www.herenciaresources.com
Herencia Resources plc is a multi-commodity development company listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange with a primary focus on developing its Paguanta Project in northern Chile. Herencia is progressing a Feasibility Study into the proposed Patricia Mine (zinc, silver, lead) within the Paguanta Project, with the goal of bringing the mine into production. Herencia is also focused on advancing exploration work on the Doris copper-silver prospect and the La Rosa porphyry-copper target in 2012. Herencia is also earning a 51% interest of the exciting Guamanga Copper-Gold Project in Chile. The Project has two components: a shallow, high grade copper-gold oxide target; and deeper, potential porphyry targets. Herencia has the backing of the global zinc group Nyrstar.
Herencia Resources ups tonnage and grade estimates for Paguanta
Herencia Resources (LON:HER) this morning reported a significant increase in the tonnage, grade and metal content of the resource at its Paguanta project in Chile.
Also, for the first time, Herencia included a gold grade estimation to provide possible revenue credit.
The JORC compliant estimate now stands at 1.42 Mt (million tonnes) grading 7.7% zinc, 2.4% lead, 146 g/t (grammes per tonne) silver and 0.3% g/t gold at a 4% zinc cut off and 3.51 Mt grading 4.6% zinc, 1.5% lead, 93 g/t silver and 0.2 g/t gold at a 2% zinc cut off.
At a cut off of 0% zinc, the resource amounts to 5.51 Mt grading 3.5% zinc, 1.2% lead, 75 g/t silver and 0.2 g/t gold.
The 2008 estimate put the resource at Paguanta at 3.15 Mt grading 3.9% zinc, 1.3% lead and 74 g/t silver at a cut off of 2% zinc.
The metal content thus increased by 32% for zinc from 270.9 Mlb (million pounds to 357.9 Mlb, 25% for lead from 90.3 Mlb to 113.1 Mlb and 40% for silver from 7.5 Moz (million ounces) to 10.5 Moz.
The 2010 estimate for gold content stands at 25,990 ounces.
The new resource estimate incorporated a total of 22,779 metres of drilling, including 5,728 metres from the 2010 programme.
The company called the update a “major milestone” for the company and the project, stressing the increase in grades.
“Of particular importance is that we have seen a substantial uplift in grade which, when combined with the additional tonnage, results in a significant increase in metal content.
“Furthermore, we remain excited by the exploration potential of this deposit. Even after the completion of this year's drill program, we have yet to close off the high grade mineralised veins.
“Indeed, we have discovered new veins, which leave the newly expanded resource open to further extensions,” said Managing Director of Herencia Resources Michael Bohm.
Herencia has declared the moving of Paguanta into development a priority, anticipating a mining and processing operation with an initial mine life of up to five years based on the results of the 2008 scoping study.
The feasibility study, which will be decided upon in Q4 2010, will be base don this mine life estimate.
Earlier this month, Herencia soared 60% after confirming high-grade copper and silver at the Paguanta’s Doris prospect.
Surface rock-chip sampling from the Chilean project returned copper grades up to 3.3%, and silver grading 617 g/t.
Paguanta covers 39 square kilometres and is made up of 14 granted mining licences on the northern part of the Chilean copper belt.
Shares in the company added a further 3% on today's news.
