33% GAIN FOR INDICATED CATEGORY TONNES ADVANCES PENDING PRELIMINARY
VANCOUVER, Nov. 29, 2011 /CNW/ - 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.
LOOKOUT AND TRIO MINERAL RESOURCES NOVEMBER 2011
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
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
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
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.
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.
For further information:
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