Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to report a drilling program has
commenced at its wholly owned Currawang prospect located 10km from
the Company’s Woodlawn Zinc-Copper Project in New South Wales,
Australia.
- Diamond drill program commenced at the Currawang
Prospect
- 2,150m planned in four holes testing down-plunge and
along strike extensions to known mineralisation
- Potential for the discovery of a satellite high-grade
volcanogenic massive sulphide "VMS" deposit, 10km from the Woodlawn
site
- 50% of direct drilling costs funded by the NSW
Government’s Cooperative Drilling Program
Currawang Prospect
The Currawang mine produced approximately 0.5Mt of high-grade
polymetallic VMS ore from an underground operation in the early
1990s that was processed at Woodlawn. The attraction of
Currawang is its potential to provide an additional high grade
production source to supplement Woodlawn underground. The VMS
ore at Currawang is similar to the high grade polymetallic ore at
Woodlawn, however, is hosted by the overlying Currawang Basalt unit
with the lenses forming as replacement bodies within a
hydrothermally altered basaltic breccia unit.
A number of significant historical intercepts that occur outside
the mining stopes have been identified, including:
- 1m @ 17% ZnEq[1] (9.0% Zn, 0.9% Cu, 4.3% Pb, 54g/t Ag),
CU054[2]
- 6m @ 16% ZnEq (8.8% Zn, 0.8% Cu, 5.2% Pb, 34g/t Ag), CU056
These drill holes are in the northern part of the former mining
areas and at the time of their drilling were not followed-up.
A detailed review of the underground geology and historical DHEM
(down-hole electromagnetic) surveys has been undertaken and a drill
hole program designed to test the down plunge extensions of these
intercepts.
A DHEM anomaly will also be targeted below a narrow, but high
grade massive sulphide intercept in the north of the area (Figures
2 and 3) as well as a deeper DHEM anomaly in the south.
The four proposed holes will provide coverage of some 500m of
strike along and below the Currawang deposit and provide an
important platform for DHEM surveys.
Combined with a high-powered DHEM survey, this program has the
potential to identify new extensions to the Currawang
mineralisation. The initial program of four diamond drill
holes for 2,150m has received a NSW Government New Frontiers
Cooperative Drilling grant which provides for reimbursement of 50%
of the direct drilling costs.
Figure 1: Drill rig on first hole at Currawang
http://www.heronresources.com/tsximages/20170731/170731_Fig
1.jpg
Figure 2: Currawang long section looking east showing
existing mined deposit and location of the four proposed drill
holes.
http://www.heronresources.com/tsximages/20170731/170731_Fig
2.jpg
Figure 3: Cross Section through the northern portion of
the prospect showing one of the proposed drill holes targeting
mineralisation below a historical narrow intercept.
http://www.heronresources.com/tsximages/20170731/170731_Fig
3.jpg
Further updates on drilling progress at Currawang will be
provided as results become available.
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.
[2] Historical underground drill results previously reported by
Heron in its March 2017 Quarterly 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.
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.
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, 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)