|August 31, 2011|
Heatherdale Completes Requirements to Secure 60% Interest in Niblack Project
|August 31, 2011, Vancouver, BC -- Heatherdale Resources Ltd. ("Heatherdale" or the "Company") (TSXV: HTR) announces that it has satisfied the requirements to earn an additional 9% ownership interest (resulting in a total ownership Interest of 60%) in the Niblack Project as contemplated by the June 2009 LLC Agreement of the Niblack Project LLC (the "Agreement") with its joint venture partner Niblack Mineral Development Inc. ("Niblack") (TSXV: NIB).|
"We are pleased to have secured a 60% interest and are committed to continue advancing the Niblack Project," stated Heatherdale President and CEO Patrick Smith. "We look forward to working with Niblack and utilizing the resources of both groups to expedite the project toward the prefeasibility stage."
Heatherdale has advised Niblack that it has elected to pursue the property development under a 60/40 joint venture rather than continue to earn a larger percentage interest at this time. Heatherdale and Niblack have approved a budget going forward and Heatherdale has agreed to sole fund operations for a 60 day period to facilitate the uninterrupted continuation of the current exploration program.
Since its formation in June 2009, the joint venture has completed some 130,000 feet of underground drilling at the Niblack Project and work programs have been very successful. Earlier this year, the joint venture announced a 54% increase in mineral resources in the Lookout and Trio deposit over those known to exist in 2009. At a US$50 NSR cut off1, the March 2011 estimate comprises 4.1 million tonnes of Indicated resources grading 1.13% copper, 2.32 g/t gold, 2.27% zinc and 38.70 g/t silver and 2.5 million tonnes of Inferred resources grading 1.21% copper, 1.77 g/t gold, 2.29% zinc and 25.90 g/t silver. A continuous 1.5 million-tonne high-grade zone occurs within the indicated resource, grading 1.73% copper, 3.50 g/t gold, 3.84% zinc and 61.60 g/t silver at US$150 NSR cutoff (see March 7, 2011 news release).
These resources laid the foundation for advancing the project to the next stage of engineering and scoping studies, which are a part of the 2011 program. Further, recent results from drilling have confirmed that the geological model for the project is robust and successfully targeting new mineralization. In particular, a new zone has been intersected in drilling (see July 28, 2011 news release) that is expected to add to the mineral resources. Only about 1/4 of the six miles of prospective horizon that hosts the Niblack deposits has been tested by drilling, so there is significant additional resource potential on the property.
The location of the Niblack Project at tidewater on Prince of Wales Island in southeast Alaska 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 also located 27 miles (44 km) from Ketchikan, a community of 8000 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 km) to the northwest of Niblack on Admirality Island.
Heatherdale Resources Ltd. is a Vancouver-based exploration and development company focused on advancing the high-grade mine development opportunity at the Niblack Project. The Company holds a 60% interest in the Niblack Project. It also holds a 60% interest, with the option to acquire 100% in the mid-stage Delta copper-lead-zinc-gold-silver project, located in east-central Alaska. Heatherdale is associated with the Hunter Dickinson group, which has a track record of successful mineral exploration and development projects around the world.
Mark Rebagliati, P. Eng., a Qualified Person as defined under National Instrument 43-101, is supervising the exploration and quality assurance and quality control programs on behalf of Heatherdale and has reviewed the content of this release.
For further details on Heatherdale Resources Ltd., please visit the Company's website at 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
1 Net Smelter Return cutoffs use US$ metal prices: Au $1050/oz, Ag $18/oz, Cu $2.50/lb, and Zn $1/lb; and recoveries to Cu concentrate: 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 and to Zn concentrate: 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag.
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 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, 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, 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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