Base Metals: Heron Resources is in the money after exporting first lead and zinc cargoes
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It is the dream that most junior explorers aspire to and Heron Resources (ASX:HRR) is now living it after banking in first revenue from its Woodlawn zinc-copper project in NSW.
This follows the successful export of zinc and lead concentrates from the project under its offtake agreement with IXM, formerly Louis Dreyfus Company Metals, which covers 100 per cent of all zinc, copper and lead concentrates produced from commencement of production to the end of 2021.
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Heron exported the first shipment of 700 tonnes of lead concentrate in September and the first shipment of 5000 tonnes of zinc concentrate this week.
The company said that 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,” chairman Stephen Dennis said.
“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.”
Galena Mining (ASX:G1A) has reached an offtake agreement with IXM for the sale of 65,000 tonnes of lead-silver concentrates from its Abra base metals project in WA for a 10-year period.
Notably, this largely accounts for the 60 per cent of planned Abra production that is not already covered by the company’s offtake agreement with its joint venture partner Toho Zinc. IXM has also agreed to provide Galena with a $US12 financing facility that will be available in two tranches during the project construction and ramp-up stages.
Centaurus Metals (ASX:CTM) is poised to start drilling at its Jaguar nickel sulphide project in north-eastern Brazil after securing the required clearing and drilling licence. The 55 hole program is designed to extend known zones and identify new areas of high-grade nickel sulphide mineralisation within the Jaguar and Onça-Preta Deposits and the OnçaRosa Prospect.