Sydney, Australia, July 29, 2016 (GLOBE NEWSWIRE) --
July 29, 2016 – Sydney, Australia – Heron Resources Ltd. (TSX: HER; ASX: HRR) ("Heron" or the "Company") announces its quarterly activities for the three months ended June 30, 2016. Details of the Company's results are contained in the filing “Heron Resources Limited Quarterly Report June 2016” which is available on SEDAR at www.sedar.com and the Company's website www.heronresources.com.au
June Quarter 2016 Highlights
- Cash and Cash Equivalents – At June 30, 2016 Heron held A$22.8M 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:
Feasibility Study : on 29 June 2016 the Company announced the results of the Woodlawn Feasibility Study (FS). The complete NI 43-101 Technical Report in support of the FS study was published on Heron’s website and lodged on SEDAR www.sedar.com (TSX: HER ) on 26 July 2016. The key outcomes of this study include:
Attractive project characteristics
- Initial 9.3 year mine life based upon the combined underground and tailings Mineral Reserves (“Starter Case”)
- Campaign processing rate of up to 1.0Mtpa from underground mining, and up to 1.5Mtpa from reclaiming tailings, processed through a standard single-sulphide flotation facility
- Steady-state (2020-2023) annual Production Target of 40kt Zn, 10kt Cu, 12kt Pb, 900koz Ag and 4koz Au contained within zinc, copper, and lead concentrates
- Project is totally contained upon granted Special Mining Lease SML20 – Woodlawn is fully ‘permitted’ and ‘mine ready’
- Utilising existing local and regional infrastructure to achieve significant reductions in development costs
- Close proximity to large service and employment centres (Sydney, Wollongong, Canberra, Goulburn)
- Strong local community and regulator support
- Inferred Mineral Resources defined in both the underground and tailings projects demonstrate excellent potential to extend mine life to more than 11.5 years
Mineral Resources & Mineral Reserves
- Underground mine plan focused on the shallower areas of the deposit reflecting the success of the recent Preliminary Economic Assessment (PEA) & FS drilling programs. There is a high level of confidence based on historic data for extensions to this mineralisation both at-depth and along strike
- Two separate production sources, mining from underground and reclaiming of tailings, provides operational flexibility and reduces risk
- 20 years of historical operational data removes ‘greenfield’ unknowns
Robust economics
- C1 costs of US$-0.05/lb zinc and C3 of US$0.34/lb expected to place Woodlawn firmly in the lower half of the cost curve
- Attractive capital cost metrics based on annual metal Production Targets and Reserves-based mine life
- Life extension case (PEA equivalent mine plan) shows excellent consistency with previously published PEA
- Significant leverage to the price outlook for zinc, which comprises approximately 48% of total payable metal value
Expedited development and financing pathway to meet market opportunity
- The Company has commenced a structured project funding process with the assistance of Azure Capital and is targeting finalisation in the later part of 2016
- A number of optimisation opportunities that have the potential to further enhance the project outcomes were identified during the FS program. A number of these options will be pursued in parallel to the funding and include aspects such as equipment sourcing alternatives and additional shallow mineralised positions
- Rapid development schedule of 15 months from commencement of construction until completion of wet commissioning
- First production targeted early 2018 to meet projected favourable zinc market conditions
Phase III Exploration Drill Program Commenced
- A step-out drill program commenced in early July, with the first hole (WNDD0105) intersecting 1.2m of polymetallic massive sulphides in a 4.5m zone of sulphidic mineralisation from 538m depth – assays are pending. Down hole electro-magentics (DHEM) is planned to delineate potential conductors prior to further drilling. This intercept confirms the extension of the B Lens horizon in this northerly direction, and lends support to the potential for further discovery.
- A number of holes are also planned to test for, and in-fill, shallow mineralised positions which could add to the Mineral Reserves for the early years of the production schedule
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 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
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
