Heron Resources is buoyant about the spike in zinc prices as it advances development of the Woodlawn project in New South Wales.
Zinc again improved overnight, adding 1.2 per cent to close trading at $US3315.5 a tonne. The commodity has risen by almost 30 per cent in 2017 as global supply has tightened.
Heron is confident of a strong outlook for zinc prices, with the company on track to commission the Woodlawn zinc-copper project in late 2018.
In an update on the project, Heron commented: “The reduction in global zinc metal stocks along with a critical shortage of concentrates is well publicised with the progressive tightening of the physical metal market providing the basis for increased zinc metal prices with recent levels hitting 10-year highs.
“Heron’s Woodlawn project remains one of the few new zinc projects that is fully funded to production and, with construction now under way, this places the company on track to participate in the pricing environment that is supported by the strong zinc physical market.”
Heron said work is under way on Woodlawn’s site access road, plant and office site, sediment dam and run-of-mine (ROM) pad.
Sedgman, the project’s engineering, procurement and construction (EPC) contractor, has started its initial mobilisation at Woodlawn in preparation for the start of concrete works in first quarter 2018.
Heron has also ordered $25.1 million worth of equipment for the operation, including a M10000 IsaMill, and Outotec flotation cells and thickeners.