Sydney, Australia, Oct. 04, 2017 (GLOBE NEWSWIRE) -- Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the “Company”) is pleased to provide an update on the successful start to site construction activities at the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, Australia.
Highlights
- Ertech fully mobilised and progressing plant site earthworks – mobile plant fleet of 23 units
- Preliminary construction activities under way with EPC Contractor, Sedgman, setup on site
- Equipment orders – A$25 million in orders placed out of a project total of A$30 million
- Project on track for commissioning late 2018
- Zinc market outlook remains positive for producers with forecasts extending the supply shortage
Following the recent completion of project financing, site construction activities have ramped–up to the full scheduled activities with Ertech having mobilised 45 personnel and a fleet of 4 scrapers, 2 bull dozers, 5 excavators, 9 dump trucks and a variety of other support machines after the establishment of temporary construction offices and facilities. Work is well underway on the site access road, plant and office site, sediment dam and ROM pad. Top soil has been stripped and stockpiled with foundation levelling and compaction progressing on track.
The next few weeks will see earthworks for the underground box cut commence along with the haul road, tailings storage facility and the relocation of a section of the existing high voltage electrical network.
The project EPC Contractor, Sedgman, have undertaken their initial mobilisation with 3 personnel on site overseeing the earthworks and preparation for the start of concrete works in Q1 2018. Engineering design work has advanced and is over 20% complete. Equipment procurement is well underway with the placement of A$25.1 million of orders out of a total for the project of A$30.3 million. This includes long lead items (Heron announcement 14th August 2017): M10000 IsaMill, Outotec flotation cells and thickeners, and also additional equipment including ball mill and samplers (Outotec), regrind mills (Metso), high voltage electrical (PHE), flocculant plant (SNF), filters (Tecnicas Hydraulicas), lime silo (Batchcrete), concentrate building and workshop (Container Domes), conveyor drives (SEW) and slurry, sump and froth pumps (Weir).
Other current site works includes:
- Upgrades to piping and electrics to the bore field that will result in the third bore being recommissioned in the next few weeks. This will complete the full external water supply infrastructure for the project.
- Staged mine dewatering continues with the water being pumped to the existing evaporation dams.
Zinc Market
The reduction in global zinc metal stocks along with a critical shortage of concentrates is well publicised with the progressive tightening of the physical metal market providing the basis for increased zinc metal prices with recent levels hitting 10 year highs.
In support of the market dynamics, the world’s largest net zinc miner, Teck Resources, recently released their observations about the global zinc market with a number of significant conclusions including:
- Mine production growth for zinc is insufficient to meet the consumption demand (projection to 2020);
- Spot treatment charges for zinc concentrates continue to be at historical lows;
- A projection of at least 4.3Mtpa of additional zinc production is required to satisfy demand to 2025 and the most likely, but still uncommitted projects, are insufficient to meet this;
- The speculated price induced reaction of increased Chinese mine zinc production has not occurred with production down 6% year to date;
- Zinc metal inventories approaching historical lows; and
- Zinc used in Giga Steel, zinc thermal spray, continuous galvanised rebar and zinc micro-nutrient fertiliser are providing an expanded consumption base.
Heron’s Woodlawn Project remains one of the few new zinc projects that is fully funded to production and, with construction now underway, this places the Company on track to participate in the pricing environment that is supported by the strong zinc physical market.
Figure 1: Heron’s COO, Mr Andrew Lawry, and Chairman, Mr Stephen Dennis, discuss earthworks progress at the plant site.
http://www.heronresources.com/tsximages/20171...4_fig1.jpg
Figure 2: Pad levelling over the plant site. http://www.heronresources.com/tsximages/20171...4_fig2.jpg
Figure 3: ROM pad top soil removal. http://www.heronresources.com/tsximages/20171...4_fig3.jpg
About Heron Resources Limited
Heron is engaged in the development of base and precious metal deposits in Australia. Heron’s primary development project is the high-grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, Australia.
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.
For further information regarding Heron please visit www.heronresources.com.au or contact: Heron Resources Mr Wayne Taylor Managing Director and CEO Heron Resources Ltd Tel: +61 2 9119 8111 Email: heron@heronresources.com.au Heron (Canada) Tel: +1 647-862-1157(Toronto)
