Sydney, Australia, April 28, 2016 (GLOBE NEWSWIRE) -- Heron Resources Ltd. (TSX: HER; ASX: HRR) ("Heron" or the "Company") announces its quarterly activities for the three months ended March 31, 2016. Details of the Company's results are contained in the filing “Heron Resources Limited Quarterly Report March 2016” which is available on SEDAR at www.sedar.com and the Company's website www.heronresources.com.au
March Quarter 2016 Highlights
· Cash and Cash Equivalents – At March 31, 2016 Heron held A$25.2M in cash (an increase of A$1.4M over the previous quarter) and A$2.3M in investments.
· Golden Cross Resources (“ASX:GCR”) – Heron received A$1.6M for the sale of its GCR shares.
· R&D – The Company received A$2.3M for R&D related expenditure over FY14/15.
· Commodity market fundamentals continue to strengthen for zinc.
· Woodlawn Zinc-Copper Project
· Excellent progress with the Feasibility Study and completion is targeted for the later part of the second quarter (Q2):-
o The updated Mineral Resource and new Ore Reserve estimation for the underground are well advanced and being reviewed by SRK.
o Geotechnical studies (Beck Engineering) have been completed covering mine design, deformation modelling and ground support designs.
o New Outotec paste test work on de-slimed process tailings resulted in improved paste strengths.
o A 300mm diameter dewatering bore has been drilled into the underground workings.
o Metallurgical test work continues including optimisation studies. Consolidation and interpretation of results is currently with GR Engineering Services along with the process plant design.
o Offsite logistical options have been reviewed for the transport of zinc, copper and lead concentrates to receiving smelters.
o A concentrate off-take expression of interest (EOI) has been provided to a number of smelters and trading companies.
o Independent Feasibility Study auditing functions are now in place.
o Company has appointed legal and corporate advisors for the project financing schedule.
· Exploration:-
o Following the completion of drilling activities last quarter, the Company has established a prioritised list of on-mine targets with the potential to expand the Woodlawn resource base.
Woodlawn Zinc-Copper Project
Heron’s primary development project is the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales. The project consists of both a high grade underground and a large medium grade tailings resource. The development approach envisages the construction of a single 1.5Mtpa processing plant capable of treating material from both sources. Planned production will see the generation of three separate base metal concentrates (zinc, copper and lead) with associated precious metal credits. In addition, the project is very well supported by excellent infrastructure, an existing mining lease and state government development approvals.
The Company completed and lodged on www.sedar.com a Preliminary Economic Assessment (PEA) in June 2015 with the aim of demonstrating the technical and commercial viability of the Woodlawn Project under this development approach. The PEA delivered a compelling business case resulting in an immediate start to an A$11M definitive Feasibility Study to provide the basis for seeking project funding. The initial step with the Feasibility Study was to undertake a further round of in-fill drilling, again returning numerous very high grade massive sulphide intercepts particularly in the new discoveries, Kate Lens and Lisa Lens.
Completion of the Feasibility Study at the end of Q2 2016 will see a transition to sourcing project development funding and then project construction.
Woodlawn is expected to become an important Australian near term zinc producer delivering concentrates into a market with strong supply and demand fundamentals underpinning a strong commodity price.
About Heron Resources
Heron is engaged in the exploration and development of base and precious metal deposits in Australia. In addition to the high grade Woodlawn Zinc-Copper Project, the Company holds a significant property holding in the Lachlan Fold Belt of New South Wales and the Kalgoorlie Nickel Project in Western Australia.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release 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 news release. 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 news release 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 news release.
