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Heron Resources Quarterly Activities Report

Woodlawn Zinc-Copper Project – Project Development Progress

  • On track to start commissioning in fourth quarter – on time and within budget
  • Final major operating contracts now in place – tailings mining, electricity supply & concentrate logistics
  • Overall EPC completion at 62% by 30 June – including earthworks 100%, equipment procurement 93%, concrete placement 87%
  • Progressive establishment of underground and reclaimed mining areas
  • Good progress with operational recruitment
  • Key fine grinding equipment, IsaMillTM, delivered to site after the end of the quarter

Woodlawn Exploration

  • Diamond core drilling: 17 holes for 3,225m targeting the G2 and Lisa Lens positions completed
  • G2 Lens: (14 holes for 2,411m) extension and definition program completed with significant results to date of:
  • 6.1m grading 37.2% ZnEq from 120.3m (22.0% Zn, 1.0% Cu, 7.1% Pb, 3.3g/t Au, 115g/t Ag) WNDD0138 G2HW
  • 1.9m grading 8.2% ZnEq from 138.3m (4.1% Zn, 0.3% Cu, 2.2% Pb, 0.5g/t Au, 27g/t Ag) WNDD0138 G2 Main
  • 8.3m grading 15.6% ZnEq from 128.7m (8.2% Zn, 0.3% Cu, 4.8% Pb, 0.6g/t Au, 62g/t Ag) WNDD0139 G2 Main
  • 6.5m grading 5.6% ZnEq from 153.5m (3.7% Zn, 0.2% Cu, 1.2% Pb, 0.1g/t Au, 9g/t Ag) WNDD0140 G2 Main
  • Several sulphide intercepts were drilled late in the quarter with assays pending

  • Lisa Lens: (3 holes for 725m) a significant copper intercept was returned in the upper part of the lens providing support to add to the early mine schedule. Further definition drilling to be conducted from underground
  • 8.6m @ 12.5% ZnEq (3.6% Cu) from 203m (WNDD0135)

Woodlawn Regional Exploration

Peelwood: Electromagnetic anomalies (2014 airborne survey) potentially related to base metal mineralisation defined north of the John Fardy and Cordillera prospects provide walk-up drill targets, with drill approvals currently being progressed

Corporate

  • Cash: Heron held A$74.3 million in cash (including bonds of A$8.77 million) and A$7.9 million in investments as at 30 June 2018
  • Debt: US$20 million senior secured facility was drawn down during the June quarter. US$40 million senior secured facility remains undrawn

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