Microsoft Word - 20150919 Kate Drilling Update-final
Heron Resources Limited
ASX/TSX Release
21 September 2015
Level 1, 37 Ord Street, West Perth WA 6005 [email protected] +61 8 6500 9200
ABN: 30 068 263 098
Kate Lens Definition Drilling Continues to Impress:
26.6m of Massive Sulphides Intersected
Intercepts from recent drilling into the Kate Lens:
o 21.8m of Copper Sulphides from 377.8m and 4.8m of Polymetallic
Sulphides from 406.6m, WNDD0071 (assays pending)
o 9.0m of Polymetallic and Copper sulphides from 369.8m, WNDD0073 (assays pending)
Recent Assays received from Kate Lens drilling:
ASX:HRR/TSX:HER Issued Shares 415M Share Price $0.099
Market Cap $41.1M Cash (31 Aug 2015) $28.2M Investments $ 2.8M Total C+I $31.0M
o 5.4m @ 27.7% ZnEq1 from 351m (15.1% Zn, 1.5% Cu, 6.0% Pb, 1.0g/t Au, 70g/t Ag), WNDD0039
Recent Assays received from G2 and H Lens drilling:
o 5.7m @ 12.3% ZnEq from 76m (5.9% Zn, 0.2% Cu, 3.9% Pb, 0.4g/t Au, 73g/t Ag), WNDD0042 (G2)
o 2.6m @ 7.4% ZnEq from 95m (3.6% Zn, 0.1% Cu, 2.4% Pb, 0.2g/t Au, 50g/t Ag), WNDD0045 (G2)
o 1.1m @ 52% ZnEq from 117m (24% Zn, 4.3% Cu, 12.9% Pb, 1.5g/t Au, 97g/t Ag), WNDD0044 (H)
Heron Resources Limited (ASX:HRR TSX:HER, "Heron" or the "Company") is pleased to provide a summary of recent results of the Phase II resource definition drilling at its wholly owned Woodlawn Project, located 250km south-west of Sydney, New South Wales, Australia.
Phase II Drilling
The Phase II drilling program (comprising approximately 19,000m of Diamond drilling) at Woodlawn is now 68% completed, with 13,000 metres having been drilled, reflecting on-time and on-budget progress.
The objective of the Phase II drilling is to delineate sufficient Measured and Indicated Resources which can then be converted into an initial underground Mineral Reserve within the Feasibility Study, allowing the Project to support commercial bank debt and proceed to mine construction. In undertaking this program, the Company has focused on minimising time and costs through targeting relatively shallow depth positions in the numerous lenses with the in-fill drilling required to upgrade a portion of the underground Mineral Resource to an Indicated Resources classification. In addition, shallow mineralised positions that have the potential to provide ready-access production in the early part of the planned underground operations are also being tested.
New assays and massive sulphide intercepts from Kate Lens (refer Figure 1 for locations):
5.4m @ 27.7% ZnEq from 351m (15.1% Zn, 1.5% Cu, 6.0% Pb, 1.0g/t Au, 70g/t Ag), WNDD0039
21.8m of Copper Sulphides from 377.8m & 4.8m of Polymetallic Sulphides from 406.6m, WNDD0071
9.0m of Polymetallic and Copper sulphides from 369.8m, WNDD0073
These results are encouraging and confirm the extent and tenor of the Kate Lens polymetallic mineralisation. In addition, the thick (21.8m) zone of copper mineralisation in WNDD0073 (approx. true width; assays pending) visually suggests it contains economic grades of copper which will contribute to the separate zone of copper mineralisation now being defined
1 Zn equivalents (ZnEq) in this release are based on the formula: Zn(%) + 0.81 x Pb(%) + 3.12 x Cu(%) + 0.86 x Au(g/t) + 0.03 x Ag(g/t). All these metals are expected to be recoverable. Refer to the announcement of 22 April 2015 entitled "Preliminary Economic Assessment Delivers Strong Business Case for the Woodlawn Zinc-Copper Project" for further information.
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within the lower and south end of the Kate Lens. Importantly, this copper mineralisation was not part of the of PEA Mineral
Resource estimate and is likely to add to the overall economic viability of the Kate Lens.
G2 Lens - recent assays
5.7m @ 12.3% ZnEq from 76m (5.9% Zn, 0.2% Cu, 3.9% Pb, 0.4g/t Au, 73g/t Ag), WNDD0042
2.6m @ 7.4% ZnEq from 95m (3.6% Zn, 0.1% Cu, 2.4% Pb, 0.2g/t Au, 50g/t Ag), WNDD0045
The G2 Lens is a newly recognised southern extension to the main G Lens and was identified through downhole electromagnetic (DHEM) surveys. G2 represents a new style of "stringer" sphalerite (Zn) and galena (Pb) mineralisation which has the potential to be of economic interest. The shallow position and proximity of G2 to the proposed box cut, positioned on the western side of the open pit, has made this an area of focus in recent weeks. Similar mineralisation has been observed in subsequent drill holes in this area with assays pending.
H Lens - recent assays
1.1m @ 52.0% ZnEq from 117m (24% Zn, 4.3% Cu, 12.9% Pb, 1.5g/t Au, 97g/t Ag), WNDD0044
5.3m @ 10.0% ZnEq from 103m (1.4% Zn, 1.6% Cu, 0.9% Pb, 1.3g/t Au, 63g/t Ag), WNDD0050
These recent results are in line with our expectations of H Lens being thin, but often high-grade at shallow depths, and positioned close to the early stage mine development. Additional drilling is planned for this area in the coming weeks.
Forward program
The recent focus of the drilling has been the conversion of the Kate Lens resource to an Indicated Resource category, and it is anticipated that the PEA estimate of Kate Lens will be considerably improved by incorporating the thicker zones of mineralisation found in the current drill program. The mineralisation is open in a number of directions, both along strike and down plunge, and further upside exists. Additional drilling is also planned on a number of the shallow lenses (E, G, G2 and H) in an attempt to bring these to an Indicated Resource category.
The Woodlawn system continues to demonstrate its potential with recent DHEM survey results providing extensional targets to known lenses and highlighting new targets which require further assessment and possibly drill testing.
A program of deeper drill testing of the Kate Deeps DHEM plates is also being considered.
About Heron Resources Limited:
Heron is engaged in the exploration and 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.
For further information, please visit www.heronresources.com.au or contact: Australia:
Mr Wayne Taylor, Mr Jon Snowball
Managing Director and Chief Executive Officer: FTI Consulting
Tel: +61 8 6500 9200 Tel: +61 2 8298 6100 or +61 477 946 068
Email: [email protected] Email: [email protected]
Canada:
Tel: +1 905 727 8688 (Toronto)
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/
/
/
W149 /
/
/
Kate/E 1./ns extei)SÌon are ilp dip
ooterite
Woodtawn Volcanlcs
1111 Stoped areas
Current resouroe outil nes:
D Katelens
WND00018
./·
.
WNDD0046: 22.2m of ODO
_,. ........-··/
600002
•
000039
l 5/28
( WNDD0009
U355
U358
W1•46
D Elens
D Dlens
/ Fault
• No signific:ant assay
Pre 1999 resouroe drinholes
Px polymetallic
(Zn/Pb rieh) sulphides
Phase 2 drlllìng
WNDD0021onwards
ZnEq x Metres Contours:
Px and eu sulphides 6/21/
from 401m
/
9/30 o
WNDD0073
• >300
• 200 to 300
100 to 200
100
34121-34 m @ 21% ZnEq
ym-oD003-'
•
WNDD0053:3.9m of
WNDDOOOJ WN000032
WNDD0008
--
poo.olon
eurrent
Exlstlng
semi-massive
eu stringers
5/18 W0•59
"lim"ited·
sunooy coniiOI
Kate
Resource
Outline
underground
aeeess
W1•25
WNOD0071:21.8m of eu
Sulphides from 377.8m
& 4.8m of Px Sulphides from 406.6m
50m
Please Note: downhoe widlhs used. true widths OKate lens
are approximately
anaverage 90% or
downhole widlhs
DpenPII
Figure7: Kate Lens Long-Section /ooking east withrecent interceptsshown. Down-ho/e intercept thickness and ZnEq grade contoured toshow relative accumu/ation of meta/s across the /ens. Current resource outline is shown far reference.
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Technical Information
Table 1: Drill hole details for Diamond drill holes completed as part of the Phase II drill campaign.
Hole No.
|
WMG East (m)
|
WMG North (m)
|
WMG RL (m)
|
Surface
Dip
|
WMG Surface
Azimuth
|
Depth (m)
|
Target
|
WNDD0020W1
|
9,407
|
18,951
|
2,823
|
-53
|
77
|
444.7
|
South EM target
|
WNDD0021
|
9,013
|
19,599
|
2,787
|
-85
|
130
|
319.1
|
Lisa Lens down dip
|
WNDD0022
|
9,013
|
19,599
|
2,787
|
-78
|
100
|
276.0
|
Lisa Lens north
|
WNDD0023
|
9,237
|
19,227
|
2,798
|
-65
|
60
|
240.0
|
E Lens extension
|
WNDD0024
|
9,285
|
19,327
|
2,799
|
-60
|
90
|
82.5
|
G Lens extensions
|
WNDD0025
|
9,299
|
19,261
|
2,801
|
-60
|
89
|
218.4
|
E Lens extensions
|
WNDD0026
|
9,145
|
19,407
|
2,792
|
-56
|
85
|
150.0
|
H Lens up-dip
|
WNDD0027
|
9,204
|
19,364
|
2,795
|
-81
|
85
|
44.9
|
H Lens up-dip
|
WNDD0028
|
9,225
|
19,197
|
2,796
|
-58
|
83
|
265.5
|
G Lens extension
|
WNDD0029
|
9,052
|
19,298
|
2,791
|
-55
|
62
|
373.7
|
Kate Lens up-dip
|
WNDD0030
|
8,882
|
19,379
|
2,793
|
-80
|
62
|
699.6
|
Kate Lens down plunge
|
WNDD0031
|
8,990
|
19,399
|
2,792
|
-70
|
71
|
442.6
|
Kate Lens extension north
|
WNDD0032
|
9,023
|
19,338
|
2,790
|
-70
|
78
|
447.5
|
Kate Lens down dip
|
WNDD0033
|
9,053
|
19,297
|
2790
|
-58
|
53
|
260.5
|
Kate Lens up dip
|
WNDD0034
|
8,990
|
19,399
|
2792
|
-74
|
62
|
167.1
|
Kate Lens north
|
WNDD0035
|
9,053
|
19,297
|
2790
|
-69
|
71
|
447.0
|
Kate Lens down-dip
|
WNDD0036
|
9,012
|
19,598
|
2787
|
-80
|
118
|
290.0
|
Lisa Lens
|
WNDD0037
|
9,024
|
19,332
|
2790
|
-62
|
58
|
420.0
|
Kate Lens up dip
|
WNDD0038
|
9,053
|
19,296
|
2790
|
-64
|
76
|
460.0
|
Kate Lens South
|
WNDD0039
|
9,051
|
19,297
|
2,791
|
-56
|
68
|
381.3
|
Kate Lens South Infill
|
WNDD0040
|
9,161
|
19,457
|
2,789
|
-55
|
90
|
120.8
|
H Lens north extension
|
WNDD0041
|
9,203
|
19,379
|
2,795
|
-76
|
50
|
130.0
|
H Lens up dip
|
WNDD0042
|
9,254
|
19,201
|
2,799
|
-62
|
65
|
119.9
|
G2 Lens
|
WNDD0043
|
9,159
|
19,248
|
2,795
|
-60
|
35
|
196.1
|
G Lens middle
|
WNDD0044
|
9,134
|
19,409
|
2,791
|
-65
|
96
|
140.1
|
H Lens down dip
|
WNDD0045
|
9,235
|
19,232
|
2,798
|
-73
|
92
|
78.5
|
G2 Lens
|
WNDD0046
|
8926
|
19396
|
2793
|
-59
|
78
|
451.1
|
Kate Lens north
|
WNDD0047
|
9182
|
19412
|
2793
|
-59
|
90
|
116
|
H Lens north
|
WNDD0048
|
9145
|
19410
|
2793
|
-70
|
78
|
135.6
|
H Lens
|
WNDD0049
|
9146
|
19410
|
2793
|
-55
|
92
|
145.2
|
H Lens middle
|
WNDD0050
|
9146
|
19410
|
2793
|
-61
|
99
|
130.4
|
H Lens middle
|
WNDD0051
|
9144
|
19410
|
2793
|
-67
|
117
|
140.1
|
H Lens middle
|
WNDD0052
|
9145
|
19410
|
2792
|
-56
|
110
|
135.4
|
H Lens upper south
|
WNDD0053
|
8879
|
19380
|
2793
|
-58
|
71
|
501
|
Kate Lens north
|
WNDD0054
|
9240
|
19140
|
2800
|
-65
|
80
|
207.9
|
Southern portal target
|
WNDD0055
|
9246
|
19278
|
2798
|
-69
|
60
|
120
|
G Lens
|
WNDD0056
|
9248
|
19279
|
2798
|
-60
|
65
|
110.2
|
G Lens
|
WNDD0057
|
9293
|
19308
|
2800
|
-60
|
65
|
87.5
|
G Lens
|
WNDD0058
|
9292
|
19308
|
2800
|
-80
|
48
|
87.8
|
G Lens
|
WNDD0059
|
9299
|
19260
|
2801
|
-58
|
54
|
165.7
|
E Lens
|
WNDD0060
|
8976
|
19589
|
2792
|
-61
|
125
|
463.4
|
H Lens and Kate Lens
|
WNDD0061
|
9299
|
19261
|
2800
|
-63
|
79
|
201.9
|
E Lens
|
WNDD0062
|
9333
|
19242
|
2804
|
-65
|
50
|
171.7
|
E Lens
|
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WNDD0063
|
9025
|
19333
|
2790
|
-74
|
80
|
211.4
|
Kate Lens down dip
|
WNDD0064
|
9262
|
19320
|
2798
|
-69
|
80
|
90.8
|
G Lens
|
WNDD0065
|
9262
|
19320
|
2798
|
-55
|
65
|
81.4
|
G Lens
|
WNDD0066
|
9255
|
19202
|
2799
|
-72
|
42
|
115
|
G2 Lens
|
WNDD0067
|
9255
|
19202
|
2799
|
-55
|
51
|
103.3
|
G2 Lens
|
WNDD0068
|
9255
|
19202
|
2799
|
-66
|
105
|
123
|
G2 Lens
|
WNDD0069
|
9266
|
19196
|
2799
|
-50
|
64
|
95
|
G2 Lens
|
WNDD0070
|
9255
|
19202
|
2799
|
-52
|
102
|
99.2
|
G2 Lens
|
WNDD0071
|
9025
|
19333
|
2790
|
-70
|
64
|
436.4
|
K Lens lower infill
|
WNDD0073
|
9050
|
19297
|
2790
|
-62
|
66
|
420.6
|
K Lens upper infill
|
Notes: WMG = Woodlawn Mine Grid
Table 2: Details of massive sulphide intercepts and reported grades from the Phase II drill campaign
Hole No
|
From (m)
|
To (m)
|
Downhole
Width (m)
|
Estimated
True Width (m)
|
Zn (%)
|
Cu (%)
|
Pb (%
|
Au (g/t)
|
Ag (g/t)
|
WNDD0023*
|
166.8
|
170.0
|
3.2
|
2.6
|
0.1
|
1.7
|
0.0
|
0.1
|
5.9
|
WNDD0024*
|
30.0
|
33.0
|
3.0
|
2.4
|
8.5
|
3.5
|
5.2
|
6.3
|
160.6
|
WNDD0025*
|
151.3
|
153.8
|
2.5
|
2.0
|
1.9
|
1.2
|
0.2
|
3.4
|
16.5
|
WNDD0026*
|
108.7
|
110.4
|
1.7
|
1.0
|
3.5
|
6.8
|
4.9
|
3.9
|
213
|
WNDD0027*
|
103.8
|
104.6
|
0.75
|
0.6
|
5.6
|
8.1
|
6.8
|
3.6
|
398
|
WNDD0029*
|
324.3
|
329.1
|
4.8
|
4.0
|
7.6
|
0.4
|
0.9
|
0.7
|
37.4
|
WNDD0029*
|
340.0
|
347.15
|
7.1
|
6.0
|
16.9
|
0.9
|
11.3
|
3.5
|
254.1
|
WNDD0031*
|
383.2
|
403.7
|
20.5
|
16.4
|
8.1
|
2.4
|
2.9
|
0.8
|
68
|
WNDD0032*
|
405.2
|
417.3
|
12.1
|
9.7
|
4.7
|
2.2
|
0.8
|
0.8
|
22.2
|
WNDD0033*
|
316.7
|
319.3
|
2.6
|
2.1
|
1.2
|
0.7
|
1.4
|
0.8
|
76.5
|
WNDD0033*
|
326.0
|
346.7
|
20.7
|
16.6
|
14.1
|
1.0
|
4.7
|
1.4
|
120.4
|
WNDD0033*
|
351.1
|
360.0
|
8.9
|
7.1
|
5.8
|
1.9
|
2.6
|
2.7
|
90.1
|
WNDD0035*
|
389.7
|
413
|
23.3
|
18.64
|
0.3
|
1.9
|
0
|
0.5
|
6.3
|
WNDD0037*
|
347.5
|
383
|
35.5
|
28.4
|
5.1
|
0.8
|
1.3
|
0.9
|
61.7
|
WNDD0038*
|
376.3
|
396.05
|
19.8
|
15.84
|
0.7
|
2.6
|
0.2
|
0.7
|
8
|
WNDD0039
|
351.35
|
356.77
|
5.4
|
4.32
|
15.1
|
1.5
|
6.0
|
1.0
|
70.3
|
WNDD0042
|
77.55
|
83.25
|
5.7
|
4.56
|
5.9
|
0.2
|
3.9
|
0.4
|
73.3
|
WNDD0044
|
116.78
|
117.85
|
1.1
|
0.88
|
24
|
4.3
|
12.9
|
1.5
|
97.2
|
WNDD0045
|
94.65
|
97.23
|
2.6
|
2.08
|
3.6
|
0.1
|
2.4
|
0.2
|
49.6
|
WNDD0045
|
108
|
114.45
|
6.4
|
5.12
|
2.2
|
0.1
|
1.7
|
0.3
|
20.5
|
WNDD0050
|
103.1
|
108.45
|
5.3
|
4.24
|
1.4
|
1.6
|
0.9
|
1.3
|
62.7
|
WNDD0052
|
101.9
|
106.8
|
4.9
|
3.92
|
1.9
|
0.2
|
1.0
|
0.3
|
20.4
|
Notes: True width is an estimate of the actual thickness of the intercept based on interpreted lens orientation (approximately 80% to
90% of downhole width, with 80% used in this table as a general guide); grades are weighted average grades, weighted by length of samples intervals downhole, which are nominally 1 metre. No weighting was applied for differences in specific gravity which is most
cases are relatively low. * = Previously reported results.
Compliance Statement (JORC 2012 and NI43-101)
The technical information in this news release relating to the exploration results at the Woodlawn Project is based on information compiled by Mr David von Perger, who is a Member of the Australian Institute of Mining and Metallurgy (Chartered Professional -
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Geology). Mr von Perger is a full time employee of Heron Resources Limited and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results and "qualified person" as this term is defined in Canadian National Instrument 43-101 ("NI 43-101"). Mr von Perger has reviewed this press release and consents to the inclusion in this news release of the information in the form and context in which it appears.
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, 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.
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Heron Resources Limited
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Appendix 1 - JORC 2012 Table 1
Section 1 Sampling Techniques and Data
(Criteria in this section applies to all succeeding sections)
Criteria JORC Code explanation Commentary
Sampling techniques
|
|
Nature and quality of sampling (eg cut channels, random chips, or specific
|
|
Samples from the Diamond-core holes are being taken from mostly HQ3 and NQ3 sized core and
|
specialised industry standard measurement
|
sampled on a nominal 1 metre basis taking into
|
tools appropriate to the minerals under
|
account smaller sample intervals up to geological
|
investigation, such as down hole gamma
|
contacts. The core is cut in half along the core
|
sondes, or handheld XRF instruments, etc).
|
orientation line (where available) and in massive
|
These examples should not be taken as
|
sulphide zones one portion is quartered for assaying,
|
limiting the broad meaning of sampling.
|
half the core is preserved for metallurgical testing and
|
|
Include reference to measures taken to
|
the remaining quarter is retained as reference
|
ensure sample representivity and the
|
material in the core trays. In non-massive sulphide
|
appropriate calibration of any measurement
|
material half core is sampled.
|
tools or systems used.
|
|
These sampling methods are standard industry
|
|
Aspects of the determination of mineralisation
|
methods and are believed to provide acceptably
|
that are Material to the Public Report.
|
representative samples for the type of mineralisation
encountered.
|
Drilling
|
|
Drill type (eg core, reverse circulation, open-
|
|
Diamond-core drilling is being undertaken by Sandvik
|
techniques
|
hole hammer, rotary air blast, auger, Bangka,
|
UDR650 rigs with mostly HQ3 sized core being
|
sonic, etc) and details.
|
drilled. Various techniques are employed to ensure
|
the hole is kept within limits of the planned position.
|
The core is laid out in standard plastic cores trays.
|
Drill sample
|
|
Method of recording and assessing core and
|
|
The core is transported to an enclosed core logging
|
recovery
|
chip sample recoveries and results assessed.
|
area and recoveries are recorded. Recoveries to
|
date have been better than 95%. The core is
|
orientated where possible and marked with 1 metre
|
downhole intervals for logging and sampling.
|
Logging
|
|
Whether core and chip samples have been
|
|
The Diamond core is geologically logged by qualified
|
geologically and geotechnically logged to a
|
geologists. Geotechnical logging is also being
|
level of detail to support appropriate Mineral
|
undertaken on selected sections of the core.
|
Resource estimation, mining studies and
|
Samples for metallurgical testing are being kept in a
|
metallurgical studies.
|
freezer to reduce oxidation prior to being transported
|
to the metallurgical laboratory.
|
Sub-sampling
|
|
For all sample types, the nature, quality and
|
|
All core samples are crushed then pulverised in a
|
techniques and
|
appropriateness of the sample preparation
|
ring pulveriser (LM5) to a nominal 90% passing 75
|
sample
|
technique.
|
micron. An approximately 250g pulp sub-sample is
|
preparation
|
taken from the large sample and residual material
|
stored.
|
|
A quartz flush (approximately 0.5 kilogram of white,
|
medium-grained sand) is put through the LM5
|
pulveriser prior to each new batch of samples. A
|
number of quartz flushes are also put through the
|
pulveriser after each massive sulphide sample to
|
ensure the bowl is clean prior to the next sample
|
being processed. A selection of this pulverised
|
quartz flush material is then analysed and reported
|
by the lab to gauge the potential level of
|
contamination that may be carried through from one
|
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Criteria JORC Code explanation Commentary
sample to the next.
|
Quality of assay data and laboratory tests
|
|
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or
|
|
Sample preparation and assaying is being conducted through ALS Laboratories, Orange, NSW with certain final analysis of pulps being undertaken at the ALS
|
total.
|
Laboratory in Brisbane QLD.
|
|
Nature of quality control procedures adopted
|
|
Gold is determined by 30g fire assay fusion with ICP-
|
(eg standards, blanks, duplicates, external
|
AES analysis to 1ppb LLD.
|
laboratory checks) and whether acceptable
levels of accuracy (ie lack of bias) and precision have been established.
|
|
Other elements by mixed acid digestion followed by
ICP-AES analysis.
Laboratory quality control standards (blanks,
|
standards and duplicates) are inserted at a rate of 5
|
per 35 samples for ICP work.
|
Verification of sampling and assaying
|
|
The verification of significant intersections by either independent or alternative company personnel.
|
|
An internal review of results was undertaken by company personnel. No independent verification was undertaken at this stage.
|
|
Documentation of primary data, data entry
|
|
All field and laboratory data has been entered into an
|
procedures, data verification, data storage
|
industry standard database using a contract
|
(physical and electronic) protocols.
|
database administrator (DBA) in the Company's
|
|
Discuss any adjustment to assay data.
|
Perth office. Validation of both the field and
laboratory data is undertaken prior to final
|
acceptance and reporting of the data.
|
|
Quality control samples from both the Company and
|
the Laboratory are assessed by the DBA and
|
reported to the Company geologists for verification.
|
All assay data must pass this data verification and
|
quality control process before being reported.
|
|
Some potential cross contamination between a small
|
number of the samples at the pulverising stage in the
|
laboratory was identified in the assay results for
|
WNDD0033, but is at a level that is not expected to
|
affect the overall result. Additional sampling and
|
assaying is being undertaken to check the results of
|
these specific samples.
|
Location of data points
|
|
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys),
|
|
The drill collars were initially located with a combination of handheld GPS and licenced surveyor
|
trenches, mine workings and other locations
|
using a DGPS system, with accuracy of about 1m.
|
used in Mineral Resource estimation.
|
The final drill collars are "picked up" by a licenced
|
surveyor with accuracy to 1 centimetre.
|
|
While drilling is being undertaken, downhole surveys
|
are conducted using a downhole survey tool that
|
records the magnetic azimuth and dip of the hole.
|
These recordings are taken approximately every 30
|
metres downhole. Where possible holes are also
|
being surveyed with gyroscopic methods, with some
|
80 percent of holes drilled in the current program also
|
surveyed by this method after drilling has been
|
completed.
|
Data spacing and distribution
|
|
Data spacing for reporting of Exploration
Results.
|
|
The Diamond drilling is mostly following-up in various directions from previous intercepts with a nominal
|
|
Whether the data spacing and distribution is sufficient to establish the degree of geological
|
spacing in the range 30-40m. This drill hole spacing
will be sufficient to provide Mineral Resource
|
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Criteria JORC Code explanation Commentary
and grade continuity appropriate for the
Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
|
estimates in the future.
|
|
Whether sample compositing has been
|
applied.
|
Orientation of data in relation
to geological structure
|
|
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
|
|
The drilling orientation is designed to intersect the mineralised lenses at a close to perpendicular angle. The mineralised lenses are dipping at approximately
50-70 degrees to the west and the drilling is
|
approximately at 60 degrees to the east. This will
|
vary from hole to hole.
|
Sample security
|
|
The measures taken to ensure sample
|
|
Samples are being secured in green plastic bags and
|
security.
|
are being transported to the ALS laboratory in
|
Orange, NSW via a courier service or with Company
|
personnel/contractors.
|
Audits or reviews
|
|
The results of any audits or reviews of
|
|
A review and assessment of the laboratory
|
sampling techniques and data.
|
procedures was under taken by company personnel
|
in late 2014 resulting in some changes to their
|
sample pulverising procedure.
|
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status
|
|
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title
|
|
The Woodlawn project is located 200km south-west of Sydney in the state of New South Wales. The area is near the top of the Great Australian Dividing range and has an elevation around 800m above sea-level. The
|
interests, historical sites, wilderness or national
|
mineral and mining rights to the project are owned
|
park and environmental settings.
|
100% by the Company through the granted, special
|
|
The security of the tenure held at the time of
|
mining lease 20 (SML20). The lease has been
|
reporting along with any known impediments to
|
renewed to the 16 November 2029.
|
obtaining a licence to operate in the area.
|
|
The project area is on private land owned by Veolia
|
who operate a waste disposal facility that utilises the
|
historical open-pit void. An agreement is in place with
|
Veolia for the Company to purchase certain sections of
|
this private land to facilitate future mining and
|
processing activities. A cooperation agreement is also
|
in place between Veolia and the Company that covers
|
drilling and other exploration activities in the area.
|
Exploration
|
|
Acknowledgment and appraisal of exploration
|
|
The Woodlawn deposit was discovered by the Jododex
|
done by other
parties
|
by other parties.
|
JV in 1970 and open-pit mining began in 1978 and continued through to 1987. The project was bought
|
outright by Rio Tinto Ltd (CRA) in 1984 who completed
|
the open-pit mining. Underground operations
|
commenced in 1986 and the project was sold to
|
Denehurst Ltd in 1987 who continued underground
|
mining up until 1998. The mineral rights to the project
|
were then acquired by TriAusMin Ltd in 1999 who
|
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Criteria JORC Code explanation Commentary
conducted studies on a tailings re-treatment process and further underground operations. Heron took 100% ownership of the project in August 2014 following the merger of the two companies. Some 980 surface and underground drill holes have been completed on the project to date and various studies undertaken.
|
Geology
|
|
Deposit type, geological setting and style of
|
|
The Woodlawn deposit comprises volcanogenic
|
mineralization.
|
massive sulphide mineralisation consisting of
|
stratabound lenses of pyrite, sphalerite, galena and
|
chalcopyrite. The mineralisation is hosted in the
|
Silurian aged Woodlawn Felsic Volcanic package of the
|
Goulburn sub-basin on the eastern side of the Lachlan
|
Fold Belt.
|
Drill hole
|
o A summary of all information material to the
|
|
A table detailing the drill hole information is given in the
|
Information
|
understanding of the exploration results
|
body of the report.
|
including a tabulation of the following
|
information for all Material drill holes:
|
Data
|
|
In reporting Exploration Results, weighting
|
|
The reported assays are weighted for their assay
|
aggregation
|
averaging techniques, maximum and/or
|
interval width. The majority of the assay interval widths
|
methods
|
minimum grade truncations (eg cutting of high
|
are 1 metre, but this weighting does take into account
|
grades) and cut-off grades are usually Material
|
the non 1 metre intervals and weights the average
|
and should be stated.
|
assay results accordingly.
|
|
Where aggregate intercepts incorporate short
|
|
For the results reported here no weighting was
|
lengths of high grade results and longer lengths
|
included for specific gravity (SG) measurements that
|
of low grade results, the procedure used for
|
have been taken for all sample intervals as the
|
such aggregation should be stated and some
|
samples within the intervals are of a similar SG.
|
typical examples of such aggregations should
|
be shown in detail.
|
Relationship
|
|
These relationships are particularly important in
|
|
The massive sulphide zone intercepted in the drilling to
|
between
|
the reporting of Exploration Results.
|
date is at an angle to the drill axis and therefore the
|
mineralization
widths and intercept
lengths
|
|
If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
|
true width is estimated to be some 0.8 of down-hole
width. That is, a down-hole intercept of 16m equates to a true width of 12m. This is only an approximation at this stage and will be better estimated as the
|
orientation of the Lenses is better defined.
|
Diagrams
|
|
Appropriate maps and sections (with scales)
|
|
A long-section showing the hole positions relevant for
|
and tabulations of intercepts should be included
|
current phase of exploration is included in the release.
|
for any significant discovery being reported
|
Other maps and diagrams showing the location of the
|
These should include, but not be limited to a
|
Woodlawn Project are included in other recent
|
plan view of drill hole collar locations and
|
Company releases.
|
appropriate sectional views.
|
Balanced
|
|
Where comprehensive reporting of all
|
|
The reporting is considered to be balanced and all
|
reporting
|
Exploration Results is not practicable,
|
relevant results have been disclosed for this current
|
representative reporting of both low and high
|
phase of exploration.
|
grades and/or widths should be practiced to
|
avoid misleading reporting of Results.
|
Other
|
|
Other exploration data, if meaningful and
|
|
The drill holes are being cased with either 40 or 50
|
substantive
|
material, should be reported including (but not
|
millimetre PVC tubing for down-hole DHEM surveying
|
exploration
|
limited to): geological observations;
|
which is undertaken on the majority of the holes drilled.
|
data
|
geophysical survey results; geochemical survey
|
|
Geotechnical logging is undertaken on all core, 25m
|
results; bulk samples - size and method of
|
either side of the massive sulphide lenses.
|
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Criteria JORC Code explanation Commentary
treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
Archimedes method SG measurements are determined for all sampled intervals.
The second phase of drilling at Woodlawn commenced in May 2015 and will be ongoing until around the end of
2015. The program is designed to provide the critical
drill data for the Mineral Resource definition that will feed into the Feasibility Study now underway.
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