Heron Resources Limited (TSX: HER; ASX: HRR) ("Heron" or
the "Company") announces its quarterly activities for the
three months ended September 30, 2016. Details of the Company's
results are contained in the filing “Heron Resources Limited
Quarterly Report September 2016” which is available on SEDAR at
www.sedar.com and the Company's website www.heronresources.com.au
September Quarter 2016 Highlights
- Cash - At September 30, 2016Heron held A$19.8M
in cash (including A$0.2M in bonds) and A$1.7M in investments.
- Commodity market fundamentals continue to
strengthen for zinc, with zinc prices hitting a 12 month high in
July
- Woodlawn Zinc-Copper Project:
- Key Woodlawn project appointments made - Woodlawn General
Manager and Process Manager
- Underground mine plan optimised resulting in increased
production rates, refined schedule and improved costs
- Project construction tender process underway
- Award of Front End Engineering Design (FEED) expected in the
next month
- Project financing and off-take discussions both progressing
well
Woodlawn Drilling
- Eight diamond holes for 2,527m completed testing B Lens
extension and shallow portions of G2 Lens. Several outstanding
results received:
- High grade results from near surface portion of G2
lens confirm early production potential in this area
adjacent to the planned decline:
- 8m @ 28% ZnEq[1] from 107m (8.7% Zn, 0.5% Cu, 5.2% Pb, 4.0g/t
Au, 326g/t Ag) in WNDD0110
(Incl. 3.7m @ 56% ZnEq (18.7% Zn, 1.2% Cu, 10.0% Pb, 6.9g/t Au,
650g/t Ag) in WNDD0110)
- B Lens extension confirmed to the north-west
with an Exploration Target[2] of approximately 0.6Mt – 1.1Mt with
grades of 7.0% ZnEq – 14% ZnEq estimated; results include:
- 11m @ 8.43% ZnEq from 569m (3.4% Zn, 0.9% Cu, 1.5% Pb, 0.12g/t
Au, 18g/t Ag) WNDD0108
(Incl. 5.7m @ 14.3% ZnEq from 575m (6.1% Zn, 1.4% Cu, 3.2% Pb,
0.18g/t Au, 35g/t Ag)
- 5m @ 19.5% ZnEq from 552m (7.7% Zn, 1.3% Cu, 3.9% Pb, 1.8g/t
Au, 100g/t Ag) WNDD0108
Ardea
Resources
- On 29 September Heron Shareholders approved the spin-off of
non-Woodlawn related exploration and early stage development assets
into a new listed entity, Ardea Resources Limited
- Upon listing of Ardea on the ASX (subject to certain conditions
precedent), Heron shareholders will be entitled to receive an
approximate 1 for 10 in-specie distribution of Ardea shares at no
cost
Woodlawn Zinc-Copper Project
Heron’s primary development project is the high grade Woodlawn
Zinc-Copper Project located 250km southwest of Sydney, New South
Wales. The project consists of both a high grade underground and a
large medium grade tailings resource. The development approach
envisages the construction of a single 1.5Mtpa processing plant
capable of treating material from both sources. Planned production
will see the generation of three separate base metal concentrates
(zinc, copper and lead) with associated precious metal credits. In
addition, the project is very well supported by excellent
infrastructure, an existing mining lease and state government
development approvals.
Woodlawn is expected to become an important Australian near term
zinc producer delivering concentrates into a market with strong
supply and demand fundamentals underpinning a strong commodity
price.
About Heron Resources
Heron is engaged in the exploration and development of base and
precious metal deposits in Australia. In addition to the high grade
Woodlawn Zinc-Copper Project, the Company holds a significant
property holding in the Lachlan Fold Belt of New South Wales and
the Kalgoorlie Nickel Project in Western Australia.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
This news release contains forward-looking statements and
forward-looking information within the meaning of applicable
Australian and Canadian securities laws, which are based on
expectations, estimates and projections as of the date of this news
release. This forward-looking information includes, or may be based
upon, without limitation, estimates, forecasts and statements as to
management’s expectations with respect to, among other things, the
timing and ability to complete the Ardea spin-off, the timing and
amount of funding required to execute the Company’s exploration,
development and business plans, capital and exploration
expenditures, the effect on the Company of any changes to existing
legislation or policy, government regulation of mining operations,
the length of time required to obtain permits, certifications and
approvals, the success of exploration, development and mining
activities, the geology of the Company’s properties, environmental
risks, the availability of labour, the focus of the Company in the
future, demand and market outlook for precious metals and the
prices thereof, progress in development of mineral properties, the
Company’s ability to raise funding privately or on a public market
in the future, the Company’s future growth, results of operations,
performance, and business prospects and opportunities. Wherever
possible, words such as “anticipate”, “believe”, “expect”,
“intend”, “may” and similar expressions have been used to identify
such forward-looking information. Forward-looking information is
based on the opinions and estimates of management at the date the
information is given, and on information available to management at
such time. Forward-looking information involves significant risks,
uncertainties, assumptions and other factors that could cause
actual results, performance or achievements to differ materially
from the results discussed or implied in the forward-looking
information. These factors, including, but not limited to, the
ability to complete the Ardea spin-off on the basis of the proposed
terms and timing or at all, the ability to complete the Woodlawn
Zinc-Copper Project Feasibility Study on time or at all, and
whether the feasibility study is positive and otherwise consistent
with the business plans of the Company, fluctuations in currency
markets, fluctuations in commodity prices, the ability of the
Company to access sufficient capital on favourable terms or at all,
changes in national and local government legislation, taxation,
controls, regulations, political or economic developments in
Canada, Australia or other countries in which the Company does
business or may carry on business in the future, operational or
technical difficulties in connection with exploration or
development activities, employee relations, the speculative nature
of mineral exploration and development, obtaining necessary
licenses and permits, diminishing quantities and grades of mineral
reserves, contests over title to properties, especially title to
undeveloped properties, the inherent risks involved in the
exploration and development of mineral properties, the
uncertainties involved in interpreting drill results and other
geological data, environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins and flooding,
limitations of insurance coverage and the possibility of project
cost overruns or unanticipated costs and expenses, and should be
considered carefully. Many of these uncertainties and contingencies
can affect the Company’s actual results and could cause actual
results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, the Company.
Prospective investors should not place undue reliance on any
forward-looking information.
Although the forward-looking information contained in this news
release is based upon what management believes, or believed at the
time, to be reasonable assumptions, the Company cannot assure
prospective purchasers that actual results will be consistent with
such forward-looking information, as there may be other factors
that cause results not to be as anticipated, estimated or intended,
and neither the Company nor any other person assumes responsibility
for the accuracy and completeness of any such forward-looking
information. The Company does not undertake, and assumes no
obligation, to update or revise any such forward-looking statements
or forward-looking information contained herein to reflect new
events or circumstances, except as may be required by law.
No stock exchange, regulation services provider,
securities commission or other regulatory authority has approved or
disapproved the information contained in this news
release.
[1] ZnEq% used in this release refers to the calculated Zn
equivalent grade based on the Zn, Cu, Pb, Au and Ag grades, the
formula for which is provided at the end of this report.
[2] An Exploration Target is a term used within the JORC2012
Code for an estimate of the exploration potential of a mineral
deposit. As used in this release the stated exploration
target is based upon the parameters described in the text, however
the potential quantity and grade is conceptual in nature and there
is insufficient information to estimate a Mineral Resource and it
remains uncertain if further exploration will result in the
estimation of a Mineral Resource in this area of recent
drilling.
For further information, please visit www.heronresources.com.au or contact:
Australia:
Mr Wayne Taylor
Managing Director and Chief Executive Officer
Tel: +61 2 9119 8111 or +61 8 6500 9200
Email: heron@heronresources.com.au
Canada:
Tel: +1 647 862 1157 (Toronto)
cmuir@heronresources.com.au
www.heronresources.com.au