Heron Resources (ASX:HRR, HER.TO) which was wrapping up its 2014 exploration program at the Woodlawn zinc-copper project in New South Wales, Australia has released more impressive drill results. The most exciting intercept is without a doubt the 14.4 meters of 4.6% zinc, 4.1% copper 1g/t gold and 57 g/t silver. Just to give you an idea of the importance of this intercept, if you’d calculate a gold-equivalent grade based on the current commodity prices, you’d end up with roughly 11 g/t AuEq which is in excess of one third of an ounce per tonne.
It’s starting to look like this VMS type deposit might actually be larger than originally anticipated, as on top of the assay results, more massive sulphide zones have been discovered at the mineralized lenses. Heron’s market capitalization is roughly A$47M (resulting in an enterprise value of just A$14M due to its robust cash position), which means that if a large system would effectively be discovered, the market cap could increase rapidly. We will be keeping an eye on future developments.
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Disclosure: The author holds no position in Heron Resources. Please see our disclaimer for current positions.
