Niblack Project A Southeast Alaska 36% Development Opportunity - - PowerPoint PPT Presentation

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Niblack Project A Southeast Alaska 36% Development Opportunity - - PowerPoint PPT Presentation

Niblack Project A Southeast Alaska 36% Development Opportunity 33% 22% 9% June 2017 Forward-Looking Statements This presentation includes certain statements that may be deemed "forward-looking statements". All statements in this


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SLIDE 1

A Southeast Alaska Development Opportunity

June 2017

36% 33% 22% 9%

Niblack Project

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SLIDE 2

Forward-Looking Statements

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This presentation includes certain statements that may be deemed "forward-looking statements". All statements in this presentation, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: the Niblack project will obtain all required environmental and other permits and all land use and other licenses, studies and exploration of the Niblack project will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, potential environmental issues or liabilities associated with exploration, development and mining activities, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party

  • pposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability
  • f capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not

guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking

  • statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available

at www.sedar.com. Information Concerning Estimates of Indicated and Inferred Resources “This presentation uses the terms ‘Indicated resources’ and ‘Inferred resources’. Heatherdale Resources Ltd. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, ‘Inferred resources’ have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Economic Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.” “The securities of Heatherdale Resources Ltd. referenced herein have not been, and will not be, registered under the Securities Act of 1933, as amended, or under any state securities laws, and may not be offered or sold in the United States absent such registration or an exemption from registration.” Technical information contained in this presentation has been reviewed and approved by Mark Rebagliati, PEng, a qualified person who is not independent of Heatherdale Resources Ltd.

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Investment Highlights

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  • Engagement with all levels of government, communities and other stakeholders

since project was acquired in 2009

  • Clear path to development with existing resource
  • Excellent metal recoveries, premium concentrate grades
  • Unique, low cost development opportunity with excellent Infrastructure
  • Brownfields industrial site (GIIC) for processing plant near Ketchikan
  • Access to low cost hydro power and skilled labour force
  • Tidewater location for low cost concentrate delivery to the Pacific Rim
  • Low initial capital requirement
  • AIDEA* Funding ($125M) authorized by 2014 Alaska Legislature
  • Secure title in a supportive and safe jurisdiction
  • Resource defined with internal continuity
  • Drill ready resource expansion opportunities

* Alaska Industrial Development and Export Authority, Alaska’s development finance authority

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Niblack – Mining and Processing Facilities

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Underground Mine

  • 1000 to 1500 Tons Per Day1
  • Small Footprint
  • Plus 10 year mine life2
  • Envision mining by long hole stoping
  • Primary crushing, then barge to processing site

Processing Site (near Ketchikan)

  • Brownfield Industrial site
  • MOU with Ketchikan Gateway Borough
  • Clean Energy infrastructure with capacity
  • Existing service and supplies infrastructure
  • Available local workforce
  • Simple metallurgical flow sheet
  • crush – grind – float
  • Investigate value of pyrite concentrate
  • Deep draft port for Shipping of Concentrate

1 Based on comparisons with operations of similar deposit type. 2 Based on current mineral resources.

Interior of the Kensington mill with the grinding units in the foreground. July 2007

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SLIDE 5

Niblack – Metallurgy

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Copper concentrate (29 – 30% Cu)

  • 94 - 95% copper
  • 56 - 62% gold
  • 53 - 61% silver

Zinc concentrate (60 – 65% Zn)

  • 90 - 93% zinc
  • 10 - 16% gold
  • 16 - 24% silver

Medium to coarse grained for easier processing and recoveries Very desirable clean concentrates Simple Milling: Crush, Grind, and Float

Recoveries to copper and zinc concentrates Testwork conducted for Niblack Mineral Development Inc. by SGS Canada Met Lab based on two 75 kg samples

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Niblack Site Infrastructure

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Dock & Barge Camp Underground Development Supply Barge Accessible Deep Water at Niblack Anchorage Gravina Island Industrial Complex

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Niblack – Gravina Island Industrial Complex (GIIC)

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Niblack – Focus on near-term Production

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  • Advance development planning based on existing higher grade

resource

  • Mobilize strong Stakeholder and Governmental support to rapidly

advance project through permitting

  • Construct a financing package that includes AIDEA pre-authorized

financing

  • Employ optionality to effectively expand resource base from

underground operation

  • Ramp up production in line with resource expansion

Opportunity: Add value through staged investment in a high value resource located in a low risk jurisdiction by aggressively advancing project to production

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State Legislature Approves Niblack Project Financing

  • AIDEA = Alaska Industrial Development and Export Authority
  • AIDEA is a state owned corporation.
  • Mission is to promote, develop, and advance economic growth and diversification in the

state by providing financing and investment.

  • The authority has a long history of supporting Alaska’s minerals industry, beginning with its

financing and construction of the DeLong Mountain Transportation System at Red Dog.

  • October 2013 – MOU between AIDEA and Heatherdale signed
  • Heatherdale and AIDEA will work collaboratively to advance opportunities associated with

Niblack Project and the potential mill facilities at the Gravina Island Industrial Complex (GIIC) with the Ketchikan Gateway Borough (KGB).

  • MOU to assess the potential for processing, port, and tailings storage facilities at GIIC.
  • Financing and/or direct investment in capital infrastructure improvements such as roads,

ports and power facilities resulting in opportunities to reduce CAPEX commitments.

  • April 2014 – Alaska State Legislature unanimously passes Senate Bill 99
  • Pre-authorizes AIDEA the ability to issue bonds for up to $125 Million to finance the

development of the Niblack Project and the Gravina Industrial Complex for an ore processing facility

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Niblack – District Exploration = Resource Expansion

  • Historic mining operations
  • 1902-1908
  • Produced 20,000 tons
  • Patented claims 250 acres
  • Active exploration since 1970s
  • $41M spent by prior operators
  • 195,000 feet* of drilling in 246 holes
  • Underground development drift:

3,300 ft - $10M

  • 3,300 ft UG drift developed for $10M
  • 19,765 ft in 28 UG drill holes
  • Discovery of new high grade

mineralization

* includes 28 UG holes – 19,765 ft

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  • Since 2009, Heatherdale has:
  • Spent $37M
  • Drilled 200,000 ft
  • Substantially increased resource
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Niblack – Lookout Zone – Types of Mineralization

C Zone – Felsic Flow Sulphide Contacts

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Niblack Resource Estimate – Lookout & Trio deposits

12 Higher Grade Indicated Resource

Cutoff @ US$150/t NSR Tonnes Cu % Au g/t Zn % Ag g/t Total 1,160,000 1.71 3.21 3.83 62.68

Note 1: Net Smelter Return (NSR) cutoff uses long-term metal forecasts: gold US$1,150/oz, silver US$20.00/oz, copper US$2.50/lb, and zinc US$1.00/lb; Recoveries (used for all NSR calculations) to Cu concentrate of 95% Cu, 56% Au and 53% Ag with payable metal factors of 96.5% for Cu, 90.7% for Au, and 89.5% for Ag; to Zn concentrate of 93% Zn, 16% Au, and 24% Ag with payable metal factors of 85% for Zn, 80% for Au and 20% for Ag. Detailed engineering studies will determine the best cutoff. Note 2: November 2011 estimates by Deon Van Der Heever, Pr. Sci. Nat., Hunter Dickinson Inc., a Qualified Person who is not independent of the Company.

Cutoff @ US$50/t NSR Million Tonnes Cu % Au g/t Zn % Ag g/t Indicated 5.6 0.95 1.75 1.73 29.52 Inferred 3.4 0.81 1.32 1.29 20.10

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Niblack – Lookout, Trio, and More Drill Ready Targets

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Historical Surface Drill Hole Intercepts

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Niblack – First Order Expansion Opportunities

14 Adit Extension

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Niblack – Dama Zone Geophysics (IP)

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Niblack Project Advantages

  • Advanced Engineering and Project Scoping
  • Resource Expansion Targets Drill Ready
  • Excellent Mill Site near Ketchikan
  • Governor strongly supports the project
  • $2.0M in capital budget to improve access road

from airport to GIIC

  • Alaska Delegation support the project
  • Begich and Murkowski introduced road bill
  • Representative Don Young introduced POW road

bill to House Committee

  • SE Alaskan legislators supportive
  • Unanimous vote on SB99 – AIDEA financing
  • Local government leaders are on board
  • Sealaska Native Corporation engaged and

supportive

  • Local Price of Wales Island (POW)

communities and Native leaders engaged

  • Ketchikan community very supportive

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Plans Going Forward – Be Prudent Niblack Project

  • Explore investment opportunities to take Niblack Project Forward to

Pre-feasibility and Ultimately into Permitting and Construction

  • Collaborate with the Ketchikan Gateway Borough (KGB) as part of the

MOU to investigate the suitability of the Gravina Island Industrial Complex for the Niblack Processing Plant

  • Collaborate with AIDEA on financing options and opportunities as part
  • f the MOU and SB99
  • Continue Stakeholder Engagement Activities
  • Comply with permitting requirements
  • Continue Environmental base line data collection

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SLIDE 18

Heatherdale Capital Structure

Shareholding In millions Common shares 180.6 Total issued and outstanding shares 180.6 Warrants* 30.5 Convertible debt** 2.1 Options*** 0.9 Total fully diluted outstanding shares 214.1

18 * 25,863,868 warrants are exercisable into common shares of the Company at CAD $0.07 and expire in January and February 2019 and 4,594,940 warrants are exercisable into common shares at CAD $0.05, expiring in August 2017 ** Convertible debt is comprised of: (i) $USD60k debt convertible into common shares of the Company at CAD$0.05 per common share up to April 2016 and CAD$0.10 thereafter until the maturity of the loan in April 2018. Interest accrues in arrears at 12% per annum. (ii) $USD50k debt convertible into common shares of the Company at CAD$0.05 per common share up to August 2017 and CAD$0.10 thereafter until the maturity of the loan in August 2018. Interest accrues in arrears at 12% per annum. *** The Company has share options outstanding that expire between June and August 2017

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Heatherdale – Board of Directors and Management

19 David Copeland Executive Chairman, CEO &

Director

Dave Copeland is a geological engineer with thirty years’ experience in advancing mineral projects through feasibility, permitting, engineering design and initial development phases.

Robert Dickinson Director

Robert Dickinson is an economic geologist who has been actively involved in mineral exploration and mine development for over 40 years. He is Chairman of Hunter Dickinson as well as a director and member of the management team of a number of the public companies associated with Hunter Dickinson.

Lena Brommeland Director

Lena Brommeland has more than 20 years’ experience as a geologist managing major exploration projects in Alaska, British Columbia and around the world. Her experience includes onsite drill programs, environmental planning and permitting, and community relations activities for exploration and feasibility-level project.

Rene Carrier Director

Rene Carrier is a past Vice-President of Pacific International Securities Inc. He is also a director of a number of public companies.

Judy Thomson Director

Judy Thomson is a Chartered Accountant with over twenty- five years of professional experience in audit, business administration and human resources, holding senior positions with a global accounting and consulting firm in Canada and Asia. She was a director of Detour Gold from January 2007 to March 2009.

Mark Peters CFO

Mark Peters is a Chartered Accountant and holds a Bachelor's degree in Economics from the University of

  • Victoria. He has 15 years of experience in the areas of

financial reporting and taxation, working primarily with Canadian and US public corporations. Previously, Mr. Peters worked for PricewaterhouseCoopers LLP in the tax group.

Trevor Thomas Corporate Secretary

Trevor Thomas has practiced in the areas of corporate commercial, corporate finance, securities and mining law since 1995. Prior to joining Hunter Dickinson, he served as in-house legal counsel with Placer Dome Inc.

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Thank You Investor Relations

15th Floor Phone: 604-684-6365 1040 West Georgia Street Fax: 604-684-8092 Vancouver, BC TF: 1-800-667-2114 Canada V6E 4H1 Email: info@hdimining.com Website: www.heatherdaleresources.com