Heron Resources Quarterly Report June 2019
Woodlawn Zinc-Copper Project Development Progress
- EPC Contractor nearing completion of commissioning (98% at end June)
- Ore processing commenced on 6 May on reclaimed tailing – 91.4kt processed with average grades of 2.39% zinc, 0.44% copper and 1.22% lead
- First concentrate load-out from site occurred on 4 July
- The process plant ramp-up continues with a steady increase in metallurgical recovery, concentrate tonnage and quality
- Crushing and ball mill circuit for underground feed to be commissioned in Q3 2019
- 2.3km of underground development completed on schedule increasing mining flexibility
- First stoping ore planned for Q3 2019
- Paste plant commissioning underway
- Hydraulic mining production performing well
- A total of 137kt tailings reclaimed during the quarter
- Drilling (2,112m in 4 holes) Induced Polarisation (IP) anomalies north of Woodlawn intersected zones of strong mineralisation-associated alteration in two of the holes
- New exploration licence (ELA 5811) applied for covering the Mayfield mining area located 20km southeast of Woodlawn Mine where historical drilling returned a number of shallow high-grade base metal and gold intercepts
- Cash: Heron held A$39.4 million in cash (including bonds of A$7.88 million) and A$1.3 million in investments as at 30 June 2019. The Company continues to closely manage its cash position noting that the late delivery of the processing facility has resulted in the Company incurring additional holding costs over an approximate 7 month period. The Company is updating the production ramp-up based on recent performance and forward expenditure projections to determine the extent to which additional funding may be required.
- Sedgman Claim: The status of the disputed Sedgman claim has not changed in the last quarter. There are no material changes or updates; discussions between the two parties are ongoing.