JOHANNESBURG (miningweekly.com) – The feasibility study for the Woodlawn zinc/copper project has delivered a compelling commercial case for the immediate development of the New South Wales-based project, owner Heron Resources reported on Wednesday.
The ASX- and TSX-listed company stated that it would accelerate the programme to secure project finance and that it aimed to bring the Woodland project into production in 2018.
Heron stated that Woodlawn would produce 40 000 t/y of zinc, 10 000 t/y of copper and 12 000 t/y of lead, over an initial mine life of 9.3 years, with potential to extend the mine life to more than 11.5 years.
Woodlawn would process one-million tonnes a year from underground mining and up to 1.5-million tonnes a year from reclaiming tailings, with two production sources providing operational flexibility and reducing risk.
The feasibility study delivered a post-tax net present value of A$207-million, an internal rate of return of 32% and a payback period of 2.3 years.
“The study presents a very compelling case for the development of the Woodlawn project and confirms Heron’s position as one of the most advanced Australian near-term zinc producers. The resource and embedded low operating and competitive development costs, due to existing infrastructure, all combine to make Woodlawn a clear choice amongst its peers,” said Heron MD and CEO Wayne Taylor.
The company would target a rapid development schedule of 15 months from the start of construction until the completion of wet commissioning.
Woodlawn is a volcanogenic massive-sulphide deposit, situated about 50 km north-east of Canberra. The deposit was first discovered in 1970 with operations starting in 1978 and closing in 1998.