Herencia Resources Regulatory News (HER)

24 Aug 2006 16:30

Herencia Resources PLC24 August 2006 Herencia Resources plc ("the Company" or "Herencia") Project and Exploration Update Highlights • Iquique Project - reverse circulation drilling has tested the near surface narrow historical veins with the best intersections: • 2 metres at 110g/t Ag and 1.72% Cu • 3 metres at 69g/t Ag and 0.084% Cu • 14 metres at 21.3g/t Ag, 0.16% Cu • 4 metres at 25.4g/t Ag, 0.24% Cu • 7 metres at 93.7g/t Ag, 0.076% Cu including 2 metres at 183g/t Ag, 0.065% Cu • Paguanta Project - surface rock chip sampling is extending the zone of anomalous silver, zinc, lead, copper and gold mineralisation to the north west. Best trench sample contained 204 g/t Ag and 5.79% Pb over a two metre channel width. • Paguanta Project - magnetic and IP survey has commenced and drilling is planned to commence in the quarter ending December 2006. A copy of this project update can be downloaded from the Company website whichincludes a map of the location of projects in northern Chile. Iquique Project The Iquique project area covers secured tenements over approximately 97 km(2) onthe coast of northern Chile. This mineral field contains numerous old silverworkings dating back to the Inca Empire and the Spanish colonial era. Thisproject area covers almost the entire Iquique mining district, which in the 19thCentury, with over 60 operating mines, was the second largest silver producer inChile. Drill Results A drilling program of 36 holes for a total of 3887 metres has been completed.The holes targeted outcropping silver and copper bearing sub-vertical veins inhistorical silver and copper workings at Rosa Amelia, Rose Marie, Monte Cristo,and Pajonales (the location of the holes is shown in figure 2 in the copy ofthis announcement on the company's website) Assays results from the majority of the 36 holes have been received and aretabulated in Table 1 (attached). Significant intersections include: Rose Marie • RC-01 3 metres at 69g/t Ag from 12 metres Rosa Amelia • RC-11 14 metres at 21.3g/t Ag, 0.16% Cu from 84 metres Pajonales • RC-16 4 metres at 25.4g/t Ag, 0.24% Cu from 13 metres Monte Cristo • RC-35 7 metres at 93.7g/t Ag, 0.076% Cu from 41 metres, including 2metres at 183g/t Ag, 0.065% Cu from 46 metres The majority holes from all prospects either intersected the mineralisedenvelope or terminated in stopes. RC-35 at the Monte Cristo prospectintersected a vein with high silver values (183g/t Ag). The drilling hasconfirmed the grade of veins and surrounding alteration and also supported theassociation of silver and copper in the system. Geological mapping, rock chip/dump, stream sediment and colluvium sampling arecontinuing to help define further drill targets. Early work supports astratabound style of mineralisation within the project area that will be drilltested when the extent and controls are better understood. The Company ispleased with the initial phase of exploration at Iquique which has supported thegeological model previously envisaged of narrow sub-vertical veins developedover the larger strata-bound target (as illustrated in Figure 3 in the copy ofthis announcement on the company's website). Paguanta Project The Paguanta Project is located on the northern end of the Chilean porphyrycopper belt, 120km east of the port of Iquique and 20 km south of the highway toBolivia (see figure 4 in the copy of this announcement on the company'swebsite). Paguanta contains old silver-zinc-lead workings which have providedpromising targets and a drill program has been planned. A number of othercopper, silver and gold targets have also been identified and are currentlybeing evaluated. Surface and underground sampling of the main Patricia zone - Englishman Mine(see figure 4 in the copy of this announcement on the company's website), isongoing with the results from the initial samples previously reported on 13 June2006. Additional results have been received for surface trench sampling and formiscellaneous sampling around the older workings (dumps, shafts and declines). The better results from dump sampling of the older workings were: Sample No. Au_ppm Ag_ppm Pb_% Zn_% 36985 0.517 306 2.02 0.07 36987 0.902 164 5.37 0.11 36988 0.145 140 1.01 0.03 36989 0.127 22.3 0.14 0.01 36990 0.047 44.7 0.16 0.03 36991 0.518 127 1 0.02 36992 0.188 72.4 0.96 0.02 36994 0.273 24.1 0.17 0.07 36995 0.296 350 1.47 0.04 36998 0.179 174 0.73 0.01 The better results from the trench sampling were: Sample No. Au_ppm Ag_ppm Pb_% Zn_% 37068 0.147 65.1 1.51 0.1 37077 0.697 204 5.79 0.32 Both samples are 2 metre channel samples from Trench N3 and are separated by 16mof lower grade. The better rock and channel sampling results from the older workings were: Sample No. Au_ppm Ag_ppm Pb_% Zn_% 36983 0.027 61.3 0.48 0.72 36986 1.164 192 1.19 0.05 36993 0.246 80 0.26 0.03 36996 0.335 226 4.5 0.15 36997 0.349 130 0.51 0.03 36999 0.168 225 1.11 0.07 • Sample 36983 was a 70-cm channel sample of a quartz vein. • Sample 36986 was a 30-cm channel sample of a quartz vein. • Sample 36993 was a selected sample of a quartz vein retrieved from the dump. • Sample 36996 was a 1.2m channel sample of a quartz vein. • Sample 36999 was a 40-cm channel sample of a quartz vein. These results combined with the previously reported silver, zinc and lead assaysshow the Patricia target to extend over an area of up to 800 metres by 300metres (see figure 5 in the copy of this announcement on the company's website),and may extend to the northwest and north (under cover). A geophysical ground magnetic and IP program has commenced to better delineatethe Patricia zone (see figure 5 in the copy of this announcement on thecompany's website), especially in areas where it is interpreted to extend underthin talus cover. The results of this program will be used to fine tune theupcoming drill program Drilling is scheduled to commence at Paguanta in the quarter ending December2006. The company is currently reviewing tender submissions received fromselected drilling contractors. Regional rock chip and stream sediment sampling is continuing within thePaguanta Project to identify additional silver, copper, zinc, lead and goldtargets. A new zone 2km west of the Patricia Zone has been identified (MinaBlanca). James R. Reeves, Registered Professional Geologist, General Manager of IquiqueResources, has reviewed the information contained in this announcement relatingto the Iquique and Paguanta projects. James Reeves has over 36 years experiencein the resources sector and is a qualified person within the definition of theAIM guidelines. Further background details on the Company and its Iquique and Paguanta Projectscan be found at www.herenciaresources.com **ENDS** Contact: Michael Bohm +61 8 9221 7466 Table 1: Significant Drill Hole ResultsRose Marie prospectHole No. Easting Northing Total Incl. Dir. From To Length Au g/t Ag g/t Cu % Depth RC-01 388652 7757615 150 -65 180 6 12 6 8 0.268 12 15 3 69 0.084 RC-02 388650 7757674 159 -65 180 NSM NSM NSM RC-03 388660 7757545 162 -65 180 111 114 3 1 0.260 RC-04 388347 7757634 165 -65 180 12 15 3 0.5 0.547 incl 0 3 3 0.5 0.519 incl 12 15 3 3 0.547 incl 21 24 3 2 0.342 144 165 21 0.01 3.3 0.006 RC-05 388363 7757562 120 -65 180 98 114 16 0.01 10.4 0.277 incl 111 114 3 0.01 23 0.373 RC-14 387718 7757280 156 -65 360 89 90 1 2.7 0.036 RC-15 388935 7757595 150 -65 180 NSM NSM NSM Rosa Amelia prospectHole No. Easting Northing Total Incl. Dir. From To Length Au g/t Ag g/t Cu % Depth RC-06 388197 7756923 45 -65 360 NA NA NA RC-07 388473 7756842 132 -65 360 61 63 2 37 0.512 80 82 2 110 1.717 RC-08 388330 7756935 150 -65 360 NA NA NA RC-09 388327 7756876 66 -65 360 NA NA NA RC-10 388056 7756951 150 -65 360 75 80 5 0.017 20.9 0.292 RC-11 388173 7756871 156 -65 360 84 98 14 0.011 21.3 0.160 incl 84 88 4 0.012 21.6 0.129 incl 88 91 3 0.013 23.7 0.114 incl 94 98 4 0.010 30.3 0.264 RC-12 388943 7756595 133 -65 360 49 53 4 16.2 0.105 63 69 6 21.3 0.141 RC-13 387901 7756970 137 -65 360 108 111 3 0.019 29.0 0.208 Pajonales prospectHole No. Easting Northing Total Incl. Dir. From To Length Au g/t Ag g/t Cu % Depth RC-16 394311 7767003 135 -65 360 13 17 4 0.00 25.4 0.241 RC-17 394129 7767215 75 -65 360 47 49 2 4.0 0.022 52 57 5 2.8 0.004 RC-18 394123 7767193 75 -65 360 0 3 3 2.6 0.004 RC-19 394115 7767166 75 -65 360 NSM NSM NSM RC-20 394205 7767086 120 -65 360 19 21 2 3.45 0.020 RC-21 394237 7766105 120 -65 360 3 6 3 7.4 0.092 RC-22 394242 7766092 120 -65 360 34 35 1 1.117 9.5 0.079 RC-23 394302 7766125 120 -65 360 27 33 6 4.6 0.049 RC-24 394098 7766859 131 -65 360 116 119 3 6.7 0.098 RC-25 393621 7766448 120 -65 360 36 45 9 8.5 0.169 RC-26 393602 7766385 110 -65 360 95 110 15 2.0 0.040 RC-27 393602 7766357 80 -65 360 NSM NSM NSM RC-28 393577 7766319 100 -65 360 NSM NSM NSM Monte Cristo prospectHole No. Easting Northing Total Incl. Dir. From To Length Au g/t Ag g/t Cu % Depth RC-29 392786 7767003 75 -65 360 NA NA NA RC-30 392760 7767031 130 -65 360 35 36 1 12.0 0.014 46 58 12 3.9 0.009 46 53 7 3.3 0.009 incl 53 58 5 4.7 0.009 incl 119 120 1 12.1 0.009 36 39 3 34.2 0.067 RC-31 392746 7767054 75 -65 360 NA NA NA RC-32 392550 7767050 11 -65 360 NSM NSM NSM RC-33 392552 7766959 75 -65 360 NSM NSM NSM RC-34 392658 7767129 30 -90 0 41 48 7 0.018 93.7 0.076 RC-35 292937 7767167 75 -65 360 46 48 2 0.028 183.0 0.065 RC-36 392601 7767057 14 -65 360 Notes: • NSM = no significant mineralisation. • NA = no assays, results pending. • Coordinate system is Peruvian PSAD56 UTM Zone 19S. • All interval lengths are downhole. • Ag, Cu, Pb and Zn analysed by either Inductively Coupled Plasma Atomic Emission Spectroscopy (ICPAES) and/or by Atomic Absorption Spectrometry (AAS). Au assayed by fire assay (30gm charge) with AAS finish. This information is provided by RNS The company news service from the London Stock Exchange