logo-loader

Herencia Resources confirms expansion of Guamanga project

Published: 07:52 23 Sep 2013 BST

no_picture_pai

Herencia Resources’ (LON:HER) partner has confirmed exploration work will start soon at Guamanga and that it intends to increase the area of the project due to its potential.

Aussie group Oz Minerals and Herencia entered into a joint venture in June to explore the iron ore, copper and gold deposit in Chile. 

After completing its due diligence, Oz now believes there is much more potential at Guamanga than it first thought and has started to buy additional exploration leases to increase the size of the project’s area.

Terms of the original joint venture deal will also now include any new leases, said Herencia.

Under the original agreement, Oz has the option, in stages, to acquire up to a 90% stake from Herencia after funding US$13mln worth of exploration work.

Phase one will see Oz take a 51% stake in return for US$3mln and 20 months worth of exploration. Work on this phase is expected to begin on this towards the end of the month.

Graeme Sloan, Herencia’s managing director, said OZ Minerals is one of Australia's leading copper producing companies and he was greatly encouraged that it sees the potential to expand Guamanga.

“This really is an exciting time for Herencia shareholders especially when you consider the company now has a JV with a major Australian company at Guamanga; a completed Feasibility Study at Paguanta with plenty of upside; and our recently completed option agreement on Picachos, an advanced copper project that could host a significant copper resource and that could potentially be fast-tracked into full scale production".


Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

1 hour, 28 minutes ago