Herencia Resources HER Paguanta Update

  Herencia Resources (HER) - Paguanta Update

RNS Number : 0291R
Herencia Resources PLC
14 November 2012




                            Herencia Resources plc

                                      

                        ("Herencia" or "the Company")

                               Paguanta Update

            More High Grade Results from Paguanta Work Programmes

Herencia Resources  plc, an  AIM quoted  exploration and  development  company 
operating in  Chile,  is pleased  to  provide an  update  in relation  to  its 
flagship Paguanta Project ("the Project"). The Project, which is 70% owned and
managed by Herencia, is  a high grade silver-zinc-lead  deposit is located  in 
northern Chile. The Company has undertaken a number of work programmes  aimed 
at incorporating an open pit mine into the current Paguanta Feasibility Study.



                                  Highlights

1. Further excellent results from a selected drill hole re-sampling  programme 
and surface  sampling  programme testing  for  up-dip extensions  to  existing 
high-grade silver and lead mineralisation at Paguanta (Patricia Deposit)  have 
been returned.

Drill hole re-sampling - significant results include:

PTDD071 8m grading 93g/t Ag, 3.1% Pb, 0.23g/t Au
(from 17m down hole)

including1m grading 349g/t Ag,11.5% Pb, 0.48g/t Au
(from 23m down hole)

PTDD109 2m grading 213g/t Ag, 0.6% Pb, 0.22g/t Au
(from 36m down hole)

PTDD125 4m grading 110g/t Ag, 0.6% Pb, 1.4% Zn, 0.17g/t Au (from
102m down hole)

Surface sampling - significant results include:

822284-822286:   Line   6      50g/t   Ag,   2.5%   Pb,    0.2g/t 
Au (Sample length 6.8m)

822228-822229: Line  6  41g/t  Ag,  0.3%  Pb   
 (Sample length 5.0m)

822332 :  Line 778g/t  Ag, 1.6%  Pb, 0.3g/t  Au   
 (Sample length 2.3m)

822371:Line  8      72g/t  Ag,  1.0%  Pb,  0.1g/t  Au 
 (Sample length 2.3m)

822373 :Line  875g/t Ag,  0.7%  Pb, 0.3g/t  Au   
 (Sample length 1.6m)

822421-822422:  Line  9  252g/t  Ag,   7.1%  Pb,  0.9g/t  Au    
 (Sample length 4.5m)

822483-822485: Line 11 217g/t Ag, 1.5% Pb, 1.7g/t Au  
(Sample length 6.5m)



2. In addition, metallurgical test work (leaching and conventional  flotation) 
to evaluate  the  recovery  of Silver  (Ag),  Zinc  (Zn) and  Lead  (Pb)  from 
'Transition Zone'  material  (typically  20m  to 80m  below  surface)  at  the 
Paguanta Project has  returned better than  anticipated results as  summarised 
below. Overall Transition Zone recoveries are as follows:

Ø Zinc recoveries  60 - 84 %

Ø Lead recoveries 20 - 40 %

Ø Silver  recoveries   60  - 80  %  (combined Flotation  and  Leach 
recovery)

These transition zone results are in  addition to the high recoveries  already 
achieved in the  primary sulphide  zones (ie  the main  planned mining  zones) 
previously announced on 26 September 2012.

Concentrate grades for the transition zone:

Ø Zinc   54 - 58 %

Ø Lead   46 - 70 %

Ø Silver (Zn Conc) 150 - 220 ppm

Ø Silver (Pb Conc) 2,500 - 5,000 ppm



Surface Sampling and Drill Hole Re-Sample Program:

As announced on 26  July 2012, the Company  commenced work on a  comprehensive 
and systematic surface sampling  programme to test  the surface expression  of 
the Patricia  mineralisation and  to undertake  a re-logging  and  re-sampling 
program for selected near surface drill holes. This work was aimed at defining
further high-grade silver and lead mineralisation up-dip and near-surface from
existing resources, to support the development of an open pit operation.

Both the surface sampling and re-logging  field work programmes have now  been 
completed and all results  received. The latest results  presented in Table  1 
and 2 together with those reported on 22 August 2012, successfully demonstrate
the presence of  wide zones  of mineralisation  at shallow  depths which  adds 
support for a potential open pit operation at Paguanta.

The results of the latest drill hole resampling are presented in Table 1  and 
include 8 metres grading 93g/t silver,  3.1% lead and 0.23g/t gold in  PTDD071 
(from 17  metres down-hole)  including 1  metre grading  349g/t silver,  11.5% 
lead, 0.48g/t gold  (from 23  metres down hole)  and 2  metres grading  213g/t 
silver, 0.6% lead and 0.22g/t gold in PTDD109 (from 36 metres down-hole).

Significant surface  sampling results  are presented  in Table  2 and  include 
252g/t Ag, 7.1% Pb and 0.9g/t Au over a 4.5m sample length and 217g/t Ag, 1.5%
Pb and  1.7g/t  Au  over  6.5m  sample  length.  The  surface  sampling  was 
undertaken by a  Company geologist  adhering to strict  sampling protocols  to 
ensure the Company's rigid Quality Assurance/Quality Controls were maintained.



Metallurgical Test Work - Transition Zone Material:



Metallurgical test work to evaluate the recovery of Silver, Zinc and Lead from
'Transition Zone' material (typically encountered 20 metres to 80 metres below
surface, usually in a potential open pit environment) at the Paguanta  Project 
has returned better than expected metallurgical recoveries.

Transition Zone material can be best described as ore that has been  partially 
leached and  oxidised  by  natural  weathering  and  as  such,  has  different 
metallurgical responses compared with primary ore.

The test work was undertaken using simulated concentrator (flotation  process) 
and leach  circuits to  recover valuable  minerals (Ag,  Zn and  Pb) from  the 
transition zone  material.  The  test  work programme  was  completed  by  ALS 
Laboratories (formerly  G&T Laboratories)  in Kamloops,  BC, Canada,  and  was 
based on  six  transition zone  samples  that  were selected  by  the  project 
geologists. The results of the two test programme, Flotation and Leach, can be
summarised as:-.



Concentrator (Flotation) Test Work - Transition Zone:



Key results obtained for the Concentrator (Flotation) test work on transition
zone material include:



Zinc Concentrate:

· Overall Flotation recoveries - (transition zone material)

o Zinc 60 - 84 %

o Silver 4 - 26 %

· Concentrate grades

o Zinc 54 - 58%

o Silver 150-220 ppm



Silver-Lead Concentrate:

· Overall Flotation recoveries - (transition zone material)

o Silver 16 - 45 %

o Lead 20 - 40 %

· Concentrate grades

o Silver 2,500-5,000 ppm

o Lead 46-70 %





Leaching Test Work - Transition Zone:



Key results  obtained  for  the  Leaching  test  work  programme  show  silver 
recoveries 36% to 78% and importantly the leach kinetics were relatively fast.
This work  is being  progressed  to review  the  potential for  heap  leaching 
initial silver rich oxide/transition ore  which may provide potential  capital 
cost savings during the initial phase of mine development.







Graeme Sloan, Managing Director of Herencia said:

"The final results  of the surface  sampling and drill  hole re-logging  again 
highlight the significant potential of  the Paguanta area and the  possibility 
of incorporating an open pit into the Mine Plan. When combined with the latest
metallurgical test work on transition type ore, it will allow a final open pit
mining study to be  completed. Early indications from  the open pit study  are 
very encouraging".

"With several new work programs added to the Feasibility Study, including  the 
surface sampling and near-surface drill hole re-logging program, reviewing the
potential for open pit mining and other associated study work, the Feasibility
Study is now anticipated to be completed at the end of next quarter. Achieving
this will be a tremendous result for  the Company and a credit to our  Chilean 
team."





Project Location

The Paguanta Project  is a silver-zinc-lead  deposit located in  the north  of 
Chile approximately 190 kilometres north-east  of the coastal city of  Iquique 
and 30 kilometres west of Chile-Bolivia  border. The Project is in the  Andes, 
3,400 to  3700 metres  above  sea level  on the  north  end of  the  Oligocene 
Porphyry Copper  Belt of  Chile  that includes  the  world class  deposits  of 
Escondida, Chuquicamata, Collahuasi  and Cerro Colorado.  Cerro Colorado is  a 
large operating  copper  mine,  operated  by  BHP  Billiton,  and  is  located 
approximately 35 kilometres south of Paguanta.







Date: 14 November 2012



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/Abigail Genis, City Profile +44 207 448 3244



References in this announcement to exploration results and potential have been
approved for release by MrGraeme Sloan (BAppSc Mining Engineering WASM) and Mr
Antonio Valverde (Bsc  Geology Universidad Complutense  de Madrid), both  with 
more than 15 years relevant experience  in the field of activity  concerned. 
Mr Sloan is a Member of  the Australasian Institute of Mining and  Metallurgy. 
Both Mr Sloan and Mr Valverde have consented to the inclusion of the  material 
in the form and context in which it appears.









Further   background   details    on   the   Company    can   be   found    at 
www.herenciaresources.com

                                      

                                   **ENDS**

                                      

                                      

                                      

                                      

                                      

                                      

                                      

                                      

                                      

Table1: Assay Results from Re-assayed Drill Holes at Paguanta



                            Dip     Azimuth  From To    Width   Zinc  Lead  Silver Gold

Hole ID Easting Northing (degrees) (degrees) (m)  (m) Down-hole Grade Grade Grade  Grade

                                                     (m)     (%)   (%)  (g/t)  (g/t)
PTDD071 494548  7809572     -54       180     17  25      8     0.04   3.1    93   0.23
                                   Including 1m @ 0.1% Zn, 11.5% Pb, 349g/t Ag, 0.48g/t
                                                        Au from 23m
PTDD087 494565  7809597     -50       180     46  47      1      1.6   1.9    68   0.05
PTDD109 494531  7809650     -60       180     36  38      2      0.2   0.6   213   0.22
PTDD113 494651  7809632     -65       180     58  60      2      1.6   0.0    3    0.03
PTDD125 494539  7809723     -45       191    102  106     4      1.4   0.6   110   0.17
PTDD129 494537  7809725     -50       180     76  78      2      1.8   0.0    2    0.01
                                             194  196     2      0.5   1.0    55   0.03



· All stated widths are down-hole intersections

· All samples assayed by ALS Laboratory Group, Chile

· Crushing all sample 70% < 2mm; quirting to 1 Kg; and powdered 85% <  75 
µm

· Zn-Pb-Ag-ME ICP41  method or AA46  ore grade for  Pb 0.01-30%, Zn  0.01 
-30% Ag 1-1500ppm

· Au-AA23 ore grade finish Au 0.005 - 10ppm Au fire assay

· Hole ID co-ordinate grid is PSAD56 UTM Zone 19S





Table 2: Significant Assay Results from Surface Sampling Program at Paguanta



                                                                       
                                         ME-ICP41 ME-ICP41 ME-ICP41
                                                                    Au-AA23
Sample Easting Northing  RL  Line Length    Ag       Pb       Zn
                                                                      Au
                                          (g/t)     (%)      (%)
                                                                     (g/t)
822228 494385  7809492  3789  6    2.5      42      0.4      0.0     0.08
822229 494384  7809494  3788  6    2.5      39      0.2      0.0     0.02
822230 494384  7809496  3786  6    2.5      36      0.2      0.0     0.05
822231 494382  7809498  3786  6     2       21      0.1      0.0     0.02
822232 494389  7809508  3781  6    1.8      19      0.1      0.3     0.02
822233 494389  7809510  3781  6    2.2      18      0.1      0.7     0.01
822235 494386  7809514  3778  6    3.1      9       0.0      0.5     0.01
822236 494385  7809517  3777  6    3.15     6       0.0      0.6    <0.005
822284 494365  7809778  3713  6    1.95     41      1.8      0.3     0.13
822285 494365  7809779  3714  6    2.29     91      4.2      0.1     0.32
822286 494362  7809780  3711  6    2.6      21      1.4      0.0     0.05
822287 494363  7809782  3711  6    2.2      15      0.8      0.1     0.03
822326 494333  7809477  3793  7    2.6      31      0.1      0.0     0.06
822328 494323  7809481  3788  7    2.06     16      0.1      0.0     0.05
822331 494339  7809519  3772  7    1.79     31      0.7      0.1     0.11
822332 494340  7809519  3771  7    2.28     78      1.6      0.1     0.27
822334 494347  7809522  3772  7    3.2      12      0.0      0.6     0.01
822371 494293  7809469  3780  8    2.3      72      1.0      0.3     0.10
822372 494293  7809471  3780  8    1.6      45      0.2      0.2     0.03
822373 494281  7809476  3777  8    1.6      75      0.7      0.0     0.26
822376 494287  7809484  3775  8    1.6      38      0.6      0.4     0.05
822381 494274  7809492  3773  8    1.88     64      0.1      0.4     0.02
822382 494288  7809530  3765  8    1.88     18      0.5      0.1     0.02
822383 494299  7809537  3763  8    2.57     26      0.1      0.5     0.01
822417 494300  7809849  3693  8    1.75     63      2.1      0.9     0.36
822421 494251  7809540  3760  9    2.1     276      6.6      0.3     0.80
822422 494248  7809540  3760  9    2.4     231      7.6      0.4     1.08
822423 494260  7809558  3755  9    1.34     7       0.0      1.3     0.10
822424 494261  7809560  3754  9    1.17     6       0.0      1.6     0.10
822425 494261  7809560  3753  9    1.33     32      0.4      1.3     0.11
822450 494238  7809633  3729  9    1.85     55      0.0      1.3     0.03
822469 494196  7809570  3750  10   2.65     0       0.0      1.1     0.02
822476 494192  7809734  3701  10   1.5      36      1.5      0.5     0.07
822483 494162  7809730  3701  11   2.3     222      0.8      0.2     1.02
822484 494162  7809732  3701  11   2.1     238      2.4      0.3     0.75
822485 494163  7809734  3701  11   2.1     191      1.3      0.2     3.50
821503 494642  7809470  3852  13   1.6      34      0.0      0.0    <0.005
821508 494650  7809467  3853  13   1.38     30      0.0      0.1    <0.005



Note: Co-ordinates in UTM, Zone 19, PSAD56

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCFFSFIDFESEEF -0- Nov/14/2012 07:00 GMT
 
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