Heron Resources Limited (Heron or
Company) is pleased to advise that its wholly
owned subsidiary, Ardea Resources Limited (Ardea),
has completed an independent Resource Statement for the cobalt-rich
portions of the Kalgoorlie Nickel Project
(KNP). The KNP Cobalt Zone
is a key element of Ardea’s IPO and listing on ASX, planned for
February 2017.
The new estimate for the KNP Cobalt Zone is 49.7Mt at
0.12% cobalt and 0.86% nickel, occurring within three
separate KNP centres (Table 1). The global cobalt resource
for the full KNP remains unchanged at 805Mt at 0.05% cobalt
and 0.7% nickel using a 0.5% Ni cut-off grade[1].
Ardea completed a review of the KNP in late 2016, concluding
that the KNP as a whole comprises Australia’s and the
developed world’s largest cobalt resource[2].
The KNP Cobalt Zone is located 50-150km north and northeast of
Kalgoorlie in Western Australia (Figures 1 & 2), a favoured
investment jurisdiction with excellent infrastructure that can
facilitate ethical cobalt production for green
energy.
Independent firm Ridley Mineral Resource Consulting Pty Limited
(RMRC) has reported the following Mineral
Resources within the five cobalt-rich prospect areas based on
identified zones of continuous elevated cobalt mineralisation using
a 0.08 % Co cut-off in these areas:
Table 1 – KNP Cobalt Zone – Resource Statement from
RMRC
Area |
Prospect |
Resource
category |
Cutoff
(% Co) |
Size
(Mt) |
Co
(%) |
Ni
% |
MgO*
% |
FeO*
% |
Al2O3*
% |
SiO2*
% |
CaO*
% |
Mn*
% |
Cr*
% |
Goongarrie |
Goongarrie
South |
Measured |
0.08 |
3.4 |
0.14 |
1.19 |
1.6 |
47 |
6.3 |
17 |
0.16 |
1.02 |
1.27 |
|
Indicated |
0.08 |
11.2 |
0.11 |
0.92 |
1.8 |
43 |
6.2 |
23 |
0.78 |
0.71 |
1.20 |
|
Inferred |
0.08 |
1.4 |
0.11 |
0.76 |
1.8 |
39 |
5.9 |
30 |
0.32 |
0.74 |
1.20 |
|
Big Four |
Indicated |
0.08 |
4.5 |
0.11 |
0.89 |
1.6 |
40 |
5.3 |
32 |
0.68 |
0.76 |
1.07 |
|
|
Inferred |
0.08 |
0.2 |
0.11 |
0.95 |
1.6 |
38 |
4.2 |
36 |
0.25 |
0.73 |
1.09 |
|
Scotia Dam |
Inferred |
0.08 |
2.9 |
0.14 |
0.88 |
3.2 |
34 |
4.4 |
|
|
|
|
|
Goongarrie
subtotal |
|
23.6 |
0.12 |
0.94 |
|
|
|
|
|
|
|
Siberia |
Black Range |
Inferred |
0.50(Ni) |
20.1 |
0.10 |
0.75 |
7.9 |
28 |
6.7 |
|
|
|
|
Yerilla |
Aubils |
Inferred |
0.08 |
6.0 |
0.15 |
0.90 |
6.4 |
33 |
4.7 |
31 |
4.57 |
0.91 |
|
KNP
Cobalt Zone TOTAL |
|
|
49.7 |
0.12 |
0.86 |
|
|
|
|
|
|
|
*Estimates for MgO, FeO, Al2O3, SiO2, CaO, Mn and Cr are
provided for reference only and do not constitute Mineral
ResourcesGoongarrie South, Big Four and Scotia Dam are effectively
a contiguous mineralized belt |
[1] See Annexures 1 and 2 for full KNP categories. The breakdown
for the full KNP resource categories is as follows:
Resource
Category |
Quantity
(Mt) |
Co
(%) |
Ni
(%) |
Measured |
9.6 |
0.081 |
1.02 |
Indicated |
244.0 |
0.052 |
0.75 |
KNP Total Measured and
Indicated |
253.6 |
0.052 |
0.76 |
Inferred |
551.7 |
0.046 |
0.68 |
KNP Total
Resources |
805.3 |
0.048 |
0.70 |
[2] By contained cobalt metal. Source of data: SNL Metals &
Mining database (www.snl.com)
Vale Inco[3] completed a $34.5 million Pre-Feasibility Study
(PFS) on the KNP in 2009 concluding that it is “one of the
most prospective nickel laterite tenement packages in the
world” and “the KNP tenements form one of the
largest potential nickel laterite deposits in the
world”.
[3] Vale Inco has not consented to the use of the PFS in this
announcement.
RMRC has prepared the 2017 updated Resource Statement using
modified reporting criteria for cobalt abundances in existing
resource models that were previously prepared by Snowden Mining
Industry Consultants (Snowden) and Heron.
This update describes the current publicly reported Mineral
Resources for five prospect areas within the KNP known to contain
cobalt-rich mineralisation. Two of the estimates, completed
by Snowden in 2004, formed part of Heron’s early assessment of the
Scotia Dam and Black Range prospect areas.
Estimates for the Goongarrie South and Big Four prospects were
completed by Heron in 2009 as part of a KNP PFS update following an
initial PFS completed by Vale Inco in 2009. The current
estimate for Aubils was by Heron in 2008 as part of feasibility
assessment of the Yerilla Nickel Project.
The KNP Cobalt Zone is associated with a distinctive
geo-metallurgical type defined as “Clay Upper Pyrolusitic”.
Mineralogy is goethite, gibbsite and cobaltian pyrolusite (strictly
“asbolite” or “cobaltian wad”). Each of the cobalt-rich zones
typically occurs as a sub-horizontal body (Figure 4) at a
palaeo-water table within the KNP (and developed as a late stage
supergene enrichment). This material is particularly well
developed at Goongarrie South, which will be the focus area for
Ardea’s cobalt development studies.
Figure 1 – Ardea Resources Limited, Kalgoorlie Nickel
Project showing KNP Cobalt Zones reviewed by
RMRC
Figure 2 – Ardea Resources Limited, Project Locations
showing KNP Cobalt Zones and regional
infrastructure
Based on the contained cobalt metal within the deposit, the KNP
is Australia’s largest cobalt deposit (Table 2, Figure 3). By
this measure, it is more than three times larger than Australia’s
second largest cobalt deposit. The newly-defined cobalt
resource from the high-grade KNP Cobalt Zone is a subset within the
larger KNP resource, and the subset by itself is Australia’s fourth
largest cobalt resource. The KNP Cobalt Zone also is amongst
the highest cobalt grades in Australia (Tables 2 & 3). In
terms of global cobalt resources, the KNP is the premier resource
within stable western jurisdictions.
The updated resource reporting for cobalt-rich zones provides a
basis for KNP remodelling work planned by Ardea that is focused on
cobalt grade shells. Quantifying the cobalt-rich
mineralisation at the KNP marks the first part of a refocussing for
the KNP onto the cobalt component of the deposit.
Forthcoming drilling and metallurgical studies will move the KNP
towards a PFS focussing on cobalt-nickel-manganese feedstocks for
the lithium ion battery industry (Lithium Nickel Manganese Cobalt
Oxide - LiNiMnCoO2 or NMC).
Table 2 – Ardea Benchmarks, ASX-listed companies ranked
by contained cobalt metal
|
Company |
Size
(Mt) |
Co (%) |
Co
metal (kt) |
Project |
Mineralisation
style |
1 |
Ardea
Resources |
805 |
0.05 |
% |
386.4 |
Kalgoorlie
Nickel Project, WA |
Laterite
Ni-Co |
2 |
CleanTeq Holdings |
109 |
0.10 |
% |
114 |
Syerston, NSW |
Laterite Ni-Co-Sc |
3 |
GME Resources |
108 |
0.06 |
% |
65.1 |
NiWest Project, WA |
Laterite Ni-Co |
4 |
Ardea
Resources |
50 |
0.12 |
% |
59.6 |
KNP Cobalt
Zone, WA |
Laterite
Co-Ni-Mn |
5 |
Conico Limited |
32 |
0.12 |
% |
39.3 |
Mt Thirsty, WA |
Laterite Ni-Co |
6 |
Cobalt Blue Hlding |
36 |
0.08 |
% |
30.0 |
Broken Hill, NSW |
Co sulphide |
7 |
Regal Resources |
4 |
0.72 |
% |
29.1 |
Kalongwe, DRC |
Cu-Co sulphide |
8 |
Havilah Resources |
18 |
0.10 |
% |
17.5 |
Mutooroo, NSW |
Cu-Co sulphide |
9 |
CuDeco Limited |
57 |
0.03 |
% |
16.7 |
Rocklands, Qld |
Cu-Au-Co sulphide |
10 |
Mithril Resources |
27 |
0.05 |
% |
13.4 |
Leaky Bore, NT |
Cu-Co sulphide |
11 |
Platina Resources |
9 |
0.15 |
% |
12.6 |
Owendale, NSW |
Laterite Ni-Co-Sc |
12 |
Independence Gp |
14 |
0.08 |
% |
11.4 |
Nova-Bollinger, WA |
Ni-Cu-Co sulphide |
13 |
Augur Resources |
16 |
0.05 |
% |
8.2 |
Homeville, NSW |
Laterite Ni-Co |
14 |
Cougar Metals |
10 |
0.07 |
% |
7.1 |
Pyke Hill, WA |
Laterite Ni-Co |
15 |
Hammer Metals |
6 |
0.11 |
% |
6.5 |
Millenium, Qld |
Cu-Au-Co sulphide |
Figure 3 – Ardea Benchmarks, ASX-listed companies ranked
by contained cobalt metal
Figure 4 – Ardea Resources Limited, KNP Goongarrie South
showing “Pamela Jean Deeps”
Table 3 – Goongarrie South, Scotia and Aubils, Selected
High-Grade Drill Intercepts of Pyrolusitic
Mineralisation
Hole
ID |
North
(mN) |
East
(mE) |
From
(m) |
To
(m) |
Width
(m) |
Co*
(%) |
Ni
(%) |
Goongarrie |
|
|
|
|
|
|
|
GSRC0002 |
71600 |
2080 |
13 |
31 |
18 |
0.102 |
1.22 |
GSRC0036 |
69200 |
3120 |
11 |
60 |
49 |
0.094 |
1.15 |
GSRC0043 |
68400 |
2790 |
11 |
23 |
12 |
0.399 |
1.53 |
GSRC0049 |
70800 |
2560 |
6 |
10 |
4 |
0.827 |
0.96 |
GSRC0063 |
63606 |
4166 |
19 |
26 |
7 |
1.401 |
1.56 |
GSRC0160 |
71199 |
2401 |
21 |
45 |
24 |
0.146 |
1.32 |
GSRC0197 |
68798 |
3040 |
34 |
52 |
18 |
0.289 |
1.52 |
GSRC0204 |
68004 |
2801 |
20 |
41 |
21 |
0.431 |
1.23 |
GSRC0259 |
68239 |
2721 |
11 |
37 |
26 |
0.191 |
1.34 |
GSRC0276 |
68478 |
2640 |
16 |
39 |
23 |
0.236 |
1.20 |
GSRC0309 |
68719 |
3043 |
24 |
71 |
47 |
0.228 |
1.43 |
GSRC0317 |
68879 |
2960 |
28 |
66 |
38 |
0.298 |
1.27 |
GSRC0319 |
68878 |
3123 |
20 |
60 |
40 |
0.156 |
1.22 |
GSRC0330 |
69040 |
2718 |
38 |
60 |
22 |
0.141 |
1.41 |
GSRC0335 |
69038 |
2718 |
38 |
60 |
22 |
0.141 |
1.41 |
GSRC0346 |
69119 |
3119 |
13 |
45 |
32 |
0.142 |
1.40 |
GSRC0354 |
69280 |
3038 |
26 |
62 |
36 |
0.126 |
1.40 |
GSRC0363 |
69360 |
3121 |
17 |
53 |
36 |
0.133 |
1.22 |
GSRC0420 |
63757 |
4322 |
26 |
56 |
30 |
0.139 |
1.11 |
GSRC0562 |
69440 |
2320 |
18 |
40 |
22 |
0.232 |
1.23 |
GSRC0577 |
69520 |
2480 |
21 |
37 |
16 |
0.257 |
1.30 |
GSRC0672 |
70637 |
2855 |
49 |
91 |
42 |
0.223 |
1.25 |
GSRC0724 |
71440 |
2454 |
10 |
33 |
23 |
0.325 |
1.65 |
GSRC0870 |
69356 |
3236 |
20 |
63 |
43 |
0.187 |
1.39 |
GSRC0898 |
69680 |
3140 |
67 |
106 |
39 |
0.253 |
1.42 |
GSRC0907 |
69600 |
3140 |
35 |
124 |
89 |
0.131 |
1.19 |
GSRC0924 |
69440 |
3220 |
21 |
52 |
31 |
0.212 |
1.62 |
GSRC0966 |
69000 |
3140 |
18 |
57 |
39 |
0.291 |
1.13 |
GSRC0970 |
68960 |
3140 |
21 |
46 |
25 |
0.425 |
1.30 |
GSRC1022 |
69600 |
3120 |
30 |
141 |
111 |
0.077 |
1.37 |
GSRC1025 |
69640 |
3120 |
26 |
144 |
118 |
0.123 |
1.31 |
GSRC1032 |
69680 |
3160 |
37 |
118 |
81 |
0.197 |
1.24 |
GSRC1040 |
69520 |
3160 |
29 |
122 |
93 |
0.141 |
1.33 |
GSRC1100 |
68960 |
3160 |
16 |
62 |
46 |
0.254 |
1.30 |
Scotia
Dam |
|
|
|
|
|
|
|
GSRC0068 |
59203 |
6010 |
14 |
38 |
24 |
0.239 |
1.32 |
GSRC0076 |
58800 |
6169 |
14 |
35 |
21 |
0.226 |
1.39 |
Aubils |
|
|
|
|
|
|
|
AURC0015 |
63200 |
90420 |
23 |
34 |
11 |
0.320 |
1.04 |
AURC0016 |
63200 |
90500 |
38 |
45 |
7 |
0.195 |
1.14 |
AURC0037 |
63200 |
90880 |
25 |
38 |
13 |
0.131 |
1.14 |
*Grades in
excess of 0.2% cobalt highlighted. Detailed reporting
covering the above drilling programs and results were released by
Heron Resources Limited in its March 1999 to December 2002
Quarterly Reports, which are available on request from Ardea.
These drill results were the subject of a JORC 2012-compliant
mineral resource released by Heron in October 2013 and provided on
pages 85-87 of the Ardea Prospectus dated 9 November 2016. |
COMPLIANCE STATEMENT (JORC 2012 and NI
43-101)
A competent person’s statement for the purposes of Listing Rule
5.22 has previously been announced by the Company for:
- Kalgoorlie Nickel Project on 21 October 2013 and 31 June 2014,
27 August 2015, 2015 Heron Annual Report, 27 October 2016, 2016
Heron Annual Report, Ardea Resources Limited Prospectus 9 November
2016; Ardea Resources Limited First Supplementary Prospectus 18
November 2016.
- Big Four-Goongarrie on 13 March 2012, 26 June 2012 and 24 July
2012.
The Company confirms that it is not aware of any new information
or data that materially affects information included in previous
announcements, and all material assumptions and technical
parameters underpinning the estimates continue to apply and have
not materially changed. All projects will be subject to new
work programs following the listing of Ardea, notably drilling,
metallurgy and JORC Code 2012 resource estimation as
applicable.
The information in this report that relates to Exploration
Results is based on information originally compiled by previous and
current full time employees of Heron Resources Limited. The
Exploration Results and data collection processes have been
reviewed and verified by Mr Ian Buchhorn who is a Member of the
Australasian Institute of Mining and Metallurgy and currently a
full-time employee of Heron Resources Limited. Mr Buchhorn
has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the
exploration activities undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves’. Mr Buchhorn consents to the inclusion in this
report of the matters based on his information in the form and
context that it appears.
The information in this report that relates to Mineral Resources
for the Goongarrie South, Big Four and Aubils Prospects is based on
information originally compiled by Mr James Ridley in 2008 and 2009
when employed as a Senior Resource Geologist with Heron Resources
Limited. The information in this report that relates to
Mineral Resources for the Scotia and Black Range Prospects is based
on information originally compiled by Snowden Mining Industry
Consultants on behalf of Heron in 2004. The Mineral Resource
estimates for all five prospect areas have been reviewed and
validated by James Ridley who is a Member of the Australasian
Institute of Mining and Metallurgy. Mr Ridley is now a
full-time employee of Ridley Mineral Resource Consulting Pty
Limited and has sufficient experience that is relevant to the style
of mineralisation and type of deposit under consideration and to
the resource estimation activity that he is undertaking to qualify
as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves’. Mr Ridley consents to the
inclusion in this report of the matters based on his information in
the form and context that it appears. Note that Mineral
Resources that are not Ore Reserves do not have demonstrated
viability.
The exploration and industry benchmarking summaries are based on
information reviewed by Mr Ian Buchhorn, who is a Member of the
Australian Institute of Mining and Metallurgy. Mr Buchhorn is a
full-time employee of Heron Resources Limited and has sufficient
experience, which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2012
edition of the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves’. Mr Buchhorn has
reviewed this press release and consents to the inclusion in this
report of the information in the form and context in which it
appears.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
Australian and Canadian securities laws, which are based on
expectations, estimates and projections as of the date of this news
release.
This forward-looking information includes, or may be based upon,
without limitation, estimates, forecasts and statements as to
management’s expectations with respect to, among other things, the
timing and ability to complete the Ardea spin-out, the timing and
amount of funding required to execute the Company’s exploration,
development and business plans, capital and exploration
expenditures, the effect on the Company of any changes to existing
legislation or policy, government regulation of mining operations,
the length of time required to obtain permits, certifications and
approvals, the success of exploration, development and mining
activities, the geology of the Company’s properties, environmental
risks, the availability of labour, the focus of the Company in the
future, demand and market outlook for precious metals and the
prices thereof, progress in development of mineral properties, the
Company’s ability to raise funding privately or on a public market
in the future, the Company’s future growth, results of operations,
performance, and business prospects and opportunities. Wherever
possible, words such as “anticipate”, “believe”, “expect”,
“intend”, “may” and similar expressions have been used to identify
such forward-looking information. Forward-looking information is
based on the opinions and estimates of management at the date the
information is given, and on information available to management at
such time. Forward-looking information involves significant risks,
uncertainties, assumptions and other factors that could cause
actual results, performance or achievements to differ materially
from the results discussed or implied in the forward-looking
information.
These factors, including, but not limited to, the ability to
complete the Ardea spin-out on the basis of the proposed terms and
timing or at all, fluctuations in currency markets, fluctuations in
commodity prices, the ability of the Company to access sufficient
capital on favourable terms or at all, changes in national and
local government legislation, taxation, controls, regulations,
political or economic developments in Canada, Australia or other
countries in which the Company does business or may carry on
business in the future, operational or technical difficulties in
connection with exploration or development activities, employee
relations, the speculative nature of mineral exploration and
development, obtaining necessary licenses and permits, diminishing
quantities and grades of mineral reserves, contests over title to
properties, especially title to undeveloped properties, the
inherent risks involved in the exploration and development of
mineral properties, the uncertainties involved in interpreting
drill results and other geological data, environmental hazards,
industrial accidents, unusual or unexpected formations, pressures,
cave-ins and flooding, limitations of insurance coverage and the
possibility of project cost overruns or unanticipated costs and
expenses, and should be considered carefully. Many of these
uncertainties and contingencies can affect the Company’s actual
results and could cause actual results to differ materially from
those expressed or implied in any forward-looking statements made
by, or on behalf of, the Company. Prospective investors should not
place undue reliance on any forward-looking information.
Although the forward-looking information contained in this news
release is based upon what management believes, or believed at the
time, to be reasonable assumptions, the Company cannot assure
prospective purchasers that actual results will be consistent with
such forward-looking information, as there may be other factors
that cause results not to be as anticipated, estimated or intended,
and neither the Company nor any other person assumes responsibility
for the accuracy and completeness of any such forward-looking
information. The Company does not undertake, and assumes no
obligation, to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new
events or circumstances, except as may be required by
law.
No stock exchange, regulation services provider,
securities commission or other regulatory authority has approved or
disapproved the information contained in this news
release.
Annexure 1
REPORT and RESOURCE STATEMENT – KALGOORLIE NICKEL
PROJECT, COBALT ZONES
Please refer to Ridley Mineral
Resource Consulting Pty Limited Memorandum dated 5 January 2017
available on SEDAR www.sedar.com and titled
“Updated Mineral Resource Reporting for
Regions of Continuous Cobalt Rich Mineralisation in the Kalgoorlie
Nickel Project”
Annexure 2
RESOURCE STATEMENT – KALGOORLIE NICKEL
PROJECT
Ardea Resources Limited Prospectus dated 9 November
2016
Please refer to KNP Mineral Resources (JORC 2012)
available on SEDAR www.sedar.com
For further information, please visit www.heronresources.com.au or www.ardearesources.com.au, or contact:
Dr Matt Painter
Managing Director Ardea Resources Limited
Tel: +61 8 6500 9200
Australia:
Mr Wayne Taylor
Managing Director and Chief Executive Officer Heron Resources Ltd
Tel: +61 2 9119 8111 or +61 8 6500 9200
Email: heron@heronresources.com.au
Canada:
Tel: +1 647-862-1157 (Toronto)