Heron released IP Survey results and starts production at Woodlawn Zn-Cu Project

  • May 08, 2019 AEST
  • Team Kalkine
Heron released IP Survey results and starts production at Woodlawn Zn-Cu Project

Heron Resources Limited (ASX: HRR), headquartered in Sydney, Australia, is engaged in the exploration and development of base and precious metal deposits such as lead, copper, silver, zinc, gold, and nickel.

On May 8th, 2019, the company announced that it has successfully commenced processing activities, at its wholly-owned flagship asset Woodlawn Zinc-Copper Project, located 250km south-west of Sydney, New South Wales, Australia, marking a major milestone and the start of full production activities. The operations are now expected to progressively ramp-up to an estimated throughput capacity of 1.5Mtpa while the hydraulic mining is underway at full production rate.

Heron Resources’ current market capitalisation is approximately AUD 134.13 million, with ~ 241.67 million outstanding shares. On May 8th, 2019, at 03:34 PM AEST, the HRR stock price was trending at AUD 0.620, shooting up 11.712% by AUD 0.065.

Also, CL V Investment Solutions LLC and its associated entities have increased their shareholding in the company to 25.31% from 22.31%.

The results of an Induced Polarisation (IP) survey for the project was published on May 7th, 2019. The program involved a modern IP geological survey within Heron’s granted mining lease and covers an area of 4.0 km x 2.4 km directly north of the Woodlawn Mine.

The IP geophysical surveys that were conducted in the early 1970’s although successful in identifying the original Woodlawn deposit could only penetrate to depths of approximately 150m, whereas the modern high-powered surveys can penetrate considerably deeper to approximately 700m.

The recent IP survey was completed in an area located directly north of Woodlawn and encompasses the Woodlawn volcanogenic massive sulphide (VMS) host rocks, with an aim to discover anomalies at depth that could be related to potential new Woodlawn style deposits. Survey lines were spaced at 400m with some infill in the south to 200m. The survey recorded chargeability, conductivity and magneto telluric data, that was collected on 2D lines and then modelled in 3D.

The two main IP anomalies at the Murphy’s and Bucklands North prospects have been selected for immediate drill follow-up. The IP results indicate the mineralisation may continue and potentially get stronger at the depth. A proposed 780 m deep drill hole is being planned to provide an initial test of this anomaly.

According to the recently released quarterly report for the three months to March 31st, 2019, the company continued its focus on construction of the plant and commenced commissioning at its Woodlawn Zinc-Copper Project. The overall Engineering, Procurement and Construction (EPC) was 99% accomplished while the process plant commissioning was 77% complete.

The underground works undertaken during the period include 1.3 km of underground development, raise-boring of the primary ventilation shaft completed from the surface and the first ore from underground delivered to ROM. Besides, Hydraulic mining was in a transition phase to production mode.

As of March 31st, 2019, the cash and cash equivalents amounted to around AUD 66.5 million and AUD 2 million in investments. The operating activities generated net cash inflows of ~ AUD 423K, while the company spent ~AUD 12.44 million in investing activities, such as payments to acquire plant and equipment, mine under the construction, as well as exploration ventures.

Going forward, Heron Resources intends to spend around AUD24.9 million in its planned pursuits, in the next quarter.


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