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Heatherdale Resources Reports New Drilling Results from 22 Underground Holes at Niblack Project

Heatherdale Resources Ltd. (TSXV:HTR) announces new drill results from 22 underground holes completed at the Niblack volcanogenic massive sulphide project in southeast Alaska. 

Two underground drill rigs are currently working in the Lookout Deposit and continuing to expand the precious metals-enriched mineralized body to the south and southwest.

New drill result highlights include:

U064 with 28.4 feet of 2.12% Cu; 1.49 g/t Au; 2.01% Zn; and 30 g/t Ag
U081 with 30.0 feet of 1.84% Cu; 2.54 g/t Au; 1.09% Zn; and 51 g/t Ag
U083 with 47.0 feet of 1.74% Cu; 3.73 g/t Au; 2.47% Zn; and 75 g/t Ag

"I'm pleased to report that Heatherdale continues to expand the volume of high-grade mineral resources at Niblack through an ongoing underground drill program that is consistently intersecting strong precious metals-enriched VMS mineralization, "said Heatherdale President & CEO Patrick Smith. "The importance of the results we're announcing today lies not only in the superior grades in base and precious metals, but in the spatial relationship of these holes to other strongly mineralized holes reported in previous releases."

Smith said the high-grade Lookout Deposit demonstrates the size, strength and tenor of mineralization hosted within the Niblack district. He added that higher-grade zones within Lookout and other known VMS occurrences on the property will play a significant role in early mine planning and the economic importance of the Niblack Project.

"We are increasingly confident that Niblack will support a high-grade underground mining operation in the medium term," Smith said. "That confidence is borne not only from the significant expansion of high-grade resources within the Lookout Deposit that we have achieved over the past year. It also reflects our geological team's growing understanding of the entire precious metals-enriched system at Niblack, with its stacked sequences of sub-seafloor replacement and massive sulphide seafloor accumulation-style mineralization."

Smith noted that recent drill results have further refined Heatherdale's advanced understanding and geological modeling of the Niblack system. In addition to Lookout, there are five other known VMS occurrences on the 10 square mile property. Smith said Heatherdale geologists have now begun to apply their new understanding and modeling of the Lookout Deposit to develop targeting strategies for other deposits, with the expectation that near-term exploration and development programs will identify additional high-grade resources.

"It's a very exciting time to be part of the Niblack Project," Smith confirmed. "When you combine the quality and growth potential of the Niblack property with the efficiencies associated with year-round drilling from a well-established underground platform, it's clear that Heatherdale will deliver consistent and significant project advances in the months ahead."

Two drill crews active at Niblack have achieved high levels of productivity over the course of 2010, in part due to the superior access that an underground adit developed earlier by Niblack Mining Corporation provides for sampling much of the mineralized system. Drill rigs are working year-round at the Niblack property, and have demonstrated an ability to consistently reach core lengths in excess of 2,500 feet.

Smith said existing underground development at Niblack will facilitate an efficient and ongoing program of expanding and upgrading areas of known mineralization at Niblack in 2011, as well as testing several new targets.

"In my new role as President & CEO, I undertook my initial visit to the Niblack site just last month," he said. "I was extremely pleased by all aspects of our operations - from the level of commitment toward health, safety and environmental stewardship to the hands-on leadership of our senior and experienced geological and technical teams.

"That Heatherdale is a Hunter Dickinson company is clearly manifest both in the quality of the geological results we continue to achieve and in the operational excellence of the site team."

Holes are drilled in a fan pattern from stations spaced along an adit and are drilled with a range of different azimuths and dips.

The 62,500 feet of drilling in 56 drill holes that Heatherdale has completed at Niblack since October 2009 were achieved from eight underground drill stations spaced along the adit.  A fan pattern, designed to cross-cut the mineralized target horizon was completed from each station to test areas southwest and south of the Lookout deposit.  To date, the true widths of the intersections have not been accurately established. This knowledge has been incorporated into the deposit model and has resulted in new targets for drilling.

Niblack's location at tidewater on Prince of Wales Island in southeast Alaska presents a number of project benefits, including year-round marine access, a well-trained labour force, a mature supply and service sector, proximity to Asian markets, and the support of community and Alaska Native corporation partners.  The project is located 27 miles (44 kilometres) from Ketchikan, a community of 8,000 people with important services to support project development, including a deep water port and international airport.  The State's burgeoning minerals industry also enjoys a competitive tax regime and stable, predictable permitting and regulatory oversight coordinated by the Alaska Department of Natural Resources', 'Large Mine Permitting Team'.  For reference, Hecla's Greens Creek, a 2,100-ton per day underground massive sulphide mine, operates 225 miles (370 kilometres) to the northwest of Niblack on Admiralty Island.

Mark Rebagliati, P. Eng., a Qualified Person as defined under National Instrument 43-101, is supervising the exploration and quality assurance and quality control programs on behalf of Heatherdale and has reviewed the content of this release.


Heatherdale Resources Ltd.


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