Heron Resources Ltd. said March 15 that a contract superintendent rejected the majority of a revised claim by CIMIC Group Ltd. unit Sedgman Pty. Ltd. over additional costs of A$53 million for building the Woodlawn zinc-copper project in New South Wales, Australia.

A previous A$49.9 million claim Sedgman made was similarly rejected by a contract superintendent in February.

For the latest claim, the contract superintendent approved new variations totaling A$76,082 for February for work recently requested by Heron and approved under the formal contract provisions and rejected the rest of the progress claim. The A$53 million in the latest claim includes the previous A$49.9 million claim.

The Australia-listed base metals explorer also said liquidated damages now apply due to project delay. Heron holds bank guarantees valued at A$10.8 million from Sedgman.

The company expects to announce the start of production at the project in the second quarter.