Herencia Resources makes "significant" progress

26th Sep 2011 11:48

Chilean mining company Herencia Resources made "significant" progress at the Patricia zinc-silver resource in the first half of 2011, the company said. The group has also added a second project to its portfolio, the Guamanga Copper-Gold Project. "The period has been an eventful period for Herencia," the firm said. "At the start of the period, the company announced that it had entered into an agreement to acquire a 51% controlling interest in the Guamanga copper-gold opportunity in Chile and that it had commenced a 15,000m drilling programme at Paguanta as part of the broader feasibility study on the Patricia zinc-silver resource."Diamond drilling at the resource returned, amongst other grades, a high grade result of 6m at 5.9% zinc, 2.6% lead and 144g/t silver. The firm anticipates that the Carlos vein has the potential to provide additional tonnage to its resource base.During the first half of the year the company also undertook drilling and exploration work at Doris/La Rosa with further work planned for these earlier stage prospects.At the start of July the company successfully completed a placing through WH Ireland Limited, to raise £2.8m from the issue of 125,000,000 new ordinary shares at a price of 2.25p per share. These funds will largely be used toward advancing the Guamanga copper-gold project via a drilling programme planned for the fourth quarter of 2011 and additional drilling of the Carlos vein at Patricia, and to advance engineering works including access road design and borefield exploration.The share price fell 2.78% to 1.75p.NR