Heron Resources Limited (ASX:HRR; TSX:HER, “Heron” or the
“Company”) is pleased to report that the Company has
entered into an agreement with the previous tenement holder to
acquire all of the Peelwood District Project data and, in addition,
has applied for a further tenement in the area that covers
previously defined high-grade zinc-copper deposits 105 km north of
the Company’s Woodlawn Zinc-Copper Project in New South Wales,
Australia.
Commenting on the Peelwood Project, Heron’s
Managing Director, Mr Wayne Taylor said: “Having access to this
data and information is an important step in enabling the Company
to undertake a rapid assessment of the highly prospective Peelwood
area and ensure we leverage our next phase of work with this
knowledge base. Also, the pegging of this additional ground at
Peelwood adds further to the appeal of the Project and means Heron
now has under application the entire 12km strike extent of the
Peelwood base-metal horizon. The planned use of the latest
high-powered EM technology will assist in quickly generating new
targets while we review the existing known Mineral Resource for
trucking to the Woodlawn plant that is now under construction.”
- Heron has entered an agreement with the previous holder
which has secured all of the Peelwood Project data allowing for a
rapid assessment of the project area.
- Heron has applied for an additional tenement at
Peelwood covering the northern extent of the mineralised belt where
Volcanogenic Massive Sulphide (VMS) deposits with similar
characteristics to Woodlawn have been defined by previous
explorers.
- Heron holds under application the entire 12km long
prospective Peelwood base-metal horizon.
- As previously reported the ground contains previously
released JORC (2004) Mineral Resources at the John Fardy and
Peelwood deposits and Heron is currently compiling the drill data
to verify these estimates.
- High-powered EM is being planned to cover the priority
target areas to generate further targets.
Peelwood Project
The Peelwood District Project is located 165km
west of Sydney, and 105 kilometres north from the Company’s
Woodlawn Zinc-Copper Project in New South Wales, Australia (Figure
1). It lies within undulating, mostly forested country 800m
above sea level, and is underlain by Silurian aged rocks consisting
of the shales and other fine-grained sedimentary rocks of the
Cuddyong Formation, and the felsic volcanic rocks of the
Kangaloolah Volcanics. VMS style deposits were first mined
here in 1890’s with four key centres occurring on the tenements
newly pegged by Heron, namely the Peelwood, John Fardy, Cordillera
and Mt Costigan deposits (Figure 2). Each of these historical
deposits includes a number of massive sulphide lenses located at,
or adjacent to, the sheared contact between the Cuddyong Formation
and the Kangaloolah Volcanics. Deposit descriptions have been
provided in Heron’s ASX release dated the 15 November 2017.
The deposits at Peelwood and John Fardy contain JORC (2004) Mineral
Resources, reported to the ASX in 2008. Discussions with the
local landowners have commenced.
Peelwood Agreement
An agreement has been reached with the previous
titleholders, Balamara Resources Ltd, to acquire their drilling
database and all other project data, including drill core that they
own. It is expected that this will speed-up the Company’s
review process considerably.
Mt Costigan Deposit 1
The new application covers the northern 5.5km of
the prospective Peelwood sequence, bringing the total strike of
this sequence within Heron’s application to 12km. Numerous
historical workings occur within this new area with the key
historical mine being Mt Costigan.
The Mt Costigan VMS deposit, located 11.5km
northwest of the Peelwood mine, is the northern most massive
sulphide deposit in the Peelwood camp. It consists of four
stacked lenses located at the contact between shales of the
Cuddyong Formation and crystal-tuffs of the Kangaloolah
Volcanics. The four lenses contain disseminated to massive
sulphides consisting of dominantly pyrite and sphalerite with
lesser galena, chalcopyrite and, pyrrhotite and arsenopyrite.
The lenses are partially deformed with some remobilised massive
pyrite present. Footwall sulphide stringers and associated
alteration extend up through the Kangaloolah Volcanics and increase
in intensity towards the contact with the Cuddyong Formation.
Other Prospects
A number of other significant base-metal
prospects exist on the new application area and form part of the
12km long prospective Peelwood base-metal horizon. In
addition to the base-metal occurrences, an historic gold mine
occurs at Shephards and Heron will include this in its assessment
of the area. The gold here occurs within pods of deformed
quartz enclosed within a shale/schist unit of the Cuddyong
Formation. Whilst some relatively high-grade results have been
obtained from old gold workings, Heron will also focus on potential
larger, Mc Phillamy’s style targets within the volcanic
package.
Future Work
The Company is currently progressing the
tenement applications through the grant process. Landowners
in the area are being contacted and an assessment of the
requirements to reach an agreement with them is being
undertaken. Given the age of some of the land titles in the
area, it is likely that an agreement will be needed in
relation to specific metals extracted.
Heron is looking to employ the High Powered
Electromagnetic (HPEM) system that it has been using at Woodlawn,
at Peelwood. This EM system represents a step change in
current power available (over 200 amps) and has the ability to see
considerably deeper than previous systems.
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
tenements regional to the Woodlawn Project.
1 The geological descriptions used here are adapted from the
publication: Downes, P.M., 2017.
References:
Downes P.M., 2012, Metallic Mineral Systems: In
Thomas O & Pogson D.J. (compilers), Goulburn 1:250,000
Geological Sheet SI/55-12, 2rd edition, Explanatory Notes prepared
by Geological Survey of New South Wales, Maitland, pp
148–225.
Figure 1: Peelwood Project Location
Diagram
http://www.heronresources.com/tsximages/20171204/171204_fig1.jpg
Figure 2: Geological map of the Peelwood
area showing key deposits and other prospects
http://www.heronresources.com/tsximages/20171204/171204_fig2.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.
JORC 2012 Table 1 (Peelwood
Project)
Section 1 Sampling Techniques and Data
(Criteria in this section applies to all
succeeding sections)
Criteria |
JORC Code explanation |
|
Sampling techniques |
- Nature and quality of sampling (e.g., 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
representativity and the appropriate calibration of any measurement
tools or systems used.
- Aspects of the determination of mineralisation that are
Material to the Public Report.
|
- The assays described in this report have been taken from
historical reports submitted to the NSW Department of Mines or
equivalent department over a lengthy period of time. There is
limited opportunity to check the assay results; however, the assays
did form the basis of a JORC (2004) Mineral Resource estimate
published in 2009 and signed off by Cube Consulting. On this
basis the assays results are believed to be reasonable, but further
checking will be required prior to any economic assumption being
applied.
- The level of QAQC control samples for the historical drilling
assays is not well documented, but was believed to have been
undertaken.
|
Drilling techniques |
- Drill type (eg core, reverse circulation, open-hole hammer,
rotary air blast, auger, Bangka, sonic, etc) and details.
|
- The majority of the historical drill holes were diamond drill
core, drilled by various operators over a lengthy period of
time.
|
Drill sample recovery |
- Method of recording and assessing core and chip sample
recoveries and results assessed.
|
- Drill hole sample recovery has been recorded in the historical
drill logs and has been taken into consideration with earlier
assessments of the prospect. Sample recover in some
mineralised zones is quite low (e.g., as low as 25%) but generally
is above 80%.
|
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.
|
- It is apparent that the majority of the historical drill holes
have been geologically logged by professional geologists.
|
Sub-sampling techniques and sample preparation |
- For all sample types, the nature, quality and appropriateness
of the sample preparation technique.
|
- The descriptions of the sampling procedures for the historical
drill holes is quite limited. However, it was carried out by
various reputable mining groups, employing exploration and mining
professionals that would have employed the practises of the
day.
|
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.
|
- Descriptions of assay techniques and procedures for the
historical drill holes is quite limited. However, it was
carried out by various reputable mining groups, employing
exploration and mining professionals that would have employed the
practises of the day.
|
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.
|
- No independent verification was undertaken at this stage.
- At this stage the historical reports, including various data
compilations are the primary source of the data and no attempt has
been made to add the data to Heron’s primary drill hole
database.
- No adjustments to assay data has been undertaken by Heron.
|
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 exact actual survey pick method for the historical holes is
not known at this stage. However, it is apparent that the
holes were picked up by the exploration surveying teams along
established local grid lines.
|
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.
|
- Drilling was performed on a variety of drill spacings with
closest spacing (approx. 15 x 15m) in the top part of the John
Fardy deposit.
|
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.
|
- It is clear the drilling and sampling was undertaken to
intersect, as much as possible, the mineralisation as close to
perpendicular as possible.
|
Sample security |
- The measures taken to ensure sample security.
|
- Sample security for the historical drill holes is not
known.
|
Audits or reviews |
- The results of any audits or reviews of sampling techniques and
data.
|
- No audits or reviews were undertaken due to the early stage of
exploration.
|
Section
2
Reporting of Exploration Results
(Criteria listed in the preceding section also
apply to this section.)
Criteria |
JORC Code explanation |
|
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 mineralisation described in this report is held under
exploration applications (ELAs), by Ochre Resources Ltd (Ochre),
which is a wholly owned subsidiary of the Heron Resources
Ltd. A granted Exploration Licence (EL8623) covers the area
to the south of the main line of mineralisation. The ELAs and the
EL are held 100% by Ochre.
- Heron is progressing the grant of the ELAs as quickly as
possible and it is expected to take a minimum of 45 days.
- An agreement with the landowners will be sought. The
private land titles over parts of the tenement applications are
being reviewed and it seems likely that certain metal rights were
vested with the private land title.
|
Exploration done by other parties |
- Acknowledgment and appraisal of exploration by other
parties.
|
- There has been significant exploration under taken by various
exploration and mining groups since the 1960s – these include:
- Dundee Palliser Resources Exploration Pty Ltd (1972-77):
drilling and “reserve definition” at the John Fardy prospect.
- Newmont JV (1977-78) PEM surveys and limited drilling to test
extensional targets at John Fardy.
- BHP JV (1980-82): limited drilling.
- Australian Pacific Res Ltd JV (mid 80s): 4 diamond
drillholes.
- Sultan Corporation Ltd who changed their name to Balamara
Resources Ltd (2007-17): additional diamond drilling, resource
estimation, metallurgical testwork feasibility studies. Not
released to open-file as yet and therefore much of this work is not
currently available.
|
Geology |
- Deposit type, geological setting and style of
mineralization.
|
- The Peelwood Project is located 165km west of Sydney and 76km
north of Goulburn, New South Wales, Australia. It lies within
undulating, mostly forested country 800m above sea level.
- It is underlain by Silurian aged rocks consisting of the
shales and other fine grained sedimentary rocks of the Cuddyong
Formation and the felsic volcanic rocks of the Kangaloolah
Volcanics.
- VMS style deposits were first mined here in 1890’s with 3 key
centres occurring on the new tenements pegged by Heron, namely
Peelwood, John Fardy and Cordillera. Each of the historical
deposits includes a number of massive sulphide lenses located at,
or adjacent to, the sheared contact between the Cuddyong Formation
and the Kangaloolah Volcanics.
|
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:
|
- All the drilling information contained in this report has been
compiled from open-file historical reports and none has been
generated by Heron.
|
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.
|
- Assays results for the various programs are reported in summary
form only, which is considered appropriate for this early stage of
exploration.
- Only relevant elements are reported here, however, a larger
suite of elements were assayed for.
|
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.
|
- A selection of the mineralised intercepts are shown in
cross-section in the body of the report and show the relationship
between the drilled widths and mineralisation widths.
|
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.
|
- Maps and a cross section relevant for current phase of
exploration are included in the release.
|
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/material 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.
|
- Open-file aeromagnetic data, geological maps, and other
geological datasets are being compiled and used where
possible. Good quality geological and geophysical (eg
aeromagnetics) datasets are available from the NSW Division of
Resources and Geoscience.
|
Further work |
- The nature and scale of planned further work (eg tests for
lateral extensions or depth extensions or large-scale step-out
drilling).
|
- Heron will progress the ELAs through to grant as quickly as
possible.
- Compilation of historical data is underway and will be used to
generate future exploration targets with the view to identifying
high-grade underground resources that have the potential to be
trucked to Woodlawn as an additional satellite feed source.
|
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
Canada:
Tel: +1 647-862-1157 (Toronto)