Heron Resources Ltd. has successfully commenced export shipments from its 100% owned Woodlawn Zinc-Copper mine located 250 kilometers (km) southwest of Sydney, in New South Wales.

Zinc and lead concentrates from Woodlawn have been sold under the offtake agreement with IXM (formerly Louis Dreyfus Company Metals), 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.

The first shipment of 5,000 metric tons (mt) of zinc concentrates comprises “commissioning” material together with more recent production. The average concentrate grade of approximately 46% zinc is within contract specifications and is consistent with the current production plan. This blended concentrate grade is particularly pleasing given the inclusion of a significant proportion of material produced during the early commissioning process.

The concentrate contains higher grades of lead and iron compared to specification, and the off-take terms have been adjusted accordingly in line with the market.

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 mt of commissioning grade lead concentrates being shipped out of Port Botany on September 28. The sale of an additional 2,000 mt 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,” Heron Chairman Stephen Dennis said. “Although significantly later than planned due to delays in completion of construction and plant commissioning, this achievement confirms the marketability of the Woodlawn products.”