13 Jan 2010 10:19
Herencia Resources plc
("Herencia" or the "Company")
Project Update - Paguanta Project (Chile)
Highlights:
Major Drilling engaged to undertake diamond drill program at Paguanta Project
Drilling scheduled to commence in February 2010 as planned
Recruitment of Geological management team complete
Herencia Resources Plc (AIM: HER), is please to provide an update on its Paguanta zinc-silver-lead-gold Project in northern Chile:
Specialist drill contractor, Major Drilling, has been engaged to undertake the next drill program at Paguanta. The program will consist of approximately 3,500m of diamond drilling and will target potential high grade extensions to the known mineralisation immediately along strike and down dip of the holes that returned high grade assay results in the previous drilling program in 2008.
Drilling is scheduled to commence in the second week of February 2010. Subject to this timetable being maintained, first assay results could be available in early-April 2010.
Herencia's joint venture company Compania Minera Paguanta (CMP), has recruited Antonio Valverde and Bill Feyerabend to oversee the drilling program. Both gentlemen are experienced senior geologists. Mr Valverde has extensive operating experience in Chile and Mr Feyerabend has been involved with all three previous drilling programs at Paguanta.
Herencia's Chilean joint venture partner Costa Rica Dos has confirmed they will contribute to maintain their 30% stake in the project.
The consulting firm Runge has completed a review of the gold assay results achieved at Paguanta. Previously, samples with silver grades in excess of 50ppm were re-assayed for gold. As a result of the work carried out by Runge, it has been decided to re-assay all samples within the existing mineral resource envelope for gold. This work will commence in February in conjunction with the start of drilling.
Commenting on the update, Managing Director Michael Bohm stated:
"It is pleasing to report that we are on schedule for a February 2010 start to drilling at Paguanta. The funds from our raising in October2009 only hit the bank account a few weeks ago, so we are not resting on our laurels.
Our goal remains to have the drilling completed in May 2010, with assay results coming in over the April-June period, allowing for the Mineral Resource Estimate to be updated by mid-2010. With positive drilling results, the Company would be looking to potentially move to a Feasibility Study phase in the third quarter of 2010.
With zinc, lead, silver and gold prices all having rallied, by maintaining momentum and achieving positive results the Project could be operational in 2012."
Enquiries:
| Herencia Resources plc | Michael Bohm | +61 8 9211 0600 |
| WH Ireland Limited | Katy Mitchell | +44 161 832 2174 |