gold mine delivers high grade intercept

ASX Release 17 June 2010

A1 GOLD MINE DELIVERS HIGH GRADE GOLD
INTERCEPT

Heron Resources (ASX:HRR) is pleased to announce a high grade drill intercept from hole L7_0049 at the A1 Gold Mine in
Victoria. Drilling underground from the historic mine adit on the 7 Level returned an intercept of 10.4m at 11.2 g/t gold from
11 metres down hole, within a broader zone of 19m at 6.83 g/t gold.
Heron is evaluating the A1 Gold Mine through underground development and drilling supported by bulk sampling to
determine the potential to establish an operation based on mining approximately 100,000 tonnes of ore per annum through
mechanised methods to produce between 25,000 and 30,000 ounces of gold per year. The Heron target is a bulk tonnage
gold stockworks system, hosted by a Dyke (as opposed to the traditional Victorian saddle reefs). The current drill results
demonstrate the presence of significant widths of mineralisation and are an important step to determining the viability of any
proposed operation.
Heron's Managing Director Mathew Longworth noted this was the first drill hole from the systematic drilling on the 7 Level
testing the stock work target to return these exciting grades. It is an early indication of the good potential still remaining in
the A1 upper mine levels, despite these levels having been subject to over a Century of intense mining activity.
We are particularly pleased to see individual samples running grades of between 19 and 30 grams per tonne gold, further
drilling is underway to evaluate this target with initially 60 holes planned said Mr Longworth.
It is also encouraging that the good grades are extending from the Dyke into the altered sediment country rock, which is
somewhat unexpected, since historical mine records interpreted the Dyke as the preferred gold host rock, and indeed the
Level 7 Adit closely follows the Dyke.
These are preliminary results from our exploration program in what was not a priority target area, and are an excellent start
to the evaluation of the A1. It certainly confirms that high grade stockwork mineralisation as shown on old mine plans
remains at A1. To find this high grade mineralisation adjacent to existing mine development means accessing it for further
evaluation and future mining is low cost.
Drilling was testing the northern extensions of the 7 Level stockworks target and was located 10 metres north along the adit
from hole L7_0019 which returned 8m at 2.3g/t gold including 0.5 m at 6 g/t gold and 1m at 7g/t gold. This also included
1.3m of dilution for an old mining void.
Currently the drill rig on the 7 Level is drilling 20 metres south of L7_0049 and has intersected 27 metres of visually
encouraging stock work mineralisation, which is yet to be assayed. In addition to the stock work targets on the 7 Level, the
Company has two drill rigs drilling deep holes from underground on the 7 Level to test the stockworks target on the 14 Level.
These deeper holes are typically 350m to 400m in length, with results expected in the coming weeks. The host Dyke tends
to be relatively narrow on the 7 Level, whereas it is 60m wide on the 14 Level, providing bulk tonnage targets.
A program of 100kg bulk samples from the 7 Level are being processed through the onsite sample scale gravity plant to
provide additional information on grade distributions.


N. Mathew Longworth
Managing Director
Heron Resources Limited