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Heron ships first zinc, lead concentrates from Woodlawn mine in Australia

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Heron ships first zinc, lead concentrates from Woodlawn mine in Australia

Cash-strapped Heron Resources Ltd. started export shipments from its wholly owned Woodlawn zinc-copper mine in New South Wales, Australia.

The first shipment of 5,000 tonnes of zinc concentrates comprised commissioning material and more recent production at an average concentrate grade of about 46% zinc.

The company has an off-take agreement with IXM, formerly Louis Dreyfus Co. Metals, which extends from the start of production through the end of 2021 and covers 100% of the zinc, copper and lead concentrates produced during the period.

The first sales parcel of 700 tonnes of commissioning-grade lead concentrates was shipped out of Port Botany on Sept. 28.

A sale of an additional 2,000 tonnes of lead concentrate has been agreed on and is expected to ship during November and December.

The company expects to achieve full processing plant capacity on a sustainable basis in mid-2020.

Heron Chairman Stephen Dennis said the cash flow from operations started significantly later than planned due to delays in completing construction and plant commissioning.

The company's board recently asked CEO and Managing Director Wayne Taylor to step down following delays in ramp-up at Woodlawn.