Heatherdale Resources (HTR) - Copper & Gold Explorer Reinterpreting Data

March 27 2021, 09:36 GMT

Heatherdale Resources

  • TSX-V: HTR
  • Shares Outstanding: 22.2M
  • Share price C$0.83 (18.03.2021)
  • Market Cap: C$18M

Heatherdale Resources, an active junior miner in the southeast Alaska mineral belt, is at an upside inflection point in their current development activities.

We recently spoke with Robert McLeod, a third-generation miner and CEO of Heatherdale, who shared with us some of the details.

Company Overview

Heatherdale Resources is a Vancouver-based mineral and exploration and development firm with significant interests in the southeast Alaska and adjacent British Columbia mining districts. They hold a 100% interest in their flagship asset, the advanced-stage Niblack Project, on Prince of Wales Island. A newly confirmed geologic interpretation suggests significant upside potential at Niblack and in adjacent areas.

The firm is listed on the Toronto Stock Exchange with the symbol HTR and has over 22,000,000 shares extant. It is also listed on the OTC marketplace as HTRRF.Heatherdale Resources (HTR) - Copper & Gold Explorer Reinterpreting Data

Southeast Alaska Copper-Gold-Silver-Zinc

Gold, silver and other ores have been produced from the Ketchikan district of southeast Alaska, including the islands of Prince of Wales, Dall, and Revillagigedo. There are over 440 mines, prospects and occurrences of mineralization in the district. Important mines and deposits include Gold Standard, Dawson, Golden Fleece, Niblack, Salt Chuck, Goldstream and others.

Good Geologic Interpretations are Key

Robert McLeod is a geologist by training and knows the importance of solid geologic work in unlocking mineral value.  His experiences in the Pacific Northwest, Nevada, Yukon, and other mineral districts have proven to him the importance of a solid geologic model.

The Niblack Project

Niblack is an rich volcanogenic massive sulfide (VMS) series of deposits with abundant copper, gold, silver and zinc ores. The discovery is in an advanced exploration stage of development. The accumulation is contained within 6 separate zones on 6,200 acres of property. Each of these is being evaluated with an updated geologic model for further exploration potential. Current resource tonnage at Niblack Project carries an indicated resource of 5.6Mt and an inferred resource of 3.4Mt.

The deposit sits in a bimodal mafic and felsic volcanic suite of Neoproterozoic age. Felsic rhyolitic rocks host all known VMS mineralization at Niblack. There are six known ore-beating units: the Historic Niblack mine, the Dama zone, Lindsy zone, and Mammoth zone, as well as the Lookout and Trio deposits.Heatherdale Resources (HTR) - Copper & Gold Explorer Reinterpreting Data

Each of the 6 ore-bearing zones at Niblack is being evaluated for further resource potential using an updated geologic model. The new model incorporates U-Pb radiometric analyses that indicate that mineralization occurred about 550 million years ago in association with a “black smoker” deep-sea system. The model also indicates that the ore-bearing zones have been recumbently folded into a compressional antiformal-synformal couplet, which occurred about 100 million years age. In addition, the whole overall structure has been overturned, based on newly incorporated “way-up” indicators seen in the rocks.

The new geologic model is seen as a “Eureka Moment” for the Niblack team. The validity of this new model is being tested with a 2021 drilling campaign. Indeed, McLoad envisions, with “all the disclaimers in the world”, that Niblack could become as big as Hecla’s Green Creek VMS deposit, also in southeast Alaska, which grew from 3Mt to over 30Mt as evaluation proceeded.

Located on Prince of Wales Island, Alaska, some 50km (about 30 miles) from Ketchikan, Alaska, Niblack is accessible throughout the year by floatplane and marine services.Heatherdale Resources (HTR) - Copper & Gold Explorer Reinterpreting Data

Plan Forward at the Niblack Core Asset

At present 2 underground core rigs are on site commencing additional evaluations. Very little of the upside potential envisioned in the new model, if any, has yet to be evaluated previously. Much of the upcoming additional drilling will explore promising on-strike zones up to 100-meters wide.  If successful, a hub-and-spoke development with nearby deposits is being evaluated.Heatherdale Resources (HTR) - Copper & Gold Explorer Reinterpreting Data

The overall plan, according to McLeod, is to de-risk the profile for Heatherdale.  Any success with the new drilling program will prove up accretive reserves and confirm the undervalued current share price, according to McLeod. Institutional shareholders are really keyed into the upcoming results over the next few quarters. Retail investors will, of course, be tuned into positive drilling results. In the meantime, a number of development options are in the works with the state of Alaska and several Canadian provinces, some of which are offering incentives.Heatherdale Resources (HTR) - Copper & Gold Explorer Reinterpreting Data

The CEO’s Previous Track Record: Value Unlocked

Robert McLeod tells us he is no stranger on how to unlock value from raw mineral discoveries. His first “big one” was when he was the founder and VP for Exploration at Underworld Resources, which made a big gold discovery in the Yukon in 2009. The subsequent sale of Underworld to Kinross Gold Corporation netted a tidy sum. More recently, he was associated with IDM Mining of British Columbia, which had an advanced-stage gold project going. Two years ago, that company was acquired by Ascot Resources, which is currently developing the deposit in a way that McLeod envisions for Niblack, with an emphasis on hub-and-spoke development.

Each of these ventures paid handsomely for investors. The Underwood discovery was actually made in 2008 when the bottom to the market fell out. By 2009, a hot rebounding market following the Great Recession resulted in the company being acquired and shareholders benefited tremendously. Shareholders also were rewarded with the IDM sale because everything was done right technically. The synergies involved with Ascots’s approach couldn’t be ignored so McLeod took the opportunity directly to the shareholders. Because it was a challenging market, the win for subscribers wasn’t huge, but it was timely and profitable.

The CEO’s Business and Financing Approach

McLeod likes to keep a nice and tidy balance sheet. Prior to his arrival at Heatherdale last June, the company was essentially dormant as it was managed out of the Vancouver-based Hunter Dickson Group.  As part of the deal, he took on related party debt, which was then converted into shares.   He preferes to shun the use of warrants as part of his firm’s financing, so that shareholders can benefit fully in value creation. Currently the firm has over 22 million shares, fully diluted at 24 million. It also has about $1.8 million in working capital in the bank.

Upcoming Corporate Name Change

Going forward, McLeod intends to change the name of the firm as well. The new name will be Blackwolf Copper and Gold, which will be coming soon. The new name has a personal twist for the CEO: “So it is a bit of a personal story. I'll tell Stewart (sic, his home town) is a very small remote community in northwest BC and there are two wolf packs that populate the area. One is like your typical grey wolves and there's another that are black. When I was a kid I was terrified of them … And I've always had a fascination with them”.

To find out more, got to  the Heatherdale Resources Website

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