Target Identified at Paguanta

3 Apr 2008 10:40

Herencia Resources PLC03 April 2008 3 April 2008 Herencia Resources plc ("Herencia" or the "Company") Porphyry-Copper Target Identified at Paguanta • Porphyry-copper target identified at Paguanta • Geophysical anomaly and coincidental alteration footprint measure 750m x 250m • Preliminary metallurgical test work commenced on zinc-lead-silver bulk samples • JV board meeting completed with JV partners contributing 30% of program costs Paguanta Project Herencia holds a 70% interest in the Paguanta Project in Northern Chile. Theproject, located on the northern end of the world renowned Chilean PorphyryCopper Belt, is approximately 150km east of the port of Iquique and 20 km southof a national highway. The Company announced its maiden zinc-lead-silver resource at Paguanta lastyear. Porphyry-Copper Target Identified at Paguanta In addition to the drill programs and resource work undertaken at Paguanta, theCompany has also been advancing work on its La Rosa prospect located 3km to thenorth of the existing zinc-lead-silver resource and situated on the sametenement group. This work has now led to the Company identifying a geophysical anomaly andcoincidental alteration footprint measuring 750m x 250m at 'La Rosa'. Herencia views the La Rosa prospect as a significant and advancedporphyry-copper target. The Company will be progressing site investigationswith a view to undertaking a drill program at La Rosa as a follow-on to the10,000m drill program soon to commence at Paguanta (this program of infill andextensional drilling is targeting an upgrade of the current resourceclassification and delineating new zones on which to update the currentzinc-lead-silver resource). Metallurgical Sampling Program In relation to the zinc-silver-lead program, metallurgical samples totallingapproximately 1,000kg have now been collected from two locations at Paguantawith 300kg of the sample transported to a laboratory in Perth, WesternAustralia. The grade of these samples, representing two separate ore zonesaccessed from the existing adit in locations approximately 40m below surface,can now be reported as: • Sample 1 - 14.09% Zn, 5.19% Pb, 320ppm Ag and 1.3g/t Au • Sample 2 - 4.77% Zn, 0.50% Pb, 32ppm Ag and 0.33g/t Au The Company notes the elevated gold grade in Sample 1. Preliminarymetallurgical test work has now commenced on the above samples with resultslikely due in May. The results will be included in a planned Project ScopingStudy to be completed this year. Program Funding Following the second JV board meeting held in Santiago on 31 March 2008,Herencia is pleased to confirm that our Chilean JV partners are continuing tofully contribute toward the program. Herencia believes any drill programundertaken at La Rosa during 2008 will be funded from existing cash reserves. Executive Director Michael Bohm stated "This is a most exciting result forHerencia. The Paguanta Project is now showing all the classic signs of a wellmineralised system with both a high grade zinc-silver-lead component andpotentially a porphyry-copper component, from the same alteration system. Beinglocated only 3km from our current site infrastructure, indeed the access roadruns right across the La Rosa porphyry-copper target, and situated on ourexisting granted tenements, the Company is very well placed to exploit thisopportunity in the near term." Mr. James Sinclair, Exploration Manager (Chile) for Herencia Resources, hasreviewed the information contained in this announcement. Mr. Sinclair has 13years 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