Woodlawn Feasibility Study 29/6/2016

Heron announced the Feasibility Study summary results 29 June 2016. The full DFS report has now been lodged and is available for download.

For full DFS click here

Highlights

  • Woodlawn is fully ‘permitted’ and ‘mine ready’.
  • Utilising existing local and regional infrastructure to achieve significant reductions in development costs
  • Close proximity to large service and employment centres (Sydney, Wollongong, Canberra, Goulburn)
  • Strong local community and regulator support
  • Inferred Mineral Resources defined in both the underground and tailings projects demonstrate excellent potential to extend mine life to more than 11.5 years Mineral Resources & Mineral Reserves
  • Underground mine plan focused on the shallower areas of the deposit reflecting the success of the recent Preliminary Economic Assessment (PEA) & FS drilling programs. There is a high level of confidence based on historic data for extensions to this mineralisation both at-depth and along strike
  • Two separate production sources, mining from underground and reclaiming of tailings, provides operational flexibility and reduces risk
  • 20 years of historical operational data removes ‘greenfield’ unknowns

Robust economics

  • C1 costs of US$-0.05/lb zinc and C3 of US$0.34/lb expected to place Woodlawn firmly in the lower half of the cost curve
  • Attractive capital cost metrics based on annual metal Production Targets and Reserves-based mine life
  • Life extension case (PEA equivalent mine plan) shows excellent consistency with previously published PEA
  • Significant leverage to the price outlook for zinc, which comprises approximately 48% of total payable metal value

Expedited development and financing pathway to meet market opportunity

  • The Company has commenced a structured project funding process with the assistance of Azure Capital and is targeting finalisation in the later part of 2016.
  • A number of optimisation opportunities that have the potential to further enhance the project outcomes were identified during the FS program. A number of these options will be pursued in parallel to the funding and includes aspects such as equipment sourcing alternatives and additional shallow mineralised positions
  • Rapid development schedule of 15 months from commencement of construction until completion of wet commissioning
  • First production targeted early 2018 to meet projected favourable zinc market conditions