SHAY GAP DETRITAL IRON ORE PROJECT RECONNAISSANCE SAMPLING SHOWS HIGHGRADE POTENTIAL
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1 Website: ABN: ASX Release 6 July 2010 SHAY GAP DETRITAL IRON ORE PROJECT RECONNAISSANCE SAMPLING SHOWS HIGHGRADE POTENTIAL Heron Resources Limited (ASX: HRR) is pleased to announce assay results from reconnaissance sampling at the Shay Gap Project, located 160 kilometres east of Port Hedland Western Australia. Rock chip samples returned iron grades up to 68% from detrital deposits. The Company holds applications for Exploration Licences covering 290 square kilometres adjacent to BHP Billiton's iron ore mining operations at Shay Gap. These operations produce iron ore that is railed to Port Hedland for export. Recent reconnaissance of the Heron applications identified detrital-iron ore occurrences on the colluvial and alluvial slopes adjacent to the ranges hosting the iron-ore mining operations (Figure 1). Assays results indicate potential for high-grade iron-ore material with over 65% iron being returned in a number of the samples with low levels of elements deleterious to potential product marketing such as alumina, phosphorus and silica (see Table 1). The most prospective area is in the south-east, where detrital iron-ore material occurs in colluvial lobes directly down slope from bedded iron ore within the range (Figure 2). In the north-west the iron mineralisation occurs in alluvial gravel deposits and is partly intermixed with gangue material (quartz and BIF). See Figures 3 5 for photos of these sample areas. Drilling is required to determine depth, extent and potential grade in both these areas. There is also potential to discover covered detrital and cemented canga deposits along the range front which may be delineated with drilling. Preliminary metallurgical test work to determine beneficiation characteristics has commenced on 12 samples. It is expected that the applications will be granted later this year, when the company will commence a drill program to delineate the mineralisation in detail. Heron's Managing Director Mathew Longworth noted these were encouraging results with high iron grades and low levels of deleterious elements. Drilling of this mineralisation once the tenements are granted is required to determine the extent of the iron mineralisation. N. Mathew Longworth Managing Director Heron Resources Limited The information in this report that related to Exploration is based on information compiled by David von Perger who is a member of Australian Institute of Mining and Metallurgy. David von Perger is a full time employee of Heron Resources Limited. David von Perger has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the exploration activity that he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. David von Perger consents to the inclusion in this report of the matters based on his information in the form and context that it appears. For media inquiries, please contact: Paul Downie, FD Third Person, ,
2 Table 1 Assay Results for Reconnaissance Surface Samples of Iron Ore Material Sample Grid Easting Northing Fe (%) SiO2 (%) Exploration Update Shay Gap Detrital Iron Ore Project Al2O3 (%) P (%) S (%) LOI (%) SG001 MGA94_ SG002 MGA94_ SG003 MGA94_ SG005 MGA94_ SG007 MGA94_ SG009 MGA94_ SG011 MGA94_ SG013 MGA94_ SG015 MGA94_ SG017 MGA94_ SG019 MGA94_ SG021 MGA94_ SG023 MGA94_ SG025 MGA94_ NB Other samples in sequence submitted for beneficiation test work and not reported here 2
3 Figure 1 Map showing location of Heron s tenement application area and samples sited adjacent to the range at Shay Gap (background is Landsat TM image) 3
4 Figure 2 Aerial Photograph of the south-east area showing sample locations and outlines of potential detrital iron ore (DID) material Figure 5 Sample SG05 area showing iron-ore dominated colluvial material with BIF and iron-ore range in the background 4
5 Figure 6 Detail of material from sample location SG05 showing dominantly good quality iron-ore fragments Figure 3 Sample SG01 area showing detrital iron-ore material in alluvial fan area 5
6 Figure 4 Sample SG02 Area showing detrital iron-ore material with some quartz gangue material (iron-ore mine waste dumps in background) 6
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