Construction to allow the restarting of mining at Woodlawn is set to begin within months, as the $140 million project received another boost with more positive test results last week.
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The results showed high-grade minerals in new areas at the mine at Tarago, about 50 kilometres from Canberra, meaning a potential increase of more than 20 per cent in the area of underground zinc, copper and lead deposits.
Heron Resources chief executive Wayne Taylor said the extension of one of the mineral "lens" by a targeted area of between 600,000 and 1.1 million tonnes could add up to 1.5 years to the project's life, although further drilling was required for confirmation.
"It's a new area for us, we're now testing the bounds of the wilderness in the deposit, and now seeing a mineralisation of the north where previously it has been assumed there is nothing," he said.
Mr Taylor said the dual Australian and Canadian-listed company was progressing well in the process of securing a funding package, with decisions by banks or other potential funders hoped to be known by the end of the year. Construction, including of a processing plant, would occur over a 15-month period and could start as soon as the funding is agreed.
"The company has an expectation that it will be into construction at the start of 2017," he said.
Production was therefore planned to begin in the first half of 2018, he said. A further sign of confidence was the company's appointments to newly created key roles of Woodlawn general manager and Woodlawn process manager on Tuesday. The incoming GM, Brian Hearne, worked at the Woodlawn mine for 16 years from 1978.
There would be a peak of 200 jobs in construction, with 140 ongoing during mining.
An $11 million feasibility study released in June backed the project.
"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," Mr Taylor said at the time.
The company expects a project life of more than 11 years, not including the new exploration lens.
The feasibility study confirmed the Woodlawn site had an underground reserve of 2.8 million tonnes of minerals, plus 9.6 million tonnes of tailings, now stored in dams, that could be re-processed.
The Woodlawn mine had 13.8 million tonnes of ore dug up between 1978 and the end of commercial production in 1998, with 9.1 per cent zinc, 1.6 per cent copper and 3.6 per cent lead. Heron's merger with a smaller mining company in August 2014 gave it control of the mining rights.
