Sydney, Australia, June 20, 2017 (GLOBE NEWSWIRE) -- Heron Resources Limited (ASX:HRR TSX:HER, “Heron” or the “Company”) is pleased to report the results of a reconnaissance rotary airblast (RAB) drilling program at the Crosby prospect within its wholly-owned Kangiara Project (EL8400), located 200km south-west of Sydney, New South Wales, Australia.

Results for first pass RAB drilling at the Crosby Prospect have returned:

  • 42m @ 0.20 g/t Au and 0.26% Cu from 4m to end of hole (CRRB027)
  • 3m 0.77 g/t Au from 33m depth to end of hole (CRRB008)
  • Several supporting anomalous results indicative of a broad mineralised system, strong sericite and pyrite alteration logged
  • Hosted within Silurian dacitic rocks - intrusive-related copper/gold mineralising model.

Kangiara (EL8400) RAB Program

The Kangiara Project is located 90km NW of Woodlawn and 26km NNW of the town of Yass, and is a historical copper mine where previous explorers (to 2014) have delineated a small, low-grade, gold, silver, copper, lead, zinc deposit (non JORC).  The geology comprises felsic volcanic and related sedimentary rocks of the Silurian Douro Group (Figure1). 

At the Crosby Prospect (named after the nearby survey point) 5km to the NE of the Kangiara mine, previous explorers outlined a strong gold anomaly (up to 2.3g/t Au in rock chips and 0.17g/t Au in soils) within a 2.5km NW-trending zone of anomalous geochemistry (Au, As, Zn, Pb, Cu; Bi, Mo, Sb).  Heron conducted check sampling which confirmed the soil geochemistry, with levels above 150ppb Au being returned and rock-chips up to 4g/t from an area northwest of the soil anomaly.  The geological setting is similar to the McPhillamys gold deposit (approximately 2.2Moz Au as reported by Regis Resources Ltd http://www.regisresources.com.au/ ) located 130km to the NNE.

A program of 33 rotary air-blast (RAB) holes for 743m was completed in May 2017 providing a first pass test of the soil geochemical anomalies (Figure 2).  The majority of the drilling was focused on the Crosby Main target plus 2 lines to the north providing coverage of the northern geochemical anomalies, and was conducted with the RAB hammer which provided dry and relatively contamination free penetration into the weathered and altered rocks.

The drill holes encountered a thin residual regolith cover before penetrating the Silurian sequence of dacitic intrusive rocks with lesser intercalated breccias and shales.  Pervasive sericite alteration and fine grained disseminated pyrite (phyllic alteration) was observed in many of the holes, with lesser biotite and some fine-grained base metal sulphides.  Where alteration was strong, the rig was able to penetrate deeper; the deepest intercept was in strong alteration from surface to a depth of 64m (CRRB024) which was close to the capacity of the rig (Figure 3).

Samples were collected on 4m, 2m or 1m intervals depending on the degree of alteration, and assayed using an aqua-regia digest and ICP finish for gold and other elements.  Some check fire assays are being conducted to check the gold results as it may be reporting slightly low if the mineralisation is of a refractory nature.  The drill logs and assays confirmed a broad zone of phyllic alteration within the Silurian sequence at both the Crosby Main and Central areas. 

Better results include:

10m @ 0.11g/t Au, from 30m to end of hole (CRRB007)

3m @ 0.77 g/t Au, from 33m depth to end of hole (CRRB008)

4m @ 0.96% Zn, 0.36% Pb and 0.07g/t Au, from 54m (CRRB024)

42m @ 0.20 g/t Au and 0.26% Cu from 4m to end of hole (CRRB027)

4m @ 0.25% Cu from 24m to end of hole (CRRB029)

The results from the Crosby Main area (CRRB007, -008 and -024) are associated with strong sericite and fine grained disseminated pyrite alteration and elevated zinc and lead similar to the McPhillamys style of mineralisation. 

The results from the very limited drilling in the Crosby Central area (CRRB027 and 029) is consistent with an intrusive-related or porphyry style of mineralisation, and the thick intercept in CRRB0027 suggests the potential for the presence of a significant mineralising system.  Of note in the drill assays for the central area is depletion in both Cu and Au in the top 4 metres indicating the broad and relatively weak soil geochemical anomaly in this area may be more significant than first thought. Strongly anomalous silver (Ag), molybdenum (Mo), arsenic (As) levels associated with these copper/gold results (see Appendix 1) is encouraging and supports an intrusive-related model for the mineralisation. 

Forward Program

This first-pass reconnaissance drilling program has successfully identified the potential for a significant, intrusive-related copper/gold mineralised system.  The fine disseminated nature of the sulphides in the dacitic rocks can most likely be mapped with IP geophysical methods to help target future drilling programs.

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: Location of the Kangiara Project and Crosby Prospect in relation to Woodlawn and other major deposits. Refer to link below:

http://www.heronresources.com/tsximages/20170620/20170620_Fig1.jpg  

Figure 2:  Crosby Prospect showing distribution of drilling and anomalous holes with key results highlighted. Refer to link below:

http://www.heronresources.com/tsximages/20170620/20170620_Fig2.jpg

Figure 3:  Kangiara Project, Crosby Prospect RAB drilling rig at hole CRRB024 drilled to 64m (deepest hole of program) showing broad zone of sericite/pyrite alteration. Refer to link below:

http://www.heronresources.com/tsximages/20170620/20170620_Fig3.jpg  


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 Limited 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

Table 1: Drill hole details for RAB holes completed

Hole No.MGA

East (m)
MGA

North (m)
RL (m)

(approx.)
DipAzimuth

(approx.)
EOH

Depth (m)
Target
CRRB0016651006171720620-6027022Crosby Main
CRRB0026651406171720620-6027030Crosby Main
CRRB0036651806171720620-6027035Crosby Main
CRRB0046652206171720620-6027013Crosby Main
CRRB0056652606171720620-6027010Crosby Main
CRRB0066650806171800620-6027013Crosby Main
CRRB0076651206171800620-6027040Crosby Main
CRRB0086651606171800620-6027035Crosby Main
CRRB0096652006171800620-6027022Crosby Main
CRRB0106652406171800620-602704Crosby Main
CRRB0116650606171720620-6027013Crosby Main
CRRB0126651206171640620-6027013Crosby Main
CRRB0136651606171635620-6027014Crosby Main
CRRB0146652006171640620-6027016Crosby Main
CRRB0156652406171640620-6027013Crosby Main
CRRB0166651406171555620-6027016Crosby Main
CRRB0176651806171560620-6027014Crosby Main
CRRB0186651406171760620-6027028Crosby Main
CRRB0196650656171880620-6027028Crosby Main
CRRB0206650206171880620-6027028Crosby Main
CRRB0216649806171880620-6027037Crosby Main
CRRB0226649606171800620-602704Crosby Main
CRRB0236650006171800620-6027019Crosby Main
CRRB0246650206171800620-6027064Crosby Main
CRRB0256650206171720620-6027011Crosby Main
CRRB0266649606171880620-6027025Crosby Main
CRRB0276645726172672620-6027046Crosby Central
CRRB0286645406172680620-6027011Crosby Central
CRRB0296645906172671620-6027028Crosby Central
CRRB0306640206172993620-6027025Crosby North
CRRB0316640656173002620-6027025Crosby North
CRRB0326640866173016620-6027019Crosby North
CRRB0336640056172986620-6027022Crosby North

 

Table 2: Selected assay results for the RAB program – holes not included contained no significant assay results

Hole IDFromTo Au ppmCu ppmPb ppmZn ppmAg ppmAs ppmMo ppm
CRRB00204  0.03158.1191.53890.211.12
CRRB00248  0.00738.361.24430.28.20.7
CRRB002812  0.00532.384.93960.39.50.9
CRRB0021216  0.00894.45474450.663.63.3
CRRB0021620  0.00529.13937720.4291.7
CRRB0022024  0.005653695520.622.71.6
CRRB0022428  0.026156.59056561.934.519.3
CRRB0022830  0.06378.76546491.431.314.8
CRRB00548  0.00420.824.31180.130.6<0.5
CRRB005810  0.00616.414.91300.132.6<0.5
CRRB00604  0.01641.916456523412.7
CRRB00648  0.01535.98706717.723.92.2
CRRB006812  0.01430.53098862.113.21.8
CRRB0061213  0.00632.92675750.811.71
CRRB00704  0.02057.99775180.615.62.7
CRRB00748  0.01238.76848070.511.91.9
CRRB007812  0.01529.679411650.811.71.9
CRRB0071216  0.04164.6171512204.219.311.2
Hole IDFromTo Au ppmCu ppmPb ppmZn ppmAg ppmAs ppmMo ppm
CRRB0071620  0.05539.412551000726.56.1
CRRB0072024  0.06957.2114519603.715.97.5
CRRB0072428  0.04810.3112514900.622.94
CRRB0072728  0.01212.4918856124.31.7
CRRB0072829  0.04212.24787640.516.61.5
CRRB0072930  0.0136.62225700.510.41.3
CRRB0073031  0.02013.4144510601.735.98.2
CRRB0073132  0.12237.4208032205.2200109.5
CRRB0073233  0.361162.5620042409.1164224
CRRB0073236  0.332163613041109.5144.5295
CRRB0073334  0.02117.364911300.824.712
CRRB0073435  0.076343918821.456.612.4
CRRB0073536  0.0678134110001.127.59
CRRB0073637  0.161321101528802.655.929.5
CRRB0073640  0.14339587923002.551.722.4
CRRB0073738  0.15956283723602.748.616.9
CRRB0073839  0.05819792314301.754.812.1
CRRB0073940  0.06116995018052.381.417.8
CRRB00804  0.15435.67564540.6317.2
CRRB00848  0.03524.96319060.831.62.9
CRRB008812  0.0334751412951.418.92
CRRB0081216  0.14132.697210502.540.34.9
CRRB0081620  0.01336.547011100.310.21.5
CRRB0082024  0.16569.99478661.323.49.9
CRRB0082425  0.02334.9108011200.413.61.6
CRRB0082526  0.03529.184110800.819.52.5
CRRB0082627  0.02027.362320702.441.63.3
CRRB0082728  0.03128.96384231.989.39.9
CRRB0082829  0.02629.61334401.7116.54.4
CRRB0082930  0.045109.555711204.32844.3
CRRB0083031  0.04816755411304.12134.8
CRRB0083132  0.02421567015102.3322.1
CRRB0083233  0.523189.548611203.128.85.5
CRRB0083334  1.23014347412203.455.513.7
CRRB0083435  0.5414638910201.741.68.2
CRRB01202  0.00417.4123350.165.7<0.5
CRRB01224  0.01224.7592440.498.8<0.5
CRRB01246  0.01179.32150601.354.90.5
CRRB01268  0.00932.49911300.553.80.6
CRRB012810  0.02080.613651121.561.5<0.5
CRRB0121012  0.009172.542001773.268.5<0.5
CRRB0121213  0.00745.418101922.350.8<0.5
CRRB01302  0.00614.5147.5690.11210.8
CRRB01324  0.01624.62881280.382.61.6
CRRB01346  0.02421.9442730.891.23.5
CRRB01368  0.01521.8162831.32063.4
CRRB013810  0.0151129.81780.91191.7
CRRB0131012  0.00712132310.325.60.8
CRRB0131214  0.00624.614.63370.323.40.8
CRRB01402  0.03041.12011490.118.63.6
CRRB01424  0.02042.7171.51990.128.65.2
CRRB01446  0.02465.75932950.326.94.2
CRRB01468  0.08613422905732.533.525.6
CRRB014810  0.03811718557341.346.525.2
CRRB0141012  0.022799332661.460.63.7
CRRB0141214  0.013135.53532531.159.72.6
CRRB0141416  0.040154149.54081.826.84
Hole IDFromTo Au ppmCu ppmPb ppmZn ppmAg ppmAs ppmMo ppm
CRRB01804  0.03339.83894320.421.43.2
CRRB01848  0.0044.7109.55160.311.2<0.5
CRRB018812  0.0022.69270-0.11.5<0.5
CRRB0181216  0.0034.929.84230.210.40.7
CRRB0181620  0.00313699820.210.10.6
CRRB0182022  0.08621.32327540.36.11.1
CRRB0182224  0.11120155.59790.35.71
CRRB0182426  0.07820.5979990.433.51
CRRB0182628  0.01632.65798510.839.40.9
CRRB01904  0.07928.51531110.114.80.9
CRRB01948  0.00640.51482240.117.51.2
CRRB019812  0.00646.21382760.29.81.1
CRRB0191216  0.0091758.92230.34.1<0.5
CRRB0191620  0.0051850.42080.18.51
CRRB0192022  0.00215.256.65070.27.90.9
CRRB0192224  0.00222.6838420.26.71
CRRB0192426  0.1951947598221.393.85.1
CRRB0192628  0.07316.2146.57490.328.51.8
CRRB02004  0.006242473950.112.90.6
CRRB02048  0.09013.82734080.119.8<0.5
CRRB020812  0.0158.31074820.229.80.6
CRRB0201216  0.00538.41345110.25.80.6
CRRB0201620  0.00420.95764690.314.10.8
CRRB0202022  0.00319.97346640.37.5<0.5
CRRB0202224  0.00516.52334340.27.5<0.5
CRRB0202426  0.00414.32053930.28.70.5
CRRB0202628  0.00617.95217250.210.70.7
CRRB02104  0.739154.58191900.5618.1
CRRB02148  0.072139.511803500.5246.3
CRRB021812  0.026110.55202360.438.16.4
CRRB0211216  0.05828.7177.54540.238.12.1
CRRB0211620  0.00513198.56270.19.50.7
CRRB0212021  0.0087.437.64280.120.66.1
CRRB0212122  0.01487.7124.510900.220.519.9
CRRB0212223  0.0133.532.67030.127.311.5
CRRB0212324  0.0222.348.73290.256.38.2
CRRB0212425  0.0051.813.12570.115.42.6
CRRB0212526  0.0051.318.94540.116.85
CRRB0212627  0.00348.94720.111.91.5
CRRB0212728  0.0401.6102670.115.51.9
CRRB0212829  0.0257.738.64940.328.26.4
CRRB0212930  0.0135.2505681.223.910.4
CRRB0213031  0.0062.319.83730.23.60.7
CRRB0213132  0.0294.429.42940.818.42.9
CRRB0213233  0.0575.434.33260.425.26.3
CRRB0213334  0.0274.759.12730.831.413.2
CRRB0213435  0.03010.9109.52640.730.89.2
CRRB0213536  0.0307.160.82500.833.14.4
CRRB0213637  0.03130.647.21980.416.53.8
CRRB02201  0.04890.61917-0.12.5<0.5
CRRB02212  0.002116.59.316-0.11.8<0.5
CRRB02223  0.00367.38.819-0.12.20.5
CRRB02234  0.04915457.5190.10.7<0.5
CRRB02302  0.00873.8138.52360.121.81.5
CRRB02324  0.0071082153430.116.41.4
CRRB02346  0.00680135.53050.314.90.9
CRRB02368  0.0103211833930.837.81.3
Hole IDFromTo Au ppmCu ppmPb ppmZn ppmAg ppmAs ppmMo ppm
CRRB023810  0.0412183762990.937.33.1
CRRB0231012  0.042181739343124.62.2
CRRB0231214  0.036181.52133450.617.22.1
CRRB0231416  0.030190.51694390.826.51.7
CRRB0231618  0.10535.5199.53500.534.68
CRRB0231819  0.16217.61274310.223.65.3
CRRB02404  0.023147.52242150.359.12
CRRB02448  0.1022901153190.937.63.4
CRRB024812  0.01118983.12810.245.73.8
CRRB0241216  0.023332125.53940.336.28.8
CRRB0241620  0.00830.7462790.234.412.6
CRRB0242024  0.087721252090.331.75.8
CRRB0242428  0.01534.361.76000.157.44.7
CRRB0242830  0.029167.518011050.4177.54.3
CRRB0243032  0.045190.51054941.64473.3
CRRB0243234  0.03851962.63732.31472.9
CRRB0243436  0.036135560.7563592.63.9
CRRB0243638  0.01747172.44542.157.20.9
CRRB0243840  0.01469.21575410.8520.5
CRRB0244042  0.009521881260128.10.7
CRRB0244244  0.00669.1895460.732.30.7
CRRB0244446  0.02191.623.49211.379.80.8
CRRB0244648  0.02319.141.75570.52321.1
CRRB0244850  0.02015.128.14120.2501.5
CRRB0245052  0.0056.8107.54480.4271.6
CRRB0245254  0.00929472129402.556.47.3
CRRB0245456  0.026310363094908.140.214.5
CRRB0245658  0.117185.5538098007.9537.8
CRRB0245860  0.01390.553613901.331.36.6
CRRB0246062  0.009172.52166090.924.32.1
CRRB0246264  0.01231.81064110.331.51.3
CRRB02702  0.03213504681920.450.17.4
CRRB02724  0.01319504081980.619.82.3
CRRB02746  0.25629609202231.520316
CRRB02768  0.215378010452291.28316.4
CRRB027810  0.23028608741973.287.918
CRRB0271012  0.06524307692731.660.38.4
CRRB0271214  0.09528205211722.342.512.8
CRRB0271416  0.090157510303721.954.310.4
CRRB0271618  0.344329013052433.6107.518.1
CRRB0271820  0.10028106552162.467.510.4
CRRB0272022  0.055156512102131.647.310
CRRB0272224  0.17570001590263678.316.3
CRRB0272426  0.05322507463901.888.87
CRRB0272628  0.6848460203010309.816021.4
CRRB0272830  0.228214010157331.238.314.7
CRRB0273032  0.455194511354742.411814.3
CRRB0273234  0.15714858346501.35110.8
CRRB0273436  0.073210014703541.236.810.4
CRRB0273638  0.135117514207720.943.19.8
CRRB0273840  0.216110013557540.941.19.2
CRRB0274042  0.2648781893070.520.67.4
CRRB0274244  0.214698853460.627.312.2
CRRB0274446  0.078955100.55730.983.68.3
CRRB02804  0.00775674790.313.92.2
CRRB02848  0.012132.5827680.635.15.8
CRRB028811  0.077198.514551331.135.110.8
Hole IDFromTo Au ppmCu ppmPb ppmZn ppmAg ppmAs ppmMo ppm
CRRB02904  0.01424246.7960.172.95.4
CRRB02948  0.01313721.81040.124.31.2
CRRB029812  0.01740518.51080.134.52.6
CRRB0291216  0.01074016.9970.2232.4
CRRB0291620  0.0062457.81080.219.91.8
CRRB0292022  0.0072329.7990.317.33.4
CRRB0292224  0.00427710.21020.212.94.5
CRRB0292426  0.010344016.1811.116.63.9
CRRB0292628  0.009156513.6880.414.63.8


 

JORC 2012 Table 1

Section 1 Sampling Techniques and Data 

(Criteria in this section applies to all succeeding sections)

CriteriaJORC Code explanation 
Sampling techniques·  Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·  Aspects of the determination of mineralisation that are Material to the Public Report.

 
·  Samples for analysis were taken from rotary airblast (RAB) drill cuttings.  The majority (~90%) of the drill cutting were produced from the RAB hammer which provided better penetration into the harder bedrock materials.  The samples were essentially all dry with little or no ground water being encountered. All drill cuttings were collected via a cyclone using manual choke or collected at the top of the collar and placed on the ground in separate 1m piles. Samples were taken as mostly 4m scoop composite samples with potentially mineralised intervals samples at either 2m or 1m intervals. Samples were collected from the 1m piles on an equal volume basis to approximately 2.5kg of total sample size per numbered calico bag.

·  One quality control sample (alternating between assay standards, blank assay material and field duplicates) was inserted on a nominal 10 sample basis.
Drilling techniques·  Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details.·  The drilling was undertaken by a rotary airblast (RAB) system, mostly employing the hammer to achieve penetration in bedrock materials.

·  The drilling rig was Mole Pioneer 160 rig with 600cfm and 200psi compressor, with a maximum depth to 100m.

·  A 4.5 inch bit was used for the drilling and holes were drilled to target depth.

·  All holes were drilled under geological supervision.
Drill sample recovery·  Method of recording and assessing core and chip sample recoveries and results assessed.·  A geologist supervised the drilling and sampling of the holes and recorded the lithologies intersected.

·  There were no issues with either sample recovery or sample condition in the drilling program and ground conditions were generally good for the drilling method employed. 
Logging·  Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.·  All drill holes were geologically logged at the time they were drilled by the supervising geologist using the Heron Geological Legend. Selected drill chips were collected for each hole and stored in chip trays for future reference.
Sub-sampling techniques and sample preparation·  For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 
·  All samples weighed, dried and reconciled against company submission.

·  All samples pulverised in a ring pulveriser (LM5) to a nominal 85% passing 75 micron.
Quality of assay data and laboratory tests·  The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
·  Sample preparation and assaying was conducted through ALS Laboratories in Orange NSW

·  Gold determined by aqua-regia digestion with ICP-AES analysis to 1ppb LLD.

·  Other elements by aqua-regia digestion followed by ICP-AES analysis. 

·  Laboratory quality control standards (blanks, standards and duplicates) are inserted at a rate of 5 per 35 samples.
Verification of sampling and assaying·  The verification of significant intersections by either independent or alternative company personnel.

·  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·  Discuss any adjustment to assay data.
·  An internal review of results was undertaken by company personnel.  No independent verification was undertaken at this stage.

·  All field and laboratory data is in the process of being entered into an industry standard database using a contract database administrator (DBA).  In-house validation of both the field and laboratory data is undertaken prior to final acceptance and reporting of the data.

·  Quality control samples from both the Company and the Laboratory are assessed by the DBA and reported to the Company geologists for verification.  All assay data must pass this data verification and quality control process before being reported.
Location of data points·  Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.·  All sample points located with handheld GPS, with accuracy of about 5m.  This is considered appropriate at this early stage of exploration.  Elevations for collars are not determined at this stage and a nominal elevation is used.
Data spacing and distribution·  Data spacing for reporting of Exploration Results.

·  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·  Whether sample compositing has been applied.
·  Drilling was performed on a nominal 80m spaced east-west lines and 40m along the line with some closer spaced holes in places.  All holes were angled at 60 degrees to the west.

·  Sampling and compositing was appropriate for the early stage of exploration.
Orientation of data in relation to geological structure·  Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.·  Sampling orientation was appropriate for the early stage of exploration and was not designed to take into account specific structures.
Sample security·  The measures taken to ensure sample security.·  Samples were secured in green plastic bags and transported to the laboratory by company employed personnel.  Beyond this there were no specific security measures.
Audits or reviews·  The results of any audits or reviews of sampling techniques and data.·  No audits or reviews were undertaken due to the early stage of exploration.

 

Section 2                             Reporting of Exploration Results

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

CriteriaJORC Code explanation 
Mineral tenement and land tenure status·  Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
·  All work was undertaken on granted exploration licences EL8400 in the name of Ochre Resources Pty Ltd which is a wholly owned subsidiary of Heron Resources Ltd.  The tenement is in good standing

·  The Kangiara Project area is on privately owned farm land and the Company has entered into compensation agreements with the landowners to access their properties.

·  There are no known specific environmental or heritage impediments for the current phase of exploration.
Exploration done by other parties·  Acknowledgment and appraisal of exploration by other parties.·  Previous exploration at the Crosby Prospect appears to have been limited with no previous drilling of the geochemical had been undertaken.

·  The soil geochemical anomaly was first outlined in the mid 1970s (Esso Exploration) and then better defined (including gold analysis) by Oakland Resources Ltd in 2013.
Geology·  Deposit type, geological setting and style of mineralization.·  The Crosby Prospect is underlain by rocks of the in felsic-intermediate Silurian volcanics of the Douro Group.

·  The drilling intersected the Silurian sequence of dacitic intrusive and breccia rocks with minor intercalated shale and other fine-grained sediments.  Pervasive sericite and fine grained disseminated pyrite (phyllic alteration) was observed in many of the holes with lesser biotite and some fine grained base metal sulphides.

·  The style/model of mineralisation is McPhillamy’s (Orogenic) or intrusive related (including porphyry style) styles.
Drill hole InformationA summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:·  Drilling location information is provided in Table 1 and collars shown in Figure 2.

·  The drilling was designed to provide information as to the source of the strong surface geochemical anomaly and provide guidance for deeper drilling.
Data aggregation methods·  In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
·  Assays results for the various programs are reported in summary form only, which is considered appropriate for this early stage of exploration. 

·  Only relevant elements are reported here, however, a larger suite of elements were assayed for.
Relationship between mineralization widths and intercept lengths·  These relationships are particularly important in the reporting of Exploration Results.

·  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
·  See comments above – at this stage, actual mineralised intercepts are not considered relevant to the report.
Diagrams·  Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.·  Maps relevant for current phase of exploration are included in the release.
Balanced reporting·  Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Results.·  The reporting is considered to be balanced and all relevant/material results have been disclosed for this current phase of exploration.
Other substantive exploration data·  Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.·  Open-file aeromagnetic data, geological maps, and other geological datasets have been used to guide the drilling program and the interpretation of the results.
Further work·  The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

 
·  Gold by fire assay determination of selected anomalous intervals will be undertaken to check if gold is potentially refractory and may lead to slightly higher reportable gold levels.

·  Further deeper and step out drilling is being considered given these initial results, however, a full review will be undertaken prior to commitment of a follow-up program.

 

 

 



 

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)