Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to provide an exploration update from the
drilling program recently commenced at its wholly-owned Woodlawn
Zinc-Copper Project, located 250km south-west of Sydney, New South
Wales, Australia.
- 4,300m drilling program targets shallow resource
expansion adjacent to the early decline route for the planned
underground mine at Woodlawn
- Multiple mineralised intercepts including
(WNDD0114):
- 6.7m of massive zinc, copper and lead sulphides from
150.7m – main G2 Lens
- 3.1m of massive zinc, copper and lead sulphides from
109.0m – G2 Hanging Wall Lens
- Drill holes have provided intercepts in both the
hanging wall zone (G2HW) and the main G2 Lens
The drilling program of approximately 4,300m is
targeting an expansion of the shallow resource at the newly
identified G2 Lens. The program has progressed well returning a
number of mineralised intercepts: the core from the initial holes
is in the process of being cut and assayed.
Commenting on these latest results, Heron
Resources Managing Director and CEO, Mr Wayne Taylor, said:
“Whilst the G2 drilling program is continuing,
the visual results from the holes to date reinforce the high
quality nature of the Woodlawn mineralisation. The delineation of
the G2 and G2 Hanging Wall Lenses demonstrate Heron’s continued
success in identifying significant new positions with targeted
drilling. This shallow location is expected to have a
positive impact on early cash flows with this area being currently
outside the existing mine plan and financial modelling.”
G2 Lens Drilling
The G2 Lens is located to the south of the Kate
Lens, and is adjacent to the planned route of the decline, 100-200m
below the surface. Recent drilling has targeted this area for
its ability to add to the early mine inventory. A program of
approximately 4,300m of diamond core drilling commenced in early
May to define and expand the shallow resource base. To date
nine holes for 1,512m have been drilled with several holes
intersecting both the hanging wall zone (G2HW) and the main G2 Lens
which consists of high-grade zinc-sulphide stringers. Of
particular note is drill hole WNDD0114, which intercepted:
- 6.7m of massive and semi massive sphalerite,
chalcopyrite and galena from 150.7m – main G2 Lens
- 3.1m of massive sphalerite, chalcopyrite and galena from
109.0m – G2 Hanging Wall Lens
This rich massive sulphide zone (Figures 1 and
2) is interpreted as an annealing of the sulphide stringers within
the lens, probably along a structural position, and improves the
overall potential of the lens to provide a higher-grade production
source of greater widths. In addition, the 3.1m wide
intercept in the hanging wall position is currently outside the
mine plan and provides an expansion of this zone. Note that
the base-metal richness of this zone is based on visual estimations
with some point source hand-held Niton XRF results, and assays are
currently pending.
Drill holes located near and around WNDD0114
have intersected more typical G2 zinc stringer mineralisation which
continues to help define the limits of this zone, including:
WNDD0112:
- 3.9m of zinc stringer sulphides from 117.6m (G2 Hanging
Wall Lens (G2HW))
WNDD0113:
- 3.6m of zinc stringer sulphides from 155.4m (G2 Lens
main)
- 8.8m of semi-massive pyrite and copper sulphides from
178.1m (G2 Lens main - footwall chlorite zone)
WNDD0118:
- 5.8m of stringer and massive zinc and other sulphides
from 113.8m (G2 Lens main)
- 10.8m of stringers zinc and other sulphides from 124m (G2 Lens
main – footwall chlorite zone)
WNDD0120
- 5.0m of zinc sulphide stringers from 105m (G2 Lens main)
- 11.0m of blebby and stringer zinc sulphides in chlorite
alteration from 121m (G2 Lens main – footwall chlorite zone)
http://www.heronresources.com/tsximages/20170613/20170613_Fig1a.jpg
http://www.heronresources.com/tsximages/20170613/20170613_Fig1b.jpg
Figure 1: Part of the rich zone of
mineralisation intersected in WNDD0114 within the main G2
Lens. Dark red and tan sulphides are sphalerite (SP), golden
yellow is chalcopyrite (CP) and silver is galena (GN). Some
pyrite is present (darker yellow); however, the visual estimation
over this zone suggests it is some of the richest base-metal
sulphides encountered in recent drilling at Woodlawn. The
relatively coarse nature of the sulphide grains is also encouraging
as it may allow for improved metallurgical recoveries. Upper
photo shows detail of the sulphides in the second run of the core
tray and lower photo shows full core tray. Blue numbers refer
to metres down the hole. The high angle of core axis to the
dominant foliation indicates this is close to a true width
intersection. Up-hole direction is to the left in each
tray.
Forward Program
The drilling program into the G2 Lens will
continue over the coming weeks and a limited geotechnical program
will commence in parallel in mid-June. Assay results for the
initial drilling are expected in about 4 weeks.
Figure 2: G2 Lens cross-section showing
location of WNDD0114 in relation to previous drilling. Refer
to March 2017 quarterly report for additional information on the
previous drilling.
http://www.heronresources.com/tsximages/20170613/20170613_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. In addition,
the Company holds a significant high quality, gold and base metal
tenement holding in central and eastern New South Wales.
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.
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.
Appendix 1
Drill hole details for diamond drill holes
completed as part of the Phase IV drill
campaign.
Hole No. |
WMGEast (m) |
WMGNorth (m) |
WMGRL (m) |
Surface Dip |
WMG SurfaceAzimuth |
EOHDepth (m) |
Target |
WNDD0112 |
9173 |
19204 |
2795 |
-77 |
88 |
180.7 |
G2HW and G2 Lenses |
WNDD0113 |
9173 |
19204 |
2795 |
-69 |
92 |
203.2 |
G2HW and G2 Lenses |
WNDD0114 |
9173 |
19204 |
2795 |
-65 |
108 |
182.7 |
G2HW and G2 Lenses |
WNDD0115 |
9173 |
19204 |
2795 |
-77 |
116 |
161.1 |
G2HW and G2 Lenses |
WNDD0116 |
9173 |
19204 |
2795 |
-70 |
122 |
167.7 |
G2HW and G2 Lenses |
WNDD0117 |
9150 |
19222 |
2795 |
-75 |
95 |
185.8 |
G2HW and G2 Lenses |
WNDD0118 |
9212 |
19178 |
2795 |
-66 |
88 |
142.6 |
G2 Lens extension |
WNDD0119 |
9212 |
19178 |
2795 |
-56 |
92 |
146.6 |
G2 Lens extension |
WNDD0120 |
9212 |
19178 |
2795 |
-61 |
106 |
143.6 |
G2 Lens extension |
Notes: WMG = Woodlawn Mine Grid
Assays results for diamond drill holes
completed as part of the Phase IV drill
campaign.
Assay results are currently pending
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.
JORC 2012 Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section applies to all
succeeding sections)
Criteria |
JORC Code explanation |
Commentary |
Sampling techniques |
Nature and quality of sampling (eg cut channels, random chips, or
specific specialised industry standard measurement tools
appropriate to the minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc). These examples
should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity
and the appropriate calibration of any measurement tools or systems
used. Aspects of the determination of mineralisation that are
Material to the Public Report. |
Samples from the diamond-core holes are being taken from HQ3 sized
core and sampled on a nominal 1 metre basis taking into account
smaller sample intervals up to geological contacts. The core
is cut in along the core orientation line (where available).
Generally in massive sulphide zones one portion is quartered for
assaying, half the core is preserved for metallurgical testing and
the remaining quarter is retained as reference material in the core
trays. In non-massive sulphide material half core is sampled.
These sampling methods are standard industry methods and are
believed to provide acceptably representative samples for the type
of mineralisation encountered. |
Drilling techniques |
Drill type (eg core, reverse circulation, open-hole hammer, rotary
air blast, auger, Bangka, sonic, etc) and details. |
Diamond-core drilling is being undertaken by Sandvik DE710 rigs
with mostly HQ3 sized core being drilled. Various techniques
are employed to ensure the hole is kept within limits of the
planned position. The core is laid out in standard plastic
cores trays. |
Drill sample recovery |
Method of recording and assessing core and chip sample recoveries
and results assessed. |
The core is transported to an enclosed core logging area and
recoveries are recorded. Recoveries to date have been better
than 95%. The core is orientated where possible and marked
with 1 metre downhole intervals for logging and sampling. |
Logging |
Whether core and chip samples have been geologically and
geotechnically logged to a level of detail to support appropriate
Mineral Resource estimation, mining studies and metallurgical
studies. |
The diamond core is geologically logged by qualified geologists.
Geotechnical logging is also being undertaken on selected sections
of the core. Samples for metallurgical testing are being kept
in a freezer to reduce oxidation prior to being transported to the
metallurgical laboratory. |
Sub-sampling techniques and sample preparation |
For all sample types, the nature, quality and appropriateness of
the sample preparation technique. |
All core samples are crushed then pulverised in a ring pulveriser
(LM5) to a nominal 90% passing 75 micron. An approximately 250g
pulp sub-sample is taken from the large sample and residual
material stored. A quartz flush (approximately 0.5 kilogram of
white, medium-grained sand) is put through the LM5 pulveriser prior
to each new batch of samples. A number of quartz flushes are
also put through the pulveriser after each massive sulphide sample
to ensure the bowl is clean prior to the next sample being
processed. A selection of this pulverised quartz flush
material is then analysed and reported by the lab to gauge the
potential level of contamination that may be carried through from
one sample to the next. |
Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and
laboratory procedures used and whether the technique is considered
partial or total. Nature of quality control procedures adopted (eg
standards, blanks, duplicates, external laboratory checks) and
whether acceptable levels of accuracy (ie lack of bias) and
precision have been established. |
Sample preparation and assaying is being conducted through ALS
Laboratories, Orange, NSW with certain final analysis of pulps
being undertaken at the ALS Laboratory in Brisbane QLD. Gold is
determined by 30g fire assay fusion with ICP-AES analysis to 1ppb
LLD. Other elements by mixed acid digestion followed by ICP-AES
analysis. Laboratory quality control standards (blanks,
standards and duplicates) are inserted at a rate of 5 per 35
samples for ICP work. |
Verification of sampling and assaying |
The verification of significant intersections by either independent
or alternative company personnel. Documentation of primary data,
data entry procedures, data verification, data storage (physical
and electronic) protocols. Discuss any adjustment to assay
data. |
An internal review of results was undertaken by Company
personnel. No independent verification was undertaken at this
stage. All field and laboratory data has been entered into an
industry standard database (DataShed) using a contract database
administrator (DBA) in the Company’s Perth office. Validation
of both the field and laboratory data is undertaken prior to final
acceptance and reporting of the data. Quality control samples from
both the Company and the Laboratory are assessed by the DBA and
reported to the Company geologists for verification. All
assay data must pass this data verification and quality control
process before being reported. |
Location of data points |
Accuracy and quality of surveys used to locate drill holes (collar
and down-hole surveys), trenches, mine workings and other locations
used in Mineral Resource estimation. |
The drill collars were initially located with a combination of
handheld GPS and licenced surveyor using a DGPS system, with
accuracy of about 1m. The final drill collars are “picked up”
by a licenced surveyor with accuracy to 1 centimetre. While
drilling is being undertaken, downhole surveys are conducted using
a downhole survey tool that records the magnetic azimuth and dip of
the hole. These recordings are taken approximately every 30
metres downhole. As a check, certain holes are also being
surveyed with gyroscopic methods, with some 10 percent of holes
drilled in the current program also surveyed by this method after
drilling has been completed. |
Data spacing and distribution |
Data spacing for reporting of Exploration Results. Whether the data
spacing and distribution is sufficient to establish the degree of
geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and
classifications applied. Whether sample compositing has been
applied. |
The diamond drilling is mostly following-up in various directions
from previous intercepts with a nominal spacing in the range
20-40m. This drill hole spacing will be sufficient to provide
Mineral Resource estimates in the future. |
Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling of
possible structures and the extent to which this is known,
considering the deposit type. |
The drilling orientation is designed to intersect the mineralised
lenses at a close to perpendicular angle. The mineralised
lenses are dipping at approximately 50-70 degrees to the west and
the drilling is approximately at 60 degrees to the east. This
will vary from hole to hole. |
Sample security |
The measures taken to ensure sample security. |
The cut core samples are secured in green plastic bags and are
being transported to the ALS laboratory in Orange, NSW via a
courier service or with Company personnel/contractors. |
Audits or reviews |
The results of any audits or reviews of sampling techniques and
data. |
A review and assessment of the laboratory procedures was under
taken by Company personnel in late 2014 resulting in some changes
to their sample pulverising procedure. |
Section
2
Reporting of Exploration Results
(Criteria listed in the preceding section also
apply to this section.)
Criteria |
JORC Code explanation |
Commentary |
Mineral tenement and land tenure status |
Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint
ventures, partnerships, overriding royalties, native title
interests, historical sites, wilderness or national park and
environmental settings. The security of the tenure held at the time
of reporting along with any known impediments to obtaining a
licence to operate in the area. |
The Woodlawn project is located 250km south-west of Sydney in the
state of New South Wales. The area is on the Great Australian
Dividing range and has an elevation around 800m above
sea-level. The mineral and mining rights to the project are
owned 100% by the Company through the granted, special (Crown and
Private Land) mining lease 20 (SML20). The lease has been
renewed to the 16 November 2029. The project area is on private
land owned by Veolia who operate a waste disposal facility that
utilises the historical open-pit void. An agreement is in
place with Veolia for the Company to purchase certain sections of
this private land to facilitate future mining and processing
activities. A cooperation agreement is also in place between
Veolia and the Company that covers drilling and other exploration
activities in the area. |
Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
The Woodlawn deposit was discovered by the Jododex JV in 1970 and
open-pit mining began in 1978 and continued through to 1987. The
project was bought outright by Rio Tinto Ltd (CRA) in 1984 who
completed the open-pit mining. Underground operations commenced in
1986 and the project was sold to Denehurst Ltd in 1987 who
continued underground mining up until 1998. The mineral
rights to the project were then acquired by TriAusMin Ltd in 1999
who conducted studies on a tailings re-treatment process and
further underground operations. Heron took 100% ownership of
the project in August 2014 following the merger of the two
companies. Some 980 surface and underground drill holes have
been completed on the project to date and various studies
undertaken. |
Geology |
Deposit type, geological setting and style of mineralization. |
The Woodlawn deposit comprises volcanogenic massive sulphide
mineralisation consisting of stratabound lenses of pyrite,
sphalerite, galena and chalcopyrite. The mineralisation is
hosted in the Silurian aged Woodlawn Felsic Volcanic package of the
Goulburn sub-basin on the eastern side of the Lachlan Fold
Belt. |
Drill hole Information |
A summary of all information material to the understanding of the
exploration results including a tabulation of the following
information for all Material drill holes: |
A table detailing the drill hole information is given in the body
of the report. |
Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (eg cutting of high
grades) and cut-off grades are usually Material and should be
stated. Where aggregate intercepts incorporate short lengths of
high grade results and longer lengths of low grade results, the
procedure used for such aggregation should be stated and some
typical examples of such aggregations should be shown in
detail. |
The reported assays are weighted for their assay interval width.
The majority of the assay interval widths are 1 metre, but this
weighting does take into account the non 1 metre intervals and
weights the average assay results accordingly. For the results
reported here no weighting was included for specific gravity (SG)
measurements that have been taken for all sample intervals as the
samples within the intervals are of a similar SG. |
Relationship between mineralization widths and intercept
lengths |
These relationships are particularly important in the reporting of
Exploration Results. If the geometry of the mineralisation with
respect to the drill hole angle is known, its nature should be
reported. |
The massive sulphide zone intercepted in the drilling to date is at
an angle to the drill axis and therefore the true width is
estimated to be some 0.8 of down-hole width. That is, a
down-hole intercept of 16m equates to a true width of 12m.
This is only an approximation at this stage and will be better
estimated as the orientation of the Lenses is better defined. |
Diagrams |
Appropriate maps and sections (with scales) and tabulations of
intercepts should be included for any significant discovery being
reported These should include, but not be limited to a plan view of
drill hole collar locations and appropriate sectional views. |
Where relevant, a diagram showing the hole positions relevant for
current phase of exploration is included in the release.
Other maps and diagrams showing the location of the Woodlawn
Project are included in other recent Company releases. |
Balanced reporting |
Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades
and/or widths should be practiced to avoid misleading reporting of
Results. |
The reporting is considered to be balanced and all relevant results
have been disclosed for this current phase of exploration. |
Other substantive exploration data |
Other exploration data, if meaningful and material, should be
reported including (but not limited to): geological observations;
geophysical survey results; geochemical survey results; bulk
samples – size and method of treatment; metallurgical test results;
bulk density, groundwater, geotechnical and rock characteristics;
potential deleterious or contaminating substances. |
Selected drill holes are being cased with 50 millimetre PVC tubing
for potential down-hole DHEM surveying which is undertaken on the
majority of the holes drilled. Geotechnical logging is undertaken
nominally 25m either side of the massive sulphide lenses.
Archimedes method SG measurements are determined for all sampled
intervals. |
Further work |
The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
|
The fourth phase of drilling at Woodlawn commenced in May 2017 with
some 4,300m to be drilled. The program was primarily designed to
infill and expand the shallow G2 Lens position as this can have an
immediate impact on early mine production schedules. A number
of geotechnical holes are also planned as part of this program. The
results of the program are being assessed as they come to hand and
adjustments to the program made as is warranted. |
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
Jon Snowball
FTI Consulting
+61 2 8298 6100
jon.snowball@fticonsulting.com
Canada:
Tel: +1 647-862-1157 (Toronto)