Herencia Resources Regulatory News (HER)

28 Feb 2008 10:58

Herencia Resources PLC28 February 2008 28 February 2008 Herencia Resources plc ("Herencia" or the "Company") Herencia to focus on the Paguanta Project Withdraws from Iquique Joint Venture Herencia Resources Plc has decided to withdraw from the Iquique Joint Venture tofocus on it's 70% owned Paguanta Project in Northern Chile. With the successof the work programs at Paguanta during 2007, which led to the announcement ofthe Company's maiden JORC compliant Inferred Mineral Resource estimate on 5October 2007, the General Manager has recommended that the focus of personneland funds be directed toward advancing the Paguanta Project during 2008. TheCompany has therefore formally advised our joint venture partners at Iquique,one of whom is also our joint venture partner at Paguanta, of this decision. As part of that focus, the Company is pleased to announce that it has finalisedthe collection of a 1,000 kg bulk sample from Paguanta, with the sample to betransported to a laboratory in Perth, Western Australia to allow the company toundertake preliminary metallurgical testwork on the zinc-lead-silver ore. Theresults of this testwork will be used in a scoping study to be undertaken duringthe 2nd and 3rd quarters of 2008. In relation to the upcoming 10,000m drilling program, the reverse circulationdrilling (RC) component is still planned to start in April, however the diamonddrilling component originally planned to commence at the end of February hasbeen delayed by approximately four to six weeks as the rig is completing work onanother site. Executive Director Michael Bohm summarised "Given the stage we are at with thePaguanta Project and the results achieved in 2007, it makes obvious sense for usto focus our efforts there. Paguanta is the most advanced of our projects andthe one most likely to move into a development phase in the near term. Theshort delay to the commencement of the diamond drill program has been of somebenefit in that it has allowed management to complete the bulk sampling programahead of schedule." 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