A TOTAL NICKEL FOCUS

Transcription

1 A TOTAL NICKEL FOCUS Delivering Value from Nickel Laterite February 2007 Mathew Longworth Heron Resources Limited ASX: HRR

2 Disclaimer Forward Looking Statement The material used in this presentation is intended to be a summary of selected geological data, current and proposed activities, as well as resource estimates based on information available to Heron Resources at the time. It does not include all available information and should not be used in isolation as a basis to invest in Heron Resources. Any potential investor should refer to Heron Resources ASX releases and statutory reports before considering investing in the company. This presentation includes information relating to a completed independent scoping study, completed independent resource estimate and a feasibility study which is in progress and includes forward looking statements which include, without limitation, estimates of potential nickel in concentrate production based on mineral resources that are currently being evaluated. While the Company has a reasonable basis on which to express these estimates, any forward looking statement is subject to risk. Risks include, without limitation: nickel metal prices, foreign exchange rate movements, failure to meet joint venture milestones, project funding capacity, concentrate off-take contracts and estimates of future capital and operating costs. The Company does not undertake to release publicly any revisions to forward looking statements included in this presentation to reflect events or results after the date of this presentation, except as may be required under applicable securities laws.

3 OVERVIEW A TOTAL NICKEL FOCUS ABOUT THE COMPANY PROJECT LOCATIONS JUMP-UP DAM HEAP LEACH PROJECT KALGORLIE NICKEL PROJECT (KNP) HERON NICKEL STRATEGY CONCLUSION

4 ABOUT HERON RESOURCES Listed in 1996 focused on Nickel and in particular Nickel Laterite Development projects Jump-up Dam targeting 10,000 tpa Ni in intermediate during 2009 (Heron 100%) KNP targeting completion of Feasibility 2011 in partnership with CVRD Inco Portfolio of Nickel Exploration Projects Laterites and Sulphides

5 FINANCIAL SNAPSHOT Issued Shares 179.8M Unlisted Options 23.8M Share Price (14/02/07) $ Month Range $0.44-$1.24 Market Cap. $205M Cash $10M Top Shareholders Directors and associates 22.5% Inco Limited 9.70% BHP Billiton 8.84%

6 Companies and Projects Corporate Portfolio Project Portfolio Heap Leach 100% HRR Kalgoorlie Nickel Project KNP 100% HRR CVRD INCO earning 60% Sulphide Exploration Jump-up Dam Goongarrie Emu Lake Aubils Kalpini Ghost Rocks Yerilla Siberia Bulong

7 HERON NICKEL STRATEGY KNP Jump-up Dam Time

8 Heron Focus on Nickel Tenements -28 Divestment of non nickel tenements Leonora Iron Ore to Polaris Metals Uranium to Epsilon Energy Gold and Base Metals to Rubicon Resources -30 Menzies KALGOORLIE NICKEL PROJECT KALGOORLIE JUMP-UP DAM PROJECT Continual assessment of tenement package Acquisition of prospective nickel tenements, Laterite and Sulphide Turnover of assessed tenements Southern Cross Regional prospectivety studies -32 LEGEND Kalgoorlie Nickel Project tenements Other Heron tenements Kilometres related company tenements Esperance -34

9 PROJECT LOCATION Laverton Leonora Infrastructure -30 Menzies KALGOORLIE Coolgardie Kookynie JUMP-UP DAM PROJECT -30 Gas Rail Road Ports Kambalda Southern Cross Gas pipeline Norseman Balladonia Railway Main roads Kilometres Esperance PERTH KWINANA KALGOORLIE ESPERANCE -34 Port -34

10 JUMP-UP DAM HEAP LEACH PROJECT Leonora 15km Murrin Murrin Kilometres 100% Heron owned and managed Mt Remarkable Aubils Pre-feasibility stage targeting 2009 production Kookynie Murphys Well 10,000 tonne per annum nickel production Boyce Creek Low capital intensity & tested technology Heron tenements Ultramafic lithologies 50km Jump-up Dam Resource drilling and test work continuing Main Roads Rail Kalgoorlie 130km

11 JUMP-UP DAM RESOURCES Western Zone Inferred Resource of %Ni within a Global Inferred mn Resource of %Ni 0.5% lower cut-off Legend: RC Drillhole Eastern Zone Resource outline Ultramafic Outline mn Western Australia Perth PROJECT Kalgoorlie

12 JUMP-UP DAM DRILL SECTIONS Western Zone Section 3200N 400RL 1.07% Ni 1.24% Ni 1.53% Ni Legend Cover 360RL Upper Clay Upper Clay mineralisation Lower Clay mineralisation Lower Clay 320RL Ultramafic bedrock Eastern Zone Section 1920N 400RL 0.91% Ni 0.76% Ni 1.07% Ni Zone of mineralisation 1.53% Ni 22 metres at 1.44% Nickel grade No vertical exaggeration 360RL 320RL

13 JUMP-UP DAM TRIALWORK High grade garnierite zones identified with Garnierite can host up to 30% nickel Commonly grades better than 2% Ni Very amenable to leaching Has siliceous matrix for heap strength

14 JUMP-UP DAM TRIALWORK 1. Typical Mineralisation 2. Highly permeable agglomerate 1 3. Rapid leaching times 2 3

15 JUMP UP DAM TRIALWORK RESULTS Nickel Extraction Against Time in Days HL10 HL HL15 H4L001 HL16 HL13 HL11 HL14 HL08 HL09 HL Time (Days)

16 JUMP-UP DAM FLOW SHEET Goldfields Acid supply Mining Acid plant ROM Stockpile Agglomeration with acid Crusher Conveyor Barrel Agglomerator Heap stacking conveyor Reticulated solution Crushed ore stockpile Fine ore after crushing Agglomerate nodules in heaps Limestone Stage 1 Neutralisation with Limestone Recycling of process water Dilute acid solution recirculating Precipitation Stage Filtering and drying Acid addition Intermediate Product Bulk Bags Zero discharge site Shipping from Esperance

17 JUMP-UP DAM SCHEDULE Overview Jump-up Dam Project Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Scoping Study Prefeasibility Study Bankable Feasibility Study Decision to Mine Construction Commence Production Ramp up to 5,000 tpa Nickel Ramp up to 10,000 tpa Nickel Key Milestones Resource drilling and estimates Acid Supply and off take agreements Site evaluation Mining lease grant Test scale heaps Precipitation plant design

18 KNP PROJECT OVERVIEW Large scale nickel laterite project in partnership with CVRD-Inco. Ghost Rocks Siliceous Menzies 0 Scale 20km Highway Siliceous Ultramafic Granite Goongarrie Hill Siliceous Major Roads Siberia North Siliceous Subject to milestones, CVRD-Inco sole funds Feasibility Study; Major Road Goongarrie South Goethite Mineralised Drillholes Big Four Siliceous Big Four Placer Siliceous Scotia Siliceous Siberia Siliceous Kalpini Nontronite Black Range Nontronite CVRD-Inco earn 60% on completion of Feasibility and securing project funding; Heron equity capped at 4.5% of total equity KALGOORLIE 121 º º Bulong Nontronite º CVRD-Inco lends Heron its remaining equity funds

19 JOINT VENTURE MILESTONES Step 1, Pre-Feasibility Step 2, Flow sheet selection Completed Commenced- Sep 2007 Completion Bench Scale Metallurgical Tests, HPAL and AL, settling and rheology tests. Crushing, attritioning and scrubbing crushing optimisation evaluate beneficiation options. Bulk metallurgical tests, three, 500kg semi continuous pilot high pressure leach runs. Step 3, Resource and engineering Jan 2009 Feasibility Study July 2011

20 BENEFICATION: HOW IT WORKS Screen Upgrade Scrubbed slurry into pilot plant trommel screen deck Screened rejects Silica fragments 60% Reject grade 0.3% Ni Grade approximately 0.8%Ni Screened slurry Limonite 40% Leach feed grade 1.5% Ni

21 GLOBAL MINED PRODUCTION Ni Tonnes Source Intierra 200, , ,000 50,000 Jump Up Target 2 10,000t Ni Jump Up Target 1 5,000t Ni 0

22 CONCLUSION: GROWTH MILESTONES Heron has delivered on the divestment on noncore assets Heron is delivering shortterm nickel production Jump-up Dam Heron will deliver on the larger, longer-term Kalgoorlie Nickel Project Inco JV, Placement BHPB on Register Execution of formal agreement Jump-Up Dam Scoping Study Heron delivers on, exploration & strategic acquisitions Scoping study and resources

23 ASX: HRR Mathew Longworth Managing Director Phone: