22nd Jun 2012 07:00
Herencia Resources plc
("Herencia" or the "Company")
Patricia Mineral Resource Estimate Update
"Paguanta" Project
Herencia is pleased to announce an updated Mineral Resource estimate for its Patricia ("Paguanta") Zinc-Silver-Lead Project, located in northern Chile.
Highlights:
·; The updated Patricia Mineral Resource estimate (at 2% Zn cut-off) has resulted in a:
o 244% increase in the combined Measured and Indicated Resource categories
o 29% increase in Total Resource tonnes
when compared to the 2010 Mineral Resource estimate.
·; The Patricia Total Mineral Resource estimate now stands at:
o 5.87 Mt @ 3.3% Zn, 1.2% Pb, 72 g/t Ag & 0.2 g/t Au (at 1% Zn cut-off)
o 4.53 Mt @ 3.7% Zn, 1.3% Pb, 83 g/t Ag & 0.2 g/t Au (at 2% Zn cut-off)
o 1.90 Mt @ 5.6% Zn, 1.9% Pb, 123 g/t Ag & 0.2 g/t Au (at 3% Zn cut-off)
o 1.07 Mt @ 7.2% Zn, 2.4% Pb 136 g/t Ag & 0.3 g/t Au (at 4% Zn cut-off)
·; The Patricia mineralisation remains open in all directions.
The 2012 Patricia Mineral Resource estimate was completed by international consultancy firm, Golder Associates SA, an independent mining consulting group with offices in Santiago. The Mineral Resource estimate has been reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves [2004] (the JORC Code).
When compared to the previous Patricia Mineral Resource estimate in 2010 (at 2% zinc cut-off), the 2012 Resource estimate has resulted in a 244% increase in the Measured and Indicated resource categories and a 29% increase in total tonnage. A comparison of the Mineral Resource estimates at various zinc cut-off grades are shown in Tables 1 and 2.
A total of approximately 15,600m of drilling was undertaken at Patricia during the 2011 program, including both diamond and RC drilling.
The Patricia mineralisation remains open at depth and along strike with potential for the discovery of further mineralised veins.
Table 1: Patricia Mineral Resource Estimate 2012
Patricia Mineral Resource Estimate 2012 | ||||||||||||||||||||
Measured Resource | Indicated Resource | Inferred Resource | Total Resource | |||||||||||||||||
Zinc Cut-off (%) | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t |
1 | 0.75 | 4.7 | 1.8 | 98 | 0.2 | 3.37 | 3.2 | 1.1 | 68 | 0.2 | 1.74 | 2.8 | 1.0 | 67 | 0.2 | 5.87 | 3.3 | 1.2 | 72 | 0.2 |
2 | 0.56 | 5.7 | 2.1 | 118 | 0.2 | 2.57 | 3.6 | 1.2 | 78 | 0.2 | 1.40 | 3.1 | 1.2 | 78 | 0.2 | 4.53 | 3.7 | 1.3 | 83 | 0.2 |
3 | 0.35 | 7.8 | 2.8 | 158 | 0.3 | 1.03 | 5.5 | 1.8 | 112 | 0.2 | 0.52 | 4.3 | 1.6 | 124 | 0.3 | 1.90 | 5.6 | 1.9 | 123 | 0.2 |
4 | 0.29 | 8.7 | 3.2 | 173 | 0.3 | 0.62 | 6.8 | 2.2 | 127 | 0.3 | 0.16 | 6.1 | 1.7 | 109 | 0.4 | 1.07 | 7.2 | 2.4 | 136 | 0.3 |
Table 2: Patricia Mineral Resource Estimate 2010
Patrcia Mineral Resource Estimate 2010 | ||||||||||||||||||||
Measured Resource | Indicated Resource | Inferred Resource | Total Resource | |||||||||||||||||
Zinc Cut-off (%) | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t | Million Tonnes | Zn % | Pb % | Ag g/t | Au g/t |
1 | - | - | - | - | - | 1.47 | 3.6 | 1.2 | 69 | 0.2 | 3.93 | 3.6 | 1.2 | 77 | 0.2 | 5.40 | 3.6 | 1.2 | 75 | 0.2 |
2 | - | - | - | - | - | 0.91 | 4.9 | 1.5 | 87 | 0.3 | 2.60 | 4.5 | 1.4 | 95 | 0.2 | 3.51 | 4.6 | 1.5 | 93 | 0.2 |
3 | - | - | - | - | - | 0.42 | 7.8 | 2.5 | 139 | 0.3 | 1.35 | 6.5 | 2.0 | 136 | 0.3 | 1.77 | 6.8 | 2.1 | 137 | 0.3 |
4 | - | - | - | - | - | 0.32 | 9.1 | 3.0 | 162 | 0.4 | 1.09 | 7.3 | 2.2 | 142 | 0.3 | 1.42 | 7.7 | 2.4 | 146 | 0.3 |
Note: Figures expressed to one or two decimal places and are subject to rounding
Commenting on the Patricia Mineral Resource upgrade, Managing Director Michael Bohm stated:
"The primary goal of the 2011 drilling program was to upgrade the resource categories of the 2010 Mineral Resource estimate. To achieve a 244% increase in the combined Measured and Indicated categories and a 29% increase in overall tonnage is a great result for the Company. We now have approximately 70% of the resource classified as Measured or Indicated which we believe is a major milestone.
Given that the resource is positioned within the largely untested Patricia ("Paguanta") IP anomaly, we believe this latest upgrade highlights the prospectivity of the undrilled portion of the anomaly. When coupled with the depth and strike extension potential of high grade mineralisation at Patricia it highlights the future potential for further additions to our Resource inventory.
The new resource data will now be incorporated into the Patricia Feasibility Study which, following the recent announcement of shallow high grade silver drill intersections, will also be examining the potential for the inclusion of an open pit early in the mine development plan."
For further information, please contact:
Michael Bohm, Herencia Resources plc +61 8 9481 4204
Katy Mitchell, WH Ireland Limited +44 161 832 2174
Simon Courtenay, Broker Profile +44 207 448 3244
The information in this report that relates to the 2012 Mineral Resource estimate is based on information compiled by Dr Marcelo Godoy. Dr Godoy is a full time employee of Golder Associates, a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. The Mineral Resource estimate complies with recommendations in the Australasian Code for Reporting of Mineral Resources and Ore Reserves (2004) by the Joint Ore Reserves Committee (JORC). Dr Godoy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report that relates to the 2010 Mineral Resource estimate was previously announced on 19 September 2010.
References in this announcement to exploration results and potential have been approved for release by Mr Michael Bohm (BAppSc Mining Engineering WASM) and Mr Antonio Valverde (Bsc Geology Universidad Complutense de Madrid), both with more than 15 years' relevant experience in the field of activity concerned. Mr Bohm is a Member of the Australasian Institute of Mining and Metallurgy. Both Mr Bohm and Mr Valverde have consented to the inclusion of the material in the form and context in which it appears.
Glossary of Technical Terms:
Ag | silver |
Au | gold |
Cut-off | the lowest assay included in an ore estimate |
Feasibility Study | a detailed investigation and analysis of a deposit in which geological, engineering, operating, economic and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production. |
g/t | grams per tonne |
JORC Code | the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia |
Mt | million tonnes |
Pb | lead |
Zn | zinc |
Further background details on the Company can be found at www.herenciaresources.com
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