Heron overcomes delays to mark first shipment

MV J-Harmony during loading at Port Kembla. Image: Heron Resources

Heron Resources has completed its first export shipments from the Woodlawn zinc-copper mine in New South Wales.

The first shipment contained 5000 tonnes of zinc concentrates, comprising of commissioning material as well as the company’s more recent production.

Heron’s average concentrate grade of around 46 per cent of zinc is within contract specifications and is consistent with the production plan.

The company stated the blended concentrate grade was 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 offtake terms have been adjusted accordingly in line with the market,” Heron stated.

“All loading and logistics procedures from site to Port Kembla and Port Botany ran smoothly and to agreed timetables.”

The shipments pertained to Heron’s offtake agreement with IXM (formerly Louis Dreyfus Company Metals). The contract covers 100 per cent of the zinc, copper and lead concentrates produced at Woodlawn from its point of production through to the end of 2021.

Heron has also commenced shipments of lead concentrates from Woodlawn, with the first sales parcel of 700 tonnes of commissioning grade lead concentrates being shipped out of Port Botany in September.

The company expects to ship an additional 2000 tonnes of lead concentrate during November and December.

“The achievement of first cashflow from operations at Woodlawn is another key milestone for 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.”

With all export logistic arrangements proven, Heron will now continue to focus on ramping up production at Woodlawn, further improving its product quality and accelerating deliveries to its customers.

Heron expects to reach Woodlawn’s full plant capacity by mid-2020.

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