2nd Jul 2014 08:57
LONDON (Alliance News) - Herencia Resources PLC Wednesday said it has received the final assay results from drilling at the Picachos copper project in Chile, which continues to provide strong grades of copper, along with some silver in every interval.
The Chile-focused mineral exploration and development company said the most recent result include an 18 metre space at 1.33% copper and 6.1 grams per tonne of silver from 60 metres in depth at its PP14020 hole and a 20 metre space at 0.89% copper and 8.3 grams per tonne of silver from 62 metres in depth at its PP14028 hole.
The company said the 3,540 metre programme has shown high-grade copper results throughout the area with enough silver grades to offer a significant boost to its potential revenue stream .
Herencia said it will now analyse the data in order to build a preliminary geological model to help with planning the next stage of Picachos development. It added that due to the high number of shallow and high-grade intersections seen throughout the programme it is possible that the Picachos Project could support multiple cost-effective open pits.
The company has already released results for the site over the last four weeks with high-grade intersections including a 91 metre space at 1.42% copper and an 11 metre space at 1.18% copper from 72 metres depth.
Herencia added that in addition to the copper grades it is now seeing positive silver grades in assays ranging up to 38 grams per tonne, providing the opportunity for a second revenue stream at the site.
"I believe Picachos can potentially be developed quickly, with a very low capital cost. Any credit from a silver by-product will just lower what we already believe will be a low operating cost environment, given the shallow open pit-able nature of the mineralisation," Managing Director Graeme Sloan said in a statement.
Herencia Resources shares were up 2.0% to 0.500 pence on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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