Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to provide an update on the
successful start to site construction activities at the high grade
Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New
South Wales, Australia.
Highlights
- Ertech fully mobilised and progressing plant site
earthworks – mobile plant fleet of 23 units
- Preliminary construction activities under way with EPC
Contractor, Sedgman, setup on site
- Equipment orders – A$25 million in orders placed out of
a project total of A$30 million
- Project on track for commissioning late
2018
- Zinc market outlook remains positive for producers with
forecasts extending the supply shortage
Following the recent completion of project
financing, site construction activities have ramped–up to the full
scheduled activities with Ertech having mobilised 45 personnel and
a fleet of 4 scrapers, 2 bull dozers, 5 excavators, 9 dump trucks
and a variety of other support machines after the establishment of
temporary construction offices and facilities. Work is well
underway on the site access road, plant and office site, sediment
dam and ROM pad. Top soil has been stripped and stockpiled with
foundation levelling and compaction progressing on track.
The next few weeks will see earthworks for the
underground box cut commence along with the haul road, tailings
storage facility and the relocation of a section of the existing
high voltage electrical network.
The project EPC Contractor, Sedgman, have
undertaken their initial mobilisation with 3 personnel on site
overseeing the earthworks and preparation for the start of concrete
works in Q1 2018. Engineering design work has advanced and is over
20% complete. Equipment procurement is well underway with the
placement of A$25.1 million of orders out of a total for the
project of A$30.3 million. This includes long lead items (Heron
announcement 14th August 2017): M10000 IsaMill, Outotec flotation
cells and thickeners, and also additional equipment including ball
mill and samplers (Outotec), regrind mills (Metso), high voltage
electrical (PHE), flocculant plant (SNF), filters (Tecnicas
Hydraulicas), lime silo (Batchcrete), concentrate building and
workshop (Container Domes), conveyor drives (SEW) and slurry, sump
and froth pumps (Weir).
Other current site works includes:
- Upgrades to piping and electrics to the bore field that will
result in the third bore being recommissioned in the next few
weeks. This will complete the full external water supply
infrastructure for the project.
- Staged mine dewatering continues with the water being pumped to
the existing evaporation dams.
Zinc Market
The reduction in global zinc metal stocks along
with a critical shortage of concentrates is well publicised with
the progressive tightening of the physical metal market providing
the basis for increased zinc metal prices with recent levels
hitting 10 year highs.
In support of the market dynamics, the world’s
largest net zinc miner, Teck Resources, recently released their
observations about the global zinc market with a number of
significant conclusions including:
- Mine production growth for zinc is insufficient to meet the
consumption demand (projection to 2020);
- Spot treatment charges for zinc concentrates continue to be at
historical lows;
- A projection of at least 4.3Mtpa of additional zinc production
is required to satisfy demand to 2025 and the most likely, but
still uncommitted projects, are insufficient to meet this;
- The speculated price induced reaction of increased Chinese mine
zinc production has not occurred with production down 6% year to
date;
- Zinc metal inventories approaching historical lows; and
- Zinc used in Giga Steel, zinc thermal spray, continuous
galvanised rebar and zinc micro-nutrient fertiliser are providing
an expanded consumption base.
Heron’s Woodlawn Project remains one of the few
new zinc projects that is fully funded to production and, with
construction now underway, this places the Company on track to
participate in the pricing environment that is supported by the
strong zinc physical market.
Figure 1: Heron’s COO, Mr Andrew Lawry, and
Chairman, Mr Stephen Dennis, discuss earthworks progress at the
plant site.
http://www.heronresources.com/tsximages/20171004/171004_fig1.jpg
Figure 2: Pad levelling over the plant site.
http://www.heronresources.com/tsximages/20171004/171004_fig2.jpg
Figure 3: ROM pad top soil removal.
http://www.heronresources.com/tsximages/20171004/171004_fig3.jpg
About Heron Resources
Limited
Heron is engaged in the development of base and precious metal
deposits in Australia. Heron’s primary development project is the
high-grade Woodlawn Zinc-Copper Project located 250km southwest of
Sydney, New South Wales, Australia.
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 regarding Heron please visit www.heronresources.com.au or contact:
Heron Resources
Mr Wayne Taylor
Managing Director and CEO Heron Resources Ltd
Tel: +61 2 9119 8111
Email: heron@heronresources.com.au
Heron (Canada)
Tel: +1 647-862-1157(Toronto)