2000 Annual Report - Heron Resources Limited

More documents

Recommendations

Info

Operations Review Heron Resources NL 2.0 Operations Review HERON’S ACHIEVEMENTS • During 2000, Heron has doubled its Inferred Mineral Resource, and upgraded 34.3 million tonne or 19% of the resource to an Indicated Mineral Resource status. • Goongarrie South has developed into a deposit with exceptional early cashflow potential: • Grade, at around 1.1% Ni and 0.1% Co, Goongarrie South has amongst the highest documented grades for an Australian laterite. Selective mining can deliver significant tonnages at 1.3% Ni and 0.4% Co. • Metallurgy, excellent leaching and rheological performance, which is characteristic of Limonite Ore. • Width and continuity, excellent with high grade zones continuous over strike lengths exceeding 2km and widths exceeding 160m. This favours future low cost bulk mining. • Highest ore grades are accessed early in the mining, with bonanza grade cobalt occurring at the top of the ore body. This is important for early project payback. • During 2000, genuine production opportunities have been negotiated by Heron: • The Cawse Stage II Toll Milling Strategic Alliance is Heron’s current focus, and has a potential production credit for Heron of 12,000tpa nickel metal. • A jointly-developed processing plant based in part on Keith Kilkenny Province Nontronite Ore is under discussion, with a potential production credit to Heron’s account of at least 20,000 tpa nickel metal in intermediate product. • Subject to Cawse Stage II ore requirements as determined by the Centaur August 2001 BFS, critical mass has been demonstrated for a Standalone Heron-owned processing plant based on Heron’s Walter Williams Formation Limonite Ore. • As part of a 30 year Strategic Plan, Heron has continued to secure strategic resources of commodities required as potential feed-stocks for processing Nickel Laterite. This will protect a potential $1.4 billion investment against unforeseen operating cost pressures. In all cases, Heron has sought to Joint Venture these tenements, but retain strategic revenue streams and Off-take rights. An increasingly valuable asset is the Oil Shale. • Reflecting on-going excellent drilling results during 2000, Heron has expended $2.5 million on exploration and has been continually drilling throughout the year: • At Goongarrie South, Heron completed 598 Reverse Circulation (“RC”) holes for 30,379 metres to confirm resource continuity at 80x80m, and 8 PQ Diamond Drill (“DD”) metallurgical holes for 406 metres. • At Goongarrie Hill, Heron completed 155 RC holes for 5,211 metres, including a 20x20m pattern to elucidate structural controls on mineralisation and confirm ore body lateral continuity. • At Scotia Dam, Heron completed 29 RC holes for 1,330 metres to outline resources and confirm geology. • The Company’s working capital position is robust at $3.9 million (at 30 June 2000), and is such that the cash demands of the proposed 2001 drilling programs are well accommodated. This cash position has arisen through the exercise of 10.15 million Options during the year, raising $2.54 million. Heron has developed a key position within the Australian Nickel Laterite industry, particularly in the event of any industry rationalisation, as demanded by the capital-intensive nature of the industry. Goongarrie is a premium product on all counts, including high start-up Ni-Co grades, ability to bulk mine, ability to blend Limonite Ore with lower quality ores, and proximity to rail and road infrastructure. GOONGARRIE SOUTH HAS STRATEGIC SIGNIFICANCE AND AS A 100%-OWNED ASSET, HAS TREMENDOUS VALUE TO THE COMPANY. Photo Strip: The bush at Goongarrie is in magnificent condition, reflecting its management by Conservation and Land Management (“CALM”), the station owner. CALM has established an ecotourism camp in the western part of Goongarrie at former pastoralist Bill Riddle’s old homestead. Heron’s tenements and drilling areas are restricted to the eastern part of Goongarrie. ‘Back Home’ Wyvern Jackson “This picture represents a revegetated mine site. After Heron finishes mining, the Aboriginal people will come back to their land.” page 4 Heron Resources NL Annual Report 2000
2.0 Continued Operations Review - 121º GHOST ROCKS Kookynie 121º30' Yerilla 122º 20km Figure 2 - MAIN NICKEL LATERITE PROJECT AREA Showing Strategic Alliance tenements and infrastructure Menzies GAS PIPELINE Edjudina -30º Davyhurst Comet Vale Goongarrie GOONGARRIE Ora Banda Cawse Spur Pipeline Gindalbie KALPINI THE 2000 EXPLORATION -30º30' Cawse Nickel Laterite Processing Plant Broad Arrow RESULTS HAVE ALLOWED EXCEPTIONAL KALGOORLIE Bulong Nickel Laterite Processing Plant CONFIDENCE IN GOONGARIE AS A WORLD CLASS ORE BODY CONFIDENCE IN GOONGARRIE • The 80x80m in-fill RC drilling which commenced in March 2000 has confirmed excellent ore continuity at Goongarrie South. Remarkably virtually no loss of resource tonnes has resulted when moving from an 800x80m pattern to an 80x80m pattern. • The thickest and highest grade ore zone occurs as a uniform blanket at the Eastern Contact of the host ultramafic unit. This area will be the zone of initial mining. There are no barren holes of internal waste within this zone. This ore zone has been designated the Pamela Jean, in recognition of the on-going contribution of Pam Buchhorn to the success of Heron. • Bonanza grade cobalt (Cawse style “SiCo” ore) is associated with Tertiary-aged palaeo-channels that overlie the ore zones. From Diamond Drill core, the higher grade cobalt zones are found to correlate as a supergene blanket over what will be mining widths of 160m or more. The high grade Cobalt Resource at Goongarrie South is contained within a sub-resource of 8.2 million tonne at 1.3%Ni and 0.4% Co, representing 13% of the Goongarrie South resource. • The Diamond Drilling program has generated representative core samples of undisturbed ore which confirm: • Consistent ore correlation between holes, consisting of upper Mottled Clay, middle Limonite Ore, and lower Siliceous Ore. • Strong visual ore identification, with dark yellow hues and pyrolusite bands characterising high grade mineralisation. • Soft and free-digging orebody, with all ramps and infrastructure preferred to be on the competent eastern side basalt. • Well defined and logical mine scheduling proposals are apparent. The Stage I Pits will be on the Pamela Jean Zone, with progressive west-heading cut-backs for later stage pits. Ramps will remain restricted to the eastern wall basalt. It is apparent that any future Heron ore entitlement to Cawse Stage II could be sourced from Goongarrie South alone. This has favourable implications in respect of the centralisation of Heron’s infrastructure, and the ability for Heron to deal in a second and new development proposal for its non-Goongarrie Nickel Laterite resources. Heron Resources NL Annual Report 2000 page 5
Page 1 and 2: ABN 30 068 263 098
Page 3 and 4: Heron Resources NL Directors Rodney
Page 5: Heron Resources NL Chairmans Review
Page 9 and 10: 2.0 Continued Operations Review STR
Page 11 and 12: 2.0 Continued Operations Review RES
Page 13 and 14: 2.0 Continued Operations Review Fig
Page 15 and 16: 2.0 Continued Operations Review 2.1
Page 17 and 18: 2.0 Continued Operations Review Goo
Page 19 and 20: 2.0 Continued Operations Review Goo
Page 21 and 22: 2.0 Continued Operations Review A g
Page 33 and 34: 2.0 Continued Operations Review At
Page 39 and 40: Statutory Information Heron Resourc
Page 41 and 42: Corporate Profile 3.0 Continued pag
Page 43 and 44: Directors’ Report 4.0 Continued p
Page 45 and 46: Directors’ Report 4.0 Continued p
Page 47 and 48: Heron Resources NL Financial Statem
Page 49 and 50: 5.0 Continued Financial Statements
Page 57 and 58:
5.0 Continued Financial Statements
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Heron Resources NL Independent Audi
Page 65 and 66:
Shareholder Information 7.0 Continu
Page 67 and 68:
8.0 Continued Interest in Mining Te
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Glossary of Terms Heron Resources N
Page 83 and 84:
Heron Resources NL In the Community
show all

2000 Annual Report - Heron Resources Limited

Create successful ePaper yourself

Delete template?

Save as template?