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Herencia Resources to focus on Picachos and its game changing potential

Published: 00:10 27 Sep 2014 AEST

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Excellent drill results at Herencia Resources' (LON:HER) Picachos project means the property will be the focus of forthcoming attention, the firm told investors in its half year report.

The firm believes Picachos is a "game changer" and has the potential to be brought into production within 12 to 18 months at minimal capital cost.

"It is not every day that one can drill a hole and report 91m grading 1.42% copper from only 19m down-hole, but this is exactly what Herencia did in May this year," the group said, adding this was followed up by numerous further high grade copper intercepts.

The site lies very near processing plants all potentially suitable to treat the proposed Picachos production on a toll treating arrangement, so there would be no need for Herencia to finance, permit and construct a processing plant or tailings dam.

The six months to end June also saw OZ Exploration kick off drilling at the Guamanga project in central Chile - a joint venture the firm is involved in.

Meanwhile, at the 70% owned Pagaunta project, management continues to progress the permitting process and received approval for the next drill programme in August.

Herencia said it viewed the recent strong gains in the price of zinc and the significant falls in warehouse zinc supply inventories as "positive markers" for Pagaunta.

The firm narrowed the loss in the period to £685,153 compared to a loss of £1.59mln in the same period last year.

Shares eased 2.27% to stand at 0.43p.

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