Heron re­leases NI 43-101 Wood­lawn re­source es­ti­mate

Stockwatch Daily - - MINES & METALS - Mr. Wayne Tay­lor re­ports

HERON RE­SOURCES Ltd. is pro­vid­ing an up­grade to the min­eral re­source es­ti­mate for the shal­low G2 lens and a re­vi­sion of the to­tal un­der­ground min­eral re­sources at its wholly owned Wood­lawn zinc-cop­per project in Aus­tralia. The re­source up­grade fol­lows on from the re­cently com­pleted drilling pro­gram that fo­cused on ex­pand­ing the shal­low G2 po­si­tion.

• New min­eral re­source es­ti­mate pro­vided for the first min­er­al­iza­tion (G2 lens) to be ac­cessed in the Wood­lawn un­der­ground mine — ex­pected to have a pos­i­tive im­pact on early cash flow;

• G2 min­eral re­source now has three de­fined do­mains: G 2 Main( G 2), G 2 Hang­ing­wall (GH) and G2 Cop­per zone (GC);

•Com­bined min­eral re­source for G 2 now es­ti­mated at:

• 139,000 tonnes at 10.1 per cent zinc equiv­a­lent (4.5 per cent zinc, 0.8 per cent cop­per, 2.3 per cent lead, 0.4 gram per tonne gold and 33 g/t silver) — in­di­cated cat­e­gory;

• 58,000 t at 13.3 per cent ZnEq (4.0 per cent Zn, 1.0 per cent Cu, 2.2 per cent Pb, 1.2 g/t Au and 117 g/t Ag) — in­ferred cat­e­gory;

• To­tal un­der­ground min­eral re­sources for Wood­lawn were re­cal­cu­lated as part of this up­date;

• Im­por­tantly, the to­tal mea­sured and in­di­cated min­eral re­source for the un­der­ground has in­creased by 500,000 tonnes or 12 per cent which has the po­ten­tial to add to the to­tal re­serve base;

• G2 ore re­serve es­ti­ma­tion, se­lected met­al­lur­gi­cal test­ing and up­dat­ing of early mine sched­ule are un­der way.

Man­ag­ing di­rec­tor and chief ex­ec­u­tive of­fi­cer Wayne Tay­lor said: “This sig­nif­i­cant up­grade to the G2 lens and to­tal un­der­ground min­eral re­sources is an en­cour­ag­ing de­vel­op­ment for the early stages of the mine de­vel­op­ment and we are look­ing for­ward to in­cor­po­rat­ing this ma­te­rial into the mine plan. It is ex­pected to have a pos­i­tive im­pact on the early cash flows of the project as the G2 area did not con­trib­ute to the fea­si­bil­ity study pro­jec­tions and will be the first source of un­der­ground pro­duc­tion. These re­sults along with the re­main­ing ex­ten­sional po­si­tions con­tinue to demon­strate the dis­cov­ery po­ten­tial and eco­nomic up­side at Wood­lawn.”

G2 lens min­eral re­source es­ti­mate

The G2 lens is lo­cated to the south of the Kate lens, and is ad­ja­cent to the planned route of the de­cline, 100 to 200 m be­low the sur­face. A pro­gram of 22 di­a­mond core holes was re­cently com­pleted to fur­ther de­fine the re­source. Three key min­er­al­ized hori­zons have been iden­ti­fied: G2 Main

(G2), G2 Hang­ing­wall (GH) and the newly de­fined G2 Cop­per zone (GC).

The G2 lens min­eral re­source es­ti­mate has been es­ti­mated in ac­cor­dance with Na­tional In­stru­ment 43-101. Two dis­tinct types of min­er­al­iza­tion have been mod­elled: 1) poly­metal­lic min­er­al­iza­tion; and 2) cop­per dom­i­nated min­er­al­iza­tion.

(See HER Ta­ble 1 on page 10)

To­tal Wood­lawn un­der­ground min­eral re­source

The to­tal Wood­lawn un­der­ground min­eral re­source was re­cal­cu­lated as part of the up­date process, now us­ing a cut-off grade for the cop­per do­main min­er­al­iza­tion of 1 per cent Cu, which has led to a 9.1-per-cent in­crease in the to­tal tonnes of the min­eral re­source with a slight re­duc­tion in the cop­per grades within the cop­per do­mains.

A re­view of the ore re­serves and po­ten­tial to­tal min­ing in­ven­tory has com­menced and is to be re­leased in the com­ing weeks.

(See HER Ta­ble 2 on page 11)

Ore re­serve es­ti­ma­tion, se­lected met­al­lur­gi­cal test­ing and the up­dat­ing of the early mine sched­ule have com­menced on the new G2 re­source and will be re­ported on sep­a­rately.

We seek Safe Har­bor. Karen Bax­ter con­densed this news re­lease (karenb@stock­watch.com).

Ri­cardo De Ar­mas, Stephen Bruce Den­nis, Bor­den Roger III Put­nam, Craig Les­lie Read­head, Fiona Ann Robertson, Peter Rozenauers, Mark Ray­mond Sawyer

(HER) Shares: 2,416,661,640

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