South America focused junior miner Herencia Resources (LON:HER) has said that mineralisation intersected during the course of the ongoing drilling campaign at its Paguanta zinc-lead-silver-gold project in Chile signaled either a 300 metre eastern continuation of the New Vein that was previously announced to the market or an entirely new mineralised vein.
The company has reported the latest results from drilling at Paguanta. Hole PTDD049 intersected mineralisation at a number of points down the hole, returning intervals of 7.6 metres at 4.3% zinc, 2% lead, 247 g/t (grammes per tonne) silver and 0.14 g/t gold including 4.4 metres at 6.4% zinc, 2.1% lead, 274 g/t silver and 0.19 g/t gold. Hole PTDD048 intersected 7 metres at 6.7% zinc, 1% lead, 67 g/t silver and 0.16 g/t gold including 4 metres at 10.6% zinc, 0.8% lead, 93g/t silver and 0.25g/t gold.
The mineralization appeared to occur between the Cathedral and Central veins and at the current stage has been interpreted as part of the Cathedral vein, which was reported to remain open to the east by hole PTDD050, which intersected 1.5 metres at 3.88% zinc, 1% lead and 65 g/t silver.
Both PTDD051 and PTDD052 have intersected visible base metal sulphide mineralisation, 50 metres above and 30 metres below the high grade previously intercepted in hole PTDD043. This hole returned an intersection of 7.5 metres at 7.1% zinc, 7.3% lead and 324g/t silver including 4.95 metres at 9.5% zinc, 10.6% lead and 467 g/t silver.
Assay results for these two holes will be available in July, which will also see the completion of the final hole in the current drilling programme.
“Hole PTDD049 is shaping up as perhaps one of the most significant holes we have seen to date. As we near the completion of our fourth drill Program at Paguanta, we are still intersecting new and broad zones of high grade mineralisation. This particular intersection represents either a significant continuation of the 'New' vein or an entirely new vein, and bodes well for potentially adding to the resource base,” said managing director of Herencia Resources Michael Bohm.
Late last month, the company reported a high grade strike extension to the Cathedral vein after receiving assay results form four holes, including PTDD043.
The Paguanta project currently has an indicated and inferred mineral resource of 3.15 Mt at 3.9% zinc, 1.3% lead and 74 g/t silver including a higher grade component of 1.01 Mt at 6.6% zinc, 2.2% lead and 119 g/t silver.
Shares in the company rose more than 17% on the news by midday.