Heron's Kalgoorlie Nickel to third step with CVRD

07/11/2007 - 10:37

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CVRD-Inco will proceed to step three of the Kalgoorlie Nickel Project, its joint venture with West Perth-based Heron Resources Ltd, and will pass on a draft program and budget for the works by Saturday.

Heron's Kalgoorlie Nickel to third step with CVRD

CVRD-Inco will proceed to step three of the Kalgoorlie Nickel Project, its joint venture with West Perth-based Heron Resources Ltd, and will pass on a draft program and budget for the works by Saturday.

 

 

The full text of a Heron announcement is pasted below

Heron Resources Limited (ASX:HRR) is pleased to announce that CVRD Inco Limited (CVRD Inco), a wholly owned subsidiary of Companhia Vale do Rio Doce (CVRD), has informed Heron of its decision to proceed to Step 3 of the Kalgoorlie Nickel Project (KNP) Agreement. In making the decision to proceed to Step 3, CVRD Inco advised Heron (in accordance with its obligations under the KNP Agreement), that:

"CVRD Inco has now determined, for the purposes of clause 4.4 (d) of the KNP Agreement, that it is reasonably satisfied that an economically feasible process flowsheet suitable for treating Ore can be developed in respect of the KNP."

Step 3 requires the completion of a Prefeasibility Study (PFS) to be conducted by an experienced nickel laterite consulting engineering company by the end of January 2009 under the direction and supervision of CVRD Inco. The main objectives and scope of the PFS will be to advance all of the engineering and other requirements for the KNP that will allow confirmation of the mineral resources, the chosen process flowsheet, and products. It will also develop capital and cost estimates to the +/- 25% level with a probability of 50% of achieving these costs. Finally, it will recommend any additional work required to complete the Feasibility Study as well as define the preliminary scope, cost and schedule for the Feasibility Study.

CVRD Inco will provide Heron with a draft Program and Budget for Step 3 by 10 November 2007. This Program and Budget will be considered for adoption by the KNP Management Committee and Heron will summarise the Programme and Budget to the market once adopted.

Heron Managing Director, Mathew Longworth, said: "This is a very significant step forward for the KNP, which is recognised as one of the world's largest undeveloped Nickel Laterite projects. Upon funding and completion of all feasibility studies by CVRD Inco, Heron will have a 40% interest in the KNP."

"We are very pleased with the technical confidence shown in the project, which is reflected by CVRD Inco's decision to move to Step 3 of the studies. We look forward to working with CVRD Inco to continue to develop the KNP project at this very exciting time"

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