5th Oct 2007 10:52
Herencia Resources PLC05 October 2007 For immediate release 5 October 2007 Herencia Resources plc ("Herencia" or the "Company") Inferred Mineral Resource Announced for Paguanta Project 70% earn-in milestone achieved Highlights: • Inferred Resource of 2.51Mt at 4.1% Zinc, 1.3% Lead and 77g/t Silver (@ 2% Zinc cut-off) • +US$2m expended on the Project - satisfies milestone for 70% earn-in • Open Pit project development potential to be investigated by Herencia Paguanta Project The Paguanta Project, located on the northern end of the Chilean Porphyry CopperBelt, is approximately 150km east of the port of Iquique and 20 km south of anational highway. The first ever drilling at Paguanta was undertaken in late 2006 with an elevenhole diamond drill program for 1,174 metres. Eight out of ten holes drilledintersected mineralisation with four holes returning higher grade zinc, silverand lead assays. Highest individual grades of 15.75% Zn, 447ppm Ag and 5.58%lead were achieved (1m samples). A 5,889m reverse circulation ("RC") drill program was then successfullycompleted in late August 2007 with 40 out of the 50 holes intersectingmineralisation, confirming the high grade zinc, silver and lead assay resultsachieved in the earlier diamond drill program. Mineral Resource The results from both the diamond and RC drill programs together with thegeological mapping and interpretation, were then modelled by ResourceEvaluations Pty Ltd ("ResEval"), an experienced Perth-based geologicalconsultancy group. The Paguanta deposit was estimated by ResEval in a standardSurpac block model using an Inverse Distance Squared (ID(2)) interpolation. Detailed resource modelling comprised of: • Definition and modelling of envelopes representing mineralised boundaries; • Statistical and Geostatistical analysis of data • Compilation of a block model representing the mineralised envelopes; • Resource estimation and confidence categorisation. The Inferred Mineral Resource estimate for Paguanta is summarised in the tablebelow: Table 1 - Inferred Mineral Resource Estimate: Total Contained MetalZn % Tonnes Zn Pb Ag Zn Metal Pb Metal Ag Cut Off Mt % % g/t Tonnes Tonnes Moz 2 2.51 4.1 1.3 77 103,100 32,100 6.18 2.5 1.96 4.6 1.5 86 90,700 28,400 5.44 3 1.45 5.3 1.7 102 76,600 24,400 4.72 4 0.74 7.1 2.4 146 52,600 18,100 3.48 Notes: • Figures used are rounded to 1 decimal place for Zn% and Pb% and to the nearest gram for Ag g/t • Bulk Density of 3.1t/m(3) for 'vein' ore, 4.08t/m3 for +10% Zn ore grades and 2.67t/m3 for the oxide. • Block cell size 5m (N-S), 25m (E-W), 5m (vertical), sub celled to 1.25m, 6.25m and 1.25m respectively . • The mineral resource estimate complies with recommendations in the Australian Code for Reporting of Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee ( JORC) of the AusIMM. • The mineral resource estimate incorporates all drilling carried out to date (1,174m of diamond and 5,889m of RC) • Assays composited to 1m interval Project Earn-in Under the terms of the Agreement in relation to the Paguanta Project, US$2million of eligible expenditure was required to be spent before mid-2008 to earna 70% stake in a joint venture company which will hold the Paguanta projectlicence. Herencia has formally advised its joint venture partners of thisexpenditure milestone being achieved and work on incorporating the joint venturecompany has commenced. 12 Month Development Program Herencia's management team are now evaluating the resource report in detail andpreparing a work program for the next 12 month period. The plans and targetsfor the next 12 months include both in-fill and step-out drilling, furthergeophysical work, upgrading the resource estimate, potentially increasingresource tonnages, a Scoping Study (to include mining and processing/metallurgical components), and the commencement of baseline environmental workon site. Commenting on the results, Executive Director Michael Bohm stated "In a 10 monthperiod, Herencia has gone from collaring our first drill hole, to announcing atwo and a half million tonne Inferred Mineral Resource at the Paguanta Project. This is a significant milestone, one that provides a solid base to build on,aimed at a potential open pit mining operation at Paguanta. The managementteam are now focussed on the work required to realise that potential. I thankour personnel and shareholders for their efforts and support and look forward toa successful period ahead." Mr J Sinclair (MAusIMM) Exploration Manager (Chile) for Herencia and Mr J Clark(Consulting Geologist for ResEval) and Mr P Payne (Principal Geologist forResEval) contracted by Herencia, compiled the technical aspects of this reportrelating to the Paguanta Project. Mr Sinclair and Mr Payne have sufficientexperience that is relevant to the style of mineralisation and type of depositunder consideration and to the activity that is being reported on to qualify asa Competent Person as defined in the 2004 Edition of the Australasian Code forReporting of Mineral Resources and Ore Reserves. Mr Sinclair, Mr Clark and MrPayne consent to the inclusion in the report of the matters in the form andcontext in which it appears Mr J Sinclair, Exploration Manager (Chile) for Herencia, has reviewed theinformation contained in this announcement. Mr. Sinclair has 13 yearsexperience in the resources sector and is a qualified person within thedefinition of the AIM guidelines. Further background details on the Company and the Paguanta Project can be found at: www.herenciaresources.com Contact: MICHAEL BOHM HERENCIA RESOURCES PLC +61 8 9221 7466 DAVID YOUNGMAN WH IRELAND LIMITED +44 161 832 2174 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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