Heatherdale Resources Ltd.

Niblack Overview

Niblack Project Location

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The Niblack copper-gold-zinc-silver project is located on Prince of Wales Island in southeast Alaska. The property is located near tidewater, enjoys year-round marine and floatplane access and is well-served by existing site infrastructure.

Niblack hosts six known precious-metals enriched volcanogenic massive sulphide (VMS) deposits (Lookout, Trio, Dama, Lindsy, Mammoth and the historic Niblack mine site) within a 6,200-acre property that includes 250 acres of patented lands.

Since 2009, drilling has been successful at significantly increasing resource tonnage at Niblack - the Indicated resource has grown from 2.6 million tonnes to 5.6 million tonnes and the Inferred resource has grown from 1.7 million tonnes to 3.4 million tonnes.

At a US$50 net smelter return cutoff, the November 2011 estimate comprises:
  • 5.6 million tonnes in the Indicated category grading 0.95% copper, 1.75 g/t gold, 1.73% zinc, 29.52 g/t silver; and
  • 3.4 million tonnes in the Inferred category grading 0.81% copper, 1.32 g/t gold, 1.29% zinc, 20.10 g/t silver.
Within the Indicated resources in the Lookout deposit there is a continuous high grade zone which, at a US$150 NSR cut off, comprises 1.2 million tonnes grading 1.71% copper, 3.21 g/t gold, 3.83% zinc, 62.68 g/t silver.

LOOKOUT AND TRIO MINERAL RESOURCES TABLE

Exploration Potential

Current mineral resource estimates include only the Lookout and Trio deposits, although there are four other known VMS deposits -- Mammoth, Dama, Lindsy and Niblack -- and other exploration potential at Niblack. All of the deposits, including Lookout and Trio, remain open and are candidates for future resource expansion.