13th Aug 2014 09:47
LONDON (Alliance News) - Herencia Resources PLC said Wednesday that it had received environmental approval from Chilean authorities for its Paguanta Zinc-Silver project, and expressed confidence for the project on the strengthening price of zinc.
The Chile-focused mineral exploration and development company said that the recent strong gains in the price of zinc and falls in warehouse zinc supply inventories are "strongly supportive" of the next stage of development at the Paguanta project.
Further geological investigative work in an area east of the Patricia orebody at the project has identified key indicators supporting the potential existence of a porphyry-copper system, it said.
The Patricia East area shows "evidence of leached sulphide disseminates with recognisable stockworks of pyrite and leached copper minerals and associated occasional relics of chalcopyrite," the company said. This is commonly associated with porphyry systems, which suggests that Patricia East may be the source of high grade surface copper found at the adjacent Doris prospect, it added.
The company said that given its focus on its Picachos Project and Patricia Project, it does not plan to undertake any further work at Patricia East. However, given the emerging porphyry potential of the site, it is hosting visits with a "small number of resource industry groups". It is not in any formal negotiations over the site.
Shares in Herencia were trading down 1.2% at 0.425 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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