Heron Resources Ltd. (TSX: HER) (ASX: HRR) ("Heron" or the
"Company") announces its quarterly activities for the three months
ended December 31, 2016. Details of the Company's results are
contained in the filing “Heron Resources Limited Quarterly Report
December 2016” which is available on SEDAR at www.sedar.com and the
Company's website www.heronresources.com.au
December Quarter 2016 Highlights
Cash and Cash Equivalents – At December 31,
2016 Heron held A$16.5M in cash (excluding bonds) and A$1.7M in
investments
Woodlawn Zinc-Copper Project
- Front End Engineering Design (FEED): The next
stage of project engineering work was awarded to Sedgman and to
date covered plant layout design, preliminary engineering design,
construction earthworks tender and packages for procurement of
major equipment
- Mine Plan: Following mine plan optimisation
work in the previous quarter work commenced on a detailed Mine
Re-entry Plan
- Project Readiness: Site activities continued
in preparation for construction with specific attention on water
balance, water treatment, mine dewatering, land subdivision for
purchase and advancing an update to the Veolia Cooperation
Deed
- Project Financing: Significant progress was
made with technical and legal due diligence, and term sheet
drafting and whilst interrupted by the year end slowdown ,
negotiations are continuing with senior debt, subordinated debt and
equity providers
Woodlawn Exploration
- G2 Lens: Geological interpretation and
planning for follow-up reserve definition drilling is well advanced
– high potential to add to shallow reserves in early years of the
mine plan
- Currawang Prospect: Geological modelling has
identified additional targets below existing mine development
including drill results of 1m @ 17% ZnEq[1]
(CU054) and 8.6m @ 16% ZnEq (CU056) that remained
unmined and open at depth
Regional Exploration
- Cullarin Project (20km NW of Woodlawn): Now
owned 100% by Heron with broad zones of gold mineralisation in
historic drilling at Wet Lagoon
- Kangiara Project: (90 km NW of Woodlawn):
Strong soil geochemistry anomalism provides potential for a
significant McPhillamys style greenfields gold and base-metal
discovery at the Crosby Prospect
Ardea Resources
- Initial Public Offering: Conditions of
spin-off satisfied and offer closed on 20 January 2017, with A$5.1
million raised
- Listing: Eligible Heron shareholders will be
sent Ardea holding statements in the first week of February, and
Ardea is expected to start trading on the ASX on or before 9
February 2017
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.
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.
[1] ZnEq% used in this release refers to the calculated Zn
equivalent grade based on the Zn, Cu, Pb, Au and Ag grades, the
formula for which is provided in the full report lodged on
SEDAR.
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