6th Oct 2009 08:52
6 October 2009
Herencia Resources plc
("Herencia" or the "Company")
Project Update - Paguanta Zinc-Silver-Lead-Gold Project
Further to the recent announcement in relation to the granting of Mining Tenements at the Company's flagship Paguanta zinc-silver-lead-gold Project in northern Chile, Herencia Resources Plc (AIM: HER), is pleased to provide an update on Project status:
The resources consulting firm Runge Limited ("Runge") has been engaged to assist with planning and optimising of the next drilling program, provisionally scheduled to commence in early 2010 (subject to funding). The goal is to target the high grade extensions immediately along strike and down dip of the holes that returned high grade assay results during the previous drill program. Runge has been responsible for all Mineral Resource Estimate work on the project to date.
The Company has also engaged Runge to review the significance of the extensive gold mineralization within the current Resource envelope. The goal is to establish the relationship between the numerous gold grades achieved in the 2008 program and the current zinc-silver-lead mineralization. To date the highest gold grade has been 4.57g/t in a drill hole (1m interval) and 1.56g/t in a 150kg bulk metallurgical sample. Potential gold revenue is currently not factored into the project economic model.
The Company has identified a number of opportunities for sourcing project water requirements in the immediate vicinity of the project. These are in addition to the water sources already identified on the mining leases themselves, and our joint venture partners own water exploration applications in the area. This provides the Company with several options for securing its future project water supplies.
A review of 2nd hand plant and equipment is to commence shortly to identify potential capital cost savings. No opportunities for 2nd hand plant existed when the Scoping Study was undertaken in 2008 and this situation has now changed.
The national highway, located some 20km north of the Paguanta Project, has now been re-aligned, widened and re-sealed, further improving the already well established infrastructure in the project area.
Commenting on the update, Managing Director Michael Bohm stated:
"With the significant improvement in base metal prices seen over the course of 2009, combined with the recent project milestones achieved and the potential to expand the existing mineral resource immediately along strike and down dip, the Company is currently reviewing options available to advance both the Paguanta Project and its adjacent La Rosa porphyry-copper prospect".
A copy of the Company's latest presentation can be found at www.herenciaresources.com
Enquiries:
|
HERENCIA RESOURCES PLC |
Michael Bohm |
+61 8 9211 0600 |
|
WH IRELAND LIMITED |
Katy Mitchell |
+44 161 832 2174 |
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