Sydney, Australia, Jan. 30, 2017 (GLOBE NEWSWIRE) -- Heron Resources Ltd. (TSX: HER) (ASX: HRR) ("Heron" or the "Company") announces its quarterly activities for the three months ended December 31, 2016. Details of the Company's results are contained in the filing “Heron Resources Limited Quarterly Report December 2016” which is available on SEDAR at www.sedar.com and the Company's website www.heronresources.com.au
December Quarter 2016 Highlights
Cash and Cash Equivalents – At December 31, 2016 Heron held A$16.5M in cash (excluding bonds) and A$1.7M in investments
Woodlawn Zinc-Copper Project
- Front End Engineering Design (FEED): The next stage of project engineering work was awarded to Sedgman and to date covered plant layout design, preliminary engineering design, construction earthworks tender and packages for procurement of major equipment
- Mine Plan: Following mine plan optimisation work in the previous quarter work commenced on a detailed Mine Re-entry Plan
- Project Readiness: Site activities continued in preparation for construction with specific attention on water balance, water treatment, mine dewatering, land subdivision for purchase and advancing an update to the Veolia Cooperation Deed
- Project Financing: Significant progress was made with technical and legal due diligence, and term sheet drafting and whilst interrupted by the year end slowdown , negotiations are continuing with senior debt, subordinated debt and equity providers
Woodlawn Exploration
- G2 Lens: Geological interpretation and planning for follow-up reserve definition drilling is well advanced – high potential to add to shallow reserves in early years of the mine plan
- Currawang Prospect: Geological modelling has identified additional targets below existing mine development including drill results of 1m @ 17% ZnEq[1] (CU054) and 8.6m @ 16% ZnEq (CU056) that remained unmined and open at depth
Regional Exploration
- Cullarin Project (20km NW of Woodlawn): Now owned 100% by Heron with broad zones of gold mineralisation in historic drilling at Wet Lagoon
- Kangiara Project: (90 km NW of Woodlawn): Strong soil geochemistry anomalism provides potential for a significant McPhillamys style greenfields gold and base-metal discovery at the Crosby Prospect
Ardea Resources
- Initial Public Offering: Conditions of spin-off satisfied and offer closed on 20 January 2017, with A$5.1 million raised
- Listing: Eligible Heron shareholders will be sent Ardea holding statements in the first week of February, and Ardea is expected to start trading on the ASX on or before 9 February 2017
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’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 has a significant high quality, gold and base metal tenement holding in New South Wales and 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, the ability to implement the Woodlawn Zinc-Copper Project Feasibility Study on time or at all, 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 in the full report lodged on SEDAR.