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O C T O B E R / N O V E M B E R 2 0 1 7 www.resourceworld.com 47 Australian Update by Greg Barns W ith commodity prices rising, Heron Resources [HER-TSX; HRR-ASX] recent completion of an AUS $141 million equity funding for its Woodlawn zinc-copper project in New South Wales, is timely. In early September, AUS $141 million was raised as part of an AUS $240 million development fund- ing package to get the Woodlawn Project into production by early 2019. The equity funding was an AUS $104 million place- ment to cornerstone investors, an AUS $32 million institutional placement and AUS $5 million share purchase plan. Woodlawn, located 250 km southwest of Sydney and 50 km from Australia's capital Canberra, was a producing mine 1978- 1998. It processed 13.8 Mt of 9.1% Zn, 3.6% Pb 1.6% Cu, 0.5 g/t Au, and 74 g/t Ag. Today, the Woodlawn Project is split into two; the Woodlawn Underground Project (WUP) and the Woodlawn Tailings Retreatment Project (WRP). The WUP currently has reserves of 2.8 M/t of 14% ZnEq; 5.5% Zn; 1.6% Cu; 1.9% Pb; 0.45 g/t Au; and 42 g/t Ag. Measured and indicated resources are 4.1Mt of 18% ZnEq; 7.2% Zn; 2.0% Cu; 2.6% Pb; 0.52 g/t Au; and 55g/t Ag. Inferred resources are 2.5 Mt of 15% ZnEq; 5.9% Zn; 1.8% Cu; 2.3% Pb; 0.6t g/t Au and 47 g/t Ag. WRP reserves are 9.5 M/t of 6% ZnEq; 2.2% Zn; 0.5% Cu; 1.3% Pb; 0.31 g/t Au; and 31 g/t Ag. Measured and indicated resources on that project are 9.8 Mt of 6.2% ZnEq; 2.3% Zn; 0.51% Cu; 1.3% Pb; 0.31 g/t Au; and 32 g/t Ag. Total inferred resources are 1.1 Mt of 5.8% ZnEq; 2.3% Zn; 0.47% Cu; 1.2% Pb; 0.25 g/t Au and 27 g/t Ag. A week before finalizing the equity injection, Heron held a ground breaking ceremony attended by a federal Minister and local politicians. The company announced that "construction of the 1.5 Mtpa processing plant and infrastructure is expected to take about 15 months with commissioning in late 2018 ahead of first production early 2019." Heron said it "is now fully funded through construction of the Woodlawn Project, with about $156 million budgeted in pre-production capital expenditure." When the plant is commissioned and running at nameplate capacity it will produce 40,000 tpa zinc, 10,000 tpa cop- per and 12,000 tpa lead in concentrates planned to be exported from the nearby ports of Port Kembla and/or Port Botany. Power and transport infrastructure are first class. Despite the project being near to major cities and some communities nearby, there has been a positive reaction to the mine's development. Heron Resources is actively drilling the area around Woodlawn. It has recently completed a 22-hole program to better define and upgrade shallow underground resources currently not in the mine plan. Heron is also active on the Currawang Project 10 km north of Woodlawn, a his- torically rich project with production of 500 kt of 19% ZnEq. There has been no drilling there since 1996 but Heron is tak- ing advantage of a New South Wales state (provincial) government program that reimburses 50% of drilling costs. A four drill hole (2,150 m) program is underway with results from two holes pending. n Heron Resources funded to build Woodlawn Project