The latest high grade drill results from Herencia Resources’ (LON:HER) Patricia project in Chile included the discovery of a new vein, highlighting the potential for further extensions of its mine life.
Some of the best results from today’s report included intersections of eight metres grading eight percent zinc, two metres at 16.3 percent zinc and 1.2 metres at 1.2 percent zinc, 11 percent lead and 568 grammes per tonne (g/t) silver.
Importantly, the results from holes PTDD101 and PTDD073 have indicated a new vein south of Carlos vein with PTDD101 identifying multiple high grade silver and lead zones.
The company said the definition of the new vein would support its view that the mine life of Patricia could be extended further considering that multiple veins are open along strike and down dip.
Herencia also confirmed a further zone of high grade zinc mineralisation located below the high grade intersection of five metres grading 10.2 percent zinc reported from hole PTDD091 back in October.
All assay work from the ongoing drill programme is expected to be completed by the end of March.
“Positive drill results continue to flow from the 2011 drilling program at Patricia including high silver and lead grades close to surface, which may have positive implications for mine grade early in the mine schedule,” said managing director of Herencia Michael Bohm.
Earlier this week, WH Ireland analyst Richard Smith said Herencia’s 70 percent stake in Patricia is worth between US$45.2 million and US$60.4 million.
He added that another asset owned by Herencia, the Guamanga copper-gold project, had the potential for a “company making discovery”.
Herencia has confirmed the existence of deeper drill targets at Guamanga, which are to be tested during the current quarter.
“The next period will be exciting for Herencia as the company continues to receive the Patricia assay results, the first Guamanga assay results and the commencement of a deep drilling program at Guamanga,” added Bohm.
Investors cheered today’s drilling report, sending shares in Herencia up 7.5 percent to trade at 2.45 pence in early deals, valuing the company at £37.3 million.