January 30, 2018 – Sydney, Australia – Heron
Resources Ltd. (TSX: HER; ASX: HRR) ("Heron" or the "Company")
announces its quarterly activities for the three months ended
December 31, 2017. Details of the Company's results are contained
in the filing “Heron Resources Limited Quarterly Report December
2017” which is available on SEDAR at www.sedar.com and the
Company's website www.heronresources.com.au
December Quarter 2017
Highlights
Woodlawn Zinc-Copper
Project
- Earthworks – significant works completed over
the process plant area, ROM pad, site access road and
administration areas. Works commenced on Tailings Storage
Facility 4, box-cut and haul road construction
- EPC – engineering design is 50% completed and
procurement 30%. Civil works are scheduled to start in the current
quarter
- Project Schedule – the project critical path
schedule remains on track and on budget
- Underground Mining Contract – discussion are
well advanced with award expected in the current quarter
- Port Contract – discussions are well advance
and award is expected in the current quarter
- Operational Readiness – recruitment continues
with a focus on the operational superintendents with a number of
appointments expected in the current quarter
Woodlawn Exploration
- Mineral Resource Increase:
- Shallow G2 Mineral Resource was calculated with majority
categorised as higher-confidence Indicated Mineral Resource for
incorporation into the mining schedule
- Global underground Mineral Resource revised with a 12% increase
in total Measured & Indicated tonnes
- Woodlawn Regional Exploration:
- Currawang - Down-hole electromagnetic (DHEM) surveys identified
a number of significant off-hole conductors
- Peelwood - base-metal camp was acquired through tenement
applications, which includes the area covering the previously
reported JORC 2004 Mineral Resources and Ore Reserves
- Kangiara - RAB drilling program (41 holes for 639 m) completed
with assays pending
Corporate
- Board of Directors – Dr Ian Pattison was
appointed to the Heron Board as a Non-Executive Director
- Cash – A$109M unrestricted cash as at 31
December 2018
- A$1.9M received for Heron’s Ardea Resources
Loyalty options
- A$1.8M received as Heron’s 2017 R&D
concession
- Debt – US$60M senior secured facility and
US$16M silver prepayment facility remain undrawn
- Consolidation – the Company consolidated its
listed and unlisted securities on a 1 for 10 basis
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.
Zinc equivalent calculation –
Woodlawn The zinc equivalent ZnEq calculation takes into
account, mining costs, milling costs, recoveries, payability
(including transport and refining charges) and metal prices in
generating a Zinc equivalent value for Au, Ag, Cu, Pb and Zn.
ZnEq = Zn%+Cu%*3.12+Pb%*0.81+*Au g/t*0.86+Ag g/t*0.03. Metal
prices used in the calculation are: Zn US$2,300/t, Pb US$ 2,050/t,
Cu US$6,600/t, Au US$1,250/oz and Ag US$18/oz. These metal prices
are based on Heron’s long-term view on average metal prices.
It is Heron’s view that all the metals within this formula are
expected to be recovered and sold. Metallurgical metal
recoveries used for the formula are: 88% Zn, 70% Pb, 70% Cu, 33% Au
and 82% Ag; these are based on historical recoveries at Woodlawn
and supported by metallurgical testwork undertaken during the
2015-16 feasibility study. Commodity prices and metallurgical
recoveries are factored into the zinc equivalent calculation using
a standard metal equivalent formula.
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.
FOR FURTHER INFORMATION, 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)
cmuir@heronresources.com.au
www.heronresources.com.au