Heron Resources Quarterly Report December 2018
Woodlawn Zinc-Copper Project Development Progress
- Commissioning commenced as-planned during the quarter
- Overall EPC completion at 95% and commissioning at 24% as at the end of December
- Piping and electrical items remain outstanding, construction works otherwise complete
- On-track for production to commence in the second half of the March 2019 quarter.
- 376 metres of underground development completed
- Contract awarded for primary ventilation shaft from surface
- Competent fresh rock ground conditions encountered
- Hydraulic mining equipment installed and operational
- Ramp-up to full production rate continues
- Majority of operational roles appointed
- Stores, spares and consumables on order and arriving on site
- Training underway in preparation for operations
- Operational mobile plant mobilised to site
- Four Reverse Circulation holes for 981m were completed at the Montrose prospect, 6km west of Woodlawn, targeting a number of shallow electromagnetic anomalies. A broad zone of disseminated pyrrhotite with chalcopyrite was intersected at the south end of the prospect potentially representing a sulphide halo surrounding a massive sulphide lens at depth. Assays are pending.
- Cash: Heron held A$78.6 million in cash (including bonds of A$7.77 million) and A$2.9 million in investments as at 31 December 2018.
- Debt: During the December quarter, the Company successfully completed the drawdown of the third and final US$20M debt tranche from Orion Mine Finance (“OMF”). The Debt facility provided by OMF of US$60M is now fully drawn.