On 29 May 2009 Heron entered Framework Agreement with Ningbo Shanshan Co Ltd (SHA:600884; Shanshan) with respect to Heron’s Yerilla Nickel Cobalt Project. The Agreement provides for Shanshan to undertake a feasibility study into treating ore from Heron’s Yerilla Project utilising technology being provided by Shanshan, to produce a nickel and cobalt concentrate for further processing in China.
Shanshan, is one of world’s largest producers of materials for Lithium ion battery manufacture and as such is a significant end user of nickel and cobalt. Shanshan, is currently constructing a pilot plant at its facilities in the city of Changsha China to test the compatibility of Yerilla ore with its processing technology. A forty tonne bulk sample of Yerilla ore has been shipped to Changsha for this test work.
Heron will work with Shanshan during the pilot process to collect critical data for Australian project approvals.
Subsequent to a positive feasibility study outcome, Shanshan may earn a 70% interest in the Yerilla project by sole funding construction and commissioning of the project to an agreed capacity. For the full announcement click here.
About Yerilla
During 2008, Heron announced positive results (see below for summary) from the Scoping Study for its Yerilla Project located some 150 km north-east of Kalgoorlie in Western Australia. The Scoping Study was delivered on time and within budget because of the quality of the project assets and Heron's in-house project team.
Onwards from the scoping study Heron continue to build further understanding of the metallurgical material types in the Yerilla project areas based on multi-element geochemical data from X-ray fluorescence (XRF) analysis and detailed mineralogy data from X-ray diffraction (XRD) analysis and reflectance spectrometry. In particular, a new relationship between the geochemistry and mineralogy was identified enhancing the ability to predict material types and likely mineralogy based on multi-element geochemical data.
Previously collected core from sonic drilling at the Jump-up Dam and Boyce Creek deposits is being geologically logged and sampled in preparation for additional metallurgical test work should the project proceed to a prefeasibility study. In addition, bulk density measurements are being conducted on core samples from the Boyce Creek deposit for use in future resource estimation work.
Resources
During the year the Company upgraded its resources at Jump-up Dam, Boyce Creek and Aubils to a combined total of 135.3Mt @ 0.77% Ni and 0.05% Co. Of this total more than half is in the higher confidence indicated and measured categories. The resources were estimated by Indicator Kriging into a block model. This resource upgrade increased the Company's total resource position to over 1 billion tonnes at 0.75% Ni and 0.05% Co for a total of 7.78Mt of contained nickel. The increase in the Yerilla Resources supported the doubling of potential nickel production examined by the Scoping Study helping to reduce the operating costs and improve economies of scale.
