www.herenciaresources.com
Herencia Resources plc is a resources company listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange with a focus on developing the Paguanta Project in northern Chile and advancing other project opportunities with the aim of adding value for shareholders.
The Paguanta Project comprises the Patricia zinc-silver-lead-gold Mineral Resource and the Doris copper-silver and La Rosa copper targets. The Total Mineral Resource at Patricia stands at 3.5Mt at 4.6%Zn, 1.46%Pb, 93g/t Ag and 0.23g/t Au (2% Zn cut-off).
During 2011 Herencia plans to undertake a Feasibility Study into the Patricia Mineral Resource and complete 15,000m of diamond drilling at Patricia, Doris and La Rosa. The Company is also actively pursuing quality JV opportunities within South America.
Herencia has the backing of some major resources identities including Nyrstar, the world’s biggest zinc smelting group, who hold 10% equity in Herencia.
Herencia Resources to assay Paguanta 2010 samples for gold to possibly improve project economics
Herencia Resources (AIM: HER) has decided to assay all samples from the current 2010 diamond drill program at its Paguanta project in Chile for gold in addition to assaying for base metals. After the majority of holes within the existing resource envelope intersected gold mineralisation, the company is seeing growing potential for gold credits to enhance future project economics.
While the focus will remain on zinc, lead and silver, Herencia is encouraged by the obvious potential to enhance the economics, as the recent assay results have now confirmed that over 80% of holes drilled within the existing resource envelope at Paguanta have reported gold mineralisation.
Gold assay results showed that drill samples intersected intervals of 8 metres at 1.53 g/t gold including 1 metre at 3.38 g/t gold, 7 metres at 1.17 g/t gold including 1 metre at 3.11 g/t gold, 3 metres at 1.02 g/t gold, 4 metres at 0.86 g/t gold, 1 metre at 3.55 g/t gold, 1 metre at 3.02 g/t gold and 1 metre at 4.57 g/t gold.
The 2010 drill program is targeting potential high grade extensions to the known mineralisation immediately along strike and down dip from previous holes that returned high grade zinc-lead-silver assays.
The drilling program will likely run until May, with all assay results planned to be returned by June 2010.
Managing director Michael Bohm stated: "We are also excited by what the significance of gold might be in terms of further geological prospectivity on our Paguanta leases, particularly given the project is situated within one of the world's great mineralised belts. This is in addition to further depth potential at Paguanta itself and the porphyry-copper prospectivity at La Rosa located only 3km away within the same block of granted tenements."
The scoping study of the Patricia deposit estimated the total mining inventory at 2.67 Mt (million tonnes) and the underground mining inventory at 1.24 Mt grading 5.28% zinc, 1.84% lead and 102 ppm (parts per million) silver. Initial potential mine life is currently estimated at five and a half years, which could be extended with more drilling. Capital costs are estimated at US$55.6 million and site operating costs at US$55.32/t (tonne).
The project comprises an indicated and inferred mineral resource of 3.15 Mt at 3.9% zinc, 1.3% lead and 74 g/t silver including a higher grade component of 1.01 Mt at 6.6% zinc, 2.2% lead and 119pm silver.
The company has recently raised £1.37 million through an issue of 250 million new shares for Paguanta and its adjacent La Rosa porphyry-copper prospect.
Shares in the company rallied 9.2% on the news and held on to their gains in early afternoon deals.
