Heron Resources goes underground at Woodlawn

While mineral ore isn’t being pulled out just yet at the Tarago district operation, Heron Resources is preparing the way.

Managing director Wayne Taylor said Pybar Mining Services, contracted by Heron in February to undertake underground mining for four years, completed the box cut (safe entry) to the mine two months ago. On the weekend, the first portal blast took place to create the decline, a 30-metre road. It represented the start of underground work.

“For us it’s quite exciting because it puts us on a pathway to access a high-grade resource. We can’t wait,” he said.

Former operator, Denehurst, delved 620 metres beneath the ground but Heron has aimed for 700 metres. 

Mr Taylor has been working on the $240 million project for 11 years. The mine won approval in 2016 to extract 1.5 million tonnes annually of zinc, copper and lead ore concentrates to produce 150,000 tonnes of concentrate, for up to 21 years.

Earthworks began at the site one year ago and in February, Sedgman started construction on the processing plant.

“People don’t often appreciate the time it takes,” Mr Taylor said.

He told The Post that while there was still a great deal of piping and electrical work to do, the majority of major equipment was onsite and at 73 per cent complete, the project was on track for commissioning by the end of the year.

The first material will be delivered into the processing plant in 2019. It would mark just over 20 years since Denehurst struck financial difficulty and mining ceased. It left hundreds out of work. But Heron knew the resource wasn’t exhausted.

Mr Taylor said exploration over four years had defined a high-grade, high-quality resource and reserves.

“Once underground, our geological team will focus on further expanding the known mineralised positions to build upon the excellent and cost effective work they have undertaken to date,” he said.

Mr Taylor told The Post that while underground mining always threw up a few challenges, the investigations gave them confidence. The company estimates a 7.2 million tonne underground resource and 2.8 million tonnes in reclaimed tailings. About 5km of tunnelling plus ancillary tunnels are planned to access the material.

“It’s quite a lot of work and quite slow and we expect it to go deeper. The depth depends on how far down we can chase the mineralisation,” Mr Taylor said.

Heron has committed to moving most of its product to port via rail. 

The project’s near completion comes at a time of global deficit in zinc, copper and lead supplies. Mr Taylor said mining only generated half of the lead market, and recycling the remainder.

“We think it’s all quite positive and that’s why we’re rushing to get into production and enjoy some time in the sun,” he said.

Some 200 people are working onsite. The new mine is expected to generate 150 fulltime jobs. A careers expo held in Goulburn on September 19 attracted 100 people. Mr Taylor said most technical positions were filled and the company had recruited process plant operators and tradespeople. A mix of experienced and less experienced employees were needed.

Meantime, expressions are also being called for a refreshed community consultative committee. The former committee was disbanded given that it had a set term of reference. 

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