Drill Tracker Weekly: Heron Intersects High Grades at Woodlawn VMS Project
Highlights from current drilling include 5.4 meters grading 15.1 percent zinc, 1.5 percent copper, 6 percent lead, 1 g/t gold and 70 g/t silver starting at a depth of 351 meters.
Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.
Heron Resources (TSX:HER)
Market cap: $33 million
Working capital: $23 million
Ownership: 60 percent
Resources: 1.6 MT @ 10.7% Zn, 1.5% Cu, 4.0% Pb, 0.46 g/t Au and 78 g/t Ag
Project status: Definition drilling
- Heron Resources announced additional results from the definition drilling program on the Company’s 100% owned Woodlawn Volcanogenic massive sulphide (VMS) project in New South Wales, Australia. The past producing open pit is currently used as a waste disposal site
- Highlights from the current drilling include 5.4 metres grading 15.1% Zn, 1.5% Cu, 6.0% Pb, 1.0 g/t Au, 70 g/t Ag starting at a depth of 351 metres. The 19,000 metre drill program is designed to update the current indicated and inferred resource to measured and indicated resources to be included in a feasibility study expected to be completed in H2 2016.
- The April 2015 PEA outlines a low cost project with an initial capital cost of AUS $ 140 million (US$100 million) and C1 cash costs of $0.00 per pound Zn after by-product credits. The project is estimated to generate an after tax NPV (8.3% real) of AUS $291 million and an IRR of 46% over an 11 year mine life.
- The polymetallic portion of the underground resource totals 1.6 million tonnes of indicated material at a grade of 10.7% Zn, 1.5% Cu, 4.0% Pb, 0.46 g/t Au and 78 g/t Ag with an additional inferred resource of 3.0 million tonnes at 8.1% Zn, 1.6% Cu, 3.2% Pb, 0.88 g/t Au and 70 g/t Ag.
Development history: Jododex discovered Woodlawn in 1970 and operated the open pit from 1978 to 1986. Mine was operated as an underground operation from 1986 to 1998. Historical production totals 13.8 million tonnes @ 9.1% Zn, 3.6% Pb, 1.6% Cu, 0.5 g/t Au, 74 g/t Ag.
Current drilling: 5.4 metres @ 15.1% Zn, 1.5% Cu, 6.0% Pb, 1.0 g/t Au, 70 g/t Ag
Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results.
Relevant Disclosures Applicable to: Drill Tracker Weekly
- The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following companies in this report. Fission Uranium (TSXV.FCU)
I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.