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6 Oct 2009 08:52
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6Ā OctoberĀ 2009
Herencia Resources plc
("Herencia" or the "Company")
Project Update -Ā PaguantaĀ Zinc-Silver-Lead-GoldĀ Project
Further to the recent announcement in relationĀ to the granting ofĀ Mining Tenements at the Company's flagship Paguanta zinc-silver-lead-gold Project in northern Chile,Ā Herencia Resources Plc (AIM: HER),Ā is pleasedĀ toĀ provide an update onĀ Project status:
The resources consulting firmĀ RungeĀ Limited ("Runge")Ā hasĀ been engaged to assist withĀ planning andĀ optimising of the next drilling program, provisionally scheduled to commence in early 2010Ā (subject to funding). The goal is to target the high grade extensions immediately along strike and down dip of theĀ holes that returned high gradeĀ assay resultsĀ during the previous drill program. Runge hasĀ been responsible for all Mineral Resource Estimate workĀ on the projectĀ to date.
The Company has also engaged Runge to review the significance of theĀ extensiveĀ gold mineralizationĀ within theĀ current ResourceĀ envelope. The goal is to establishĀ the relationship between theĀ numerousĀ gold gradesĀ achievedĀ in the 2008 programĀ and theĀ currentĀ zinc-silver-lead mineralization. To date the highest gold gradeĀ has been 4.57g/tĀ in a drill holeĀ (1mĀ interval) and 1.56g/t in a 150kgĀ bulkĀ metallurgicalĀ sample. Potential gold revenue isĀ currentlyĀ notĀ factored into the project economic model.
TheĀ Company has identified a number of opportunities for sourcing project water requirementsĀ in the immediate vicinity of the project. These are inĀ addition to the waterĀ sourcesĀ already identified on the mining leasesĀ themselves, and our joint venture partners own water exploration applications in the area. ThisĀ provides the Company with several options forĀ securing its future project water supplies.
A review of 2ndĀ hand plantĀ and equipment is to commenceĀ shortlyĀ to identify potential capital cost savings. No opportunities for 2ndĀ hand plant existed when the Scoping Study was undertakenĀ in 2008 and this situation has now changed.
TheĀ national highway, located someĀ 20km north of the Paguanta Project, has now been re-aligned, widened and re-sealed, further improvingĀ theĀ already well establishedĀ infrastructureĀ in theĀ projectĀ area.
Commenting on theĀ update, Managing Director Michael Bohm stated:
"With the significant improvement in base metal pricesĀ seen over the course of 2009, combined with the recentĀ projectĀ milestones achievedĀ and the potential to expand theĀ existingĀ mineral resource immediately along strike and down dip, the Company is currently reviewingĀ options available to advanceĀ bothĀ the Paguanta ProjectĀ and its adjacent La Rosa porphyry-copper prospect".
A copy of the Company's latest presentation can be found atĀ www.herenciaresources.com
Enquiries:
|
HERENCIA RESOURCES PLC |
Michael Bohm |
+61 8 9211 0600 |
|
WH IRELAND LIMITED |
Katy Mitchell |
+44 161 832 2174 |
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