Heron Resources Ltd. (TSX: HER; ASX: HRR) ("Heron"
or the "Company") announces its quarterly activities for the three
months ended September 30, 2017. Details of the Company's results
are contained in the filing “Heron Resources Limited Quarterly
Report September 2017” which is available on SEDAR at www.sedar.com
and the Company's website www.heronresources.com.au
September Quarter 2017 Highlights
Woodlawn Zinc-Copper Project
- Woodlawn Development:
- Commencement of site construction activities, marked with a
ground-breaking event attended by the Hon. Angus Taylor MP, Mayor
Bob Kirk from Goulburn Mulwaree Council and local community
members.
- Earthworks contractor, Ertech, commenced site works with
earthmoving resources consisting of 33 pieces of mobile plant and
34 personnel.
- EPC contractor, Sedgman, mobilised to assist with earthworks
oversight and site establishment. Orders placed for critical path
items of equipment valued at $25M.
- Additional key project personnel appointed including Mining
Manager, Contract Project Manager and Earthworks Supervisor.
- Woodlawn Development Funding:
- The A$140M1 equity funding component completed on 7
September.
- The A$100M1 debt funding component conditions precedent were
progressed with drawdown targeted for the first half of 2018.
Woodlawn Exploration
- Woodlawn Lens Extension Drilling Campaign:
- G2 Lens drilling program completed, 22 holes for 4,246m.
Assays received and Mineral Resource update commenced.
Significant results include:
- 4.7m @ 53.0% ZnEq2 from 107m (10.8% Zn, 0.7% Cu, 8.6% Pb,
10.4g/t Au, 802g/t Ag) WNDD0114
- 14.0m @ 12.4% ZnEq from 146m (7.5% Zn, 1.0% Cu, 1.7% Pb, 0.1g/t
Au, 9g/t Ag) WNDD0114
- 5.6m @ 18.3% ZnEq from 91m (2.5% Zn, 0.1% Cu, 1.7% Pb, 1.8g/t
Au, 418g/t Ag) WNDD0120
- 5.8m @ 14.3% ZnEq from 210m (0.1% Zn, 4.4% Cu, 0.2g/t Au, 12g/t
Ag) WNDD0123
- Woodlawn Regional Exploration:
- Initial Currawang diamond drilling program completed, 5
holes for 2,994m. Significant results away from known lenses
include:
- 6.4m @ 14.6% ZnEq from 485m (11.7% Zn, 0.6% Cu, 0.7% Pb, 0.1g/t
Au, 16g/t Ag) CWDD0002
- 2.9m @ 13.5% ZnEq from 567m (3.4% Zn, 3.0% Cu, 0.2% Pb, - g/t
Au, 16g/t Ag) CWDD0002
- Recent drilling indicates a significant new mineralised
position. DHEM surveys planned for early November 2017.
- Drill program to commence during the fourth quarter at the
Kangiara project to follow-up results from earlier this
year: 42m @ 0.20 g/t Au and 0.26% Cu from 4m to end of hole
(CRRB027).
Corporate
- General Meeting: A General Meeting of Shareholders was
held on 17 August to approve the A$240M Woodlawn Project
development financing. All resolutions were passed and the
financing completed on 7 September.
- Cash: Heron held A$124 million in cash (excluding bonds
of A$4.57 million) and A$8.2 million in investments as at 30
September 2017.
- Board of Directors: Orion Mine Finance Group’s nominee
director, Mr Peter Rozenauers, and Castlelake LP’s nominee
director, Mr Ricardo De Armas, were appointed to the Heron Board as
non-executive Directors.
Woodlawn Zinc-Copper Project
Heron’s primary development project is the
high-grade Woodlawn Zinc-Copper Project located 250km southwest of
Sydney, New South Wales. The project consists of both a high-grade
underground and a large medium grade tailings resource. The
development approach envisages the construction of a single 1.5Mtpa
processing plant capable of treating material from both sources.
Planned production will see the generation of three separate base
metal concentrates (zinc, copper and lead) with associated precious
metal credits. In addition, the project is very well supported by
excellent infrastructure, an existing mining lease and state
government development approvals.
Woodlawn is expected to become an important
Australian near-term zinc producer delivering concentrates into a
market with strong supply and demand fundamentals underpinning a
strong commodity price.
About Heron Resources
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 has a significant high quality, gold and base metal
tenement holding in New South Wales and Western Australia.
Zinc equivalent calculation – Woodlawn 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. 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION
This news release 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 news
release. 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, the ability to implement the
Woodlawn Zinc-Copper Project Feasibility Study on time or at all,
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 news release 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 news
release.
1 Assumes exchange rate of AUD/USD 0.76 as per
announcement on 30 June 2017
2 Refer to end of this release for the ZnEq
calculation assumption.
FOR FURTHER INFORMATION, CONTACT:
Australia:
Mr Wayne Taylor
Managing Director and Chief Executive Officer
Tel: +61 2 9119 8111 or +61 8 6500 9200
Email: heron@heronresources.com.au
Canada:
Tel: +1 647 862 1157 (Toronto)
cmuir@heronresources.com.au
www.heronresources.com.au