Nickel Laterite. AMEC NATIONAL MINING CONGRESS 22 May 2008 Mathew Longworth Heron Resources Limited ASX: HRR

Transcription

1 Nickel Laterite Moving Forward AMEC NATIONAL MINING CONGRESS 22 May 2008 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 p y p y y 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 STRATEGY Develop large nickel laterite projects in partnership p with major companies KNP Vale Inco; partner earning up to 60% Yerilla BHP Billiton; technology partnership Develop a strong quality cash flow through acquisition of producing assets Leverage off strong, proven Geology and Metallurgical team

4 CONSOLIDATION Honeymoon Well -28 Mt Keith Leinster Laverton Leonora Murrin Murrin 0 50km -30 KALGOORLIE NICKEL PROJECT Menzies JUMP-UP DAM PROJECT Cawse Silver/Black Swan KALGOORLIE Bulong Coolgardie Nickel l smelter Southern Cross Kambalda July 07

5 FINANCIAL SNAPSHOT Listed on the ASX in 1996 Issued Shares M Share Price $0.50-$ Month Range $0.43-$1.42 $1 42 Market Cap. Cash $132.5M $42.0M Top Shareholders Directors and associates 19.7% BHP Billiton 15.6% Inco Limited 13.46%

6 BOARD AND MANAGEMENT TEAM Board Chairman, Craig Readhead Managing Director, Mathew Longworth Executive Director Strategy, Ian Buchhorn Non Executive Director, Stephen Dennis Non Executive Director, Ken Hellsten Management Managing Director, Mathew Longworth Project Manager Yerilla, Kevin Reynolds Company Secretary/General Counsel, Robert Klug Exploration Manager, David von Perger Financial Controller, Brian Horan Manager HSEC and Approvals, Glenn Firth

7 YERILLA PROJECT Comprises of Jump-up Dam, Boyce Creek and Aubils resources Undertaking study into production of 20Kt Ni in intermediate product for an excess of 15 years. Initial study completed August 2008 Leverage off the technology agreement with BHP Billiton

8 YERILLA PROJECT RESOURCES Jump-up Dam Mt Ni% Co% Inferred Indicated Measured Sub-total t Boyce Creek Inferred Total The information in this report that relates to Mineral Resources is based on information compiled by James Ridley who is a Member of the Australasian Institute of Mining and Metallurgy. James Ridley is an employee of Heron Resources 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 Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. James 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.

9 ATMOSPHERIC LEACH

10 ATMOSPHERIC LEACH PROCESS FLOW SHEET Goldfields Acid supply Mining Acid plant ROM Stockpile Crusher Conveyor Beneficiation Drum Agglomeration Heap stacking conveyor Reticulated solution Agitated Leaching Tanks Crushed ore stockpile Fine ore after crushing waste 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

11 BENEFICIATION Upgrades by average of 40% with better than 55% metal recoveries Beneficiation most profitable on low grade ore More than 50% of resources upgrade Potential to increase leaching grade by between 20 and 30%. Significant potential to convert low grade resources to reserves Provide significant buffering to movements in nickel price

12 GRADE TONNAGE CURVE AND BENEFICIATION 1.4 Jump-up Dam Grade Tonnage Curve Measured + Indicated + Inferred , , , , , , , , , , Tonne (kt)

13 BENEFICIATION FEED

14 CLEANED BENEFICIATION REJECT

15 AREAS OF IMPROVEMENT OVER HEAP LEACH Higher leaching grade Jump-up up Dam, Boyce Creek and Aubils resources Target 15+ year mine life at 20,000t Ni in intermediate Increased leach recovery, reduced acid consumption Rapid leach kinetics 18 hours against 9 months Greater control on reagent consumption Smaller process foot print Commercialised process Ravensthorpe Partner to assist in funding larger scale project

16 TIME LINES CURRENT STUDY Resource Estimation Prefeasibility Metallurgical test-work MineSchedule Process design Cost estimation Financial Modelling April 2008 May 2008 June 2008 July 2008 Aug 2008

17 KALGOORLIE NICKEL PROJECT Ultramafic Granite Major Rd Drilling Large nickel laterite project centred on Kalgoorlie, one of the largest undeveloped nickel projects in the world Partnership with Vale Inco to complete PFS by 30 January 2009 Upon decision to mine, Vale Inco earn 60% and carry Heron s contribution for all but 4.5% of equity contribution Evaluating high pressure, atmospheric and heap leach processes complimented by ore beneficiation

18 KALGOORLIE NICKEL PROJECT 60,000 meters of drilling completed this year Resource estimation in progress Beneficiation will improve leaching grades Target 50 to 70% average upgrade

19 KALGOORLIE NICKEL PROJECT Initial batch tests 59 samples Heap Leaching 17/59 HPAL 30/56 Atmospheric Leach 28/56; different technology to that used dby Heron Beneficiation optimisation 2 bulk samples: Highway and Kalpini Beneficiation Variability 268 samples (58 HW; 70 GH;70 GS & 70 SN) Heap Leaching 16 kinetics samples HPAL Variability 100 samples for testing

20 KALGOORLIE NICKEL PROJECT Infrastructure and inputs Evaluating Rail and Port Plant site Water source and quality Limestone and calcrete Initial environmental and government liaison

21 CONSULTATION WITH STAKEHOLDERS

22 HERON IN SUMMARY Yerilla Project grown to potential 20,000 Ni per annum Project strengthened through technology partnership KNP carried exposure at 40% to major nickel project In the KNP Support of two of the world s three largest mining companies Strong cash position

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