Sydney, Australia, Oct. 31, 2016 (GLOBE NEWSWIRE) -- Heron Resources Limited (TSX: HER; ASX: HRR) ("Heron" or the "Company") announces its quarterly activities for the three months ended September 30, 2016. Details of the Company's results are contained in the filing “Heron Resources Limited Quarterly Report September 2016” which is available on SEDAR at www.sedar.com and the Company's website www.heronresources.com.au
September Quarter 2016 Highlights
- Cash - At September 30, 2016Heron held A$19.8M in cash (including A$0.2M in bonds) and A$1.7M in investments.
- Commodity market fundamentals continue to strengthen for zinc, with zinc prices hitting a 12 month high in July
- Woodlawn Zinc-Copper Project:
- Key Woodlawn project appointments made - Woodlawn General Manager and Process Manager
- Underground mine plan optimised resulting in increased production rates, refined schedule and improved costs
- Project construction tender process underway
- Award of Front End Engineering Design (FEED) expected in the next month
- Project financing and off-take discussions both progressing well
Woodlawn Drilling
- Eight diamond holes for 2,527m completed testing B Lens extension and shallow portions of G2 Lens. Several outstanding results received:
- High grade results from near surface portion of G2 lens confirm early production potential in this area adjacent to the planned decline:
- 8m @ 28% ZnEq[1] from 107m (8.7% Zn, 0.5% Cu, 5.2% Pb, 4.0g/t Au, 326g/t Ag) in WNDD0110
(Incl. 3.7m @ 56% ZnEq (18.7% Zn, 1.2% Cu, 10.0% Pb, 6.9g/t Au, 650g/t Ag) in WNDD0110)
- B Lens extension confirmed to the north-west with an Exploration Target[2] of approximately 0.6Mt – 1.1Mt with grades of 7.0% ZnEq – 14% ZnEq estimated; results include:
- 11m @ 8.43% ZnEq from 569m (3.4% Zn, 0.9% Cu, 1.5% Pb, 0.12g/t Au, 18g/t Ag) WNDD0108
(Incl. 5.7m @ 14.3% ZnEq from 575m (6.1% Zn, 1.4% Cu, 3.2% Pb, 0.18g/t Au, 35g/t Ag)
- 5m @ 19.5% ZnEq from 552m (7.7% Zn, 1.3% Cu, 3.9% Pb, 1.8g/t Au, 100g/t Ag) WNDD0108
Ardea Resources
- On 29 September Heron Shareholders approved the spin-off of non-Woodlawn related exploration and early stage development assets into a new listed entity, Ardea Resources Limited
- Upon listing of Ardea on the ASX (subject to certain conditions precedent), Heron shareholders will be entitled to receive an approximate 1 for 10 in-specie distribution of Ardea shares at no cost
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.
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 Australian and 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 ability to complete the Ardea spin-off, 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, the ability to complete the Ardea spin-off on the basis of the proposed terms and timing or at all, the ability to complete the Woodlawn Zinc-Copper Project Feasibility Study on time or at all, and whether the feasibility study is positive and otherwise consistent with the business plans of the Company, 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.
[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] An Exploration Target is a term used within the JORC2012 Code for an estimate of the exploration potential of a mineral deposit. As used in this release the stated exploration target is based upon the parameters described in the text, however the potential quantity and grade is conceptual in nature and there is insufficient information to estimate a Mineral Resource and it remains uncertain if further exploration will result in the estimation of a Mineral Resource in this area of recent drilling.