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Heron Resources on Track with Woodlawn Feasibility Study

Heron Resources on Track with Woodlawn Feasibility Study
CEO Wayne Taylor is confident that Heron will become a meaningful producer in the Zin market “as early as 2018.”
Jun 06, 2016 By Simon Herrmann Tags: HRR

Heron Resources Limited (ASX:HRR) announced this morning that the company is on track to provide results of its Definite Feasibility Study, also known as DFS, before the end of the June quarter 2016. Heron is focused on the developing its 100% owned Woodlawn Zinc-Copper Project (Woodlawn Project) located in NSW, Australia.

In an announcement to the ASX Heron stated that the DFS is “progressing well” and the study will provide an updated Mineral Resource statement, an initial Ore Reserve statement for the underground statement as well as various other updated projections such as capital cost estimates. The DFS is essential to bring the project into production in 2018 and will underpin the company’s funding campaign.

Management Bullish on Zinc Prices

Heron’s Chief Executive Officer Wayne Taylor is pleased with the progress and reaffirmed that the study is currently on budget. He is confident that Heron will become a meaningful producer in the Zin market “as early as 2018.”

He remains bullish on zinc prices stating: “The team is working very hard to make sure that we meet the DFS release schedule which pleasingly, also coincides with a fundamental shift taking place in the zinc market impacted by restricting global supply which in turn will support improved prices.”

Heron Plans Additional Drilling Work

The release of the DSF is not the only milestone for Heron as the company targets to commence a 2,500, drilling program later this year. The program targets the B Lens North and other near-mine targets previously defined within the region. Management hopes to grow the project post the current development phase as these areas are considered to be the highest ranking exploration targets.

Outlook for HRR Remains Favourable

Heron offers speculative exposure to the zinc mining industry. We are attracted to the Company's licensing and funding position, high grade nature of Woodland’s resources, and the asset’s ability to be rapidly taken into production. Whilst endurance of existing metal prices and project finance are principal risks, major zinc mine closures are laying foundations for a price recovery.

HRR has gained nearly 30% since Wise-owl initiated coverage in May 2016 and the stock is up 45% year-to-date.

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Simon Herrmann Author: Simon Herrmann Jun 06, 2016

Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.

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