Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 7 www.resourceworld.com 35 • Option agreement with Canarc Resource Corp. (CCM.V) for the advancement of the FG Gold Project in BC in 2017. • Execution of a Definitive Joint Venture Agreement with Nevada Sunrise Gold Corporation (NEV.V) on the Gemini Lithium Project • Final exploration permit on Gemini received from the Nevada Bureau of Land Management; financing completed to fund drill program • Gold Creek Project acquired • Property Evaluations underway www.eurekaresourcesinc.com info@eurekaresourcesinc.com 604-449-2273 A HISTORY OF INTEGRITY A FUTURE OF PROMISE Australian Update by greg Barns Heron spins off australian projects to ardea Resources I t has been difficult to get resource company IPOs off the ground on the Australian stock market over the past couple of years with global commodities stuck at low prices, but the cycle seems to be turning. One of those headed to the market is Ardea Resources, a spin-off play from Heron Resources [HER-TSX; HRR-ASX], a company focused now on the high-grade Woodlawn zinc-copper project 250 km southwest of Sydney. Ardea Resources is looking to list by January 9, 2017 and is issuing 30 million shares at an issue price of A$0.20 to raise up to $6 M, with a minimum raising of A$3.5 M. Heron shareholders will take 41.5 mil- lion shares, bringing A$8.3 M into Ardea, giving it a total treasury of A$14.3 M. Ardea is picking up all of Heron's explo- ration and near term production targets in New South Wales and Western Australia. These projects include the Lewis Ponds gold-copper project in New South Wales that contains the Lewis Ponds VMS deposit. It has a mineral resource of 6.6 million tonnes grading 2.4% zinc, 0.2% copper, 1.4% lead, 1.5 g/t gold and 69 g/t silver. The company will undertake confirma- tion core drilling costing around A$1.4 M and a comprehensive review of the historic database. The company's prospectus notes the Lewis Pond gold-zinc project indi- cates strong potential to expand tonnage. Notably, the project is only 20 km southeast from Regis Resources' McPhillamy 2.2 mil- lion ounce gold deposit. The other major targets of early devel- opment for Ardea Resources are in Western Australia. The Mount Zephyr Project is in the Eastern Goldfields, located 60 km north-northeast of the mining town of Leonora. The project area has first class mining infrastructure with well- established milling capability; the Sunrise Dam and Darlot mines are nearby. The main gold and nickel prospects are within granted Exploration Licences and are 100% Ardea-owned. The tenure also cov- ers the northwestern strike extension of Dacian Gold's Mt. Morgan tenure. Ardea will also "hit the ground running" to use the company's phrase on the Kalgoorlie nickel project which has a resource of about 805 Mt at 0.70% nickel and 0.05% cobalt. The company's prospectus says that it will "undertake further feasibility work on the project; up-scale a 2014 study from 10 ktpa to 20 ktpa to assess the impact of economies of scale on both operating costs and capital costs, including a revised mining plan and estimates for mining capital and operating costs and commence partner studies, seek- ing a partner to commercialize the KNP Optimized Flowsheet." Ardea will also commit A$1.0 M to a two-year Pre-Feasibility Study "consisting of testing beneficiation, leaching, acid and metal recovery, designing a mining sched- ule, updating engineering and studies on environment, tailings, hydrology and heritage." The Kalgoorlie nickel project straddles another early target for Ardea Resources – the Bardoc Teutonic Zone which consists of the Big Four and Ghost Rocks prospect. Limited drilling by Heron Resources in 20012 intersected 6 metres of 8.6 g/t gold from 125 metres. With the gold price looking solid and base metals beginning to show signs of sus- tained rallying, Ardea Resources is coming onto the market at a promising time. n

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