2000 Annual Report - Heron Resources Limited

Operations Review
2.0 Continued
2.8 IDA FAULT PROVINCE
NICKEL LATERITE and JOINT VENTURE GOLD.
2.8.1 Snake Hill Joint Venture Project
Heron 100%. Connemara Gold Mines Pty Ltd right to earn 70% through spending $0.3m.
Gold (- nickel).
The 56km 2 project area covering 3 tenements is located 140km NW of Kalgoorlie immediately west of the Ida Fault.
The recent gold discoveries by Croesus Mining NL 20km south at Davyhurst (Giles prospect) have upgraded the
area’s gold prospectivity. The project area is immediately south along strike of the Four Corners and Cullens lateritic
and sulphidic nickel prospects.
Nickel and gold soil geochemical targets have been defined for RAB drill testing. Exploration expenditure to date is
$0.12 million.
2.8.2 Frances Lesley Project
Heron 100%. Agreement has been reached where another entity will acquire the gold rights.
Nickel.
The 133km 2 contiguous project area covering 5 tenement applications is located 90km NW of Kalgoorlie at the
convergence of the Ida Fault and Kunanalling Shear Zone. The Frances Lesley project area is 20km S of the Davyhurst
gold mining centre within an area of active gold mining operations. Extensive old gold workings occur in the project area
and are hosted by strongly pyritic sediments and basalt. Previous drilling has identified a quartz stockwork system
hosted by pyritic meta-sediments. Intersections included 8m at 4.85g/t Au in RAB drilling, and 5m at 3.4g/t Au in RC
drilling. Heron estimates an Inferred Mineral Resource of 93,000 tonne at 2.1g/t Au.
The regional rift structural setting, olivine orthocumulate style of komatiite occurrence, and abundance of sulphidised
black shales suggests a very good potential for nickel sulphide occurrences. This nickel sulphide target concept is
Heron’s active exploration interest at Frances Lesley. Grant of tenements is awaited.
2.8.3 Blister Dam Project
Heron 100%.
Gold - nickel.
The 27km 2 project area covering 13 tenements is located 70km NW of Kalgoorlie on the Zuleika Shear Zone. The
area consists of an extensive sand cover between the Hawkins Find and Chadwin gold mining centres.
The northern tenement area covers part of the Walter Williams and Siberia Formation ultramafics, where they are
truncated by the Zuleika Shear Zone. Additional ultramafics (possibly stratigraphically younger flows than the Walter
Williams Formation) are associated with the Zuleika - Kunanalling Shear Zones, and occur at Blister Dam as well as
Frances Lesley and adjoining Heron tenements.
A nickel laterite data review was completed. The shear zone ultramafics have historical drilling at various locations,
however the best intercept recognised is 5m at 0.92% Ni. The narrow, structurally controlled rift setting is considered
more prospective for sulphide nickel targets, in contrast to the broad sheet flow facies which favour nickel laterite.
Aircore, RC and Diamond Drilling were completed at Blister Dam during 1999 and 2000, testing beneath the
previously discovered supergene gold mineralisation. Broad zones of low order mineralisation (0.1-0.3g/t) suggest
the presence of a large alteration system, with a peak intercept of 14m at 2.89g/t Au.
Photo Strip: Quality sampling methods are the corner stone to reliable resource estimates. To this end, Heron has placed
great emphasis on taking replicate field samples for check assays. Quality control standards are submitted with all
analytical batches.
‘Two Sides’ Cheynne Graham “This painting represents the two sides of mining. On the left is the natural environment.
On the right are two old pits filled with water.”
page 30
Heron Resources NL
Annual Report 2000