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 to acquire 51 pct stake in Guamanga copper-gold target, Chile
Herencia Resources (LON:HER) will acquire a controlling interest in an advanced copper gold-target in Chile which has already revealed significant mineralisation.
The Guamanga Project displays potential abundant iron oxides, copper mineralisation and copper, gold, colbalt and moly anomalies at surface, said Herencia today.
The firm has now signed an agreement, through one of its 100 percent-owned Chilean subsidiaries, to acquire a 51 percent stake in the target.
Guamanga - 11,2 square kilometers - is currently owned by Inversiones Santa Patricia Limitada and lies around 750 kilometres north of the capital Santiago.
It appears to correspond to a potential Iron Oxide Copper Gold (IOCG) system - an example is Anglo American's large Mantoverde Mine deposit - only 15km to the north, said Herencia.
Three of seven holes already drilled have cut significant copper and gold mineralisation at shallow levels, including 8m at 1.55 percent copper and 0.53 g/t gold from 36m and 2m at 2.69 percent copper and 0.33 g/t gold from 9m.
Another result showed 2.20% copper and 1.34 g/t gold from 42 metres and 3m at 2.88 percent copper and 2.58 g/t gold from 34m.
Managing Director Michael Bohm said: "The Guamanga copper-gold project provides Herencia with an advanced copper-gold target, in a well established and highly regarded geological environment.
"The fact that significant copper and gold grades have already been intersected so close to surface, and in close proximity to a large existing copper mine, is considered to be very encouraging by the company."
He added that the company's shareholders now had exposure to two advanced opportunities in Chile, encompassing the broad spectrum of copper, gold, zinc, silver and lead mineralisation."
Under the agreement Herencia must drill a minimum of 7,500 metres over a 30 month period and make option payments totaling US$600,100 over the same period.
Herencia also has the alternative to drill only 6,000 metres and make a further cash payment of US$150,000 (in addition to making option payments totaling $600,100) to the vendor.
A minimum of 2,400 metres must be drilled within the first 12 months. The anticipated budget for this period is around US$750,000.
Subject to Herencia achieving its 51 percent ownership stake, the joint venture parties would then contribute toward all future costs in line with their 51:49 percent equity ownership.
There is no turnover associated with the assets and the assets currently generate no profit.
Herencia's flagship project is Paguanta in the north of the country.
