Woodlawn Zinc-Copper Project
The Woodlawn Zinc-Copper Project is based at the former Woodlawn Mine site located 30 km south of Goulburn and 220 km southwest of Sydney. Heron’s Woodlawn Project remains one of the few new zinc projects that is fully funded to production and, with construction now underway, this places the Company on track to participate in the pricing environment that is supported by the strong zinc physical market.
2017 Annual Report
Highlights for FY2017:
- Woodlawn A$240m finance package - fully funded to production
- Commencement of construction activities at Woodlawn, 15 months to first production
- Successful spin-out of Ardea Resources and an in-specie distribution to Heron shareholders
- Awarding of significant project contracts/agreements
- Concentrate Offtake to Louis Dreyfus
- New Veolia Cooperation agreement
- Engineering, Procurement and Construction contract to Sedgman
- Continued exploration success at Woodlawn and regional tenements
Development activities ramped-up at Woodlawn
Following the recent completion of project financing, site construction activities have ramped–up September 2017 to the full scheduled activities. Work is well underway on the site access road, plant and office site, sediment dam and ROM pad.
New Mineral Resource on Shallow G2 Lens and Total Underground Resource Upgrade
- Maiden Mineral Resource estimate for the first mineralisation to be accessed in the Woodlawn underground mine
- G2 contributing 139kt @10.1% ZnEq in Indicated Category Resources, and a further 58kt @13.3% ZnEq in Inferred
- Expected to have a positive impact on early cash flow
- Total underground Mineral Resources for Woodlawn were recalculated as part of this update with separate cut-off grades used for polymetallic and copper domains resulting in a 9.1% increase in total tonnes and a slight lowering of the copper grades within the copper domains
- Total Measured and Indicated Mineral Resource for the underground has increased by 0.5Mt or 12%
- G2 Ore Reserve estimation, selected metallurgical testing and updating of early mine schedule is underway
A$141 Million Equity Funding Package for Development of Woodlawn
The Woodlawn Zinc-Copper Project is fully funded through construction and ramp-up with the support of global mining and private equity cornerstone investors Greenstone, Orion and Castlelake, an institutional placement which was heavily oversubscribed and supported by a number of high quality institutional investors and A$5 million raised from the Share Purchase Plan. Heron is on track for first production targeted in late 2018 / early 2019.
Heron Resources is engaged in the exploration and development of base and precious metal deposits in Australia. Heron’s principal focus is the near term development of its high-grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales.
The Woodlawn Project is a high-grade volcanic-massive-sulphide, zinc-copper project located within a favourable mining jurisdiction. The project is fully funded, fully permitted and exceptionally well supported by existing local and regional infrastructure.
In August 2017, Heron announced the completion of an A$240 million funding package for the construction of the Woodlawn Project, allowing the company to target first production of zinc, copper and lead concentrates in early 2019.
The NI43-101 Feasibility Study for the “Starter Case” for the Woodlawn Project envisages an initial 9.3 year Reserves-based mine life with significant exploration upside in the underground mineralised system and regional prospects, and contemplates campaign treatment processing of 1.0-1.5Mtpa from two separate production sources - underground and tailings.
The Project has an annual steady state production target of approximately 40kt (88Mlbs) zinc in concentrate, 10kt (20Mlbs) copper in concentrate and 12kt (25Mlbs) lead in concentrate, along with associated gold and silver.
With construction under way, Heron is positioned to be a low cost producer of zinc, copper and lead concentrates at a time when forecasters are suggesting that markets will be in a supply deficit for these commodities.