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 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 opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of 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. 2
Investment Highlights 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 3
Niblack – Mining and Processing Facilities Underground Mine 1000 to 1500 Tons Per Day 1 Small Footprint Plus 10 year mine life 2 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 Interior of the Kensington mill with the grinding units in the foreground. July 2007 1 Based on comparisons with operations of similar deposit type. 2 Based on current mineral resources. 4
Niblack – Metallurgy 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 5 Testwork conducted for Niblack Mineral Development Inc. by SGS Canada Met Lab based on two 75 kg samples
Niblack Site Infrastructure Accessible Deep Water at Niblack Anchorage Gravina Island Industrial Complex Dock & Barge Camp Supply Barge Underground Development 6
Niblack – Gravina Island Industrial Complex (GIIC) 7
Niblack – Focus on near-term Production 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 8
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 9
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 Since 2009, Heatherdale has: 3,300 ft UG drift developed for $10M Spent $37M 19,765 ft in 28 UG drill holes Drilled 200,000 ft Discovery of new high grade Substantially increased resource mineralization * includes 28 UG holes – 19,765 ft 10
Niblack – Lookout Zone – Types of Mineralization C Zone – Felsic Flow Sulphide Contacts 11
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