Drilling underway on high-grade targets
VANCOUVER, Nov. 17 /CNW/ - Heatherdale Resources Ltd. ("Heatherdale" or "the Company"), formerly Brass Capital Corp., announces that it has completed its qualifying transaction in accordance with the TSX Venture Exchange Inc. (the "TSX-V") Policy 2.4 with Heatherdale Holdings (Canada) Ltd., formerly Heatherdale Resources Ltd. (the "Qualifying Transaction").
Successful Completion of Transaction and Financing
Further to the Company's news releases dated September 17, 2009 and November 3, 2009, the Company and Heatherdale Holdings (Canada) Ltd. have also completed a brokered and non-brokered private placement financing of 14,358,500 common shares of the Company (the "Common Shares") at a price per Common Share of $1.00 for total gross proceeds of $14,358,500 (the "Financing"). A syndicate of agents led by Raymond James Ltd. (the "Agents"), acted in connection with the brokered portion of the Financing, on a best efforts basis. The Agents were paid a cash commission of $598,920 and were also reimbursed for their reasonable expenses in connection with the Financing. The Agents were also granted compensation options to acquire 162,000 Common Shares at a price of $1.00 per Common Share for a period of up to 18 months from the closing of the Financing. All of the Common Shares issued in connection with the Financing will be free trading.
In connection with the Qualifying Transaction, the Company issued 32,600,001 Common Shares to the shareholders of Heatherdale Holdings (Canada) Ltd. All of those Common Shares have been deposited into escrow and will be released pursuant to an escrow agreement between Computershare Investor Services Inc., as the escrow agent, and the Company as to 25% on each of the 6, 12, 18 and 24 month anniversaries of the date of closing.
The common shares of Heatherdale are expected to commence trading under the symbol HTR as a Tier 1 Issuer on the TSX-V on November 19, 2009.
Heatherdale President & CEO David Copeland commented "We are very pleased to have completed the Qualifying Transaction efficiently and on favourable terms, and to have secured financing at a share price valuation that confirms the high-quality of Heatherdale's mineral asset. We will use the proceeds to advance targeted mineral exploration and development activity at the Niblack Project in 2009 and 2010, with the goal of delineating significant zones of high-grade mineralization."
Niblack Project - Existing Mineral Resources and New High-Grade Potential
In July 2009, Heatherdale entered into an agreement with CBR Gold Corp. ("CBR") of Edmonton, Alberta to acquire up to 70% of the Niblack copper-gold-zinc-silver project in southeast Alaska. The Company is required to invest US$15 million within three years to retain a 51% interest in Niblack, and has options to increase its ownership to 60% by investing an additional US$10 million and to 70% by funding completion of a Feasibility Study.
The Niblack property hosts precious metals-enriched volcanogenic massive sulphide (VMS) deposits that contain significant quantities of copper, gold, zinc and silver. The property has a long history of mineral exploration and development, including 195,000 feet of core drilling in 246 holes and six identified VMS target deposits.
Based on a mineral resource estimate released by CBR on July 9, 2009(1), the Niblack deposits comprise (at a US$50 net smelter return cut-off):
- 2.6 million tonnes of indicated mineral resources grading 1.18%
copper, 2.33 g/t gold, 2.19% zinc and 33.18 g/t silver and containing
67 million lb copper, 193,600 oz gold, 125 million lb zinc and
2.8 million oz silver;
- 1.7 million tonnes of inferred mineral resources grading 1.55%
copper, 2.08 g/t gold, 3.17% zinc and 32.56 g/t silver and containing
58 million lb copper, 114,300 oz gold, 120 million lb zinc and
1.8 million oz silver.
Between 2007 and 2008, 3,300 feet of underground development was completed at Niblack to facilitate cost-efficient underground drilling. Twenty-eight underground holes were drilled at the property to the end of 2008; the last two (U027 and U028) intersected much higher-grade mineralization. U027 intersected 15 feet grading 3.06% copper, 6.57 g/t gold, 18.51% zinc and 101 g/t silver; and U028 intersected 258 feet grading 1.89% copper, 4.84 g/t gold, 4.93% zinc and 85.31 g/t silver(2). Due to nature of the mineralization, true width of the zone has not yet been determined.
Based on the assay results from U027 and U028 and re-interpretation of geological data, Heatherdale geologists believe there is excellent potential for delineating significant volumes of high-grade mineralization at Niblack.
"Our US$5.35 million delineation drill program is designed to expand the mineral resources at Niblack. Step-out drilling, currently underway in the vicinity of U027 and U028, has the potential to increase both tonnes and grade," Copeland said. "Given its geologic endowment and proximity to tidewater in a stable jurisdiction with a long tradition of hardrock mining, we believe Niblack has the potential to support a high-grade underground mining operation in future."
Prior to the completion of the Qualifying Transaction, the following reorganizations were completed: (i) Brass Capital Corp. changed its name to Heatherdale Resources Ltd., (ii) Heatherdale Resources Ltd. changed its name to Heatherdale Holdings (Canada) Ltd., (iii) Brass Capital Corp. continued from the jurisdiction of Alberta to British Columbia; and (iv) Brass Capital Corp. consolidated its share capital on the basis of 2.5 old Brass Capital shares for one new Brass Capital share.
The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.
Heatherdale is a mineral exploration and development company affiliated with the Hunter Dickinson Group, based in Vancouver, Canada. Its principal assets include a right to retain a majority interest in the Niblack precious metals-enriched VMS deposits, 6,200 acres of associated resource lands, as well as mineral exploration permits, equipment and infrastructure on southeast Alaska's Prince of Wales Island.
The technical information in this release has been reviewed by Mark Rebagliati, P.Eng., who is a Qualified Person as defined by NI 43-101.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provide (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, other continued ability 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 also uses the terms 'indicated resources' and 'inferred resources'. Heatherdale Resources Limited 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) July 2009 resource estimate by independent qualified person Abolfazl
Ghayemghamian, P. Geo., of SRK Consulting (Canada) Inc. Metal prices:
gold US700/oz, silver US7.00/oz, copper $2.25/lb, and zinc US$0.80lb
and recoveries of 53%, 56%, 95% and 93%, respectively. Payable metal
factors are 97%, 89.5%, 97% and 85% for gold, silver, copper and zinc
(2) According to CBR's November 18, 2009 news release, the true thickness
of mineralization varies from 75% to 100% of the intercept length,
except for U028 which appears to have been drilled at a relatively
oblique angle with respect to orientation of the mineralization
however is a minimum of 30 feet. The current drill program is
expected to clarify the thickness of the zone.
SOURCE Heatherdale Resources Ltd.
For further information: For further information: 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