Excellent Drilling Results Continue at Woodlawn - Kate Lens Extension: 20.5m @ 20.7% ZnEq
ACCESS Newswire
- Kate Lens Extension - Wide high grade result: - 20.5m @ 8.1% Zn, 2.4% Cu, 2.9% Pb, 0.8g/t Au, 68g/t Ag (20.7% ZnEq ) from 383m, WNDD0031
- Kate Lens Extension/Infill: - 12.0m @ 4.7% Zn, 2.2% Cu, 0.8% Pb, 0.8g/t Au, 22g/t Ag (13.7% ZnEq) from 405m, WNDD0032
- Kate Lens Extension - Further massive sulphide hits: - 9.9m of copper sulphides in 2 zones from 390m, WNDD0035 - 20.5m of polymetallic sulphides in 4 zones from 347m, WNDD0037 - 19.4m of mostly copper/pyrite sulphides from 379m, WNDD0038
WEST PERTH, AUSTRALIA / ACCESSWIRE / July 19, 2015 / Heron Resources Limited ("Heron" or the "Company") is pleased to report further excellent results from the second phase of diamond drilling at its wholly owned Woodlawn Project, located 50km northeast of Canberra and 250km southwest of Sydney, in New South Wales, Australia. This drilling forms a key input into the fully funded Feasibility Study, which is expected to be completed in the first half of calendar year 2016.
Phase II Drilling Progress Report The Phase II drilling program at Woodlawn commenced in May and to date 16 holes having been completed for approximately 5,950m. The initial part of the Phase II program has been designed to test the shallow mineralised positions that have the potential to provide easily accessible production in the early part of the future underground operation, as well as to perform the in-fill drilling required to upgrade the underground Mineral Resource.
As previously reported, a number of zones of polymetallic sulphides have been intersected in extensional areas of the Kate Lens and other lens positions. Assay results have now been received for some of these intercepts with a number of high grade results returned. Details of drill hole coordinates; direction and intercepts are provided at the end of this report.
Kate Lens Northern Extension: - 20.5m @ 8.1% Zn, 2.4% Cu, 2.9% Pb, 0.8g/t Au, 68g/t Ag (20.7% ZnEq) from 383m, WNDD0031
This intercept is located some 41m north and down-plunge from the 14.4m wide ore grade intercept in WNDD0001 and some 56m below the 5.8m wide ore grade intercept in WNDD0011 (see Figure 1). It therefore provides a considerable extension to the Kate Lens in the northerly direction. Drillhole WNDD0034 drilled a further 35m down-plunge to the north intersected weak pyrite and chalcopyrite stringers in the position of the lens and has most likely closed off the lens in that direction. The down hole electromagnetic (DHEM) survey for WNDD0034 is indicating a potential extension to the lens up-dip from WNDD0031 and further drilling is planned for this area.
The massive sulphide core for this zone in shown in Figure 2.
Kate Lens Down Dip Extension - 12m @ 4.7% Zn, 2.2% Cu, 0.8% Pb, 0.8g/t Au, 22g/t Ag (13.7% ZnEq) from 405.2m, WNDD0032
This Kate Lens intercept is located some 30m below the original Kate Lens discovery hole WLTD015 (Figure 1) and while previously interpreted to be close to the edge of the lens, it indicates that it is not yet closed off in this down-dip position. The thickness and grades recorded are well above the width and grade parameters determined in the Preliminary Economic Assessment for inclusion into a mine plan.
Kate Lens Massive Sulphide Intercepts Other recent massive sulphide intercepts on the margins of Kate Lens include: - 9.85 of massive copper sulphides in two zones from 389.7m, WNDD0035 - 20.5m of polymetallic sulphides in 4 zones up to 11.1m wide from 346.7m, WNDD0037 - 19.4m of mostly copper sulphides from 379.4m, WNDD0038
The copper rich massive sulphide intercept in WNDD0035 occurs in two zones of 5.7m and 4.2m downhole width separated by some 3.7m of volcanic mudstones with about 50% massive and semi-massive pyritic sulphides. The DHEM modelling in this area suggests there is good potential for the mineralisation to continue in the down-dip position and it is yet to be tested.
WNDD0037 targeted the northern up-dip position of Kate Lens and intersected some 4 zones of massive sulphides, with two of these being the typical higher-grade polymetallic massive sulphides occurring over 11.1m (from 358.5m depth) and over 5.1m (from 375.0m depth). Two other minor massive sulphide intercepts were also intersected as part of this mineralised zone.
WNDD0038 targeted the southern part of the Kate Lens and intersected a 19.4m wide zone of mostly massive copper sulphides with pyrite and whilst potentially lower grade, the width of the intercept is viewed as very encouraging.
Assays for these holes are pending.
DHEM Surveys Modelling of the recent DHEM surveys is continuing and to date has provided an additional shallow target in the G Lens south position that will be tested in the coming weeks. A number of other deeper and larger anomalies are also being modelled up and will provide future drill targets for potentially significant new mineralisation at depth.
The Company is very pleased with the expansion of the Kate Lens position and drilling is continuing on the peripheries to determine the lateral limits of the lens. In addition, the results of the DHEM surveys continue to provide valuable guidance for extensional drill positions and also identifying new drill targets that could lead to significant new massive sulphide lenses.
About Heron Resources Limited: Heron is engaged in the exploration and development of base and precious metal deposits in Australia. Heron’s primary development project is the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales.
For further information, please visit www.heronresources.com.au or contact: Australia: Mr Wayne Taylor, Managing Director and Chief Executive Officer: Tel: +61 8 6500 9200
Mr Jon Snowball FTI Consulting Tel: +61 477 946 068
Zn equivalents (ZnEq) in this release are based on the formula: Zn(%) + 0.81 x Pb(%) + 3.12 x Cu(%) + 0.86 x Au(g/t) + 0.03 x Ag(g/t). All these metals are expected to be recoverable. Refer to the announcement of 22 April 2015 entitled “Preliminary Economic Assessment Delivers Strong Business Case for the Woodlawn Zinc-Copper Project” for further information.
Figure1: Kate Lens Long-Section Detailed showing a selection of recent and significant intercepts.
Figure2: Massive Sulphide Core from WNDD0031. Each length of core is approximately 1m long and shows the interval from 383m (on the left hand side) to approximately 397m downhole.
Table 1: Drill hole details for diamond drill holes completed as part of the Phase II drill campaign.
Hole No.
WMG East (m)
WMG North (m)
WMG RL (m)
Surface Dip
WMG Surface Azimuth
Depth (m)
Target
WNDD0020W1
9,407
18,951
2,823
-53
77
444.7
South EM target
WNDD0021
9,013
19,599
2,787
-85
130
319.1
Lisa Lens down dip
WNDD0022
9,013
19,599
2,787
-78
100
276.0
Lisa Lens north
WNDD0023
9,237
19,227
2,798
-65
60
240.0
E Lens extension
WNDD0024
9,285
19,327
2,799
-60
90
82.5
G Lens extensions
WNDD0025
9,299
19,261
2,801
-60
89
218.4
E Lens extensions
WNDD0026
9,145
19,407
2,792
-56
85
150.0
H Lens up-dip
WNDD0027
9,204
19,364
2,795
-81
85
44.9
H Lens up-dip
WNDD0028
9,225
19,197
2,796
-58
83
265.5
G Lens extension
WNDD0029
9,052
19,298
2,791
-55
62
373.7
Kate Lens up-dip
WNDD0030
8,882
19,379
2,793
-80
62
699.6
Kate Lens down plunge
WNDD0031
8,990
19,399
2,792
-70
71
442.6
Kate Lens extension north
WNDD0032
9,023
19,338
2,790
-70
78
447.5
Kate Lens down dip
WNDD0033
9,053
19,297
2790
-58
53
260.5
Kate Lens up dip
WNDD0034
8,990
19,399
2792
-74
62
167.1
Kate Lens north
WNDD0035
9,053
19,297
2790
-69
71
447.0
Kate Lens down-dip
WNDD0036
9,012
19,598
2787
-80
118
290.0
Lisa Lens
WNDD0037
9,024
19,332
2790
-62
58
420.0
Kate Lens up dip
WNDD0038
9,053
19,296
2790
-64
76
460.0
Kate Lens South
Notes: WMG = Woodlawn Mine Grid Final depths for WNDD0037-38 yet to be determined.
Table 2: Details of massive sulphide intercepts and reported grades from the Phase II drill campaign
Hole No
From (m)
To (m)
Downhole Width (m)
Estimated True Width (m)
Zn (%)
Cu (%)
Pb (%
Au (g/t)
Ag (g/t)
WNDD0023*
166.8
170.0
3.2
2.6
0.1
1.7
0.0
0.1
5.9
WNDD0024*
30.0
33.0
3.0
2.4
8.5
3.5
5.2
6.3
160.6
WNDD0025*
151.3
153.8
2.5
2.0
1.9
1.2
0.2
3.4
16.5
WNDD0026*
108.7
110.4
1.7
1.0
3.5
6.8
4.9
3.9
213
WNDD0027*
103.8
104.6
0.75
0.6
5.6
8.1
6.8
3.6
398
WNDD0029*
324.3
329.1
4.8
4.0
7.6
0.4
0.9
0.7
37.4
WNDD0029*
340.0
347.15
7.1
6.0
16.9
0.9
11.3
3.5
254.1
WNDD0031
383.2
403.7
20.5
16.4
8.1
2.4
2.9
0.8
68
WNDD0032
405.2
417.3
12.1
9.7
4.7
2.2
0.8
0.8
22.2
Notes: True width is an estimate of the actual thickness of the intercept based on interpreted lens orientation (approximately 80% of downhole width); grades are weighted average grades, weighted by length of samples intervals downhole, which are nominally 1 metre. No weighting was applied for differences in specific gravity which is most cases are relatively low. * Previously reported results.
Compliance Statement (JORC 2012 and NI43-101) The technical information in this news release relating to the exploration results at the Woodlawn Project 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 mineralization 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 reviewed this press release and consents to the inclusion in this news release of the information in the form and context in which it appears.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This news release 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 news release. 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 news release 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 news release.
Appendix 1 – 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 mostly HQ3 and NQ3 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 half along the core orientation line (where available) and 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 UDR650 rigs with HQ3 and NQ3 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 downhole 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 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, downhole surveys are conducted using a downhole survey tool that records the magnetic azimuth and dip of the hole. These recordings are taken approximately every 30 metres downhole. Where possible holes are also being surveyed with gyroscopic methods, with some 80 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 30-40m. 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 a close to perpendicular angle. The mineralised lenses are dipping at approximately 50-70 degrees to the west and the drilling is approximately at 60 degrees to the east. This will vary from hole to hole.
Sample security
The measures taken to ensure sample security.
Samples are being 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 Woodlawn project is located 250km south-west of Sydney in the state of New South Wales. The area is near the top of 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, special mining lease 20 (SML20). The lease has been renewed to the 16 November 2029.
The project area is on private land owned by Veolia who operate a waste disposal facility that utilises the historical open-pit void. An agreement is in place with Veolia for the Company to purchase certain sections of this private land to facilitate future mining and processing activities. A cooperation agreement is also in place between Veolia and the Company that covers drilling and other exploration activities in the area.
Exploration done by other parties
Acknowledgment and appraisal of exploration by other parties.
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 in August 2014 following the merger of the two companies. Some 980 surface and underground drill holes have been completed on the project to date and various studies undertaken.
Geology
Deposit type, geological setting and style of mineralization.
The Woodlawn deposit comprises volcanogenic massive sulphide mineralisation consisting of stratabound lenses of pyrite, sphalerite, galena and chalcopyrite. The mineralisation is hosted in the Silurian aged Woodlawn Felsic Volcanic package of the Goulburn sub-basin on the eastern side of the Lachlan Fold Belt.
Drill hole Information
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.
A long-section 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 Exploration 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.
The drill holes are being cased with either 40 or 50 millimetre PVC tubing for down-hole DHEM surveying which is undertaken on the majority of the holes drilled.
Geotechnical logging is undertaken on all core, 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 second phase of drilling at Woodlawn commenced in May 2015 and will be ongoing until around the end of 2015. The program is designed to provide the critical drill data for the Mineral Resource definition that will feed into the Feasibility Study now underway.
