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080213 RIU Expolorers Conference.ppt · 2008/02/13 · Title: Microsoft PowerPoint - 080213 RIU...
Transcript of 080213 RIU Expolorers Conference.ppt · 2008/02/13 · Title: Microsoft PowerPoint - 080213 RIU...
NICKEL LATERITE PROJECTSPROJECTS
RIU EXPLORERS CONFERENCE13 February 2008
Mathew LongworthHeron Resources Limited
ASX: HRR
Disclaimer Forward Looking StatementThe material used in this presentation is intended to be a summary of selectedgeological data, current and proposed activities, as well as resource estimatesbased on information available to Heron Resources at the time. It does not includeall available information and should not be used in isolation as a basis to invest inall available information and should not be used in isolation as a basis to invest inHeron Resources. Any potential investor should refer to Heron Resources’ ASXreleases and statutory reports before considering investing in the company.This presentation includes information relating to a completed independent scopingstudy completed independent resource estimate and a feasibility study which is instudy, completed independent resource estimate and a feasibility study which is inprogress and includes “forward looking statements” which include, without limitation,estimates of potential nickel in concentrate production based on mineral resourcesthat are currently being evaluated. While the Company has a reasonable basis onwhich to express these estimates, any forward looking statement is subject to risk.y g jRisks include, without limitation: nickel metal prices, foreign exchange ratemovements, failure to meet joint venture milestones, project funding capacity,concentrate off-take contracts and estimates of future capital and operating costs.The Company does not undertake to release publicly any revisions to forwardp y p y ylooking statements included in this presentation to reflect events or results after thedate of this presentation, except as may be required under applicable securitieslaws.
THE PROJECTSDevelopment projects
• KNP• KNP • Completion of PFS January 2009• Partnership with Vale Inco (formerly CVRD Inco)
J D• Jump-up Dam• Beneficiated ore into atmospheric leaching• Scale of production determined by scoping studyp y p g y• Intermediate product• Heron 100%• Technology Licencing and Product Supply Agreement• Technology Licencing and Product Supply Agreement• Studies
– Scoping study – 4 months Pre feasibility study end of 2008– Pre-feasibility study – end of 2008
FINANCIAL SNAPSHOTListed on the ASX in 1996
Issued Shares 240.93MShare Price $0.80-$0.9012 M th R $0 68 $1 4712-Month Range $0.68-$1.47
Market Cap. $200M
Cash $48.0M
Top Shareholders• Directors and associates 19.7%• BHP Billiton 14.7%• Inco Limited 13.9%
BOARD AND MANAGEMENT TEAMBoard
Chairman, Craig ReadheadgManaging Director, Mathew Longworth Executive Director Strategy, Ian BuchhornNon Executive Director Stephen DennisNon Executive Director, Stephen DennisNon Executive Director, Ken Hellsten
ManagementManaging Director, Mathew LongworthProject Manager Jump-up Dam, Kevin ReynoldsProject Manager Jump up Dam, Kevin Reynolds Company Secretary/General Counsel, Robert Klug Exploration Manager, David von Perger
CONSOLIDATION
-28 °LeinsterMt KeithMt Keith
HoneymoonWell
28
Laverton
Leonora
0 50km
Murrin Murrin
-30 °
Menzies
JUMP-UP DAMPROJECT
JUMP-UP DAMPROJECT
KALGOORLIEKALGOORLIENICKELNICKEL
PROJECTPROJECT
Coolgardie
KALGOORLIE
Ni k l
Bulong
Ni k l
Cawse
Silver/BlackSwan
Southern Cross
Coolgardie
July 07
Kambalda
Nickelsmelter
Kambalda
Nickelsmelter
PROJECT LOCATION
InfrastructureLeonora
Laverton
GasRail-30 ° -30 °
Menzies JUMP-UP DAMPROJECT
Kookynie
KALGOORLIENICKEL
PROJECT RoadPorts
Skilled labour poolKambalda
Coolgardie
KALGOORLIE
PROJECT
Skilled labour pool
-32 ° -32 °
Southern Cross
Norseman
PERTH
KALGOORLIE0 50 100
Kilometres
Balladonia
Main roads
Railway
Gas pipeline
ESPERANCE
PERTHKWINANA
Kilometres
-34 ° -34 °
Esperance
Port
KNP PROJECT OVERVIEWGhost Rocks Siliceous
M i
Large scale nickel laterite project in partnership with V l I20kmScale0
Highway Siliceous
Menzies Vale Inco.
Subject to milestones, Vale Inco sole funds Feasibility
Ultramafic
Goongarrie Hill Siliceous
Goongarrie South GoethiteSiberia North Siliceous
Big Four Siliceous
Inco sole funds Feasibility Study;
Vale Inco earn 60% on
Major Roads
Granite
Major Road
Mineralised Drillholes
Big Four Placer SiliceousScotia Siliceous
Siberia Siliceous
Bl k R N t itKalpini Nontronite
Vale Inco earn 60% on completion of Feasibility and securing project funding;Black Range Nontronite funding;
• Heron equity capped at 4.5% of total equity
KALGOORLIE
121.5 º121 º 121.25 º
Bulong Nontronite
• Vale Inco lends Heron its remaining equity funds
JOINT VENTURE MILESTONESCompletion of Full PFS - Jan 2009
• $13.8 million budget approved for first six monthsg pp• Significant drilling component to increase confidence in the
resource • Metallurgical test work• Metallurgical test-work
• Pressure acid leach• Heap leach• Atmospheric leach
• Engineering• The PFS will be conducted by a third party independent• The PFS will be conducted by a third party independent
engineering consultancy
Feasibility Study - July 2011y y y
KNP PRE-FEASIBILITY STUDYClose resource drill spacing to <160x80m focus on resource zones >1.4% head or beneficiated gradeTesting of five project areasSince December 2007
• Completed 55 line km of ERI surveys.• Completed 32 Sonic core holes for 1,118 metres.• Completed 22 RC holes for 933 metres.
METALLURGICAL TEST-WORKCurrent concurrent study of 60 samples.
Evaluate most suitable leaching methodologyEvaluate most suitable leaching methodology.• Heap Leach• Atmospheric Leach• Atmospheric Leach• Pressure Acid Leach
Test-work developed in association with CSIRO and pVale Inco technology centre.
JUMP-UP DAM PROJECT 100% Heron owned and managedHeap leach would not provide adequate return to support the
0 10 20
Kilometres
Murrin MurrinLeonora 15km
adequate return to support the project significant increases in Capex and OpexTechnology Licensing and
-29.2 °
Aubils Technology Licensing and Product Supply agreement with BHPBTrial Mining proceeding Leaching
AubilsResource est.in progress
Kookynie
g g gon Care and MaintenanceExpanded resource base in the district to base revised project on
-29.5 °Boyce Creek18mt @ 0.82% Niupgrading to Indicated
Heron tenements
Ultramafic lithologies
Jump-up Dam22mt @ 1.01% Ni53mt @ 0.7% NiExtensions identified
50km
Kalgoorlie 130km
Main Roads
Rail Pianto RoadInitial drillingin progress
ATMOSPHERIC LEACHLeaches a slurry of beneficiated ore in tanks at 90ºC and atmospheric pressure.Leaches nickel in 6 to 24 hours vs 6 to 9 months for heap leach.More control over reagents and potential to manage acid use.
BENFICIATION - HOW IT WORKSScreened rejectsSilica fragments 60%Reject grade 0 3% Ni
Screen UpgradeReject grade 0.3% Ni
Scrubbed slurryinto pilot plant
trommel screen deck
Grade approximately 0.8%Ni
Screened slurryLimonite 40%
Leach feed grade 1.5% Ni
JUMP-UP DAM FLOW SHEET
Acid supply
Goldfields
Mining
Acid supply
Acid plantMining
Acid plant
DrumAgglomeration Heap stacking
conveyor
ConveyorCrusher
Crushed ore stockpile
Reticulated solution
ROM Stockpile
BeneficiationConveyorCrusher
C h d t k il
Agitated Leaching Tanks
ROM Stockpile
Stage 1Neutralisation
with Limestone
Dilute acid solutionrecirculating
Crushed ore stockpile
Fine ore after crushing
Recycling of process water
Agglomerate nodules in heaps
Limestone
Stage 1Neutralisation
with Limestone
Crushed ore stockpile
Fine ore after crushing
Recycling of process water
Limestone
waste
PrecipitationStage
Acid addition
Filtering and drying
Intermediate ProductBulk Bags
PrecipitationStage
Acid addition
Filtering and drying
Intermediate ProductBulk BagsBulk Bags
Shipping from Esperance
Zero discharge site
Bulk Bags
Shipping from Esperance
Zero discharge site
JUMP-UP DAM PROJECT1km
ASX: HRR
Mathew LongworthManaging DirectorManaging Director
Phone: +61 8 9215 4444Mobile : +61 418 935636