Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to report that the Company has
applied for additional tenements in the Peelwood area that cover
previously defined high grade zinc-copper deposits, 105 km north of
the Company’s Woodlawn Zinc-Copper Project in New South Wales,
Australia.
- Heron has applied for two exploration licences over the
Peelwood District zinc-copper deposits, 105km north of Woodlawn,
NSW
- Volcanongenic Massive Sulphide (VMS) deposits with similar
characteristics to Woodlawn have been defined by previous
explorers
- Peelwood contains previously reported JORC (2004) Mineral
Resources at the John Fardy and Peelwood deposits and Heron is
currently compiling the drill data to verify this estimate
- There is excellent potential to define high-grade zones with
reported drill results including:
Table 1
http://www.heronresources.com/tsximages/20171115/151117_table1.jpg
- This is an exciting addition to the Heron project portfolio and
represents the most advanced satellite development opportunity for
Woodlawn’s regional growth
- These additional tenements remain highly prospective for
further discoveries along strike of the known deposits
Commenting on the Peelwood Project, Heron’s Managing Director,
Mr Wayne Taylor said: “The pegging of these tenements at Peelwood
is a fantastic and valuable addition to Woodlawn’s regional growth
plans. We have acquired ground that contains high-grade
mineralisation with previous operators having worked through the
definition of resources and reserves, undertaken a standalone
feasibility study, and progressed development approvals. This
provides Heron with an advanced development opportunity that would
have taken at-least $5-10M of direct expenditure and two years of
exploration work to replicate. Within the existing John Fardy and
Peelwood deposits there appears to be excellent potential to extend
and define high-grade zones that could be trucked to Woodlawn for
processing, with further upside from depth extensions. These
tenements also have an abundance of high grade sulphide occurrences
to potentially expand the currently defined deposits.”
Peelwood Project1
The Peelwood Project is located 165km west of
Sydney, and 105 kilometres north from the Company’s Woodlawn
Zinc-Copper Project in New South Wales, Australia. (Figure
1). It lies within undulating, mostly forested country 800m
above sea level, and 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 three 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 includes a number of massive sulphide lenses located at,
or adjacent to, the sheared contact between the Cuddyong Formation
and the Kangaloolah Volcanics.
John Fardy Deposit
The John Fardy VMS deposit, located 1km
northwest of the Peelwood mine, was discovered in the early
1950s. It is hosted by a steeply west-dipping sequence of
shales (Cuddyong Formation) at the contact with rhyodacitic crystal
tuffs of the Kangaloolah Volcanics.
The mineralisation at John Fardy comprises
disseminated and massive sulphides up to 20m thick within two
lenses separated by a 0.5-5m zone of altered shale and a pyritic
and cherty exhalate which also occurs above and below the
mineralised horizon. The massive sulphides are commonly
banded and consist of fine to coarse grained pyrite and sphalerite
with minor galena, chalcopyrite and traces arsenopyrite and
tetrahedrite. A JORC (2004) Mineral Resource for the John
Fardy deposit was released on the ASX by Sultan Corporation Ltd on
the 12 November 2008. However, Heron has not, as yet, been
able to source and verify the open-file or other data for this
estimate and so cannot state resource numbers at this stage.
At John Fardy there appears to be excellent
potential to delineate a high-grade resource and some of the
better, higher grade results include2:
Table 2:
http://www.heronresources.com/tsximages/20171115/151117_table2.jpg
A drilling cross-section with assay results for
the John Fardy deposit is shown in Figure 3.
Peelwood Deposit
The Peelwood deposit was discovered in 1868 and
mined between 1874 to 1895 and has produced in excess of 600t Cu
and 4,000t Zn with significant Pb, Ag and Au, principally from the
Cornish and Magazine lenses. Some of the mined lenses were
reportedly very high grade: 25 % Zn, 2.7% Cu, 14% Pb, 232g/t Ag3
some remnant material is still believed to exist in the historical
underground positions. Comprehensive exploration of the area
began in the 1950’s with the majority of drilling taking place in
the mid to late 1970s. As with the John Fardy deposit, a JORC
(2004) Mineral Resource for the Peelwood deposit was released on
the ASX by Sultan Corporation Ltd on the 12 November 2008.
However, Heron has not, as yet, been able to source and verify the
open-file or other data for this estimate and so cannot state the
resource numbers at this stage.
The Peelwood deposit is located adjacent to the
contact between a tuffaceous unit of the Kangaloolah Volcanics and
a shale unit of the overlying Cuddyong Formation, the sequence
being overturned and dipping steeply to the west. Sulphide
mineralogy at Peelwood is similar to John Fardy but tends to be
fine grained and finely laminated. The Magazine lens is
conformable and closely associated with a black shale unit, whereas
the Cornish lens is discordant, hosted within volcanic tuff and
dips 45°E. A number of other discrete mineralised zones are
also present (e.g., Paddy’s Lens) and the Company will define a
detailed exploration plan to test these prospects.
Cordillera Deposit
The Cordillera VMS deposit is located 3km NNW of
the main Peelwood mine and hosts four sulphide lenses within a
siliceous shale unit enclosed within a coarse-grained fragmental
unit of the Kangaloolah Volcanics. The lenses are described
as overlapping, discontinuous, up to 5m thick and overlain by a 3m
thick yellow-green shale, interpreted to be conformable to bedding
and cross-cut by later quartz-scheelite (tungsten) veins. The
sulphide lenses occur approximately 20m below the steeply dipping
contact with tuffaceous shales of the Cuddyong Formation.
Sparse drilling has been undertaken at Cordillera; further
work is warranted to better understand the economic potential of
the deposit.
Other Prospects
A number of other significant base-metal
prospects exist on the Heron tenure in the Peelwood area
including:
- Single Tree Hill – historic copper/silver mine 5km SSE of
Peelwood where drilling has intersected weak mineralisation down
dip from the mine. An historic off-hole EM conductor suggests
the possible presence of a massive sulphide lens occurs at depth
and warrants further drill testing.
- Black Springs Prospect – 8km south of Peelwood where historic
drilling has intersected potentially economic grade mineralisation
including: 4m @ 9.7% Zn, 3.6% Pb and 31g/t Ag.
- Central Hill and Aurora Prospects – poorly described base-metal
prospects such as Central Hill and Aurora occur along the line of
the Peelwood lode to the NW of Peelwood. Little exploration
has been undertaken on these areas and reconnaissance drilling and
DHEM is warranted to assess their potential.
Future Work
The Company is progressing the tenement
applications through the grant process which is expected to be
completed in approximately 8 weeks. The drilling database is
being compiled and validated. The potential for high-grade
zones within the existing Mineral Resources will be assessed as
they hold the potential to deliver an extra source of shallow,
high-grade ore to the Woodlawn processing plant. If
accessible, the existing feasibility study, including environmental
and community liaison will be reviewed and, if warranted, used as a
starting point for Heron’s own further project assessment
studies.
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. In addition,
the Company holds a significant high quality, gold and base metal
tenements regional to the Woodlawn Project.
1 The geological description for the Peelwood deposits are
adapted from the publication: Downes, P.M., 2017.
2 Results have been taken: Sultan Corp Ltd, ASX release, 5 June
2007: High Grade Zinc Intersections at John Fardy, Sultan Corp Ltd,
ASX release, 6 February 2008: Near surface, high grade intersected
at John Fardy and Sultan Corp Ltd, ASX release, 19 February 2008:
Another significant zinc and copper intersection.
3 Taken from report: GS1983/395 Australian Pacific
Resources Ltd, 1984.
References used in the text plus other
relevant ASX releases related to the Company’s Peelwood
Acquisition:
Downes P.M., 2012, Metallic Mineral Systems: In
Thomas O & Pogson D.J. (compilers), Goulburn 1:250,000
Geological Sheet SI/55-12, 2rd edition, Explanatory Notes prepared
by Geological Survey of New South Wales, Maitland, pp
148–225.
GS1983/395 Australian Pacific Resources Ltd, 1984 Peelwood Six
Monthly Report, Prospecting Licences PL331 and PL619, Peelwood
NSW. Geological Survey of NSW, DIGS reporting system.
Sultan Corp Ltd, ASX Release, 21 May 2007: Acquisition of
Peelwood Zinc/Copper Project.
Sultan Corp Ltd, ASX release, 5 June 2007: High
Grade Zinc Intersections at John Fardy.
Sultan Corp Ltd, ASX Release, 27 August 2007:
Presentation.Sultan Corp Ltd, ASX Release, 12 September 2007: JORC
Code Compliant Resource at John Fardy Zinc Deposit.Sultan Corp Ltd,
ASX Release, 4 December 2007: Commencement of Drilling at John
Fardy Zinc / Copper Deposit.
Sultan Corp Ltd, ASX release, 6 February 2008:
Near surface, high grade intersected at John Fardy
Sultan Corp Ltd, ASX release, 19 February 2008: Another
significant zinc and copper intersectionSultan Corp Ltd, ASX
Release, 18 March 2008: Further high grade zinc and copper
intersections.Sultan Corp Ltd, ASX Release, 5 June 2008: Investor
Presentation.Sultan Corp Ltd, ASX Release, 11 June 2008: High Grade
Copper Discovered at Peelwood.Sultan Corp Ltd, ASX Release, 17 July
2008: Completion of Drilling Program at Peelwood.Sultan Corp Ltd,
ASX Release, 3 September 2008: High Grade Near Surface Resource at
Peelwood. Sultan Corp Ltd, ASX Release, 12 November 2008:
Feasibility Study - Market update.Sultan Corp Ltd, ASX Release, 20
August 2009: Sultan Proceeding with Mine Development.Sultan Corp
Ltd, ASX Release, 18 December 2013, Farm-In Deal Signed for
Peelwood Project with CEB Resources.Sultan Corp Ltd, ASX Release, 3
January 2014, Amended Announcement - 18/12/2013.
Figure 1: Peelwood Project Location
Diagram
http://www.heronresources.com/tsximages/20171115/151117_fig1.jpg
Figure 2: Geological map of the Peelwood
area showing key deposits and other prospects
http://www.heronresources.com/tsximages/20171115/151117_fig2.jpg
Figure 3: Cross section through a
portion of the John Fardy deposit (adapted from Sultan Resources
ASX release 27th August 2007)
http://www.heronresources.com/tsximages/20171115/151117_fig3.jpg
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.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING INFORMATION
This report 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 report. 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 report 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 report.
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. A granted Exploration Licence (EL) covers the area to
the south of the main line of mineralisation. The ELAs and the EL
are held 100% by Ochre.
- Heron is progressing the grant of the ELAs as quickly as
possible and it is expected to take a minimum of 45 days.
|
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).
|
- Heron will progress the ELAs through to grant as quickly as
possible.
- Compilation of historical data is underway 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.
|
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
Canada:
Tel: +1 647-862-1157 (Toronto)