Sydney, Australia, Aug. 17, 2017 (GLOBE NEWSWIRE) -- Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the
“Company”) is pleased to provide an update to the drilling program underway at its wholly owned Currawang prospect located
10 kilometres north west from the Company’s Woodlawn Zinc-Copper Project in New South Wales, Australia.
- Heron has completed two diamond drill holes, of a four hole program, for 1,166m at the Currawang Prospect, 10km north
west of Woodlawn
- Hole CWDD0002, targeting below the known main lens, intersected 5.3m of semi-massive and stringer-style zinc and
copper sulphide mineralization from 486m down-hole. This is interpreted to represent a new zone (lens?) of significant
mineralisation directly to the east and below the main lens.
- A full 50% of direct drilling costs are funded by the New South Wales Government’s Cooperative Drilling
Program
Commenting on the drilling progress, Heron’s Managing Director, Mr Wayne Taylor said: ”The sulphide intercept and
interpreted geology is a very exciting development at Currawang as we are seeing direct evidence of a broader mineralised system
than previously contemplated. In addition to the drilling results we anticipate receiving from the next two holes, the
drilling campaign is designed to establish an expansive platform for down-hole electromagnetic modelling (DHEM), providing
geophysical targeting well beyond the strike-length of the known mineralised occurrence. While still at early stages, we are
looking forward to completing the program to establish the next phase of work at what could be the next chapter to Woodlawn’s
growth.“
Currawang Prospect
As described in the release dated 31 July 2017, a program of four holes for 2,150m is underway at Currawang with two holes for
1,166m completed. The program is targeting potential extensions to, as well as possible new lenses, associated with
high-grade volcanic massive sulphide (VMS) mineralisation that was previously mined (approximately 0.5Mt) in the mid-1990’s; this
is the first drilling program at Currawang since 1996.
The first hole (CWDD0001) targeted the along-strike extension to the north of the main Currawang Lens (Figure 1) in an area of
limited historic drilling. This hole intersected a broad interval (38m, from 341m down-hole) of moderate to intense sericite,
silica, pyrite, and chlorite alteration within a strongly foliated, and in-part, brecciated basalt (the Currawang Basalt).
Within this interval is 16m of intense alteration and minor stringers of zinc sulphides with lesser lead and copper
sulphides. These stringers sulphides are analogous to, and represent, the mine horizon; as well, the intensity of the
alteration indicates potential proximity to high-grade mineralisation.
The second drill hole (CWDD0002) targeted the down-plunge extension to the main Currawang Lens (Figure 1) and intersected 5.3m
of 5-10cm stringers and semi-massive zinc sulphide mineralization (Figures 2 and 3) from 485.7m within a broad zone of alteration
hosted by the basalt sequence. Copper sulphides within this zone are probably responsible for the weak, historic DHEM anomaly
measured in this area.
This hanging-wall zone of mineralisation represents a potential new zone, or lens, of mineralisation at Currawang and subject to
receipt of assay results, will warrant follow-up drilling,. The hole (CWDD0002) continued to a depth of 640m and passed
through a broad (50m+) zone of intense chlorite alteration with minor copper-sulphide stringers. Such chlorite zones are
typically associated with the feeder zones which lead into, and feed, the main VMS lenses; these alteration zones therefore provide
encouragement that stronger grades of mineralisation could be nearby.
Both drill holes are currently being sampled and assays are expected within a few weeks. The holes are being cased with
PVC pipe and will be surveyed with DHEM at the completion of the program. The two remaining proposed holes are shown on the long
section in Figure 1.
The program is part of the NSW Government’s Cooperative Drilling Program with 50% of the direct drilling costs being
reimbursable to Heron.
Figure 1: Currawang long section (looking east) showing area of deposit previously mined, and location of the four drill
holes in this campaign.
http://www.heronresources.com/tsximages/20170817/170817_fig1.jpg
Figure 2: Photo of the zinc sulphide (sphalerite stringers) in CWDD0001 from 486m. NQ2 (46.7mm) core within the core
tray with each length approximately 1m long. http://www.heronresources.com/tsximages/20170817/170817_fig2.jpg
Figure 3: Drill core detail showing massive zinc sulphides. The red-brown mineral is sphalerite (zinc sulphide) and
shows a hydrothermal, replacement style of formation with clots of dark green chlorite being original basalt fragments entrained
within the sphalerite. The white mineral is quartz and indicates the vein-style of formation of this zone. http://www.heronresources.com/tsximages/20170817/170817_fig3.jpg
Figure 4: Cross Section (looking north) through the plane of CWDD002 showing the location of the area historically
mined-out, and the location of the new hanging wall stringer-style sphalerite mineralization, and the deeper chlorite alteration
zone
http://www.heronresources.com/tsximages/20170817/170817_fig4.jpg
Further updates on drilling progress at Currawang will be provided as results become available.
About Heron Resources Limited:
Heron’s primary focus is the development of its 100% owned, high grade Woodlawn Zinc-Copper Project located 250km southwest of
Sydney, New South Wales, Australia. In addition, the Company holds a significant high quality, gold and base metal tenement
holding regional to the Woodlawn Project.
Compliance Statement (JORC 2012 and NI43-101)
The technical information in this report relating to the exploration results is based on information compiled by Mr. David
von Perger, who is a Member of the Australian Institute of Mining and Metallurgy (Chartered Professional – 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 approved the scientific and technical disclosure in the news
release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This report 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 report. 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 report 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 report.
Appendix 1
Details for diamond drill holes completed
| Hole No. |
CMG
East (m) |
CMG
North (m) |
CMG
RL (m) |
Surface
Dip |
CMG Surface
Azimuth |
EOH
Depth (m) |
Target |
| CWDD0001 |
5675.0 |
15613.6 |
2816.1 |
-62 |
274.19 |
428.6 |
Testing northern extent of mineralisation, down dip of stopes and also DHEM plates
at around 400m |
| CWDD0002 |
5685.5 |
15533.1 |
2815.4 |
-72 |
266.19 |
639.7 |
Testing down plunge and down dip extent of mineralisation, below old stopes in
central part of the deposit |
Notes: CMG = Currawang Mine Grid
Assay results are currently pending
Zinc equivalent calculation
The zinc equivalent ZnEq calculation takes into account, mining costs, milling costs, recoveries, payability (including
transport and refining charges) and metal prices in generating a Zinc equivalent value for Au, Ag, Cu, Pb and Zn. ZnEq =
Zn%+Cu%*3.12+Pb%*0.81+*Au g/t*0.86+Ag g/t*0.03. Metal prices used in the calculation are: Zn US$2,300/t, Pb US$ 2,050/t, Cu
US$6,600/t, Au US$1,250/oz and Ag US$18/oz. It is Heron’s view that all the metals within this formula are expected to be
recovered and sold.
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 specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole
gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of
sampling.
· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any
measurement tools or systems used.
· Aspects of the determination of mineralisation that are Material to the Public Report.
|
· Samples from the diamond-core holes are being taken from NQ2 sized core and
sampled on a nominal 1 metre basis taking into account smaller sample intervals up to geological contacts. The core is
cut in along the core orientation line (where available). Generally in massive sulphide zones one portion is quartered for
assaying, half the core is preserved for metallurgical testing and the remaining quarter is retained as reference material in
the core trays. In non-massive sulphide material half core is sampled.
· These sampling methods are standard industry methods and are believed to provide acceptably representative samples for
the type of mineralisation encountered. |
| Drilling techniques |
· Drill type (eg core, reverse circulation, open-hole hammer, rotary air
blast, auger, Bangka, sonic, etc) and details. |
· Diamond-core drilling is being undertaken by Sandvik DE710 rigs with mostly
NQ2 sized core being 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 recovery |
· Method of recording and assessing core and chip sample recoveries and
results assessed. |
· The core is transported to an enclosed core logging area and recoveries are
recorded. Recoveries to date have been better than 95%. The core is orientated where possible and marked with 1
metre down hole intervals for logging and sampling. |
| Logging |
· Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical
studies. |
· The diamond core is geologically logged by qualified geologists.
Geotechnical logging is also being undertaken on selected sections of the core. Samples for metallurgical testing are
being kept in a freezer to reduce oxidation prior to being transported to the metallurgical laboratory. |
| Sub-sampling techniques and sample preparation |
· For all sample types, the nature, quality and appropriateness of the
sample preparation technique.
|
· All core samples are crushed then pulverised in a ring pulveriser (LM5) to
a nominal 90% passing 75 micron. An approximately 250g pulp sub-sample is 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 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 total.
· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and
whether acceptable levels of accuracy (ie lack of bias) and precision have been established. |
· Sample preparation and assaying is being conducted through ALS
Laboratories, Orange, NSW with certain final analysis of pulps being undertaken at the ALS Laboratory in Brisbane QLD.
· Gold is determined by 30g fire assay fusion with ICP-AES analysis to 1ppb LLD.
· 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.
· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic)
protocols.
· Discuss any adjustment to assay data. |
· An internal review of results was undertaken by Company personnel. No
independent verification was undertaken at this stage.
· All field and laboratory data has been entered into an industry standard database (DataShed) using a contract database
administrator (DBA) in the Company’s 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. |
| Location of data points |
· Accuracy and quality of surveys used to locate drill holes (collar and
down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. |
· The drill collars were initially located with a combination of handheld GPS
and licenced surveyor using a DGPS system, with accuracy of about 1m. The final drill collars are “picked up” by a
licenced surveyor with accuracy to 1 centimetre.
· While drilling is being undertaken, down hole surveys are conducted using a down hole survey tool that records the
magnetic azimuth and dip of the hole. These recordings are taken approximately every 30 metres down hole. As a
check, certain holes are also being surveyed with gyroscopic methods, with some 10 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.
· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity
appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
· Whether sample compositing has been applied. |
· The diamond drilling is mostly following-up in various directions from
previous intercepts with a nominal spacing in the range 20-40m. This drill hole spacing will be sufficient to provide
Mineral Resource estimates in the future. |
| 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
as close to a perpendicular angle as possible. The mineralised lenses are dipping approximately vertically or steeply to
the east. |
| Sample security |
· The measures taken to ensure sample security. |
· The cut core samples are secured in green plastic bags and 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 sampling techniques and
data. |
· A review and assessment of the laboratory 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
interests, historical sites, wilderness or national park and environmental settings.
· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to
operate in the area. |
· The Currawang project is located 250km south-west of Sydney in the state of
New South Wales. The area is on the Great Australian Dividing range and has an elevation around 800m above
sea-level. The mineral and mining rights to the project are owned 100% by the Company through the granted EL 7257.
· The project area is on private land and an agreement is in place with the owners to access the land. |
| Exploration done by other parties |
· Acknowledgment and appraisal of exploration by other parties. |
· The Currawang deposit is a satellite deposit to Woodlawn and was discovered
by the Jododex JV in the early 1970’s through soil geochemistry programs. It was mined in the early 1990’s with the ore
being trucked to Woodlawn for processing.
· The Woodlawn deposit was discovered by the Jododex 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 conducted studies on a tailings
re-treatment process and further underground operations.
· Heron took 100% ownership of the project (Woodlawn and Currawang) in August 2014 following the merger of the two
companies. |
| Geology |
· Deposit type, geological setting and style of mineralization. |
· The Currawang deposit comprises volcanogenic massive sulphide
mineralisation consisting of replacement style lenses of pyrite, sphalerite, galena and chalcopyrite within a hydrothermal
breccia system. The mineralisation is hosted in the Silurian aged Currawang Basalt rocks of the Goulburn sub-basin on the
eastern side of the Lachlan Fold Belt. |
| Drill hole Information |
o A summary of all information material to the understanding of the
exploration results including a tabulation of the following information for all Material drill holes: |
· A table detailing the drill hole information is given in the body of the
report. |
| Data aggregation methods |
· In reporting Exploration Results, weighting averaging techniques,
maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be
stated.
· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results,
the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in
detail. |
· The reported assays are weighted for their assay interval width. The
majority of the assay interval widths are 1 metre, but this weighting does take into account the non 1 metre intervals and
weights the average assay results accordingly.
· For the results reported here no weighting was included for specific gravity (SG) measurements that have been taken for
all sample intervals as the samples within the intervals are of a similar SG. |
| Relationship between mineralization widths and intercept lengths |
· These relationships are particularly important in the reporting of
Exploration Results.
· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be
reported. |
· The massive sulphide zone intercepted in the drilling to date is at an
angle to the drill axis and therefore the 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) and tabulations of
intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan
view of drill hole collar locations and appropriate sectional views. |
· Where relevant, a diagram showing the hole positions relevant for current
phase of exploration is included in the release. Other maps and diagrams showing the location of the Woodlawn Project are
included in other recent Company releases. |
| Balanced reporting |
· Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading
reporting of Results. |
· The reporting is considered to be balanced and all relevant results have
been disclosed for this current phase of exploration. |
| Other substantive exploration data |
· Other exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples –
size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics;
potential deleterious or contaminating substances. |
· Selected drill holes are being cased with 40 millimetre PVC tubing for
potential down-hole DHEM surveying which is undertaken on the majority of the holes drilled.
· Geotechnical logging, if required, is undertaken nominally 25m either side of the massive sulphide lenses.
· Archimedes method SG measurements are determined for all sampled intervals. |
| Further work |
· The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
|
· The program of drilling at Currawang is continuing. Future work will be
dependent on the results of the current program.
· A program of DHEM will be conducted on the 4 holes when they are completed. |
For further information, please visit www.heronresources.com.au or contact: Australia: Mr Wayne Taylor Managing Director and Chief Executive Officer Tel: +61 2 9119 8111 or +61 8 6500 9200 Email: heron@heronresources.com.au Canada: Tel: +1 647-862-1157 (Toronto)
