Heron Receives Assays from Recent Drilling of Woodlawn G2 Lens

Sydney, Australia, Sept. 20, 2017 (GLOBE NEWSWIRE) -- Heron Resources Ltd. (ASX:HRR TSX:HER, “Heron” or the “Company”) is pleased to report that the current drilling campaign targeting the G2 Lens has been completed at its wholly-owned Woodlawn Zinc-Copper Project, located 250km south-west of Sydney, New South Wales, Australia. The drilling program of 22 diamond core holes (4,246 meters) was focused on an expansion of the shallow resource at the newly identified G2 Lens. Several significant results have been received.

• Shallow G2 Lens drilling program completed, comprising 22 holes (4,246m). All assays received
• Significant assay results recently received include:

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• Previously released significant assay results from WND0114 include:

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• New zone of copper mineralisation identified adjacent to and down-plunge from the zinc stringer zone
• Mineral Resource modelling and estimation for the G2 Lens has commenced

Commenting on the program results, Heron Resources Managing Director and CEO, Mr Wayne Taylor, said:

”The G2 drilling program has returned numerous contiguous base and precious metal results that will underpin a new resource in this shallow position. As we have previously commented, this area will be the first to be accessed in the new underground mine and currently does not comprise any of the production make-up reported in our reserves only Feasibility Study. These results along with the remaining extension positions continue to demonstrate the discovery potential that remains at Woodlawn.”

G2 Lens Drilling

The G2 Lens is located to the south of the Kate Lens, and is adjacent to the planned route of the decline, 100-200m below the surface. Recent drilling has targeted this area for its ability to add to the early mine inventory. A program of 22 diamond core holes for 4,246m of diamond core drilling was recently completed to further define the shallow resource base. Two key mineralised horizons have been identified, namely G2 Main and G2 Hanging-wall (G2HW).

The G2 Main zone was the primary target of the drilling campaign and consists of a zone of 5-10cm zinc sulphide-rich stringers cross-cutting beds of coarse-grained volcanic breccia. The G2HW zone was discovered during the follow-up program and consists of very high-grade massive and stringer sulphides occurring approximately 30 to 40m stratigraphically above the G2 Main zone (see Figures 1-4). Full assay results are provided in Appendix 1.

The significant intercepts from this program and specific to the G2 Main zone are:

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These G2 Main results are in line with expectations and delineate moderate-grade stringer mineralisation that is present over mineable widths. Of note are a number of significantly higher-grade results (holes WNDD0114 and WNDD0120) which suggest the possibility of higher overall grades of material from this area.

The significant intercepts from the G2 Hanging-wall zone are:

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The G2HW zone is a newly recognized zone of high-grade mineralisation that has been discovered in the last year. Whilst the position is relatively small, its high-grade means it will be a valuable addition to the early mine inventory. Heron believes that similar zones of high-grade mineralisation are likely to be present in the western portion of the Woodlawn system, but missed by the existing drill spacing which now creates an opportunity to delineate additional mineralised material. As well, there is also the newly defined copper mineralisation in the down plunge and footwall position to the G2 Main zinc stringer mineralisation (see Figure 3). This copper mineralisation occurs as copper stringers in chlorite matrix plus zones of massive copper and pyrite sulphides. Relatively broad widths have been defined to date and the zone remains open down plunge.

Forward Program

Mineral Resource estimation incorporating these latest results is currently underway and is expected to be completed in late October. The updated Mineral Resource will then be incorporated into the existing mine plan. The G2 mineralisation is still open in a number of directions and further drilling will be required to test these positions. Other shallow potential near term mining inventory positions (e.g. upper D Lens and upper Lisa Lens) are also being considered for additional extensional drilling.

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 in central and eastern New South Wales.

Figure 1: Part of the high grade zone of mineralisation intersected in WNDD0114 within the main G2 Hanging-wall Lens (G2HW). Up-hole direction is to the left in the tray.

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Figure 2: G2 Lens cross-section at 19180 North.

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Figure 3: Woodlawn G2 Lens long-section showing interpreted lens shape, recent drilling and proposed infill holes.

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Figure 4: Woodlawn G2 Hanging Wall Lens (G2HW) long-section showing interpreted lens shape and recent drilling.

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[1] ZnEq % used in this release refers to the calculated Zn equivalent grade based on the Zn, Cu, Pb, Au and Ag grades, the formula for which is provided at the end of this report.

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 Ltd. 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

Drill hole details for diamond drill holes completed as part of the Phase IV drill campaign.

Notes: WMG = Woodlawn Mine Grid

Assays results to date for diamond drill holes completed as part of the Phase IV drill campaign.

Notes: True width is an estimate of the actual thickness of the intercept based on interpreted lens orientation (approximately 80% to 90% of downhole width, with 80% used in this table as a general guide); unless noted 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; * Previously reported results; ^ SG weighted grades used due to significant differences in SG of individual samples.

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. These metal prices are based on Heron’s long term view on average metal prices. It is Heron’s view that all the metals within this formula are expected to be recovered and sold. Metallurgical metal recoveries used for the formula are: 88% Zn, 70% Pb, 70% Cu, 33% Au and 82% Ag; these are based on historical recoveries at Woodlawn and supported by metallurgical testwork undertaken during the 2015-16 feasibility study. Commodity prices and metallurgical recoveries are factored into the zinc equivalent calculation using a standard metal equivalent formula.

JORC 2012 Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section applies to all succeeding sections)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

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

Jon Snowball
FTI Consulting
+61 2 8298 6100
jon.snowball@fticonsulting.com

Canada:
Tel: +1 647-862-1157 (Toronto)