High-grade hits continue for Herencia

Herencia Resources plc

High-grade hits continue for Herencia

Wide copper intercepts

New parallel zone of mineralisation identified

Highlights

· Assay results from Stage II drilling continue to show high grades and very broad zones of mineralisation at the Picachos Copper Project in Chile.

· Results confirm the near surface high grade copper mineralisation is consistently in the 1% to 2% copper grade range and multiple 10m to 60m wide intersections exist.

· A new zone of copper mineralisation has been located in a down-plunge position some 100m to 200m to the east of 40M Shaft area. Both diamond and reverse circulation drill holes intersected high-grade copper sulphides that appear to be related to a major regional fault and a geophysical anomaly interpreted to be parallel to the 40M Shaft mineralisation.

· The new parallel zone is potentially over 1,000m in length with almost no previous drilling over entire length.

· Drill assay results received this week include very broad zones of copper mineralisation:

Hole DD14002 (Diamond) 64m at 1.01% copper (and 8.8g/t silver) from 84m including:

§ 17m at 1.30% copper (and 10.1g/t silver) from 84m including:

o 11m at 1.54% copper (and 12.8g/t silver) from 90m

§ 18m at 1.54% copper (and 13.7g/t silver) from 130m including:

o 3m at 2.45% copper (and 22.1g/t silver) from 130m

o 9m at 2.00% copper (and 18.1g/t silver) from 139m

Hole PP14033 (RC) 58m at 1.06% copper (and 8g/t silver) from 109m including:

§ 15m at 1.16% copper (and 10.1g/t silver) from 111m including:

o 4m at 2.14% copper (and 21.5g/t silver) from 122m

§ 12m at 1.51% copper (and 9.4g/t silver) from 130m

§ 6m at 1.79% copper (and 13.9g/t silver) from 161m

21m at 1.01% copper (and 10.5g/t silver) from 16m including:

§ 7m at 1.42% copper (and 14.6g/t silver) from 30m

Hole PP14034 (RC) 40m at 1.18% copper (and 9.1g/t silver) from 130m including:

§ 34m at 1.30% copper (and 10g/t silver) from 130m including:

o 14m 2.11% copper (and 18g/t silver) from 134m including:

· 10m at 2.50% copper (and 22.9g/t silver) from 135m

Herencia Resources plc (AIM:HER), the Chile-focussed mineral exploration and development Company, is pleased to advise laboratory assay results from drilling at its advanced Picachos Copper Project ("Picachos" or the "Project") have returned further high grade results from the next four holes drilled. Importantly the laboratory results, which are conducted under strict quality control procedures, have shown excellent correlation with readings taken in the field by the company's geology team using the hand held XRF. The correlation allows the Company to gain a very good understanding immediately the hole is drilled and XRF samples taken, as turn-around time for the laboratory samples can take up to two weeks to be returned.

The Stage II drill program is designed to provide information that will support the preparation of a Mineral Resource Estimate in early-2015, which will underpin the completion of a Mine Feasibility Study in 1Q/2Q2015. These continuing high-grade results are predominantly from the 40m Shaft area which is potentially the site of the first open pit with mining targeting to commence 2H2015.

Drilling and assay results these last few days has confirm the discovery of a new copper-rich zone, located in a down-plunge position some 200m to the east of 40M Shaft area. Both diamond and reverse circulation drill holes intersected high-grade copper sulphides in this new zone that appears to be related to a major regional fault trending in a north-west direction.

Drilling results and core logging suggests that the broad ore zone splits into two zones at depth, with the first shallow zone (less than 100 meters) confirming the broad continuity of the Frenchman and 40M Shaft areas and a second and exciting new high-grade zone (+100 meters), potentially dipping 45° to the east and forming an extended copper-rich zone.

A table of significant assay results reported by the laboratory is shown in Appendix 1.

The current drill program is scheduled to conclude this month, with all assay results expected to be received by the end of the month.

Managing Director, Graeme Sloan, commented on the results achieved from the current drilling at the Picachos Project:

"We are greatly encouraged by both the discovery of a new zone of mineralisation and the very broad widths of copper assays being encountered. Intersection of +50 metres with good copper grades at shallow open pit-able depths is certainly good news for shareholders.

Remember this is over and above the Stage I drilling which resulted in some very wide high grade intersections including 91m at 1.42% copper and 45m at 1.70% copper which were announced back in June this year.

Roughly translated, the more ore in a future open pit design envelope, the less waste, potentially leading to reduced 'waste-to-ore' strip ratio's and hence potentially a lower overall cost per pound of copper produced and thus greatly enhanced project economics.

We are also seeing silver grades around 10-20g/t of silver which could play an important role in the overall economics as they will potentially cover a significant part of our mine operating costs.

The next assay results are eagerly awaited."

About the Picachos Project

The Picachos Project is located approximately 50km south east of the coastal city of La Serena, 8km west of both the existing Andacollo copper-gold project operated by Teck Resources and the mining town of Andacollo (population approximately 10,000 people), and 10km south of the privately owned Tambillos copper mine. The Project is very well positioned for infrastructure with existing high voltage power located approximately 3km east of the Project area and serviced by two all-weather access roads.

Small scale mining is currently being undertaken by private miners via small open pit and underground mining operations. Ore is being trucked to a Chilean government owned processing plant (ENAMI plant) where it is processed. This mining will continue up until such time as the Option to fully acquire Picachos is exercised (at Herencia's discretion) and is seen by the Company as an excellent mechanism to achieve geological and grade data across many zones of mineralisation.

A review of available data and Herencia's own geological and drilling programs have confirmed multiple zones of copper mineralisation with a combined strike length of over 8km contained within the Project area. In some areas the close relationship of these zones coupled with multiple occurrences of out-cropping wide zones of mineralisation, highlights the excellent potential for large scale open pit mining to take place at Picachos. Historic mining has focused mainly around the high grade structures, however in some areas the mantos have been mined up to 50m wide. Mineralisation generally commences from one to five metres below the surface and appears open at depth.

About Herencia

Herencia Resources plc, is an AIM quoted exploration and development company operating in Chile. In addition to the Picachos Copper Project, the Company also has the Guamanga Copper Project and the 70% owned Paguanta Project, a high grade silver-zinc-lead project located in northern Chile. The Company's corporate office is located in Perth and the main technical and management office is located in Santiago, Chile where it has been operating for over eight years.

For further information, please contact:

Graeme Sloan, Herencia Resources plc +61 8 9481 4204

Katy Mitchell, WH Ireland Limited +44 161 832 2174

References in this announcement to exploration results and potential have been approved for release by Mr Graeme Sloan (BAppSc Mining Engineering WASM) and Mr Antonio Valverde (Bsc Geology Universidad Complutense de Madrid), who have more than 20 years relevant experience in the field of activity concerned. Mr Sloan is a Member of the Australasian Institute of Mining and Metallurgy. Mr Sloan and Mr Valverde have consented to the inclusion of the material in the form and context in which it appears.

Further background details on the Company can be found at www.herenciaresources.com

**ENDS** 

Appendix 1 - Laboratory Assay Results (received to date) with latest results shaded:

(All widths stated are down-hole intersections)

· All samples assayed by ALS Laboratory Group, Chile/Peru

· Crushing all sample 70% < 2mm;split to 1 Kg; and powdered 85% < 75 µm

· ME ICP41 method or Cu-OG62 ore grade for Cu 0.001-50%

· All widths are downhole widths

· Hole ID co-ordinate grid is WGS84 UTM Zone 19S

The QA/QC process used to record the drilling results includes collecting and recording 10kg and 20kg one metre and two metre samples respectively, over the entire length of the drill hole with the one metre samples confined to the mineralised zones and the use of standards, blanks and duplicates. The samples are visually logged by the onsite Company geologists for geology and mineralisation and hand-held XRF ("XRF") samples taken over the mineralised zones. The individual samples are then transported and submitted to an accredited analytical laboratory (ALS) for assaying.