A TOTAL NICKEL FOCUS

Transcription

1 A TOTAL NICKEL FOCUS June 2007 Mathew Longworth Heron Resources Limited ASX: HRR

2 Disclaimer Forward Looking Statement The material used in this presentation is intended to be a summary of selected geological data, current and proposed activities, as well as resource estimates based on information available to Heron Resources at the time. It does not include all available information and should not be used in isolation as a basis to invest in Heron Resources. Any potential investor should refer to Heron Resources ASX releases and statutory reports before considering investing in the company. This presentation includes information relating to a completed independent scoping study, completed independent resource estimate and a feasibility study which is in progress and includes forward looking statements which include, without limitation, estimates of potential nickel in concentrate production based on mineral resources that are currently being evaluated. While the Company has a reasonable basis on which to express these estimates, any forward looking statement is subject to risk. Risks include, without limitation: nickel metal prices, foreign exchange rate movements, 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 forward looking statements included in this presentation to reflect events or results after the date of this presentation, except as may be required under applicable securities laws.

3 OVERVIEW A TOTAL NICKEL FOCUS ABOUT THE COMPANY PROJECT LOCATIONS JUMP-UP DAM HEAP LEACH PROJECT KALGOORLIE NICKEL PROJECT (KNP)

4 ABOUT HERON RESOURCES Listed in 1996 focused on Nickel Development projects Jump-up Dam Minimum 10,000 tpa Ni Intermediate product Heron 100% Feasibility Study completion of pre-feasibility study September 2007, completion of definitive feasibility study June 2008 KNP Completion of Feasibility 2011 Partnership with CVRD-Inco Portfolio of Nickel Exploration Projects Aubils and Boyce Creek

5 FINANCIAL SNAPSHOT Issued Shares M Unlisted Options 58.6M Share Price (21/06/07) $ Month Range $0.44-$1.47 Market Cap. $240M Cash Top Shareholders $29.2M Directors and associates 20.0% BHP Billiton 8.83% Inco Limited 8.59%

6 Management Team Mathew Longworth MD and CEO Appointed January 2007 Geologist by training, exploration, development and senior management roles with Billiton, Shell Coal, RGC Goldfields and AurionGold. Joined Heron December 2003, Director since Kevin Reynolds Project Manager Jump-up Dam Appointed February 2007 Metallurgist by training, roles with major mining houses and engineering companies 20 years project study and delivery, including nickel hydrometallurgy and heap leach Robert Klug Commercial Manager General Counsel Appointed February 2007 Lawyer by training, roles in major law firms, equity market participants and rapidly emerging mid tier mining house. Sarah Calvert Company Secretary Accountant by training, previous roles include mining accounting and finance Joined Heron November 2003 David von Perger Exploration Manager Geologist by training, senior exploration and analyst roles with Normandy, Centaur Mining and Exploration Joined Heron February 2004

7 Heron Board Chairman Craig Readhead Mining and Commercial Lawyer Executive Director Strategy Ian Buchhorn Founding Managing Director Mineral Economist by training Non Executive Director Stephen Dennis Former CFO Minara Resources, Regional Director Brambles Non Executive Director Ken Hellsten Recently President and CEO Ravensthorpe Nickel, previously Project Manager Cawse study, construction and ramp-up. Managing Director Mathew Longworth

8 Increasing Laterite Contribution kt Year Source: Citygroup Investment Research June 2007

9 Heron Focus on Nickel Tenements -28 Continual assessment of tenement package -30 KALGOORLIE NICKEL PROJECT Leonora AUBILS Menzies JUMP-UP DAM PROJECT Acquisition of prospective nickel tenements, Laterite and Sulphide Turnover of assessed tenements Development of priority projects eg Boyce Creek and Aubils KALGOORLIE Southern Cross -32 LEGEND Kalgoorlie Nickel Project tenements Kilometres Other Heron tenements related company tenements Esperance -34

10 What is Heap Leach A lower capital cost process for extracting metals from oxidized ores (gold and copper for over 50 years) more recently nickel. Key Companies undertaking heap leach nickel projects BHPB European Nickel Minara CVRD-Inco Heron Cerro Matoso Caldag Murin Murin Operation evaluation at a number of projects Jump-up Dam Process involves mining ore in a conventional open pit agglomerating to improve competence and permeability stacking in heaps on impermeable membranes and leaching with dilute acid neutralizing leach solution and precipitation of nickel intermediate

11 Key Issues for Jump-up Dam Leaching Completed 18 sighter column leach tests; encouraging leach results Large scale column tests two completed four in progress quick leach times, experience is improving reagent consumption and leaching rates. Test work is ongoing. Heaps remaining permeable Agglomeration continuing improved understanding Demonstration full scale heap trials Mining in October 2007 Agglomeration and stacking November 2007 Leaching December 2007 Acid, limestone and water supply Acid Plant on site multiple sources of sulphur, acid negotiations Alternative lime sources (calcrete and lime sands) Ongoing water exploration and test work

12 Key issues for Jump-up Dam Precipitation of intermediate product Product precipitation test work current Maintain two alternative flow sheets to end PFS Demonstration precipitation from demonstration heaps Marketing Studies 14 refineries

13 PROJECT LOCATION Laverton Leonora Aubils Infrastructure -30 Menzies KALGOORLIE Coolgardie Kookynie JUMP-UP DAM PROJECT -30 Gas Rail Road Ports Southern Cross Kambalda Skilled labour pool Gas pipeline Norseman Balladonia Railway Main roads Kilometres Esperance PERTH KWINANA KALGOORLIE ESPERANCE -34 Port -34

14 JUMP-UP DAM HEAP LEACH PROJECT Murrin Murrin Leonora 15km Mt Remarkable Aubils Kookynie Kilometres Murphys Well 100% Heron owned and managed Pre-feasibility study completion September 2007 Targeting production Heron tenements Ultramafic lithologies 50km Boyce Creek Jump-up Dam Minimum 10,000 tonne per annum nickel production Supported by % Ni Resource definition drilling in progress Main Roads Rail Kalgoorlie 130km

15 JUMP-UP DAM DRILL SECTIONS Western Zone Section 3200N 400RL 1.07% Ni 1.24% Ni 1.53% Ni Legend Cover 360RL Upper Clay Upper Clay mineralisation Lower Clay mineralisation Lower Clay 320RL Ultramafic bedrock Eastern Zone Section 1920N 400RL 0.91% Ni 0.76% Ni 1.07% Ni Zone of mineralisation 1.53% Ni 22 metres at 1.44% Nickel grade No vertical exaggeration 360RL 320RL

16 AUBILS PROJECT Located to North of Jump-up Dam Western Australia PROJECT Encouraging shallow broad intersections 20/0.97(4) 24/0.78(8) 8/0.86(10) 32/1.33(4) 16/0.77(26) Perth Kalgoorlie Further drilling to be completed Initial leaching and benefication testwork to commence 10/1.00(28) 30/0.73(8) 26/1.14(4) 40/0.85(48) 11/0.91(48) 32/0.89(6) 36/0.82(6) 12/0.90(30)&20/1.01(4) 40/0.96(20) 8/0.98(40) 14/1.17(54) 6/0.73 (48) 14/1.12 (18) &8/0.79(38) Legend: /0.93 (18) 32/1.33(4) 32 metres at 1.33% Nickel grade from 4m Kilometres RC Drilling, red > 0.25% Ni Assay pending at 20 June 07 18/0.74 (16) Heron tenements

17 AUBILS DRILL SECTIONS Section N 380RL 4/ RL 32/ / RL 320RL 320RL Legend Cover Upper Clay Upper Clay mineralisation Lower Clay mineralisation Lower Clay Ultramafic bedrock Zone of mineralisation 32/ metres at 1.33% Nickel grade

18 AUBILS DRILL SECTIONS Section N 380RL 360RL 340RL 6/ / / / RL 300RL 12/0.57 6/ RL Legend Cover Upper Clay Upper Clay mineralisation Lower Clay mineralisation Lower Clay Ultramafic bedrock Zone of mineralisation 32/ metres at 1.33% Nickel grade

19 JUMP-UP DAM TRIALWORK High grade garnierite zones identified with Garnierite can host up to 30% nickel Commonly grades better than 2% Ni Very amenable to leaching Has siliceous matrix for heap strength

20 JUMP UP DAM TRIALWORK RESULTS Ni Extraction (%) vs Leach Time Ni Extraction (%) H4L002 4m Test2 H4L002 2m Test6 H4L002 1m Test9 H4L003 4m Test1 H4L003 2m Test4 H4L003 1m Test7 H4L001 & 003 4m Test3 H4L001 & 003 2m Test5 H4L001 & 003 1m Test8 H4L002 Test11 NaMBS Leach Time (days) H4L003 Test 12 NaMBS Addition

21 JUMP UP DAM TRIALWORK RESULTS 100 Ni Extraction (%) vs Leach Time HL06 HL09 HL017 HL10 HL013 HL08 HL014 HL018 HL015 HL016 HL Leach Time (days)

22 JUMP-UP DAM FLOW SHEET Goldfields Acid supply Mining Acid plant ROM Stockpile Crusher Conveyor Drum Agglomeration Heap stacking conveyor Reticulated solution Crushed ore stockpile Fine ore after crushing Agglomerate nodules in heaps Limestone Stage 1 Neutralisation with Limestone Recycling of process water Dilute acid solution recirculating Precipitation Stage Filtering and drying Acid addition Intermediate Product Bulk Bags Zero discharge site Shipping from Esperance

23 Pre-Feasibility Study Focus on > 10,000 tpa production, backed by strong resource base targeting 15 year mine life Increased confidence in resource estimate, infill drilling in progress Three 4 metre high columns currently leaching Nine ongoing large column testwork

24 KNP PROJECT OVERVIEW Ghost Rocks Siliceous Large scale nickel laterite project in partnership with Menzies 0 Scale 20km CVRD-Inco. Highway Siliceous Siberia North Siliceous Siberia Siliceous Black Range Nontronite Goongarrie Hill Siliceous Goongarrie South Goethite Big Four Siliceous Big Four Placer Siliceous Scotia Siliceous Kalpini Nontronite Major Roads Ultramafic Granite Major Road Mineralised Drillholes Subject to milestones, CVRD-Inco sole funds Feasibility Study; CVRD-Inco earn 60% on completion of Feasibility and securing project funding; Heron equity capped at 4.5% of total equity KALGOORLIE Bulong Nontronite CVRD-Inco lends Heron its remaining equity funds 121 º º º

25 JOINT VENTURE MILESTONES Step 1, Pre-Feasibility Step 2, Flow sheet selection Completed Commenced- Sep 2007 Completion Bench Scale Metallurgical Tests, HPAL and AL, settling and rheology tests. Crushing, attritioning and scrubbing crushing optimisation evaluate beneficiation options. Bulk metallurgical tests, three, 500kg semi continuous pilot high pressure leach runs. Step 3, Resource and engineering Jan 2009 Feasibility Study July 2011

26 BENEFICATION: HOW IT WORKS Screen Upgrade Scrubbed slurry into pilot plant trommel screen deck Screened rejects Silica fragments 60% Reject grade 0.3% Ni Grade approximately 0.8%Ni Screened slurry Limonite 40% Leach feed grade 1.5% Ni

27 KNP Nickel Screen Upgrade mE mE mE mE mE 400RL 0.67% Ni 0.57% Ni 0.75% Ni 0.96% Ni 1.02% Ni 1.00% Ni 1.13% Ni 2.21% Ni nontronite ore, no upgrade GOOGARRIE HILL PROJECT Section N Nickel Head Grade Note x 4 vertical exaggeration 1.00% Ni 24 metres at 1.00% Nickel grade without screening

28 KNP Nickel Screen Upgrade mE mE mE mE mE 400RL 0.67% Ni 0.95% Ni LFG 0.57% Ni 1.05% Ni LFG 0.75% Ni 1.68% Ni LFG 0.96% Ni 1.65% Ni LFG 1.00% Ni 1.72% Ni LFG 1.02% Ni 2.09% Ni LFG 1.13% Ni 1.19% Ni LFG 2.21% Ni 1.22% Ni LFG nontronite ore, no upgrade GOOGARRIE HILL PROJECT Section N Nickel Screen Upgrade Note x 4 vertical exaggeration 1.72% Ni LFG 24 metres at 1.72% Nickel Leach feed grade after screening at 0.075mm, based on bottle roll testwork

29 GLOBAL MINED PRODUCTION Ni Tonnes Source Intierra 200, ,000 Jump Up Target 10,000t Ni 100,000 50,000 0

30 CONCLUSION: GROWTH MILESTONES Heron has delivered on the divestment on noncore assets Heron is delivering medium-term nickel production Jump-up Dam Inco JV, Placement BHPB on Register Execution of formal agreement Jump-Up Dam Scoping Study Heron will deliver on the larger, longer-term Kalgoorlie Nickel Project Heron delivers on, exploration & strategic acquisitions Scoping study and resources

31 ASX: HRR Mathew Longworth Managing Director Phone: Mobile :