Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to provide an update to the drilling
program underway at its wholly owned Currawang prospect located 10
kilometres north west from the Company’s Woodlawn Zinc-Copper
Project in New South Wales, Australia.
- Heron has completed two diamond drill holes, of a four
hole program, for 1,166m at the Currawang Prospect, 10km north west
of Woodlawn
- Hole CWDD0002, targeting below the known main lens,
intersected 5.3m of semi-massive and stringer-style zinc and copper
sulphide mineralization from 486m down-hole. This is interpreted to
represent a new zone (lens?) of significant mineralisation directly
to the east and below the main lens.
- A full 50% of direct drilling costs are funded by the
New South Wales Government’s Cooperative Drilling
Program
Commenting on the drilling progress, Heron’s Managing Director,
Mr Wayne Taylor said: ”The sulphide intercept and interpreted
geology is a very exciting development at Currawang as we are
seeing direct evidence of a broader mineralised system than
previously contemplated. In addition to the drilling results
we anticipate receiving from the next two holes, the drilling
campaign is designed to establish an expansive platform for
down-hole electromagnetic modelling (DHEM), providing geophysical
targeting well beyond the strike-length of the known mineralised
occurrence. While still at early stages, we are looking
forward to completing the program to establish the next phase of
work at what could be the next chapter to Woodlawn’s growth.“
Currawang Prospect
As described in the release dated 31 July 2017, a program of
four holes for 2,150m is underway at Currawang with two holes for
1,166m completed. The program is targeting potential
extensions to, as well as possible new lenses, associated with
high-grade volcanic massive sulphide (VMS) mineralisation that was
previously mined (approximately 0.5Mt) in the mid-1990’s; this is
the first drilling program at Currawang since 1996.
The first hole (CWDD0001) targeted the along-strike extension to
the north of the main Currawang Lens (Figure 1) in an area of
limited historic drilling. This hole intersected a broad
interval (38m, from 341m down-hole) of moderate to intense
sericite, silica, pyrite, and chlorite alteration within a strongly
foliated, and in-part, brecciated basalt (the Currawang
Basalt). Within this interval is 16m of intense alteration
and minor stringers of zinc sulphides with lesser lead and copper
sulphides. These stringers sulphides are analogous to, and
represent, the mine horizon; as well, the intensity of the
alteration indicates potential proximity to high-grade
mineralisation.
The second drill hole (CWDD0002) targeted the down-plunge
extension to the main Currawang Lens (Figure 1) and intersected
5.3m of 5-10cm stringers and semi-massive zinc sulphide
mineralization (Figures 2 and 3) from 485.7m within a broad zone of
alteration hosted by the basalt sequence. Copper sulphides
within this zone are probably responsible for the weak, historic
DHEM anomaly measured in this area.
This hanging-wall zone of mineralisation represents a potential
new zone, or lens, of mineralisation at Currawang and subject to
receipt of assay results, will warrant follow-up drilling,.
The hole (CWDD0002) continued to a depth of 640m and passed through
a broad (50m+) zone of intense chlorite alteration with minor
copper-sulphide stringers. Such chlorite zones are typically
associated with the feeder zones which lead into, and feed, the
main VMS lenses; these alteration zones therefore provide
encouragement that stronger grades of mineralisation could be
nearby.
Both drill holes are currently being sampled and assays are
expected within a few weeks. The holes are being cased with
PVC pipe and will be surveyed with DHEM at the completion of the
program. The two remaining proposed holes are shown on the long
section in Figure 1.
The program is part of the NSW Government’s Cooperative Drilling
Program with 50% of the direct drilling costs being reimbursable to
Heron.
Figure 1: Currawang long section (looking east) showing area of
deposit previously mined, and location of the four drill holes in
this campaign.
http://www.heronresources.com/tsximages/20170817/170817_fig1.jpg
Figure 2: Photo of the zinc sulphide (sphalerite stringers) in
CWDD0001 from 486m. NQ2 (46.7mm) core within the core tray
with each length approximately 1m long.
http://www.heronresources.com/tsximages/20170817/170817_fig2.jpg
Figure 3: Drill core detail showing massive zinc
sulphides. The red-brown mineral is sphalerite (zinc
sulphide) and shows a hydrothermal, replacement style of formation
with clots of dark green chlorite being original basalt fragments
entrained within the sphalerite. The white mineral is quartz
and indicates the vein-style of formation of this zone.
http://www.heronresources.com/tsximages/20170817/170817_fig3.jpg
Figure 4: Cross Section (looking north) through the plane of
CWDD002 showing the location of the area historically mined-out,
and the location of the new hanging wall stringer-style sphalerite
mineralization, and the deeper chlorite alteration zone
http://www.heronresources.com/tsximages/20170817/170817_fig4.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 regional to the Woodlawn Project.
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 |
5675.0 |
15613.6 |
2816.1 |
-62 |
274.19 |
428.6 |
Testing northern extent
of mineralisation, down dip of stopes and also DHEM plates at
around 400m |
CWDD0002 |
5685.5 |
15533.1 |
2815.4 |
-72 |
266.19 |
639.7 |
Testing down plunge and
down dip extent of mineralisation, below old stopes in central part
of the deposit |
Notes: CMG = Currawang Mine Grid
Assay results are currently pending
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.
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 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 |
o 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 program of
drilling at Currawang is continuing. Future work will be dependent
on the results of the current program.· A program of DHEM
will be conducted on the 4 holes when they are completed. |
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)