Heron Drilling at Currawang Prospect, Adjacent to Woodlawn, Returns Significant Assay Results

Sydney, Australia, Oct. 16, 2017 (GLOBE NEWSWIRE) -- Heron Resources Ltd. (ASX:HRR TSX:HER, “Heron” or the “Company”) is pleased to provide an update to the drilling program at its wholly owned Currawang prospect located 10 km NW from the Company’s Woodlawn Zinc-Copper Project in New South Wales, Australia.

• Heron completed five diamond drill holes (DDH) for 2,994m at the Currawang Prospect, 10km northwest of Woodlawn
• A DDH which targeted a zone below the known main lens intersected 6.4m of semi-massive and stringer-style zinc and copper sulphide mineralisation from 485m down-hole, and a further 2.9m of stronger copper sulphide mineralisation from 567m (DDH CWDD0002). This is interpreted as a new zone/lens of significant mineralisation directly to the east and below the main lens. Assay results for this hole have been received and include:^]

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Commenting on the drilling progress, Heron’s Managing Director, Mr Wayne Taylor said: “The assay results confirm the potential of Currawang to provide an additional production source to Woodlawn. And, the geological interpretation of the five DDH holes suggest the possibility of a broader mineralised system. The five DDH holes were strategically placed along the strike of the mineralised system to provide an expansive platform for follow-up down-hole electromagnetic testing (DHEM) to be completed over the next few weeks. Currawang is still at a very early stage of delineation drilling and we are looking forward to completing the program to establish the next phase of work. Currawang is a significant new growth option for the Woodlawn Project.”

Currawang Prospect

A program of five DDH holes for 2,994m was recently completed at Currawang, targeting extensions to the existing lenses, as well as the broader testing of the genetic and post-mineral structural environment associated with high-grade volcanic massive sulphide (VMS) mineralisation that was previously mined in the mid-1990’s (approximately 0.5Mt). Heron’s drilling program represents the first at Currawang since 1996.

The second drill hole in Heron’s program, targeted the down-plunge extension to the main Currawang Lens (Figure 1; DDH CWDD0002) and intersected 6.4m of 5 to 10cm stringers, and semi-massive Zn sulphide mineralisation (Figures 2 and 3) from 485m within a broad zone of hydrothermal alteration hosted by the basalt sequence. Copper sulphides within this zone are thought to be responsible for the DHEM anomaly previously measured in this area.

This hanging-wall position represents a potential new zone, or lens, of mineralisation at Currawang. DDH CWDD0002 continued to a depth of 640m and passed through a broad (50m+) zone of intense chlorite alteration with copper-sulphide stringers. These type of chlorite zones are typically associated with the massive sulphide feeders which create the main VMS lenses. Assay results have been received and returned two significant intercepts from these two zones:

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These results are highly encouraging. The last DDH of the program (CWDD0005) was drilled beneath and down-plunge from these intercepts and intersected a broad zone (17.4m) of weak and low-grade Zn sulphides stringers from 428m depth.

Other DDH in the program targeted the primary Currawang structural controls along-strike to the north of the main Currawang Lens in an area of limited historic drilling (Figure 1; CWDD0001 and 03). DDH CWDD0001 intersected a broad interval (38m from 341m down-hole) of moderate to intense alteration comprising sericite, silica, pyrite, and chlorite development within a strongly foliated, and in-part brecciated basalt (the Currawang Basalt). Within this interval is 16m of an intensely developed hydrothermal alteration assemblage, with minor stringers of Zn sulphides with lesser amounts of Pb and Cu sulphides. DDH CWDD0003 intersected a broad zone of moderate to strong silica, chlorite, biotite alteration (381 to 433m depth) with some stringers of base-metal sulphides.

Figure 1: Currawang long-section (looking east) showing the areas previously mined (shaded dark brown) and the traces of the five DDH in this campaign.
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DDH CWDD0004 was drilled to a depth of 675m testing the southern extent of the mineralisation, and intersected a weakly developed zone of silica, chlorite, pyrite alteration towards the bottom of the hole – this was less well developed than the other intercepts to the north.

Overall, the 5 DDH hole campaign was very successful, intercepting high-grade intercepts in new stratigraphic and structural positions, which both extend and further delineate the known extents of mineralisation and alteration. These five broadly-spaced DDH intercepts provide a geospatial platform enabling Heron to develop a down hole electromagnetic survey (DHEM) program to test for potential conductors peripheral to these DDH intercepts which may indicate conductors related to extensions of existing, or new, sulphide mineralisation.

Heron’s exploration program is part of the NSW Government’s Cooperative Drilling Program, with 50% of the direct drilling costs being reimbursable to Heron for the first 4 holes.

Figure 2: Photograph DDH cores showing Zn sulphide (sphalerite stringers) in DDH CWDD0001 from 486m depth. NQ2 (46.7mm diameter) DDH core within the tray with each length approximately 1m long.
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Figure 3: DDH core detail showing massive zinc sulphides. The red-brown coloured mineral is sphalerite (zinc sulphide) and displays an interpreted hydrothermal, replacement style of formation with clots of dark-green chlorite alteration of original basalt fragments entrained within the sphalerite. The white mineral is quartz, indicative of the vein-style of this zone.
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Figure 4: Cross Section (view to north) through the plane of DDH CWDD002 showing the location of the mined out areas and the location of the newly intercepted hanging-wall stringer-style sphalerite mineralisation, and the deeper chlorite alteration zone
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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.

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

Details for diamond drill holes completed

Notes: CMG = Currawang 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; *

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 (Australia)
jon.snowball@fticonsulting.com

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