Herencia Appoints Consulting Firm for Paguanta Project
09 October 2009

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Mineral exploration company Herencia Resources has appointed resources consulting firm Runge for its Paguanta zinc-silver-lead-gold project, located in northern Chile.

Runge will help plan and optimise the next drilling programme, which is expected to start early next year subject to financing.

Herencia hopes to target the high-grade extensions along the strike and down dip of the holes that provided high grade assay results during the earlier drilling programme.

Runge has been in charge of the project's mineral resource estimate activity to date.

Runge will also be responsible for assessing the significance of the comprehensive gold mineralisation within the present resource envelope.

To date the highest gold grade has been 1.56g/t in a 150kg bulk metallurgical sample and 4.57g/t in a drill hole, the company said.

Herencia Resources raises 1.37 million for Paguanta Zinc project, drilling to commence in early 2010
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South American focused junior miner Herencia Resources (AIM: HER) has raised 1.37 million through an issue of 250 million new shares for its Paguanta zinc-silver-lead-gold project in Chile and its adjacent La Rosa porphyry-copper prospect.


The Paguanta orebody remains open both along strike and at depth. We are very pleased with the support we continue to receive in relation to our plans to target the potential extensions to the known areas of high grade mineralization at Paguanta and to further evaluate the gold-copper prospectivity of the project, said Managing Director of Herencia Michael Bohm.


The Paguanta project hosts a JORC-compliant indicated and inferred resource of 3.15 Mt (million tonnes) graded at 3.9% zinc, 1.3% lead and 74 g/t silver. The highest gold grade has so far been 4.57 g/t (grams per tonne) over an interval of 1 metre and 1.56 g/t in a 150 kilogramme bulk metallurgical sample.


The next drilling programme is scheduled to commence early next year, targeting the high grade extensions along strike and down dip of the holes that returned high assay results during the previous programme.


The company said that Bohms wife Charmaine Lobo acquired 1.8 million shares in the placing, bringing Bohms stake in the company to 0.62%. Cape Lambert Iron Ore Limited does not have a notifiable interest in the company after disposing of all of its 279.4 million shares.

Proactive Investors reported that South American focused junior miner Herencia Resources climbed in early trade after releasing its interim results reporting lower pre tax losses and revenue while saying the Paguanta project was progressing on time and expecting the recovery in copper, zinc and lead prices to continue.

Herencia said that it quickly reacted to the worsened economic environment by conserving cash having something to show for it as pre tax losses for the 6 months ended 30 June more than halved to EUR 189,424 from 2008s EUR 519,357 bringing losses per share down to 0.03 pence from 0.09 pence.

Finance revenue declined to EUR 468 from l2008s EUR 40,648.

Meanwhile, operations at the companys flagship Paguanta zinc, lead, silver project have been progressing on time as a drilling program, resource estimate and scoping study were completed on schedule. The company said is was managing the tenure process to secure mining licenses for the areas presently covered by exploration permits and reported progress on its drilling operations at Paguanta where drill assay grades turned out to be higher than the mineral resource estimate and appeared to be increasing.

While lamenting the significantly weakened commodity markets which made 2009 a challenging period for the resource sector, Herencia noted the recent recovery in zinc and lead prices, expecting it to carry on overt he next several years.

Mr John Moore chairman of Herencia said that The Company continues to work diligently on advancing our Projects toward development as soon as possible. Our primary goal is to place the company in a position to take advantage of predicted higher commodity prices as quickly as possible.

Algerian gold miner GMA Resources and Chilean zinc, silver and lead hopeful Herencia Resources have raised 3.3 million between them.

GMA, which produced nearly 27,000 oz of gold from its partly-owned Amesmessa mine in southern Algeria in the first nine months of this year, has raised an initial 480,000 by issuing shares at 4.5p to ASCOM, a quoted Egyptian mining and quarrying combine with interests in north and north-eastern Africa. The issue is the first of four scheduled between now and next February, which will bring 1.9 million to AIM-quoted GMA and give ASCOM 9 per cent of the company and a seat on its board.

Chief executive Douglas Perkins says the money will go for working capital, exploration and expansion planned by ENOR, its 52 per cent-owned Algerian operating subsidiary, which holds exploitation authority over the 1,417 sq km Tirek-Amesmessa property 450 km south-west of the city of Tamanrasset. Production costs, including finance and depreciation, have averaged $535 an ounce, against a current gold price of $1,055 an ounce, though last months output fell short of forecast because an explosives-laying drill rig broke down.

Fellow AIM counter Herencia, meanwhile, has completed a placing through broker WH Ireland to raise almost 1.4 million at a lowly 0.55p to advance its Paguanta zinc, lead, silver and gold project in northern Chile and its neighbouring La Rosa porphyry copper project. Managing director Michael Bohm says the funds will help the company target potential extensions to known areas of high-grade mineralization at Paguanta.

GMA shares have recently been a firm market, rallying from a depressed 1.13p to 5.5p over the last 12 months, and now stand at 4.38p, valuing the company at 18.6 million. Herencia shares, by contrast, having surged from 2005s 1p float price to 3.8p in 2006 and more recently fallen as low as 0.30p, now trade at 0.68p, valuing the company at 4.1 million.

This story is from Growth Company Investor, the independent voice on fast-growing companies. Subscribe today for the latest AIM recommendations.

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From another BB:
"Forgot to add, Herencia is debt free. How many junior explorers can you say that?
Anyone notice BHP's Colorado copper mine is 40 clicks across the valley; one of the worlds largest supergenes copper mine? Whats between us and them (BHP) in regards to mining? nothing!!!
How many mines/explorers keep selling and swapping mining tenements, abandoning as unviable? Keep issuing placements without a hope of becoming a mine? Talk the talk but cant walk?
How many other junior explorers are there listed on aim in Chile, especially undergoing a paid for feasibility study? Come on clever find me another? YOU CANT - so chile, one of the worlds greatest mining areas full of huge multi national mining corporations makiing billions of dollars in profits
Has our tiny minnow of Herencia, unloved for so long, now finally arrived on the world stage, with a resource, smack in the middle of a mineralised zone, with all exploring licenses and exploitation (mining) licenses in place in readiness.... and the last time the 400 metre addit was mined was c1880 when our Cornishman mined there with a small team of chileans.
Mike Bohms has been inside the addit (mine entrance) he liked what he saw (minesite statement) and no ones been back and mined there since.
For info: Once Herencia identifies the name of the Cornishman they are going to honour him at the addit. When they do, I shall raise a glass and thank this Cornishman, kernow miner- thanks -Corbine and all modern day herencians "

nice one grevis2, like that a lot:))

Hub any chance of a graph.

One to keep an eye on in near future as Rig arrives Feb and results from drill wil be April.

One of the directors offloaded 250k of his private allocation, 6 million of 15million he owns? price due to surge?

From Minesite

February 11, 2011

Herencia Resources Will Soon Set The Drills Turning At Pagantua, And May Be About To Add An IOCG Project To Its Portfolio In Chile
By Charles Wyatt



Its a bit like hitting successive balls back over the bowlers ahead and into the pavilion at Lords. No point in trying to translate that for those who dont understand cricket, but the drift is that its pretty good. The last company Minews wrote about was ASX-listed South Boulder Mines, shares in which have just about quadrupled since the beginning of December. And the start of this rise in the share price virtually coincided with publication of the article on Minesite. In the case of Aim-traded Herencia Resources, the share price rise didnt quite coincide with a Minesite article, but its been pretty substantial none nonetheless.
We last wrote about Herencia in mid-August, and the first upward tick in the share price came about a month later, when it rose from 0.5p to 1.5p. It then gave another jump in November to 2.5p, but December saw a clean sweep up to 4p. And the shares have been hovering around there ever since. Take a look at the announcements from the company and one can see that it raised 4.7 million at 1.75p per share at the beginning of that month, and that just before Christmas an update on the companys 70 per cent-owned Paguanta project in northern Chile was announced.

It was this announcement that kicked the share price into gear, as it contained confirmation that Major Drilling, one of the worlds largest metals and minerals contract drilling companies, had agreed to undertake a 15,000 metres programme over Paguanta. This drill programme will focus on the Doris prospect, where high copper and silver grades have been seen at surface, but the company will also take a look at the La Rosa porphyry copper prospect. Infill drilling is also planned at the Patricia mineral resource with a view to upgrading the inferred estimate to indicated, and to obtaining samples for metallurgical and geotechnical testwork. At the same time a feasibility study will start at Patricia, so 2011 is clearly going to be a very busy year for Mike Bohm, the managing director of Herencia.

Exciting times, as the 39 square kilometre Paguanta project is on the northern part of the main Chilean porphyry copper belt, which hosts some of the worlds largest open-cut copper mines. An ex-Xstrata man, Sergio Avendano, has been appointed to oversee the feasibility study, and the required preliminary metallurgical samples will shortly be sent to a laboratory in Canada. Geophysical work has now been completed at Doris, and the next round of drilling should start at the end of this month, with the first assay results due around Easter. There are still some permitting permissions to be obtained for Patricia, but drilling should start there at about the same time.

On top of all this Herencia is negotiating a joint venture with an influential Chilean citizen to earn a 51 per cent interest in another copper-gold project 750 kilometres north of Santiago. If an agreement materialises, and there seems little doubt as it will, as Mike is on very good terms with the potential partner, Herencia will have to drill 6,000 metres and make staged payments amounting to US$600,000 over a 30 month period. As part of this deal, US$150,000 will be paid when the final agreement is signed and 2,400 metres must be drilled in the first year. On the telephone with Mike Bohm in Chile, Minews asked if there was a chance of acquiring a bigger share of the property at some time in the future. He did not seem to think so, as his potential partner has a good idea of the potential of the project and simply needs an efficient mining company to get things moving. Herencia fits that role, and Mike is happy with the arrangement. When I was with Ashton Mining, he says, and we had 40 per cent of the Lake Argyle diamond project I often said that I would rather have a small stake in a big project than a large stake in a tiddler.

It certainly doesnt look as though this new project will be a tiddler, as its mineralisation style is that of a potential iron-oxide-copper-gold system, and they tend to be big. Two examples in the vicinity are the Candelaria mine where an IOCG system is being mined by open pit by Freeport McMoRan and Sumitomo, and the Manto Verde mine, which is a similar project operated by Anglo-American. The clues to the new projects IOCG potential lie in the presence of abundant iron oxides, in the copper mineralisation associated with it as breccias and stockworks, in iron- gold-copper veins and mantos mineralisation, and the presence of copper, gold, cobalt and molybdenum anomalies at surface. In addition, significant gold and copper mineralisation has been intersected at shallow depths by drilling. Mikes conclusion is that it offers operatorship of an advanced copper-gold target which should be open-pittable. And it is in the right area, with good infrastructure.

A large part of the reason for Herencias progress in Chile lies in the relationships that Mike has built with locals. He is there at regular intervals, his Spanish is improving, he has his family with him at the moment, and says he is looking for an apartment. Mining executives who put down a few roots in the countries in which they operate gain a lot of respect, and this can be put to good use when applying for various permissions and expanding a business. He will be at PDAC to give more information on both projects and his presence there will doubtless generate an even bigger fan club for the company