16 Aug 2013 07:00
16 August 2013
Herencia Resources plc
("Herencia" or "the Company")Guamanga Project Update
Herencia Resources plc (AIM:HER) is pleased to announce the following update on progress at its 100% owned Guamanga Iron Oxide Copper Gold (IOCG) Project in northern Chile.
As announced on 5 June 2013, a wholly owned subsidiary of Australia's OZ Minerals Ltd, OZ Exploration Chile Limitada ("OZE"), is undertaking a due diligence process on Guamanga, with a view to executing a joint venture agreement with the Company.
OZ Minerals has advised Herencia that:
· The Guamanga target area may be larger than first anticipated and they now wish to expand the Project area. OZ Minerals, through their subsidiary, have therefore commenced to acquire additional exploration leases not currently owned by Herencia. This will expand the Guamanga Project foot-print. Oz Minerals have confirmed that the terms of the Agreement already in place with Herencia will be extended to fully incorporate the larger Project area.
· The due diligence process is taking a little longer than planned.
Herencia's Managing Director, Graeme Sloan, commented:
"We have an excellent working relationship with the management at OZ Minerals and whilst the due diligence process is taking a little longer, we believe the outcome will be a significant positive for all parties.
OZ Minerals believe that Guamanga has the potential to be bigger than first thought. They are aiming to expand the JV area and bring it within the umbrella of the agreement with Herencia.
We will keep shareholders updated as we make further progress toward completing the process."
About OZ Minerals
OZ Minerals is an Australian based mining company with a primary focus on copper. The company owns and operates the high quality Prominent Hill copper-gold mine in South Australia. Prominent Hill produces some of the world's highest grade copper concentrates. In 2013, production guidance for the year is between 82,000 tonnes to 88,000 tonnes of copper and between 120,000 ounces and 130,000 ounces of gold contained in concentrates.
OZ Minerals also owns the Carrapateena copper-gold project in South Australia which is a similar style of deposit to Prominent Hill. Carrapateena is one of Australia's largest undeveloped copper deposits, currently at an advanced exploration stage.
About Herencia
Herencia Resources plc, an AIM quoted exploration and development company, operating in Chile. In addition to the Guamanga Project, the Company has recently completed a Feasibility Study in relation to its 70% owned Paguanta Project, a high grade silver-zinc-lead project located in northern Chile.
The Company is looking to complete project permitting for Paguanta, whilst investigating a number of potential funding alternatives (including Debt, Off-take Agreements, Stream Financing, Equity and Joint Venture options) over the next 12 months in parallel with the permitting process before a development decision is made, potentially in the second half of 2014. Herencia has also entered into an option agreement to potentially acquire the high grade Picachos Copper Mine in central Chile and is looking to joint venture the Picachos Project for a free-carry equity stake.
About Guamanga
The Guamanga Project is located approximately 750 kilometres north of Santiago in Region III in Chile. Access to the Project site is excellent with the Pan-American Highway located only 30 kilometres to the west and a major airport a 60 minute drive to the south. The style of mineralisation at Guamanga appears to correspond to a potential Iron Oxide Copper Gold (IOCG) system, an example of which is Anglo American's large Mantoverde Mine, located only 15 kilometres to the north of the Guamanga Project.
For further information, please contact:
Graeme Sloan, Herencia Resources plc +61 8 9481 4204
Katy Mitchell, WH Ireland Limited +44 161 832 2174
Simon Courtenay, Broker Profile +44 207 448 3244
Further background details on the Company can be found at www.herenciaresources.com
**ENDS**