Bush Diary March 2008
To distinguish the ongoing work Heron is conducting outside the Kalgoorlie Nickel Project with Vale Inco, Heron has collectively named the Aubils, Boyce Creek and Jump-up Dam areas the "Yerilla Project". Future discoveries outside the KNP, such as the potential find at Pianto Road, may also form part of the Yerilla Project.
Based on resources reported to the ASX during 2007, the Yerilla Project has total resources in the Indicated and Inferred categories of 84 million tonnes at 0.73% nickel based on a 0.5% nickel cut-off grade.
At Boyce Creek, drilling has been underway to form the basis for an updated resource estimate. Resources at Boyce Creek currently stand at 18.4 Mt grading 0.82% Nickel in the inferred category. At Aubils, work is underway for the initial resource estimate. A total of 341 holes for 16,195 metres were completed at Boyce Creek and 290 holes for 17,541 metres at Aubils. The Boyce Creek program included 8 Sonic Core holes (150mm diameter) for 329 metres which are providing geotechnical data as well as ideal samples for beneficiation test work.
During the last 9 months drilling has been ongoing at Jump-up Dam reducing the drill spacing down to 40mx40m over the key resource areas and down to 20mx20m and 10mx10m in two regions on the deposit for the purposes of ore type and grade continuity investigations and grade control for trial mining. Resource estimation is currently underway on this data to provide a more accurate resource model for use in the atmospheric leach studies. A total of 774 new drill holes for 37,500 metres will be included in this resource model as will results from the close-spaced control drilling and mining reconciliation.
Reconnaissance RC drilling comprising 55 holes for 2,526 meters was recently completed at the Pianto Road nickel laterite prospect, located some 25km south-west of Jump-up Dam. A zone of nickel laterite some 40-100 metres wide has been intersected on the 480 meters spaced lines over a strike length of some 1.4 kilometres. Assays for this drilling are pending.
In February Heron was pleased to announce the completion of trial mining at its Jump-up Dam Project in line with schedule and budget. Laterite ore types encountered during mining were in line with those predicted by the geological model. Face and dump sampling were completed as part of the mining process. Grade reconciliation will be completed upon return of the assays with the results to be utilised in current and future studies.
Bush Diary December 2007
![[photo]](images/bushdiary/diary200712-01.jpg)
![[photo]](images/bushdiary/diary200712-02.jpg)
![[photo]](images/bushdiary/diary200712-03.jpg)
The Jump-up Dam Project has entered into Demonstration Trial Mining and Heap Leach phase.
Construction is anticipated to take approximately three months and is scheduled for completion at year's end, with an estimated capital expenditure of A$5.5 million. Engineering is 95% complete for the demonstration plant, and Board approval was given for the key contracts for construction.
Trial mining is scheduled to commence in the new year, and will involve the excavation of 100,000 tonnes of ore, blending representative ore feed, agglomeration and stacking 20,000 tonnes in 4 X 5000 tonne heaps for leaching over a 10 month period.
The camp settlement has been fully set-up and is now functioning as a home away from home for our employees.
The stacker conveyor has been mobilised to site and is currently being erected. The ponds have been dug and work is beginning on the lining.
