Herencia Resources Regulatory News (HER)

12 Feb 2008 13:32

Herencia Resources PLC12 February 2008 12 February 2008 Herencia Resources plc ("Herencia" or the "Company") Paguanta Project Update • 10,000m drilling program to commence on 28 February 2008 • Drill program aiming for June completion with a mid-year target for a Resource update • Geophysical program completed - new conductors outlined • Preliminary metallurgical sampling to commence as a pre-cursor to a scoping study • Herencia controls 70% of Chilean company formed to hold Paguanta Project • JV partner contributing 30% of program costs • Senior Geologist appointed Paguanta Project Herencia Resources Plc holds a 70% interest in the Paguanta Project in NorthernChile. The project, located on the northern end of the Chilean PorphyryCopper Belt, is approximately 150km east of the port of Iquique and 20 km southof a national highway. Drilling programs undertaken by Herencia in 2006/7 identified an InferredMineral Resources of 2.5Mt grading 4.1% Zn, 1.3% Pb and 77g/t Ag at a 2%Zncut-off, as announced by the Company to the market on 5 October 2007. Themineral resource estimate complies with recommendations in the Australian Codefor Reporting of Mineral Resources and Ore Reserves (2004) by the Joint OreReserves Committee (JORC) of the AusIMM The mineralisation remains open inmost directions and the near surface nature of the resource may lend itself toopen pit mine development. Drilling Program A 10,000m drilling program is scheduled to commence at the end of February withthe diamond rig due on site on the 28th and the RC program earmarked to commencein late March. The work will be performed by the same contractor whosuccessfully completed the 2007 drilling program. Site activity has commencedwith a dozer currently preparing drill pads. It is planned to completedrilling in early-June to allow the Mineral Resource to be updated. Geophysics Prior to finalising drill collars extensive ground magnetic, Induced Polarity(IP) and Electro-magnetic (EM) surveys were recently completed. The EM surveyoutlined a number of new conductors in the vicinity of the mineral resourcearea, beneath shallow cover, which may represent buried veins. Previousground magnetic and IP surveys were extended over the large alteration zonenorth of the resource area and have provided a number of geophysical anomaliesthat are currently under investigation. Metallurgical Sampling The Company is preparing to obtain metallurgical samples from selectedunderground locations at Paguanta. The existing adit allows relatively easyaccess to parts of the mineralised zones. Approximately 1,000kg of sample isto be collected and used in preliminary metallurgical testwork as part of aProject scoping study planned to be completed during the 2nd and 3rd quarters of2008. Chilean Company Formed A Chilean company, Compania Minera Paguanta (CMP) has been formed to hold thePaguanta project. Herencia controls 70% of CMP with joint venture partnercompany Compania Minera Costa Rica (Costa Rica) holding 30%. Herencia'sexecutive director Michael Bohm has been appointed Chairman of CMP. Programfunding is now proceeding on a 70/30 basis. Senior Geologist Appointed Herencia is please to announce the appointment of Mr Christain Hub as SeniorGeologist for CMP. Mr. Hub has extensive geological experience in AndeanCordillera and has previously worked for Mirasol, Rio Tinto and WMC amongstothers in Chile, Argentina and Peru. He joins an existing well credentialedteam led by Jim Sinclair. Executive Director Michael Bohm stated "Herencia is well placed for 2008 withapproximately £2.5 million currently on hand, an experienced drilling contractorengaged and a senior field team in place. The plan for the drill program is toboth expand the resource base as well as move some of the Inferred resource intothe Indicated category. Additionally, 2008 will see us undertake a scopingstudy on the project in what we hope will be the prelude to advancing to aFeasibility Study stage by year-end". 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