Herencia Resources Regulatory News (HER)

4 Sep 2007 11:01

Herencia Resources PLC04 September 2007 Herencia Resources plc ("Herencia" or the "Company") High Grade Assay Results Continue at Paguanta Strike length now extends to over 800m Highlights: • Drill program successfully concluded with 5,889m drilled • High grade assay results continue to be achieved at Paguanta: O 4m at 5.1% zinc, 140 g/t silver and 2.6% lead from 60m in hole PTRC017 O 4m at 5.6% zinc, 670 g/t silver and 3.1% lead from 43m in hole PTRC021 O 4m at 9.3% zinc, 223 g/t silver and 3.4% lead from 82m in hole PTRC032 O 7m at 6.3% zinc, 142 g/t silver and 2.3% lead from 112m in hole PTRC033 O 3m at 4.8% zinc, 104 g/t silver and 2.3% lead from 63m in hole PTRC034 • All three of the main structures (Cathedral, Central and Camp veins) have now returned high zinc, silver and lead grades near surface • Strike length extended by drilling to over 800m on the Cathedral vein • Investigation of Paguanta's resource potential to commence Paguanta Project Herencia Resources Plc holds a 50% interest in the Paguanta Project in NorthernChile and is in the process of increasing this interest to 70%. The project,located on the northern end of the Chilean Porphyry Copper Belt, isapproximately 150km east of the port of Iquique and 20 km south of a nationalhighway. Drilling Program The reverse circulation (RC) drill program has now been successfully completedwith 50 holes completed for a total of 5,889m drilled. Assays results from thefirst phase of the program (35 holes) have been received with the majority ofholes intersecting mineralisation. Significant assay results for holes drilled in the first phase are tabled below: Hole ID Width From Zinc % Silver (g/t) Lead % CommentPTRC001 24m 18m 4.36 86 1.29 Camp veinincludes 3m 27m 5.55 61 1.08 0.87 g/t Au 7m 34m 8.13 192 2.42 1.15 g/t AuPTRC002 2m 19m - 85 1.48 Camp veinPTRC003 2m 33m - 36 - Camp veinPTRC005 4m 6m - 60 - Camp vein 8m 73m - 36 -PTRC006 33m 107m 4.28 59 1.00 Cathedral veinincludes 9m 108m 8.53 116 1.68 0.43 g/t Auincludes 1m 127m 10.05 34 0.66includes 4m 135m 7.37 92 1.85PTRC007 18m 89m 8.45 123 2.61 Cathedral veinincludes 6m 100m 13.27 199 4.49 0.44 g/t AuPTRC008 8m 68m 9.82 280 5.55 Cathedral veinPTRC010 20m 35m 1.57 - - Cathedral veinPTRC011 4m 83m 4.86 94 2.03 Cathedral vein 3m 96m 3.42 87 1.56PTRC012 4m 11m - 44 - Splay from Cathedral veinPTRC013 3m 49m 4.46 73 1.62 Splay from Cathedral vein 4m 76m 2.76 52 1.71 Cathedral veinPTRC014 28m 5m - 40 1.46 Cathedral Hanging-wallincludes 6m 6m - 82 5.05 15m 106m 6.8 92 1.60 Cathedral veinincludes 5m 113m 13.7 222 3.92PTRC015 6m 15m - 49 1.02 Cathedral Hanging-wall 3m 99m 4.45 71 0.77 Cathedral Hanging-wall 4m 105m 4.42 54 1.15 Cathedral Hanging-wall 3m 125m 6.58 22 - Cathedral Hanging-wall 11m 160m 2.50 55 0.93 Cathedral veinPTRC016 11m 84m - 49 0.49 Cathedral Hanging-wall 5m 98m 3.74 80 0.91 Cathedral Hanging-wall 4m 148m 5.05 29 0.31 Cathedral veinPTRC017 13m 60m 2.24 91 1.31 Cathedral veinincludes 4m 60m 5.15 140 2.6 Cathedral veinPTRC018 2m 62m 3.51 104 1.97 Cathedral Hanging-wall 4m 72m 2.22 41 0.88 Cathedral Hanging-wall 13m 82m 1.56 45 0.74 Cathedral veinincludes 3m 82m 2.91 88 1.66 Hole ID Width From Zinc % Silver (g/t) Lead % CommentPTRC019 2m 43m - 50 - Exploration holePTRC021 4m 42m - 73 - Exploration hole 10m 49m 2.56 305 1.4includes 4m 43m 5.69 670 3.14 Cathedral vein extensionPTRC022 7m 12m - 104 - Exploration holeincludes 1m 13m - 437 -PTRC025 4m 22m 1.21 26 0.26 Cathedral Hanging-wallPTRC026 5m 44m 1.71 169 1.18 Cathedral Hanging-wall 1m 126m 3.48 44 0.92 Cathedral veinPTRC029 2m 47m 4.52 - - Cathedral veinPTRC030 3m 67m 2.78 110 0.93 Central veinPTRC031 2m 30m 3.84 29 - Cathedral veinPTRC032 4m 82m 9.34 223 3.41 Central veinPTRC033 7m 112m 6.38 142 2.32 Central veinPTRC034 3m 63m 4.82 104 2.24 Camp vein Notes: • Zn, Ag, Pb and Au analysed by Atomic Absorption Spectrometry (AAS).• All intervals are downhole widths. Whilst drilling was concentrated on the Cathedral vein, mineralisedintersections have now been achieved over some 300m on both the Camp and Centralveins. Executive Director Michael Bohm, in summarising the status of the Project,stated "Paguanta continues to go from strength to strength - the strike lengthof mineralisation in the Cathedral vein extends to over 800m and with theresults of the first 35 holes now to hand, assays well in excess of 5% zinc, 100g/t silver and 2% lead are becoming commonplace. The mineralisation looks tobe hanging together very well. We look forward to receiving the results fromthe second phase of the program later this month, to allow us to commence workwith a view to quantifying a resource at Paguanta and to further consider theopen pit mining potential". With the successful completion of this drill program, conditions have now beensatisfied for the issue of the Mineral Securities ("Minsec") 'DeferredConsideration Shares' pursuant to the terms of the Acquisition Agreement betweenHerencia Resources and Minsec in relation to the Paguanta and Iquique Projects("the Projects"). Under the agreement 50,000,000 Ordinary Shares in HerenciaResources plc shares are to be issued to Minsec subject to the achievement ofcertain performance criteria, in this case upon a total of US$2 million beingexpended on the Projects. A further announcement will be made when theseshares are issued to Minsec. A copy of this announcement, including drill hole locations and photographs, canbe downloaded from the Company website. Mr. James Sinclair, Exploration Manager (Chile) for Herencia Resources, hasreviewed the information contained in this announcement. Mr. Sinclair has 12years experience 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 foundat 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 Exchange