Heron Resources Ltd. Woodlawn Phase 1 Drilling Program Successfully Completed

Sydney, Australia (FSCwire) - Heron Resources Ltd. (“Heron” or the “Company”) is pleased to announce the completion of the highly successful Phase 1 drilling campaign, with receipt of final assays and completion of down-hole EM surveys at the Company’s wholly owned Woodlawn Project.  The Phase 1 program generated numerous high-grade massive sulphide intercepts and included the discovery of the newly recognised Lisa Lens, and identification of multiple EM conductors highlighting numerous high-priority targets for the Phase 2 campaign. 

Woodlawn is a high-grade, volcanogenic massive-sulphide (VMS) deposit situated in New South Wales, Australia, located approximately 50 km northeast of Canberra, and 250 km southwest of Sydney.


Program Objectives

The Phase 1 drilling program at Woodlawn was designed to provide data for an updated Mineral Resource estimate, as well as to test for mineralisation at shallow depth that could be suitable for early-stage exploitation for renewed mining at Woodlawn.  The program also collected material for metallurgical test work and provided geotechnical data to be used in the development of a new mine plan.  These results are key inputs for the PEA, which will be released in the coming weeks.

A total of 20 diamond drill (DDH) holes for 7,613m and 11 reverse-circulation (RC) holes for 1,201m were drilled focussing on the Kate Lens, before drilling high-priority targets in other positions.  Limited deeper drilling intersected multiple lenses in both the I and D Lens positions (a single 940m deep hole).  

Heron believes ample opportunities remain to expand the resource of this large mineralising system above 500m depth and further discoveries in shallow zones reduce the near-term need to drill deeper targets. This will be the focus of the Phase 2 campaign. The key lenses comprising the resource are described in greater detail below and detailed tabulation of drill hole data and assays results are provided at the end of the report.


Geological Setting

Woodlawn is a well-documented historic producer of metals from high-grade, polymetallic volcanogenic massive sulphide deposits which are hosted within the Woodlawn Volcanics of Silurian age.  Woodlawn is second only to the world-class Rosebery Tasmania VMS camp in terms of Australian historic VMS production.  At Woodlawn, the felsic volcanic sequence hosts multiple stacked lenses of high-grade mineralisation and has intense hydrothermal alteration, as commonly associated with deposits elsewhere in the world. 

Following, are descriptions of the major lenses defined and discovered to date within this deposit.


Kate Lens

Ten of the Phase 1 DDH holes targeted the Kate Lens to follow-up the single discovery hole from 2013, and were planned on a nominal 40 x 40m intercept spacing (Figures 1-3).  The modelled downhole electromagnetic (DHEM) data suggested the presence of a moderately west-dipping “plate” of conductive material, which proved to be a reliable guide to the discovery of a laterally-extensive zone of massive sulphides Highest polymetallic grades were found towards the centre of the lens, which becomes copper-dominant and semi-massive towards the south, whilst to the north, the massive sulphides are off-set by the 790 Fault system. Seven of the 10 holes drilled into the Kate Lens returned significant high grade results including:

• 14.4m @ 4.6% Zn, 4.1% Cu, 0.8% Pb, 1.0g/t Au, 57g/t Ag from 374m (WNDD0001)
• 8.8m @ 12.6% Zn, 1.6% Cu, 7.5% Pb, 2.3g/t Au,152g/t Ag from 374m (WNDD0002)
• 12.3m @ 20.0% Zn, 2.1% Cu, 6.1% Pb, 0.8g/t Au, 53g/t Ag from 414m (WNDD0007)
• 8.1m @ 7.2% Zn, 1.1% Cu, 2.3% Pb, 0.9g/t Au, 28g/t Ag from 309m (WNDD0009)

Figure 4 shows representative core photos of the massive sulphide mineralisation in the Kate Lens.  While the Kate Lens has been delineated along strike by the Phase 1 drilling, a number of extensional positions remain open and are a high priority target for the Phase 2 drilling. 


I Lens

Three DDH holes were drilled into the I Lens position. Two holes intersected minor sulphides in the expected position of the lens; however modelling of DHEM data suggests the main lens may pass between these two DDHs, and thus remains an untested target. One DDH intersected the projected down-plunge position of the lens and returned two intercepts suggesting the lens has bifurcated into an upper high-grade zone, and a lower low-grade zone some 50m below:

• 5.6m @ 13.3% Zn, 0.7% Cu, 5.4% Pb, 1.2g/t Au, 26g/t Ag from 626m (WNDD0006)
• 4.0m @ 4.8% Zn, 0.5% Cu, 0.2% Pb, 14g/t Ag from 679m (WNDD0006)

The new intercepts, combined with well-defined DHEM modelled plates, provide further support for a significant down plunge extension to the I Lens originally identified in the TriAusMin 2012 and 2013 drilling.


G Lens

Five DDH holes intersected the main part of G Lens (Figure 5). The results confirm the high-grade nature of the lens and support the potential for thicker zones of mineralisation in what is thought to be a keel-shaped structure towards the centre of the lens (Figure 5). Key results include:

• 8.0m @ 3.6% Zn, 1.3%Cu, 2.6% Pb, 1.0g/t Au, 65.4g/t Au from 37m WNRC0010
• 14.8m @ 5.4% Zn, 2.7% Cu, 2.0% Pb 1.2g/t Au, 49g/t Ag from 198m WNDD0009
• 4.4m @ 4.1% Zn, 3.2% Cu, 0.9% Pb, 0.5g/t Au, 39g/t Ag from 206m WNDD0010
• 9.3m @ 6.4% Zn, 3.2% Cu, 2.8% Pb, 2.4g/t Au, 151g/t Ag from 76m WNDD0013
• 2.1m @ 3.1% Zn, 6.5% Cu, 1.3% Pb, 1.2g/t Au, 146g/t Ag from 61m WNDD0014

The G Lens has shown strong potential for up and down-dip extensions to mineralisation and is a high-priority target for Phase 2 drilling.


Lisa Lens

Two DDH holes tested the along-strike continuity from two older DDH holes which recorded Cu-rich intercepts in the stratigraphic plane of the I Lens (Figure 4).  The historical holes recorded:

• 4.0m @ 4.9% Zn, 2.8% Cu, 2.3% Pb, 0.8g/t Au and 25g/t Ag from 266m (W089)
• 4.0m @ 2.0% Cu from 234m (W145)

One DDH intersected high-grade polymetallic mineralisation – the new “Lisa Lens”:

• 4.2m @ 17.7% Zn, 1.6% Cu, 5.0% Pb, 1.1g/t Au, 28g/t Ag from 246m (WNDD0015)

The Lisa Lens represents the discovery of a new high-grade lens and further drilling is being planned to delineate this position.  Modelling of DHEM data suggest the presence of a strong conductor down-plunge and to the north of this intercept, and provides an immediate drill target.


D Lens

The D Lens was intersected in the following significant intercepts:

• 8.1m @ 3.0% Zn, 2.3% Cu, 3.1% Pb, 2.6g/t Au, 68.8g/t Ag from 699m (WNDD0006)
• 10.0m @ 1.6% Zn, 1.7% Cu, 0.2% Pb, 0.2g/t Au, 15g/t Ag from 759m (WNDD0006)
• 9.5m @ 3.8% Zn, 1.6%Cu, 0.3% Pb, 0.8g/t Au, 17g/t Ag from 254m (WNDD0017)

At the present time, D Lens is not a high-priority target; however, these intercepts confirm previous drilling interpretations.


E Lens

As with the D Lens, E Lens was not a high-priority for the Phase 1 drill program, however, a strong off-hole DHEM conductor provided a robust target that was tested and returned the following high-grade result in the up-dip E Lens positon:

• 4.2m @ 14.8% Zn, 2.2% Cu, 6.2% Pb, 0.7g/t Au, 37g/t Ag from 135m (WNDD0012)

>This confirmed continuity between parts of the E Lens which were previously thought separate and expands the resource base in this relatively shallow position.


A Lens

The interpreted up-dip projection of the A Lens was targeted by the early round of RC drilling; however the campaign did not intersect significant massive sulphides due to a post-mineral dolerite stoping out the VMS horizon.  Similarly, there were limited DHEM targets generated from these RC holes, so it is interpreted that the lens pinched-out in this area.  However, a subtle off-hole response in the DHEM data was returned from the down-plunge position of the A Lens and this will be assessed during the Phase 2 program.


Other Lenses

The B, C, F and H Lenses were not targeted in Phase 1 drilling; however, all have strong potential for down-plunge extensions and will be considered for subsequent drill programs.  These deeper targets, particularly on the B Lens, did not fall within the objective of defining resources in the upper 500m at Woodlawn. 

Towards the end of Phase 1, a single hole was drilled into the interpreted southern extent of the Woodlawn system, to test at-depth mineralisation (intersected in W024), which returned 15.7m at 8.7% Zn, 2.6% Pb, 0.9% Cu, 1.0 g/t Au, 71 g/t Ag (Figure 3).  This single DDH (WNDD0020) intersected a number of broad zones of strong alteration, with assays up to 1.0% Zn over 3m; however it did not intersect significant massive sulphides.  DHEM data was collected and returned a broad anomaly, from 320-460m depth, which modelling suggests is related to a an off-hole conductor  beyond the end of this hole.  Further assessment of this anomaly is being undertaken to determine whether it relates to massive sulphides in the footwall to the C Lens.


Forward Program and Mineral Resource Estimate

The Phase 1 drilling program at Woodlawn demonstrated the potential to extend and delineate relatively shallow (<500m depth) high-grade mineralisation, as extensions to previously known lenses and also in entirely new positions such the new Lisa Lens. The revised Mineral Resource estimate supported by this new information will comprise part of the PEA study.  A Phase 2 program of in-fill drilling to further delineate shallow mineralisation is planned to bring the Inferred Mineral Resources into an Indicated category. In addition, the lens extensions and newly generated targets provide considerable potential to further expand the resource base at Woodlawn. 


DHEM and Other Drill Targets

The DHEM surveys and modelling undertaken as part of the Phase 1 program continue to demonstrate the utility of this method to predict extensions of known mineralisation (eg. Kate Lens) and to identify new positions for drill testing.  Several off-hole conductors identified in the Phase 1 program remain to be drilled and suggest that many of the lenses can be extended beyond the limits of current drilling. A number of more conceptual targets also remain to be tested in a similar fashion to the Lisa Lens target where there are gaps in the earlier drilling along know mineralised trends.


Metallurgical Samples and Geotechnical Data

A critical path outcome from the Phase 1 drilling program was the collection of fresh massive sulphide material for metallurgical test work. This material facilitated the first test work to be undertaken on Woodlawn mineralisation since the mine closure in 1998. This test work was successful in demonstrating improved recovery performance to better quality products than that achieved during previous operations (Press Release, 11 February 2015), and also provided confirmation for the combined treatment of a tailings (Woodlawn Retreatment Project) and underground (Woodlawn Underground Project) ores through a single processing facility.

Each DDH was geotechnically logged, building a vital dataset for rock quality assessment which provides the basis for evaluating underground mining methods and ground support, such as cemented paste fill. This is expected to result in the application of mining methods that provide higher productivities and higher resource recoveries.


Preliminary Economic Assessment (PEA)

The Phase 1 drilling program has provided initial input data and information for the Woodlawn PEA. The PEA is well advanced and the results from this study are expected to be released in the coming weeks. Following the study release it is anticipated that the Company will move forward with a feasibility study covering the combined development of the Woodlawn tailings and underground projects. The feasibility study is expected to take 12 months to complete and will incorporate the Phase 2 drilling program. The Woodlawn Project continues to advance towards production and the delivery of zinc (and other) base metals concentrates into a market forecast to be in a supply deficit.


About Heron Resources Limited:

Heron is engaged in the exploration and development of base and precious metal deposits in Australia.  Heron’s projects include the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, and the Kalgoorlie Nickel Project located north of Kalgoorlie, Western Australia.  In addition the Company holds a number of other high quality exploration properties located in the Lachlan Fold Belt, 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
Email: heron@heronresources.com.au

Canada:
Tel: +1 905 727 8688 (Toronto)

Figure 1 (top): Cross section through the Woodlawn underground lenses looking north.  Figure 2 (bottom): Long-section looking east for the Kate Lens showing recent drilling and modelled DHEM plate.
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Figure 3: Plan overview of the Woodlawn Lenses showing pit and existing underground decline.
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Figure 4:  Drill core photographs from WNDD0001 (378.9m to 389.1m) showing an example of a mineralised intercept from the Kate Lens.  The fine-grained black minerals are predominantly galena (lead sulphide) and sphalerite (zinc sulphide), whereas the yellow minerals are a mixture of pyrite (predominantly) and chalcopyrite (copper sulphide).
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Figure 5: Long Section of the G Lens showing historical and recent drill results
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Technical Information

Table 1: Drill hole details for diamond drill holes relevant to this update

Hole No	WMG East (m)	WMG North (m)	WMG RL (m)	Surface Dip	WMG Surface Azimuth	Depth (m)	Target
WNDD0001	8,995	19,402	2,793	-65.0	88.0	425.5	Kate Lens
WNDD0002	9,011	19,400	2,793	-58.2	95.1	434.5	Kate Lens
WNDD0003	8,996	19,402	2,793	-71.1	88.8	463.2	Kate Lens
WNDD0004	8,977	19,637	2,786	-70.4	86.0	272.5	I Lens (up-dip)
WNDD0005	8,976	19,638	2,787	-65.3	78.7	263.6	I Lens (up-dip)
WNDD0006	8,548	19,749	2,787	-70.0	96.8	950.2	I/I2/D Lens (down-dip)
WNDD0007	8,997	19,350	2,792	-60.0	91.0	580.6	Kate Lens
WNDD0008	8,969	19,353	2,791	-68.1	88.6	469.1	Kate Lens
WNDD0009	9,155	19,342	2,793	-76.9	80.9	480.2	G Lens & Kate Lens
WNDD0010	9,151	19,302	2,791	-78.6	80.2	413.5	G Lens & Kate Lens
WNDD0011	8,995	19,402	2,793	-65.0	80.5	454.0	Kate Lens
WNDD0012	9,299	19,282	2,801	-62	87.0	189.2	E Lens
WNDD0013	9,249	19,309	2,798	-58	82.0	120.0	G Lens
WNDD0014	9,280	19,290	2,793	-60	73.2	80.0	G Lens
WNDD0015	9,014	19,601	2,780	-60	99.0	279.2	Lisa Lens
WNDD0016	8,973	19,353	2,780	-60	99.5	471.4	Kate Lens
WNDD0017	9,094	19,523	2,788	-74	72.8	310.8	Lisa and D Lenses
WNDD0018	8,994	19,403	2,792	-63.1	70.6	420.6	Kate Lens
WNDD0019	9,407	18,950	2,823	-55.0	77.8	55.0	South Target Aband.
WNDD0020	9,407	18,951	2,823	-57.6	73.6	479.9	South Target