Microsoft Word - Woodlawn Phase II drilling program completed
Heron Resources Limited
ASX/TSX Release
25 November 2015
Level 1, 37 Ord Street, West Perth WA 6005 [email protected]
+61 8 6500 9200
ABN: 30 068 263 098
Woodlawn Phase II drilling program completed - High grade intersections continue
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Recent significant assays received from E, G and H Lenses:
o 1.3m @ 33% ZnEq1 from 283m (8.8% Zn, 4.8% Cu, 3.2% Pb, 1.8g/t Au, 168g/t Ag), WNDD0074 (G) o 1.8m @ 25.0% ZnEq from 106m (1.5% Zn, 4.4% Cu, 3.7% Pb, 2.7g/t Au, 145g/t Ag), WNDD0081 (H) o 3.8m @ 11.8% ZnEq from 80m (6.4% Zn, 1.0% Cu, 1.7% Pb, 0.3g/t, 17.7g/t Ag), WNDD0084 (E)
o 2.9m @ 35.4% ZnEq from 96m (12.7% Zn, 2.6% Cu, 8.1% Pb, 2.5g/t Au, 202g/t Ag), WNDD0088 (G) o 1.8m @ 32.3% ZnEq from 116m (6.4% Zn, 3.5% Cu, 3.5% Pb, 2.2g/t Au, 341 g/t Ag), WNDD0089 (G) o 6.1m @ 12.2% ZnEq from 50m (6.9% Zn, 0.5% Cu, 2.2% Pb, 1.0g/t Au, 36g/t Ag) , WNDD0093 (E)
o 1.8m @ 32.0% ZnEq from 80m (13.8% Zn, 1.3% Cu, 8.6% Pb, 0.8g/t Au, 216g/t Ag), WNDD0093 (E)
o 9.3m @ 18.7%ZnEq from 41m (8.2% Zn, 0.7% Cu, 3.2% Pb, 1.6g/t Au, 144g/t Ag), WNDD0098 (G)
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Recent significant assays received from Kate Lens :
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Significant high-grade massive sulphides intersected in Lisa Lens
Heron Resources Limited (ASX:HRR TSX:HER, 'Heron' or the 'Company') is pleased to provide a summary of recent results from the Phase II drilling program as part of the Woodlawn Feasibility Study, at its wholly owned Woodlawn Project, located 250km south-west of Sydney, New South Wales, Australia.
The Company continues to make excellent progress with the Woodlawn Feasibility Study following the completion of the Phase II drilling program . Final drill hole surveying and resource modelling is now proceeding. Additional components to this detailed study including metallurgical testwork, mining and geotechnical engineering are all well underway and the study remains on target for completion in the second quarter of 2016.
Phase II Drilling
The objective of the Phase II drilling program has been to expand the underground resource base and delineate sufficient Measured and Indicated Resources that can be converted into an underground Mineral Reserve for the Feasibility Study. The Phase II drilling program at Woodlawn, comprising approximately 19,000m of diamond drilling has now been completed (18,653m being drilled in 84 holes) ahead of time and below budget.
A number of drill intercept assay results are still to be received and reported, however the overall program has been very successful with numerous high grade drill intercepts being recorded across a number of the lenses within the Woodlawn mineralised system. The consistency of high grade results provides increased confidence in these new areas of
1 Zn equivalents (ZnEq) in this release are based on the formula: Zn (%) + 0.81 x Pb(%) + 3.12 x Cu(%) + 0.86 x Au(g/t) + 0.03 x Ag(g/t). All these metals are expected to be recoverable. Refer to the announcement of 22 April 2015 entitled 'Preliminary Economic Assessment Delivers Strong Business Case for the Woodlawn Zinc-Copper Project' for further information.
mineralisation which are expected to be incorporated into the mine production plan for the Feasibility Study. The massive sulphide intercept reported for the recently discovered Lisa Lens is also extremely encouraging.
E, G and H Lenses
In undertaking the Phase II program, the Company has investigated opportunities to reduce project start-up time to first production and thereby reduce initial capital costs by targeting relatively shallow mineralised positions in a number of lenses (E, G, H). Recent assay results from these lenses continue to confirm the presence of very high grades over mineable widths at depths that support this early production approach. An encouraging high-grade result was also returned from the lower part of the G Lens in WNDD0074. Recent significant assays received are listed below with drill hole details provided at the end of this report:
o 1.3m @ 33% ZnEq from 283m (8.8% Zn, 4.8% Cu, 3.2% Pb, 1.8g/t Au, 168g/t Ag), WNDD0074 (G) o 1.8m @ 25.0% ZnEq from 106m (1.5% Zn, 4.4% Cu, 3.7% Pb, 2.7g/t Au, 145g/t Ag), WNDD0081 (H) o 3.8m @ 11.8% ZnEq from 80m (6.4% Zn, 1.0% Cu, 1.7% Pb, 0.3g/t, 17.7g/t Ag), WNDD0084 (E)
o 2.9m @ 35.4% ZnEq from 96m (12.7% Zn, 2.6% Cu, 8.1% Pb, 2.5g/t Au, 202g/t Ag), WNDD0088 (G) o 1.8m @ 32.3% ZnEq from 116m (6.4% Zn, 3.5% Cu, 3.5% Pb, 2.2g/t Au, 341 g/t Ag), WNDD0089 (G) o 6.1m @ 12.2% ZnEq from 50m (6.9% Zn, 0.5% Cu, 2.2% Pb, 1.0g/t Au, 36g/t Ag) , WNDD0093 (E)
o 1.8m @ 32.0% ZnEq from 80m (13.8% Zn, 1.3% Cu, 8.6% Pb, 0.8g/t Au, 216g/t Ag), WNDD0093 (E)
o 9.3m @ 18.7%ZnEq from 41m (8.2% Zn, 0.7% Cu, 3.2% Pb, 1.6g/t Au, 144g/t Ag), WNDD0098 (E)
Kate Lens - Copper Zone
The recent assay result from WNDD0084 through the upper south end of the Kate Copper Zone (see Figure 1) has confirmed the grade continuity of the copper zone in the hanging-wall of the Kate Lens polymetallic mineralisation.
o 18.9m @ 9.3% ZnEq from 351m (2.6% Cu, 0.7g/t Au, 8.3g/t Ag), WNDD0084 (Kate Copper)
While the overall metal grade of the copper zone is lower than the grade of the main Kate Lens in zinc equivalent terms, its overall thickness (approximately 20m) and continuity makes this an attractive mining target either during or after completion of mining of the main lens.
Figure 1: Kate Lens Long-Section looking east with recent Kate Copper intercepts shown. Down-hole intercept thickness and ZnEq grade contoured to show relative accumulation of metals across the lens.
Lisa Lens
One hole was drilled into the Lisa Lens position at the end of the Phase II program and returned an excellent high-grade massive sulphide intercept:
o 12.5m from 222m of polymetallic and copper massive sulphides (WNDD00104) - assays pending.
The Lisa Lens (shown in Figure 2) is now shaping up as an important addition to the shallow mining inventory and this recent hole will bring the lens to an Inferred Mineral Resource category for reporting as part of the Feasibility Study.
Feasibility Study Timetable
Now that the Phase II drilling program has been completed, Heron will be focusing its efforts on completing the Woodlawn Feasibility Study which it expects to deliver in the second quarter of 2016.
Figure 2: Lisa, G, H, E Lenses Long-Section looking east with recent intercepts shown.
About Heron Resources Limited:
Heron is engaged in the exploration and development of base and precious metal deposits in Australia. Heron's primary development project is the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales.
Mr Wayne Taylor, Mr Jon Snowball
Managing Director and Chief Executive Officer: FTI Consulting
Tel: +61 8 6500 9200 Tel: +61 2 8298 6100 or +61 477 946 068
Email: [email protected] Email: [email protected]
Canada:
Tel: +1 905 727 8688 (Toronto)