Herencia Resources LON:HER, the Chile focused mineral exploration and development company announced yesterday results from its surface sampling program on its advanced Picachos copper project located in central Chile. The company has identified numerous high grade mineralised areas adjacent to the proposed open pit mining operations. Results were based on a hand-held XRF (x-ray fluorescence) analyser used on surface samples at the 40M Shaft East, Flor del Bosque, La Nipa, Santa Rosa and southern tenement areas. High grade results from the 40M Shaft area as well as mapping of additional mine workings confirm the continuity of mineralisation at shallow levels. Previous drilling results had identified high grade zones at depth such as DDH14003 (see RNS 18 Dec. 2014), which returned 117m grading 1.14% Cu (from 182m) including 18m grading 1.53% Cu (from 184m), 9m grading 2.02% Cu (from 193m), 16m grading 1.5% Cu (from 213m), 10m grading 1.95% Cu (from 254), 10m grading at 2.0% Cu (from 268m) and 11m grading 2.21% Cu (from 288m). The area around Shaft 40M, previously modelled as waste, had the highest readings at 24.8% Cu. Extensive geological and structural mapping in conjunction with the surface sampling program confirms the shallow copper mineralisation over a strike length of 1,200m.
Beaufort Securities view: We are encouraged with the consistent and high grade mineralisation from Shaft 40M and surrounding area. Whilst more detailed work is required in order to prove up any additional resources, preliminary results are encouraging given that the area was previously modelled as waste within the proposed pit shell. The surface sampling results could potentially have a significant impact on the overall economics at Picachos. In view of the above results, we reiterate a Speculative Buy on the stock.
Beaufort Securities acts as corporate broker to Herencia Resources plc
