Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to report that the current drilling
campaign targeting the G2 Lens has been completed at its
wholly-owned Woodlawn Zinc-Copper Project, located 250km south-west
of Sydney, New South Wales, Australia. The drilling program
of 22 diamond core holes (4,246 meters) was focused on an expansion
of the shallow resource at the newly identified G2 Lens.
Several significant results have been received.
- Shallow G2 Lens drilling program completed, comprising
22 holes (4,246m). All assays received
- Significant assay results recently received
include:1
http://www.heronresources.com/tsximages/20170918/170918_tab1.jpg
- Previously released significant assay results from
WND0114 include:
http://www.heronresources.com/tsximages/20170918/170918_tab2.jpg
- New zone of copper mineralisation identified adjacent
to and down-plunge from the zinc stringer zone
- Mineral Resource modelling and estimation for the G2
Lens has commenced
Commenting on the program results, Heron Resources Managing
Director and CEO, Mr Wayne Taylor, said:
”The G2 drilling program has returned numerous contiguous base
and precious metal results that will underpin a new resource in
this shallow position. As we have previously commented, this area
will be the first to be accessed in the new underground mine and
currently does not comprise any of the production make-up reported
in our reserves only Feasibility Study. These results along with
the remaining extension positions continue to demonstrate the
discovery potential that remains at Woodlawn.”
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 22
diamond core holes for 4,246m of diamond core drilling was recently
completed to further define the shallow resource base. Two
key mineralised horizons have been identified, namely G2 Main and
G2 Hanging-wall (G2HW).
The G2 Main zone was the primary target of the drilling campaign
and consists of a zone of 5-10cm zinc sulphide-rich stringers
cross-cutting beds of coarse-grained volcanic breccia. The G2HW
zone was discovered during the follow-up program and consists of
very high-grade massive and stringer sulphides occurring
approximately 30 to 40m stratigraphically above the G2 Main zone
(see Figures 1-4). Full assay results are provided in
Appendix 1.
The significant intercepts from this program and specific to the
G2 Main zone are:
http://www.heronresources.com/tsximages/20170918/170918_tab3.jpg
These G2 Main results are in line with expectations and
delineate moderate-grade stringer mineralisation that is present
over mineable widths. Of note are a number of significantly
higher-grade results (holes WNDD0114 and WNDD0120) which suggest
the possibility of higher overall grades of material from this
area.
The significant intercepts from the G2 Hanging-wall zone
are:
http://www.heronresources.com/tsximages/20170918/170918_tab4.jpg
The G2HW zone is a newly recognized zone of high-grade
mineralisation that has been discovered in the last year.
Whilst the position is relatively small, its high-grade means it
will be a valuable addition to the early mine inventory.
Heron believes that similar zones of high-grade mineralisation are
likely to be present in the western portion of the Woodlawn system,
but missed by the existing drill spacing which now creates an
opportunity to delineate additional mineralised material. As
well, there is also the newly defined copper mineralisation in the
down plunge and footwall position to the G2 Main zinc stringer
mineralisation (see Figure 3). This copper mineralisation
occurs as copper stringers in chlorite matrix plus zones of massive
copper and pyrite sulphides. Relatively broad widths have
been defined to date and the zone remains open down plunge.
Forward Program
Mineral Resource estimation incorporating these latest results
is currently underway and is expected to be completed in late
October. The updated Mineral Resource will then be
incorporated into the existing mine plan. The G2
mineralisation is still open in a number of directions and further
drilling will be required to test these positions. Other
shallow potential near term mining inventory positions (e.g. upper
D Lens and upper Lisa Lens) are also being considered for
additional extensional drilling.
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.
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 1: Part of the high grade zone of mineralisation
intersected in WNDD0114 within the main G2 Hanging-wall Lens
(G2HW). Up-hole direction is to the left in the
tray.
http://www.heronresources.com/tsximages/20170918/170918_fig1.jpg
Figure 2: G2 Lens cross-section at 19180 North.
http://www.heronresources.com/tsximages/20170918/170918_fig2.jpg
Figure 3: Woodlawn G2 Lens long-section showing
interpreted lens shape, recent drilling and proposed infill
holes.
http://heronresources.com/tsximages/20170918/170918_fig3.jpg
Figure 4: Woodlawn G2 Hanging Wall Lens (G2HW)
long-section showing interpreted lens shape and recent
drilling.
http://www.heronresources.com/tsximages/20170918/170918_fig4.jpg
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 |
WNDD0121 |
9212 |
19178 |
2795 |
-71 |
120 |
139.5 |
G2 Lens extension |
WNDD0122 |
9151 |
19222 |
2795 |
-82 |
95 |
278.8 |
Geotechnical - Kate
Lens |
WNDD0123 |
9151 |
19222 |
2795 |
-67 |
113 |
278.8 |
G2 Lens extension |
WNDD0124 |
9161 |
19247 |
2795 |
-69 |
68 |
221.2 |
G Lens extension |
WNDD0125 |
9161 |
19247 |
2795 |
-66 |
48 |
239.8 |
G Lens extension |
WNDD0126 |
9185 |
19203 |
2795 |
-60 |
94 |
173.4 |
G Lens extension |
WNDD0127 |
9185 |
19203 |
2795 |
-53 |
83 |
166.9 |
G2HW and G2 Lenses |
WNDD0128 |
9212 |
19178 |
2795 |
-61 |
75 |
166.7 |
G2 Lens extension |
WNDD0129 |
9150 |
19222 |
2795 |
-67 |
71 |
275.8 |
G2 Lens extension |
WNDD0130 |
9150 |
19222 |
2795 |
-63 |
59 |
233.7 |
G2 Lens extension |
WNDD0131 |
9150 |
19222 |
2795 |
-64 |
77 |
233.7 |
G2FW Lens
extension |
WNDD0132 |
9163 |
19166 |
2794 |
-63 |
90 |
173.8 |
G2 Lens extension |
WNDD0133 |
9163 |
19166 |
2794 |
-57 |
109 |
149.7 |
G2 Lens extension |
|
|
|
|
|
|
|
|
Notes: WMG = Woodlawn Mine Grid
Assays results to date for diamond drill holes
completed as part of the Phase IV drill
campaign.
Hole
No |
From
(m) |
To (m) |
Downhole
Width (m) |
Estimated
True Width (m) |
ZnEq% |
Zn (%) |
Cu (%) |
Pb (% |
Au
(g/t) |
Ag
(g/t) |
|
|
WNDD0112 |
110.2 |
111.6 |
1.4 |
1.1 |
23.4 |
7.9 |
0.64 |
3.2 |
0.3 |
353 |
|
WNDD0112 |
116.6 |
122.5 |
5.9 |
4.7 |
7.0 |
3.6 |
2.2 |
0.2 |
0.4 |
26.5 |
|
WNDD0113 |
115.9 |
117.7 |
1.8 |
1.44 |
5.6 |
1.6 |
0.1 |
1.1 |
0.3 |
80.9 |
|
WNDD0113 |
184.0 |
186.9 |
2.9 |
2.32 |
6.7 |
0.1 |
2 |
0 |
0.1 |
6.5 |
|
WNDD0114 |
107.2 |
111.9 |
4.7 |
3.8 |
53.0 |
10.8 |
0.7 |
8.6 |
10.4 |
802 |
|
WNDD0114 |
146.0 |
160.0 |
14 |
11.2 |
12.4 |
7.5 |
1.0 |
1.7 |
0.1 |
8.70 |
|
WNDD0115 |
139.7 |
140.8 |
1.1 |
0.9 |
6.1 |
3.2 |
0.4 |
0.9 |
0.4 |
22.1 |
|
WNDD0116 |
108.1 |
110.5 |
2.4 |
1.9 |
16.0 |
8.1 |
0.4 |
2.8 |
0.8 |
119.3 |
|
WNDD0118 |
89.4 |
90.6 |
1.3 |
1.0 |
67.2 |
1.2 |
0.0 |
0.9 |
1.8 |
2,118 |
|
WNDD0118 |
109.8 |
111.6 |
1.8 |
1.4 |
10.1 |
5.9 |
0.4 |
2.3 |
0.1 |
26.6 |
|
WNDD0118 |
113.8 |
120.6 |
6.8 |
5.4 |
7.9 |
5.3 |
0.3 |
1.6 |
0.1 |
7.7 |
|
WNDD0118 |
124.5 |
135.2 |
10.7 |
8.6 |
5.3 |
3.7 |
0.5 |
0.2 |
0.1 |
2.4 |
|
WNDD0120 |
90.7 |
96.3 |
5.6 |
4.5 |
18.3 |
2.5 |
0.1 |
1.7 |
1.8 |
417.8 |
|
WNDD0120 |
104.5 |
106.4 |
1.9 |
1.5 |
7.5 |
4.3 |
0.2 |
2.3 |
0.2 |
19.3 |
|
WNDD0121 |
100.0 |
107.2 |
7.2 |
5.8 |
10.0 |
2.4 |
0.1 |
1.5 |
2.7 |
124.0 |
|
WNDD0121 |
112.0 |
123.4 |
11.4 |
9.1 |
5.0 |
2.8 |
0.1 |
1.7 |
0.1 |
9.6 |
|
WNDD0123 |
114.5 |
115.7 |
1.2 |
1.0 |
44.6 |
5.0 |
0.3 |
3.1 |
17.9 |
699.1 |
|
WNDD0123 |
158.7 |
160.1 |
1.5 |
1.2 |
16.0 |
8.0 |
1.0 |
4.8 |
0.3 |
24.8 |
|
WNDD0123 |
185.2 |
190.5 |
5.3 |
4.2 |
6.9 |
1.8 |
1.4 |
0.4 |
0.3 |
7.7 |
|
WNDD0123 |
209.7 |
215.4 |
5.8 |
4.6 |
14.3 |
0.1 |
4.4 |
- |
0.2 |
12.4 |
|
WNDD0124 |
200.9 |
202.9 |
2.0 |
1.6 |
20.1 |
10.4 |
1.0 |
3.4 |
2.4 |
56.5 |
|
WNDD0125 |
191.9 |
199.0 |
7.1 |
5.7 |
5.0 |
2.0 |
0.5 |
1.2 |
0.2 |
10.8 |
|
WNDD0126 |
151.6 |
153.0 |
1.4 |
1.1 |
12.7 |
0.1 |
3.8 |
0.1 |
0.3 |
17.6 |
|
WNDD0127 |
119.0 |
127.0 |
8.0 |
6.4 |
6.6 |
4.3 |
0.2 |
1.8 |
0.1 |
7.8 |
|
WNDD0129 |
214.3 |
218.0 |
3.7 |
3.0 |
4.0 |
0.1 |
1.0 |
- |
0.6 |
9.7 |
|
WNDD0129 |
221.0 |
228.5 |
7.5 |
6.0 |
5.5 |
0.2 |
1.6 |
- |
0.2 |
5.2 |
|
WNDD0131 |
206.0 |
210.0 |
4.0 |
3.2 |
6.0 |
0.2 |
1.8 |
- |
0.1 |
5.5 |
|
WNDD0132 |
136.0 |
141.0 |
5.0 |
4.0 |
10.5 |
5.0 |
0.2 |
3.7 |
0.4 |
53.8 |
|
WNDD0133 |
118.2 |
119.6 |
1.5 |
1.2 |
11.9 |
4.0 |
0.2 |
3.1 |
3.4 |
52.5 |
|
WNDD0133 |
141.2 |
146.2 |
5.0 |
4.0 |
9.2 |
4.8 |
0.5 |
2.9 |
0.1 |
14.4 |
|
WNDD0116 |
108.1 |
110.5 |
2.4 |
1.9 |
16.0 |
8.1 |
0.4 |
2.8 |
0.8 |
119.3 |
|
WNDD0118 |
89.4 |
90.6 |
1.3 |
1.0 |
67.2 |
1.2 |
- |
0.9 |
1.8 |
2,118.0 |
|
WNDD0118 |
109.8 |
111.6 |
1.8 |
1.4 |
10.1 |
5.9 |
0.4 |
2.3 |
0.1 |
26.6 |
|
WNDD0118 |
113.8 |
120.6 |
6.8 |
5.4 |
7.9 |
5.3 |
0.3 |
1.6 |
0.1 |
7.7 |
|
WNDD0118 |
124.5 |
135.2 |
10.7 |
8.6 |
5.3 |
3.7 |
0.5 |
0.2 |
0.1 |
2.4 |
|
WNDD0120 |
90.7 |
96.3 |
5.6 |
4.5 |
18.3 |
2.5 |
0.1 |
1.7 |
1.8 |
417.8 |
|
Notes: True width is an estimate of the actual thickness of the
intercept based on interpreted lens orientation (approximately 80%
to 90% of downhole width, with 80% used in this table as a general
guide); unless noted grades are weighted average grades, weighted
by length of samples intervals downhole, which are nominally 1
metre. No weighting was applied for differences in specific
gravity; * Previously reported results; ^ SG weighted grades used
due to significant differences in SG of individual samples.
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 |
o 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). |
· With the drill
program completed, Mineral Resource estimation for the G2 area has
commenced and should be completed in mid-October.· Further
drilling may be warranted to better define the shallow
mineralisation at G2 and a number of other shallow positions. |
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)