Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to provide an update to the drilling
program at its wholly owned Currawang prospect located 10 km NW
from the Company’s Woodlawn Zinc-Copper Project in New South Wales,
Australia.
- Heron completed five diamond drill holes (DDH) for 2,994m at
the Currawang Prospect, 10km northwest of Woodlawn
- A DDH which targeted a zone below the known main lens
intersected 6.4m of semi-massive and stringer-style zinc and copper
sulphide mineralisation from 485m down-hole, and a further 2.9m of
stronger copper sulphide mineralisation from 567m (DDH
CWDD0002). This is interpreted as a new zone/lens of
significant mineralisation directly to the east and below the main
lens. Assay results for this hole have been received and
include:]
http://www.heronresources.com/tsximages/20171016/161017_table1.jpg
Commenting on the drilling progress, Heron’s
Managing Director, Mr Wayne Taylor said: “The assay results confirm
the potential of Currawang to provide an additional production
source to Woodlawn. And, the geological interpretation of the
five DDH holes suggest the possibility of a broader mineralised
system. The five DDH holes were strategically placed along
the strike of the mineralised system to provide an expansive
platform for follow-up down-hole electromagnetic testing (DHEM) to
be completed over the next few weeks. Currawang is still at a
very early stage of delineation drilling and we are looking forward
to completing the program to establish the next phase of work.
Currawang is a significant new growth option for the Woodlawn
Project.”
Currawang Prospect
A program of five DDH holes for 2,994m was
recently completed at Currawang, targeting extensions to the
existing lenses, as well as the broader testing of the genetic and
post-mineral structural environment associated with high-grade
volcanic massive sulphide (VMS) mineralisation that was previously
mined in the mid-1990’s (approximately 0.5Mt). Heron’s
drilling program represents the first at Currawang since 1996.
The second drill hole in Heron’s program,
targeted the down-plunge extension to the main Currawang Lens
(Figure 1; DDH CWDD0002) and intersected 6.4m of 5 to 10cm
stringers, and semi-massive Zn sulphide mineralisation (Figures 2
and 3) from 485m within a broad zone of hydrothermal alteration
hosted by the basalt sequence. Copper sulphides within this
zone are thought to be responsible for the DHEM anomaly previously
measured in this area.
This hanging-wall position represents a
potential new zone, or lens, of mineralisation at Currawang.
DDH CWDD0002 continued to a depth of 640m and passed through a
broad (50m+) zone of intense chlorite alteration with
copper-sulphide stringers. These type of chlorite zones are
typically associated with the massive sulphide feeders which create
the main VMS lenses. Assay results have been received and
returned two significant intercepts from these two zones:
http://www.heronresources.com/tsximages/20171016/161017_table2.jpg
These results are highly encouraging. The
last DDH of the program (CWDD0005) was drilled beneath and
down-plunge from these intercepts and intersected a broad zone
(17.4m) of weak and low-grade Zn sulphides stringers from 428m
depth.
Other DDH in the program targeted the primary
Currawang structural controls along-strike to the north of the main
Currawang Lens in an area of limited historic drilling (Figure 1;
CWDD0001 and 03). DDH CWDD0001 intersected a broad interval
(38m from 341m down-hole) of moderate to intense alteration
comprising sericite, silica, pyrite, and chlorite development
within a strongly foliated, and in-part brecciated basalt (the
Currawang Basalt). Within this interval is 16m of an
intensely developed hydrothermal alteration assemblage, with minor
stringers of Zn sulphides with lesser amounts of Pb and Cu
sulphides. DDH CWDD0003 intersected a broad zone of moderate to
strong silica, chlorite, biotite alteration (381 to 433m depth)
with some stringers of base-metal sulphides.
Figure 1: Currawang long-section (looking
east) showing the areas previously mined (shaded dark brown) and
the traces of the five DDH in this
campaign.http://www.heronresources.com/tsximages/20171016/161017_fig1.jpg
DDH CWDD0004 was drilled to a depth of 675m
testing the southern extent of the mineralisation, and intersected
a weakly developed zone of silica, chlorite, pyrite alteration
towards the bottom of the hole – this was less well developed than
the other intercepts to the north.
Overall, the 5 DDH hole campaign was very
successful, intercepting high-grade intercepts in new stratigraphic
and structural positions, which both extend and further delineate
the known extents of mineralisation and alteration. These
five broadly-spaced DDH intercepts provide a geospatial platform
enabling Heron to develop a down hole electromagnetic survey (DHEM)
program to test for potential conductors peripheral to these DDH
intercepts which may indicate conductors related to extensions of
existing, or new, sulphide mineralisation.
Heron’s exploration program is part of the NSW
Government’s Cooperative Drilling Program, with 50% of the direct
drilling costs being reimbursable to Heron for the first 4
holes.
Figure 2: Photograph DDH cores showing
Zn sulphide (sphalerite stringers) in DDH CWDD0001 from 486m
depth. NQ2 (46.7mm diameter) DDH core within the tray with
each length approximately 1m
long.http://www.heronresources.com/tsximages/20171016/161017_fig2.jpg
Figure 3: DDH core detail showing
massive zinc sulphides. The red-brown coloured mineral is
sphalerite (zinc sulphide) and displays an interpreted
hydrothermal, replacement style of formation with clots of
dark-green chlorite alteration of original basalt fragments
entrained within the sphalerite. The white mineral is quartz,
indicative of the vein-style of this
zone.http://www.heronresources.com/tsximages/20171016/161017_fig3.jpg
Figure 4: Cross Section (view to
north) through the plane of DDH CWDD002 showing the location of the
mined out areas and the location of the newly intercepted
hanging-wall stringer-style sphalerite mineralisation, and the
deeper chlorite alteration
zonehttp://www.heronresources.com/tsximages/20171016/161017_fig4.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 regional to the Woodlawn Project.
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.
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
Details for diamond drill holes
completed
Hole No. |
CMGEast (m) |
CMGNorth (m) |
CMGRL (m) |
Surface Dip |
CMG SurfaceAzimuth |
EOHDepth (m) |
Target |
CWDD0001 |
5,675.0 |
15,613.6 |
2,816.1 |
-62 |
288.0 |
428.6 |
DHEM plates |
CWDD0002 |
5,685.5 |
15,533.1 |
2,815.4 |
-72 |
277.0 |
639.7 |
Mineralisation below old stopes |
CWDD0003 |
5,747.7 |
15,666.5 |
2,818.0 |
-58 |
284.0 |
560.8 |
Mineralisation in CE031 |
CWDD0004 |
5,678.5 |
15,248.8 |
2,812.5 |
-61 |
269.0 |
674.8 |
South of mine |
Notes: CMG = Currawang 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) |
|
|
CWDD0002 |
484.9 |
491.3 |
6.4 |
5.1 |
14.6 |
11.7 |
0.6 |
0.7 |
0.1 |
16.0 |
|
CWDD0002 |
567.0 |
569.9 |
2.9 |
2.3 |
13.5 |
3.4 |
3.0 |
0.2 |
0.0 |
15.8 |
|
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; *
Zinc equivalent calculationThe
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. These metal prices are
based on Heron’s long-term view on average metal prices. It
is Heron’s view that all the metals within this formula are
expected to be recovered and sold. Metallurgical metal
recoveries used for the formula are: 88% Zn, 70% Pb, 70% Cu, 33% Au
and 82% Ag; these are based on historical recoveries at Woodlawn
and supported by metallurgical testwork undertaken during the
2015-16 feasibility study. Commodity prices and metallurgical
recoveries are factored into the zinc equivalent calculation using
a standard metal equivalent formula.
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 NQ2
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 NQ2 sized (with some HQ3) 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 down hole 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, down hole surveys are
conducted using a down hole survey tool that records the magnetic
azimuth and dip of the hole. These recordings are taken
approximately every 30 metres down hole. 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 as close to a perpendicular angle as
possible. The mineralised lenses are dipping approximately
vertically or steeply to the east.
|
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 Currawang 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 EL 7257.
- The project area is on private land and an agreement is in
place with the owners to access the land.
|
Exploration done by other parties |
- Acknowledgment and appraisal of exploration by other
parties.
|
- The Currawang deposit is a satellite deposit to Woodlawn and
was discovered by the Jododex JV in the early 1970’s through soil
geochemistry programs. It was mined in the early 1990’s with
the ore being trucked to Woodlawn for processing.
- 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 (Woodlawn and
Currawang) in August 2014 following the merger of the two
companies.
|
Geology |
- Deposit type, geological setting and style of
mineralization.
|
- The Currawang deposit comprises volcanogenic massive sulphide
mineralisation consisting of replacement style lenses of pyrite,
sphalerite, galena and chalcopyrite within a hydrothermal breccia
system. The mineralisation is hosted in the Silurian aged
Currawang Basalt rocks 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 40 millimetre PVC
tubing for potential down-hole DHEM surveying which is undertaken
on the majority of the holes drilled.
- Geotechnical logging, if required, 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 initial program of drilling at Currawang is now completed.
Future work will be dependent on the results of the current
program.
- A program of DHEM will be conducted on a selection of the holes
in the coming weeks.
|
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 (Australia)
jon.snowball@fticonsulting.com
Canada:
Tel: +1 647-862-1157 (Toronto)