04 Feb | New Copper-Gold Opportunities for Herencia Resources
In a week or two that’s been largely forgettable from a portfolio value point of view, Herencia Resources forced a smile from me yesterday when they announced a new copper and gold opportunity in Chile and an update to their Paguanta Project.
Here’s a little of the meat from the RNS on the new opportunity:
Herencia has entered into a non-binding Memorandum of Understanding (MOU), through one of its 100% owned Chilean subsidiaries, to potentially acquire a 51% controlling interest in an exciting new copper-gold opportunity in Chile.
The project is located approximately 750 kilometres north of Santiago in Region III in Chile at low elevations between 700 metres and 900 metres above sea level. The Project is approximately 11.2 square kilometres in area and is approximately 3.5 kilometres in the north-south direction and 4.2 kilometres in the east-west direction. Access to the Project site is excellent.
The Project mineralisation style appears to correspond to a potential Iron Oxide Copper Gold (IOCG) system. Examples of IOCG deposits in the region include the Candelaria and Manto Verde mines. According to Herencia’s geologists, the Project displays evidence of a potential IOCG mineralisation system with:
- Abundant iron oxides (limonites) and primary magnetite and hematite;
- Copper mineralisation apparently associated with the iron oxide as breccias and stockwork;
- Iron-gold-copper veins and mantos mineralisation; and
- Copper, gold, cobalt and molybdenum anomalies at surface.
Importantly, and in addition to the above, three of seven drill holes already completed by the vendor have intersected significant copper and gold mineralisation at shallow levels:
- Hole 1 – 8 metres at 1.55% copper and 0.53 g/t gold from 36 metres
- Hole 2 – 2 metres at 2.69% copper and 0.33 g/t gold from 9 metres
- Hole 2 – 6 metres at 2.20% copper and 1.34 g/t gold from 42 metres
- Hole 3 – 3 metres at 2.88% copper and 2.58 g/t gold from 34 metres
In terms of their Paguanta Project, Herencia announced:
- CMP has appointed an experienced Project Manager, Mr Sergio Avendano, to oversee the Feasibility Study to be completed by Golder Associates. Mr Avendano was formally with Xstrata, based in Santiago, Chile.
- A new office has been opened in Santiago to be the base for future project development work, complementing the existing office located in Iquique.
- Site Geophysical work has been completed and the drilling of Doris remains on track for commencement by month end with major drilling scheduled to mobilise to site in the last week of February 2011. Subject to maintaining this schedule first assay results could potentially be available in late April 2011.
- The permitting process in relation to in-fill drilling of Patricia is progressing, with the target to commence drilling activity at Patricia in April 2011.
- Preliminary metallurgical samples for the Feasibility Study are to be dispatched to the laboratory in Canada this month.
Managing Director Michael Bohm had this to say:
“This new Copper-Gold Project opportunity provides Herencia with an advanced, potentially open pit-able copper-gold target, located in a geologically and logistically excellent environment. The fact that significant copper and gold grades have already been intersected so close to surface bodes well for us.”
“In relation to Paguanta, we are pleased with progress on the Project and anticipate a start to drilling at Doris in approximately 4 weeks.“
The timing of the RNS (which can be read in full at the London Stock Exchange web site) at 4.12pm GMT on a Thursday didn’t give the market long to react, though the price did a 5% about face and today – as I type – we’ve added another 5%. With the yo-yoing going on with a number of the shares in my portfolio, realistic, orderly gains make for a nice change of pace.
For some educated discussion, facts and figures on Herencia Resources the guys behind Herencia-Research.info really know their stuff. I suggest you make this stop one on the Herencia homework highway.
Thanks again for dropping by.