.
Gold - nickel.
The 201km 2 project area covering 6 tenements is located 25-60km NE of Kalgoorlie on the eastern flank of the Scotia Kanowna
Anticline. The main structural control of the project area is the Moriaty Shear Zone. The Moriaty structure is a bifurcation of the intensely
gold-mineralised Bardoc Tectonic Zone, which is an associated structure occurring on the western flank of the Scotia Kanowna
Anticline. The Gindalbie Terrrain adjoins the Golden Cities-Federal granitoid gold province.
A detailed data appraisal and field inspection has generated both gold and lateritic nickel targets. The main gold target is the Moriaty
Shear Zone in the SW project area, where alluvial gold previously has been mined. Drill access has been difficult, due to wet ground
conditions since February 2000.
Delta has completed a GIS data review ahead of a regional Auger drilling program. Heron’s expenditure to date has been $0.21 million.
2.2.5 Yindarlgooda Project
Heron 100%.
Nickel (- gold).
The 58km 2 project area covering one tenement application is located 40km E of Kalgoorlie at Clinker Hill on the western flank of the
Bulong Ultramafic Complex. Heron’s main target interest is lateritic nickel associated with the Bulong ultramafic units. From data
reviews, several gold targets, including 3m at 5.49g/t Au, have been generated for follow-up once the tenement is granted.
2.3 EMU FAULT PROVINCE
GOLD EXPLORATION JOINT VENTURES
2.3.1 Kurnalpi Gold Joint Venture Project
Heron 100%. Farm-in partner right to earn 80%.
Gold.
The 260km 2 project area covering 4 tenements is located 60-90km E of Kalgoorlie, adjoining Heron’s Transline Joint Venture Project.
Tenement grant is awaited.
Following a GIS data review and target generation by Heron, a farm-out has been agreed whereby a farm-in partner may earn 80%,
with Heron free-carried to decision to mine.
A further 9 tenement applications covering 730km 2 are currently subject to farm-out negotiation. This project area has an excellent
structural setting, covering the Emu-Avoca Fault System. The dominant outcrop lithology is felsic volcaniclastics and lateritised
meta-sediments. This geological setting is analogous to that of the Randalls-Maxwells gold mining centre to the immediate south.
From data reviews, several gold targets have been generated for drill follow-up once the tenements are granted. Significantly, borefield
targets associated with Tertiary palaeochannels and the Emu-Avoca Fault System have been defined for future Kalpini process
water requirements.
2.3.2 Kalpini Gold Project
Heron 100%.
Gold.
The 88km 2 project area covering 10 tenements is located 50-60km NE of Kalgoorlie, within felsic volcaniclastics occurring between
the Avoca, GMQ and Emu Faults.
The felsic volcaniclastic geological setting is comparable to that hosting the Carasue gold mine located to the northeast. Several gold
targets have been generated by Heron’s regional soil geochemistry. These anomalies occur within a favourable structural setting, covering
the Emu-GMQ Fault System. Heron’s main interest is volcanogenic massive sulphide targets, as potential sulphur sources for future nickel
laterite processing. Literature reviews are current, with soil geochemical field programs planned to commence once key tenements
are granted. Heron’s expenditure to date has been $0.10 million.
Heron Resources NL Annual Report 2000 page 21