Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to advise that it has initiated a
follow-up drilling program at its wholly-owned Woodlawn Project,
located 250km south-west of Sydney, New South Wales, Australia. The
program is targeting the resource expansion at the shallow G2 Lens
position along with confirmatory drilling of the initial decline
route, and shallow mine excavation drilling to assist with
backfilling. The G2 Lens drilling returned significant results in
2016 and importantly represents the first mineralisation to be
accessed in the new underground mine.
- A pre-mine entry drilling program at Woodlawn has been
initiated and aims to cover:
- Resource expansion for early mine production from the
shallow G2 Lens
- Confirmation of geotechnical conditions along the
planned decline route, and delineation of shallow mine excavations
for backfilling from surface
- The G2 Lens position represents the first underground
production source, and resource expansion drilling here will
follow-up several significant results reported in 2016,
including:
- 8m @ 28% ZnEq[1] from 107m (8.7% Zn,
0.5% Cu, 5.2% Pb, 4.0g/t Au, 326g/t Ag) WNDD0110
- Including 3.7m @ 56% ZnEq (18.7% Zn, 1.2% Cu, 10.0% Pb,
6.9g/t Au, 650g/t Ag) WNDD0110
- 0m @ 11% ZnEq from 133m (6.3% Zn, 0.5% Cu, 3.3% Pb,
0.1g/t Au, 10g/t Ag) WNDD0106
Commenting on this program, Heron Resources Managing Director
and CEO, Mr Wayne Taylor, said:
“The program represents an important component of the Woodlawn
mine optimisation and a vital step prior to mining
commencing. Much of the G2 mineralisation is not in the
current mining plan and excellent high grade results returned last
year bode well for defining a significant zone of ore that can be
accessed in the early part of the mine development. This program
will generate information which is critical to finalising the mine
design and will add to an improved plan for the early stages of
mine production.”
A drilling contract has been entered into and the drilling rig
and crew will be mobilised in late April with the program taking 2
to 3 months to complete. It is important to note that this drilling
program is not a pre-requisite to project financing and is being
undertaken now to complete mine planning prior to the start of mine
development.
Early Mine Plan Production - G2 Lens
Drilling
The G2 Lens is located to the south of the Kate Lens, and
adjacent to the planned route of the decline between 100-200m below
the surface (Figures 1 & 2). Drilling in 2016 targeted
this area to test its ability to add immediately to the early mine
inventory. Significant 2016 results for this area
include:
- 8m @ 28% ZnEq from 107m (8.7% Zn, 0.5% Cu, 5.2% Pb,
4.0g/t Au, 326g/t Ag) WNDD0110
- Including 3.7m @ 56% ZnEq (18.7% Zn, 1.2% Cu, 10.0% Pb,
6.9g/t Au, 650g/t Ag) WNDD0110
- 0m @ 10% ZnEq from 140m (7.9% Zn, 0.2% Cu, 0.7% Pb,
0.2g/t Au, 13g/t Ag) WNDD0110
- 9m @ 9% ZnEq from 160m (5.1% Zn, 0.3% Cu, 2.8% Pb,
0.5g/t Au, 11g/t Ag) WNDD0111
- 0m @ 11% ZnEq from 133m (6.3% Zn, 0.5% Cu, 3.3% Pb,
0.1g/t Au, 10g/t Ag) WNDD0106
The G2 Lens mineralisation typically consists of stringer zinc
sulphides (sphalerite) with lesser lead and copper sulphides.
However, the upper intercept in WNDD0110 is of high-grade
polymetallic sulphides (Figure 1) within a broad, shallow-dipping
mineralised envelope that contains the other intercepts (Figures
2). This represents a new high-grade zone which will be targeted in
the first few holes of the program.
The lower intercept in WNDD0110 (from 140m depth) is more
typical G2 Lens stringer sphalerite and is associated with an
off-hole EM conductor below the hole (Figures 1 and 2) which
provides a clear target for future drilling. The intercept in
WNNDD0111 is in the plane of the main G2 Lens and provides for
continuity of the lens in the down-dip direction.
The proposed program will consist of approximately 26 diamond
core holes for 4,300m. The program is expected to deliver a
significant addition to the early production base and will be
sufficiently drilled to support detailed stope design and
development planning. Encouraging recent metallurgical test
work on the G2 mineralisation and a broader “early production”
composite sample have returned higher metal recoveries than those
used in the Woodlawn Feasibility Study and provides an excellent
early production source for the operation.
Decline Geotechnical Drilling and Mine
Backfill
As part of this program a number of holes for geotechnical
purposes will be drilled to provide additional information for the
new decline route and confirm the location of near surface
underground workings prior to mine re-entry. The mine excavation
drilling will assist with the early backfilling of selected voids
from surface.
Figure 1: Woodlawn G2 Lens long-section showing
interpreted lens shape, recent drilling and proposed infill holes.
The pit off-set refers the area from the pit surface projected out
200m and is a limited access zone as contemplated in agreement with
Veolia.
http://www.heronresources.com.au/tsximages/20170411/20170411_fig1.jpg
[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.
Figure 2: Woodlawn G2 Lens cross-section showing lens
position and location of DHEM modelled plates.
http://www.heronresources.com.au/tsximages/20170411/20170411_fig2.jpg
About Heron Resources Limited:
Heron’s primary focus is the development of its 100% owned, high
grade Woodlawn Zinc-Copper Project located 250km southwest of
Sydney, New South Wales, Australia.
Compliance Statement (JORC 2012 and
NI43-101)
The technical information in this report relating to the
exploration results is based on information compiled by Mr. David
von Perger, who is a Member of the Australian Institute of Mining
and Metallurgy (Chartered Professional – Geology). Mr. von Perger
is a full time employee of Heron Resources Limited and has
sufficient experience, which is relevant to the style of
mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person
as defined in the 2012 edition of the “Australasian Code for
Reporting of Exploration Results and “qualified person” as this
term is defined in Canadian National Instrument 43-101 (“NI
43-101”). Mr. von Perger has approved the scientific and technical
disclosure in the news release.
Zinc equivalent calculation
The zinc equivalent ZnEq calculation takes into account, mining
costs, milling costs, recoveries, payability (including transport
and refining charges) and metal prices in generating a Zinc
equivalent value for Au, Ag, Cu, Pb and Zn. ZnEq =
Zn%+Cu%*3.12+Pb%*0.81+*Au g/t*0.86+Ag g/t*0.03. Metal prices
used in the calculation are: Zn US$2,300/t, Pb US$ 2,050/t, Cu
US$6,600/t, Au US$1,250/oz and Ag US$18/oz. It is Heron’s
view that all the metals within this formula are expected to be
recovered and sold.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
This report contains forward-looking statements and
forward-looking information within the meaning of applicable
Canadian securities laws, which are based on expectations,
estimates and projections as of the date of this report. 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
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,
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 report 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 report.
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)