Herencia confirms high-grade copper and silver at Paguanta's Doris prospect

Herencia Resources (LON:HER) shares have jumped more than 60% with the confirmation of high-grade copper and silver at the Paguanta project’s ‘Doris’ prospect.

Surface rock-chip sampling from the Chilean project returned copper grades up to 3.3%, and silver grading 617 grams per tonne (g/t).

“We will be looking to follow-up with a systematic mapping and sampling program at Doris over the next two or three months to further investigate this very significant copper target,” Herencia MD Michael Bohm said.

The sampling followed up the initial sampling at Doris, which previously found 4.5% for copper, and the best silver assay was 573 grams per tonne (g/t) silver in early August.

Herencia shares have gained considerable traction on London’s AIM market this week, with the company ‘breaking-out’ of its trading range to set a new 2-year high.

After starting the week at 0.71p Herencia shares have advanced strongly over recent sessions and have so far reached 1.5p per share today.

The Doris prospect is located about 1,500 metres northeast of Paguanta’s main zinc-lead-silver-gold mineral resource - the Patricia resource - and another 1,500 metres southeast of the 'La Rosa' porphyry-copper target.

This latest phase of rock-chip sampling covered a 750m area within the Doris prospect, and the results returned 11 notable samples with grades ranging between 0.9 and 3.3% copper and 61-617g/t silver.

Herencia highlighted that one of the samples – grading 1.4% copper and 61g/t silver – was taken on the western edge of Paguanta’s La Rosa porphyry copper target. Additionally, two samples also contained lead at grades of 1.57% and 1.64%.

Bohm said that September is ‘a busy month’ for Herencia, emphasising that the immediate focus is on the completion of Paguanta’s updated Mineral Resource Estimate (MRE).

“We expect to receive the completed drill hole database early next week, which will allow our Geological Consultants to update the MRE,” Bohm said.  

“We anticipate announcing the 2010 Mineral Resource Estimate by month end.”

The results of Dense Media Separation (DMS) testwork is also expected later this month.

Lete yesterday the company reported its interim results for the six months to 30th June 2010.

Herencia highlighted its swift advancement of Paguanta, with 5,500m drilling programme completed during the period.

John Moore, Herencia chairman, said the timing of Paguanta’s development is set to take advantage of higher commodity prices.

“We believe the Paguanta Project will continue, as it has during 2010, to deliver positive news flow for the company and we remain confident that increasing zinc and lead prices forecast by some analysts will eventuate, as this could coincide with Paguanta coming on stream.”

As such, the company plans to begin a feasibility study during the 4th quarter of 2010.

In reference to the successful drilling programme, Moore highlighted: “Almost immediately, we achieved success in identifying a new high grade mineralised vein.”

The drilling was concluded at the end of June.

“The high grade assay results announced to the market support, yet again, our firm belief that Paguanta is shaping up as a near term mine development opportunity for the company, and one that has significant potential upside,” Moore said.  

“What continues to greatly encourage us is that after four drilling campaigns the mineralisation still remains open along strike (in both directions) and down dip.”

“We continue to intersect high grades at depth, we are still encountering new high grade veins, and gold continues to be reported in nearly every new hole drilled.”