Heatherdale Resources Ltd.

Development / History

Project Infrastructure

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Niblack Property

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The Niblack property has a long history of mineral exploration and development.

It supported historic underground mining operations from 1905-08, producing ~20,000 tons of ore grading 4.9% copper, 2.2 g/t gold and 30 g/t silver. In the 34 years leading up to 2008, previous owners spent some US $41 million to complete 195,000 feet of drilling in 246 holes.

Preliminary metallurgical testwork has been done, most recently in 2008-2009, returning excellent recoveries.

In 2007-08, a 2,800-foot underground development drive and 500 feet of crosscuts were constructed to facilitate cost-effective underground drilling. Twenty-eight underground holes were completed to the end of 2008, and the last two returned grades significantly higher than the historic average.

Heatherdale geologists recognized that these two holes are a portent for the discovery of a major new area of high-grade, precious metals enhanced mineralization. Diamond drilling since September 2009 at Niblack expanded the Lookout deposit and Trio deposits. Underground and surface drilling in 2011 also discovered new mineralization at Mammoth zone and between the Lookout and Trio deposits. Engineering studies were initiated to advance the project, including collection of metallurgical samples and commencement of economic infrastructural studies.

Key project infrastructure is already in place at the Niblack property, including 1.5 miles of road, 3,300 feet of underground development, a water treatment plant and discharge system, a dock and barge camp.