|March 07, 2011|
Heatherdale Announces 54% Increase To Mineral Resources At Niblack
|March 7, 2011, Vancouver, BC - Heatherdale Resources Ltd. ("Heatherdale" or the "the Company") (TSXV: HTR) announces a new mineral resource estimate for the Lookout Deposit and adjacent Trio Deposit at the Niblack copper-gold-zinc-silver project in southeast Alaska, increasing total Indicated resources by 60% and Inferred resources by 46% in terms of tonnage (an overall increase of 54%). Lookout and Trio are two of six known polymetallic volcanogenic massive sulphide (VMS) deposits within the 10 square mile Niblack property, all of which remain open and are candidates for future resource expansion.|
The new Niblack resource estimate in the indicated category reflects a substantial increase in total metal contained in the expanded Lookout and Trio deposits. Contained gold has increased by 59%, while silver, copper and zinc have grown by 86%, 53% and 66%, respectively.
In addition, ongoing drilling has delineated a 1.5 million tonne higher-grade zone (at a US $150 Net Smelter Return (NSR) cut-off) within the Lookout Deposit. This high-grade core is considered to be ideal as a starter-zone for successful underground mine development.
"The mineral resource estimate we're announcing today represents a significant milestone for Heatherdale and the Niblack Project," confirmed Heatherdale President & CEO Patrick Smith. "We know there is tremendous potential to further expand areas of high-grade mineralization at Niblack, and we have a drilling program underway in 2011 that will target resource expansion at Lookout, Trio and other known VMS deposits to achieve that goal.
"We have also defined mineral resources with sufficient volumes and grades, including a significant high-grade core, to initiate engineering and other technical studies towards the completion of a Preliminary Economic Assessment for the Niblack Project."
The mineral resource estimate for the Lookout and Trio deposits is based on drilling completed to December 23, 2010, and includes 308 drill holes. Mineralization has been modeled as sub-seafloor replacement and accumulation style VMS deposits. The resource estimate utilizes three-dimensional modeling techniques and estimation parameters based on prior experience at Niblack. Mineral resources at a US$50 NSR cutoff and long-term metal prices, as estimated by geostatistical methods, are tabulated below.
Notes: US$50 Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1050/oz, silver US$18.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries (used for all NSR calculations) to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag. Detailed engineering studies will determine the best cutoff.
Building on the 2008 discovery of high-grade VMS mineralization within the Lookout Deposit, exploration and delineation drilling undertaken in 2009 and 2010 has achieved substantial increases to the size, grade and extent of the resource. The currently outlined dimensions of the Lookout Deposit are approximately 2,200 feet by 1,500 feet, with an average thickness of 55 feet. The currently outlined dimensions of the Trio Deposit are approximately 750 feet by 400 feet, with an average thickness of 220 feet. In addition to tonnes and grade, Smith noted that the continuity and geometry of the Lookout and Trio deposits -- in particular their thickness -- makes them attractive candidates for low-cost underground mining.
The continuous, higher-grade zone of mineralization which has been outlined within the Lookout Deposit is tabulated below.
To date, 43-101 compliant mineral resource estimates have only been prepared for the Lookout and Trio deposits, although there are four other known VMS deposits at Niblack -- including Mammoth, Dama, Lindsy and Niblack. All of the deposits, including Lookout and Trio, remain open and are candidates for future resource expansion. Two drill rigs are currently active at the Niblack property as part of a comprehensive, 2011 drilling program to further expand and delineate high-grade VMS mineralization within the Lookout, Trio and Mammoth deposits.
"Drilling activity at Niblack has been virtually non-stop over the past 15 months," Smith said. "Ultimately, it is the dedication of our geological team to unlock the potential and expand the high-grade mineralization within the Lookout Deposit that has brought us to where we are today. We'll continue in 2011 to expand the volume and grades of known VMS mineralization at Niblack through delineation drilling. We also expect to initiate engineering work toward the completion of a Preliminary Economic Assessment, as well as other technical studies necessary for project planning and permitting in future."
A graphic representation of the Lookout and Trio deposits is available at www.heatherdaleresources.com. A technical report documenting the results of the estimate will be filed at www.sedar.com within 45 days.
The Niblack property is located on Prince of Wales Island in southeast Alaska. Niblack's location at tidewater presents a number of project benefits, including year-round marine access, a well-trained labour force, a mature supply and service sector, proximity to Asian markets, and the support of community and Alaska Native corporation partners. The project is located 27 miles (44 kilometres) from Ketchikan, a community of 8,000 people with important services to support project development, including a deep water port and international airport. The State's burgeoning minerals industry also enjoys a competitive tax regime and stable, predictable permitting and regulatory oversight coordinated by the Alaska Department of Natural Resources', 'Large Mine Permitting Team'. For reference, Hecla's Greens Creek, a 2,100-ton per day underground massive sulphide mine, operates 225 miles (370 kilometres) to the northwest of Niblack on Admiralty Island.
The resource estimates were completed by Deon Van Der Heever, Pr. Sci. Nat., Senior Manager Mineral Resources for Hunter Dickinson Inc., a Qualified Person who is not independent of the Company. The 2011 mineral resource estimates were verified by Independent Qualified Person Marek Nowak P.Geo., of SRK Consulting. The qualified persons reviewed and approved the contents of this news release.
Mark Rebagliati, P. Eng., a Qualified Person as defined under National Instrument 43-101, supervises the exploration and quality assurance and quality control programs on behalf of Heatherdale. ALS Chemex in North Vancouver, Canada (an ISO 9001 accredited facility) is the main laboratory for the analysis of drill core samples. Duplicate samples are analyzed by Acme Analytical Laboratories of Vancouver, Canada.
Heatherdale Resources Ltd. is a Vancouver-based exploration and development company associated with Hunter Dickinson Inc. (HDI). The Company holds a 51% interest in the Niblack Project, with an option to acquire up to a 70% interest from Niblack Mineral Development Inc. by investing an additional US$10 million and completing a bankable feasibility study. Heatherdale recently announced that it has acquired a 60% interest, with an option to acquire 100%, in the mid stage Delta VMS project located in east-central Alaska.
Hunter Dickinson Inc. (HDI) is a diversified, global mining company with a 25-year history of mineral development success. From its head office in Vancouver, Canada, HDI applies its unique strengths and capabilities to acquire, develop, operate and monetize mineral properties that provide consistently superior returns to shareholders.
For further details on Heatherdale Resources Ltd., please visit www.heatherdaleresources.com or contact Investor Services at (604) 684-6365 or within North America at 1-800-667-2114.
On behalf of the Board of Directors
President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address permitting, exploration drilling, exploitation activities and events or developments that the company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
Information Concerning Estimates of Indicated and Inferred Resources
This news release uses the terms "indicated resources" and "inferred resources". Heatherdale advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, "inferred resources" have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
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