Woodlawn 2016 Feasibility Study

Heron announced the positive Feasibility Study summary results on 29 June 2016. Heron is pleased to provide investors and interested parties with the full 487 page Feasibility Study report which contains an extraordinary level of detail on the company’s plans for the Woodlawn Project.

The feasibility study underpins the planning for the ongoing construction and development of the Project. However, the study is a snapshot of the project at a point in time (mid-2016), and the project continues to develop as further detailed engineering is undertaken, as construction progresses, and as additional exploration and definition drilling and associated testwork is undertaken.

Read the full Feasibility Study 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 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