New South Wales

Updated February 2017

NSW Copper / Gold Projects
Girilambone Project

Overview

Heron retains a free-carried high quality tenement holding in the Lachlan Fold Belt of NSW. This tenure is held through joint venture and other free-carried residual or royalty interests which results in minimal costs to Heron.

Alchemy Farm-In and JV (Overflow, Girilambone, Eurow and Yellow Mountain)

Heron entered into a Farm-In Agreement with Alchemy Resources Limited (Alchemy) (ASX:ALY) covering a portfolio of Heron’s NSW exploration tenements in May 2016. The Farm-In Agreement covers 674 km² of the central Lachlan Orogen in NSW, including the following exploration tenements: EL5878 Overflow, EL7941 Overflow, EL8267 Overflow, EL8192 Eurow, EL8318 Girilambone and EL8356 Yellow Mountain.

A diamond drilling program has been planned by Alchemy, targeting up and down-plunge positions of the mineralisation zones at the Overflow mining centre. Approval delays and changes in Alchemy management has resulted in pushing back the program, which is now expected to commence in the first quarter 2017.

Overflow Project

The Overflow project is located 110 km south-east of Nyngan and 50 km north-west along strike from the Mineral Hill operation (owned by KBL Mining Ltd). The project is located along the northern extension of the Gilmore Suture within Ordovician and Devonian aged meta-sediments and has the potential to host both epithermal and Cobar-style gold and base-metal mineralisation. A third party group is currently reviewing this project as a potential farming opportunity.

Eurow Copper-Gold Project

Eurow covers Ordovician and Devonian-aged meta-sediments intruded by Silurian and Devonian granites, located some 40 km southeast of Parkes in central NSW. Eurow is proximal to the intersection of the Narromine-Coolac Fault Zone and the Lachlan Transverse Zone. The tenement was primarily acquired for the historic Eurow-Vychan copper-gold workings where a small non-JORC compliant resource has been previously reported. Previous drilling below the workings included intercepts of 8 metres at 2.94% copper and 0.85g/t gold from 47 metres, 3 metres at 4.0% copper and 1.25g/t gold from 73 metres, and 4.4 metres at 1.57% copper and 0.63g/t gold from 212 metres. The mineralization is planar and stratiform and associated with pyrrhotite sulphide (highly conductive and magnetic). Heron's data review identified excellent targets for follow-up drilling. A program of Aircore drilling was completed in late 2013 with a total of 44 holes for 729m being drilled on targets both north and south of the old workings. Assays show a number of anomalous copper results in the drill traverses north of the old workings.

Better results from north of the workings included:

  • EURB05: 20m at 206ppm copper from 4m depth.
  • EURB06b: 12m at 326ppm copper from surface.
  • EURB35: 10m to EOH at 407ppm copper from 4m depth (with weakly anomalous gold, silver and zinc).
  • EURB38: 8m to EOH at 229ppm copper from 16m depth.

The Heron drilling was hampered by wet puggy clays which precluded the drill rig reaching the massive sulphide target zones. Accordingly, RC collars have been design for more definitive drill testing. The results to date indicate the zone of mineralization extends to the north of the magnetic high associated with the old workings, and the prospect warrants further drilling in this area.

Girilambone Copper-Gold Project

The Girilambone copper-gold project is located within two granted tenements (EL7955 and EL7951) 25 km and 60 km northwest of Nyngan NSW. Heron is targeting Tritton/Avoca Tank style copper-gold mineralization within mafic units of the Ordovician Girilambone Beds. Seven RC holes for 1,270 metres were drilled at the Girilambone Prospect. Best result was from testing a subtle EM conductor adjacent to a larger magnetic anomaly. Strong sericite, chlorite and carbonate alteration was observed, with individual 1 metre samples of sulphidic zones with minor chalcopyrite returning up to 0.11% copper. Soil auger programs in the Coolabah area have generated a strong coherent copper anomaly located 3.5 km northwest along strike of the Avoca Tank discovery (Straits Resources Limited). Auger soils show a moderate copper anomaly of up to 97ppm over 1500 metres with multi-element signature with elements such as arsenic, silver and bismuth showing a strong coincidence. A moving loop EM survey will be done to test for deeper zones of mineralization.