Heron Resources revives old Woodlawn mine

Over the past few years Heron Resources has been planning and raising finance for the $163 million Tarago district copper and zinc development.

The company’s managing director and CEO Wayne Taylor updated councillors on the venture at their most recent meeting.

“We’ll get a revenue stream for all commodities but mainly zinc,” Mr Taylor said.

“Supply is not meeting demand...In recent time, from 2013, there has been a massive decline in global stocks and it’s getting tight.”

The former Woodlawn Mine closed in 1998 due to low commodity prices and Denehurst’s financial troubles.

But Heron estimates a 2.8 million tonne underground resource and 9.5 million tonnes in the tailings dams. Annually it expects to extract 40,000 tonnes of zinc, 10,000 tonnes of copper and 12,000 tonnes of lead.

The mine’s life is 9.3 years but Mr Taylor says this may be extended, given the resource.

Mr Taylor said the exploration results recently released to the market were “very good.” He described the deposits as very high grade.

So far the company has commissioned an $11.4m  feasibility study, gained planning approval in 2013 and secured a modification for underground access in April. Now it is raising capital through financial institutions and shareholdings.

“I’d like to think we’ll get there but it depends on whether there’s an appetite,” Mr Taylor said.

The mine, to be managed by ex-Woodlawn employee, Brian Hearne, will employ 200 during construction and 150 during operation.

The company hopes to start the 15-month construction in the first half of 2017.

Community meetings would ramp up when Heron had “a higher level of certainty,” Mr Taylor said.