Heron Resources Limited (ASX:HRR) has successfully commenced the export of shipments from its 100% owned Woodlawn Zinc-Copper mine located southwest of Sydney.
Zinc and lead concentrates from Woodlawn have been sold under the offtake agreement with Swiss-based metals trading firm IXM which extends from commencement of production through to the end of 2021.
The off-take contract covers 100% of the zinc, copper and lead concentrates produced over this period, with the first shipment of 5,000 tonnes of zinc concentrates comprising “commissioning” material together with more recent production.
Heron’s Chairman, Stephen Dennis said all loading and logistics procedures from site to Port Kembla and Port Botany ran smoothly and to agreed timetables.
Shipments of lead concentrates have also commenced, with the first sales parcel of 700 tonnes of commissioning grade lead concentrates being shipped out of Port Botany on September 28. The sale of an additional 2,000 tonnes of lead concentrate has been agreed and is expected to ship during November and December.
Processing of reclaimed tailings is ongoing and underground ore campaigns are being scheduled in line with the current production plan. Ramp-up of the processing plant continues to progress well and full plant capacity is expected to be achieved on a sustainable basis in mid-2020.
“The achievement of first cashflow from operations at Woodlawn is another key milestone for Heron,” Mr Dennis.
“Although significantly later than planned due to delays in completion of construction and plant commissioning, this achievement confirms the marketability of the Woodlawn products.
“With all export logistics arrangements now proven, the continuing focus of operations is on ramping-up production, further improving product quality, and accelerating deliveries to our customers.”