VANCOUVER, Jan. 18, 2012 /CNW/ - Further to its previous announcements,
Heatherdale Resources Ltd. ("Heatherdale" or the "Company") (TSXV: HTR)
announces the successful completion by court-approved plan of
arrangement (the "Arrangement"), of the acquisition of Niblack Mineral
Development Inc. ("Niblack"). Heatherdale has acquired all the
outstanding common shares of Niblack in exchange for the issuance of
19,221,578 Heatherdale common shares, and now holds a 100% interest in
the Niblack copper-gold-zinc-silver project located in southeast
Under the Arrangement, former shareholders of Niblack received 0.50
common shares of Heatherdale for each common share of Niblack. Each
unexercised warrant that was outstanding at closing has been amended to
give the warrantholder the right to purchase the number of Heatherdale
shares equal to 50% of the number of Niblack shares subject to such
warrant, at an exercise price of C$1.20 in the case of warrants that
have a current exercise price of C$0.45 and C$1.73 in the case of
warrants that have a current exercise price of C$0.65. All unexercised
options at closing have been cancelled for C$0.01 per option. Niblack
will be delisted from the TSX-V on or about January 20, 2012.
"Consolidating the ownership of the Niblack Project in Heatherdale will
provide more flexibility for development and financing options, and
enable us to move forward more aggressively with the project to the
benefit of all shareholders. We are very optimistic about our future
as 100% owner of the Niblack Project and the potential to progress
toward a development decision" said Chairman Scott Cousens. "It is on
this positive note that we would like to welcome the Niblack
shareholders to Heatherdale."
A total of 235 surface core boreholes and 164 underground core boreholes
have been drilled on the Niblack property between 1975 and late 2011,
identifying six volcanogenic massive sulphide deposits within only ¼ of
the six miles of a prospective horizon that lies on the property. Of
this, over 143,000 feet in 146 holes (136 underground and 10 surface)
have been drilled by Heatherdale since 2009 when the Niblack Joint
Venture was established.
This work expanded both the Lookout and Trio deposits, outlining
significant mineral resources that laid the foundation for engineering
and scoping studies initiated in 2011. At a US$50 net smelter return
(NSR) cut off1, these mineral resources comprise 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 an additional 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.
"Tremendous value has been added to the project over the last three
years. The mineral resource in the Lookout and Trio deposits has been
significantly enhanced and a robust geological model has been
established that is already demonstrating outstanding opportunities to
expand the known deposits and find additional high grade
copper-gold-zinc-silver mineralization throughout the property," stated
Patrick Smith President and CEO of Heatherdale. "The project has
improved with each level of work completed and I am excited to take
Niblack into the next stage of work that includes advanced engineering
and economic evaluation. This is the first step in our plans to advance
prefeasibility-level studies in 2012."
Moving Forward in 2012
Plans for 2012 include work to support the completion of a Preliminary
Economic Assessment (PEA) early in the year, advancement of
geotechnical studies and additional metallurgical testwork for a
prefeasibility study. The Company will also undertake and a surface
exploration program that involves drill-testing of priority targets.
To further advance the Company's engineering efforts, Dr. David Stone
has joined the management team as Executive Vice President Project
Development. David is a professional mining engineer whose career
spans 30 years of engineering and financial consulting on underground
and surface mining projects worldwide. He has managed and led
multi-disciplinary projects through pre-feasibility and feasibility
level evaluations and construction, and has contributed to the
engineering, design and construction of several mines. His expertise
will be invaluable to Heatherdale through the engineering,
prefeasibility and feasibility studies and development phases.
About the Niblack Project
Niblack's location 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 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
Heatherdale Resources Ltd. is a Vancouver-based exploration and
development company focused on advancing the high-grade mine
development opportunity at 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.
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 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 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.
1 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
The November 2011 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. For further details see Heatherdale News Release dated
November 29 2011. The 2011 mineral resource estimates were reviewed
and verified by SRK Consulting (SRK), and an updated NI-43-101
technical report has been filed on www.sedar.com.
SOURCE Heatherdale Resources Ltd.
For further information:
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.