1.0 Overview
Since listing in August 1996, focus has been maintained on Nickel and nickel laterite; this strong focus resulted in the Kalgoorlie Nickel Project (KNP) ground position supporting a JORC combined resource of 903mt @ 0.74% nickel for 6.6 million tonnes of contained nickel. The KNP is in partnership with Vale Inco and is the reason why BHPB and Vale Inco hold significant positions on Heron's Share register.
Heron has developed through to scoping study the significant Yerilla Nickel Laterite Project.
2.0 Business Plan
- To commission the Kalgoorlie Nickel Project in partnership with Vale Inco.
- To develop the Yerilla Nickel Laterite Project, in association with a partner.
- Exploration budget $1.5–2.5 million per annum since 1996, targeted on world-class metal deposits only.
- Focus on the Eastern Goldfields of Western Australia served by good infrastructure, low sovereign risk and environment conducive to development.
3.0 Assets
- Kalgoorlie Nickel Project, world-class nickel laterite assets, production potential 50,000 tpa nickel metal.
- Vale Inco has the right to earn 60% upon funding and completing all feasibility studies, securing project debt funding and loaning Heron all but 4.5% of the equity funding required.
- Yerilla Nickel Laterite Project targeting production of 20,000 tpa nickel in intermediate product to be developed in partnership.
- Extensive land holdings of komatiite belts, nickel sulphide and laterite targets.
- Heron has the strongest single company tenement holding in the world's most intensely mineralised Ni-Au province, the Kalgoorlie Goldfields.
4.0 Development Strategy
- Advance the Kalgoorlie Nickel Project, with partners Vale Inco.
- Develop the Yerilla Nickel Laterite Project as a low cost and medium scale laterite project exploiting atmospheric leach technology.
- Acquire a portfolio of operating assets.
5.0 Strengths of Heron Resources Limited
- Technical skills excellent, with complete in-house technical capability.
- Strong element of risk management in operations, but still "adventurous" in counter-cyclical acquisitions.
- Quality assets secured through exploration success, and hence low acquisition cost and 100% ownership.