Heron Resources Limited (ASX:HRR, “Heron” or the
“Company”) is pleased to report that a number of drill
ready EM anomalies have been identified at its wholly owned
Peelwood base metal project located 105 km north of the Company’s
Woodlawn Zinc-Copper Project in New South Wales,
Australia.
- Review of Airborne Electromagnetic (AEM) data from 2014
resulted in several bedrock conductors being modelled
- At the historic Cordillera Mine prospect:
- AEM conductors identified at-depth along strike from the old
workings
- Grab samples from the prospect contain 16% Zn, 25% Pb and
497g/t Ag
- Planning underway to drill these conductors targeting
high-grade VMS style base metal mineralisation
- AEM conductors at the John Fardy and Peelwood mines are being
assessed as potential additional drill targets
Commenting on the targets Heron’s Managing
Director, Mr Wayne Taylor said: “The AEM targets at Peelwood are an
exciting kick start to exploration in this area. Our geophysical
consultant is an expert at modelling such data and believes there
are a number of untested, standout anomalies that warrant further
testing within this VMS camp. The high-grade nature of the
VMS mineralisation at Cordillera, as confirmed by the recent grab
samples, is encouraging and we are looking forward to getting a
first phase of drilling into these anomalies as soon as possible.
We are currently working through the standard procedural process to
progress the on-ground assessment of these targets.”
Peelwood Project Background
The Peelwood Project is located 165km west of
Sydney, and 105 km north from the Company’s Woodlawn Zinc-Copper
Project in New South Wales, Australia (Figure 1). Peelwood
lies within undulating, mostly forested country, 800m above sea
level, and is underlain by Silurian aged shales and other fine
grained sedimentary rocks of the Cuddyong Formation and the felsic
Kangaloolah Volcanics. VMS style deposits were first mined
here in 1880’s with key centres occurring on the tenements newly
pegged by Heron, namely the Peelwood, John Fardy and Cordillera
deposits (Figure 2). Each of these historical deposits
include a number of massive sulphide lenses located at, or adjacent
to, the sheared contact between the Cuddyong Formation and the
Kangaloolah Volcanics.
Cordillera Prospect
The Cordillera Prospect is centered on the
historic Cordillera mine located 4km north-west of Peelwood (Figure
2). The mine was opened in 1883 and production peaked in 1888
with 9,000 t of ore being treated that year producing copper, lead,
silver and gold from oxidised ore down to a depth of 60m.
Underground production continued until 1889 and the dumps were
reworked in 1928. The mineralisation is considered to be of a
volcanogenic massive sulphide (VMS) type consisting of lenses
contained within shales close to the steeply (75-85o) dipping
structural contact with the overlying coarse grained felsic
volcanics (Figure 3).
Evidence of the historical mining activity is
still present at the site. The Cordillera Mine and other
mines in the district were generally worked to a depth where fresh
sulphides were encountered. A recent grab sample of such massive
base metal sulphides from the Cordillera dumps returned assays of
16% Zn, 25% Pb and 497g/t Ag providing support for
the presence of high-grade mineralisation. The mined lode at
Cordillera was reported as being 1.2m wide and 107m in
strike. However, DDH coring in 1971 by A1 Consolidated Gold
Pty Ltd1 intercepted 2.2g/t Au, 11.6g/t Ag, 0.78%
Zn. 0.1% Cu and 0.44% Pb over 17m from 111.6m downhole depth.
A core intercept to the south returned a similar broad zone 24m
wide with a better portion of 2.9g/t Au, 10.2g/t
Ag, 0.3% Zn, 0.24% Cu and 0.83% Pb over 2.7m from 89m downhole
depth. The intercepts indicate a broad zone of alteration
associated with the mineralisation at Cordillera.
A 2014 AEM survey undertaken by previous owners has
been reviewed by Heron’s geophysical consultant who has identified
several bedrock conductors potentially related to
mineralisation. In particular, these AEM conductors (Figure
3) occur along the line of the historically mined mineralisation
and have not been tested at depth.
The conductors North of the old mine are modelled
starting at some 50m below the surface in an area of known workings
(shafts and costeans) with moderate pyrite alteration seen in the
surface felsic volcanic and shale rocks (Figure 3 and 4). A
program of drilling is being planned to test these
conductors. Land owner and statutory approvals are currently
being sought with no issues being identified to date.
A number of additional modelled AEM anomalies at
the John Fardy prospect are also being assessed and may provide
further drill targets as part of this program. Subject to
suitable drill rig availability, the Company is targeting to drill
a number of these targets before the end of financial year.
Figure 1: Peelwood Project Location
Diagram
http://www.heronresources.com/tsximages/20180423/230418_fig1.jpg
Figure 2: Geological Map of the Peelwood
area showing the location of the key EM anomalies
http://www.heronresources.com/tsximages/20180423/230418_fig2.jpg
Figure 3: Cordillera Prospect detail -
showing location of electromagnetic anomalies in relation to the
geology and previous mine workings. The VMS mineralisation
occurs close to the structural contact between the felsic volcanics
and shales units. Refer to legend in Figure 2.
http://www.heronresources.com/tsximages/20180423/230418_fig3.jpg
Figure 4: Cordillera Prospect Long
Section looking east showing position of modeled AEM plate and how
historical drilling failed to test the target. Pierce-point
for the proposed hole shown as red dot. Refer to legend in
Figure 2.
http://www.heronresources.com/tsximages/20180423/230418_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.
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. 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 test work undertaken during the 2015-16 feasibility
study.
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 (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.
|
- The assays described in this report have been taken from
historical reports submitted to the NSW Department of Mines or
equivalent department over a broad 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 drillholes were diamond drill
core, drilled by various operators over a broad period of
time.
|
Drill sample recovery |
- Method of recording and assessing core and chip sample
recoveries and results assessed.
|
- Drillhole sample recovery has been recorded in the historical
drill logs and has clearly been taken into consideration with
earlier assessments of the prospect. Sample recover is quite
low in some mineralised zones (eg 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 nature 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.
|
- 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 drillhole
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 drillholes 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. Two granted Exploration Licences (ELs) covers the
project area. The ELs are held 100% by Ochre.
- For the drilling to proceed, statutory approval (ESF4) is still
required as is landowner approval (LAAs). Landowners in the
area are generally amenable to proposed exploration to
proceed.
|
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).
|
- Compilation of historical data is on going 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.
- Planning for the drilling program at Cordillera and potentially
elsewhere is being progressed.
|
1 Bratt, B.T. 1998 Annual exploration report for EL 2934 (GS
1998-301)
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)