|November 29, 2011|
Heatherdale Announces 31% Increase To Total Mineral Resource Tonnage At Niblack
November 29, 2011, Vancouver, BC -- Heatherdale Resources Ltd. ("Heatherdale" or the "the Company") (TSXV: HTR) announces a new mineral resource estimate for the Lookout and adjacent Trio deposits at the Niblack copper-gold-zinc-silver project in southeast Alaska, increasing total resource tonnes estimated at previous February 2011 metal prices in all categories by 31%.
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. Based on underground delineation drilling completed during 2011, the new resource model outlines a 33% increase in the Indicated Resource tonnes for the Lookout Deposit, while the Inferred Resource tonnes at the Trio Deposit have increased by 29%.
"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 now have a more refined understanding of the geometry and grade of the deposits at Niblack, an understanding that will significantly enhance the accuracy and longevity of the mine model currently being developed within the Niblack Project Preliminary Economic Assessment (PEA) study.
"A sizable increase in the volume of defined resources is always welcome. What's most significant about these results, however, is the impetus they provide to the timely completion of a technically and financially robust PEA for the Niblack Project, which we currently expect to deliver early in 2012."
The new mineral resource estimate for the Lookout and Trio deposits is based on drilling completed to November 4, 2011, and includes a database of 373 drill holes. Mineralization has been modeled as sub-seafloor replacement and accumulation-style VMS deposits. The new estimate utilizes three-dimensional geostatistical modeling techniques and estimation parameters based on careful study of the geologic setting at Niblack.
Mineral resources at a US$50 NSR cutoff and updated long-term metal prices are tabulated below.
Notes: US$50 Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1150/oz, silver US$20.00/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.
The expansion of Indicated Resources within the Lookout Deposit resource model occurred along the eastern down-dip extension. The high-grade area in the central portion of the Lookout Deposit, considered to be ideal as a starter zone for successful underground mine development, was confirmed by delineation drilling. Current outlined dimensions of the Lookout Deposit are approximately 2,200 feet by 1,700 feet, with an average thickness of 70 feet.
The 29% expansion of Inferred Resource tonnage at the Trio Deposit further demonstrates the excellent potential for resource expansion at Niblack. Current outlined dimensions of the Trio Deposit are approximately 1,100 feet by 350 feet, with an average thickness of 220 feet.
In addition to defined tonnes and grade, Smith noted that the geometry and continuity of the Lookout and Trio deposits -- in particular their thicknesses -- make them attractive candidates for low-cost underground mining. "The project continues to become more robust with each phase of work," he said. "We still have many exciting target zones to drill-test in order to develop additional resources and further expand areas of high-grade mineralization."
To date, 43-101 compliant mineral resource estimates have been prepared for the Lookout and Trio deposits, although there are four other known VMS deposits at Niblack -- including Mammoth, Dama, Lindsy and the historic Niblack mine. All deposits, including Lookout and Trio, remain open and are candidates for future resource expansion.
A graphic representation of the Lookout and Trio deposits is available at www.heatherdaleresources.com. A technical report documenting the results of the new mineral resource estimate will be filed at www.sedar.com.
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 labor 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 operation, is located 225 miles (370 kilometers) to the northwest of Niblack on Admiralty Island.
Resource estimates were completed by Deon Van Der Heever, Pr. Sci. Nat., Senior Manager Mineral Resources for Hunter Dickinson Inc. (HDI), a Qualified Person who is not independent of the Company. The 2011 mineral resource estimates were reviewed and verified by SRK Consulting (SRK). SRK will follow up with the updated NI-43-101 technical report. Deon Van Der Heever has 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.
About Heatherdale Resources Ltd.
Heatherdale Resources Ltd. (TSX-V: HTR) 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 and the other 40% interest is held by Niblack Mineral Development Inc. (Niblack). On October 25, 2011, Heatherdale and Niblack entered into a definitive arrangement agreement (the "Arrangement Agreement"), which provides that Heatherdale will acquire all of the common shares of Niblack in exchange for Heatherdale shares, on the basis of 0.50 Heatherdale share per Niblack common share. Heatherdale also holds a 60% interest 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.
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
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