· XRF sampling at the” Montenegro” mine located in the southern portion of the Pastizal tenement, has again returned multiple high grade results confirming the extensive nature of the mineralisation.
· The latest sampling program which focused predominately on the underground portion of the Montenegro mine, resulted in zones of wide high grade mineralisation, parts of which are being mined in small quantities by private miners.
· To date grades of up to 2.8% Cu have been achieved from surface sampling and 5.9% Cu from underground sampling.
· Geological interpretation has shown that the main mineralised zone at Montenegro may have a true thickness of up to 50 metres and can be mined using either open pit or underground methods.
· A formal option agreement to acquire Pastizal from the current owner is expected to be finalised shortly.
Herencia Resources plc (AIM:HER), the Chile-focussed mineral exploration and development Company, has told DirecotrsTalk that further sampling at the Montenegro Mine, which forms part of the Pastizal Project and which lies immediately adjacent to the advanced Picachos Copper Project in central Chile, has identified widespread and high grade copper mineralisation grading up to 5.9% copper.
The extensive sampling program using the hand held XRF analyser and undertaken by company geologists focussed on copper mineralisation currently being mined at the Montenegro Mine, located at in southern tenement area of the Pastizal property.
Recent geological mapping and the sampling results have confirmed the existence of broad mineralised limestones that form high grade Cu-Ag veins and strata-bound mineralised units. The limestone units, which reach up to 50 metres in thickness, appear structurally controlled by a combination of NW-SE and E-W shears.
Surface XRF sampling returned multiple values over 2.0% Cu with a maximum of 2.8% Cu and Underground XRF sampling in the Montenegro mine confirmed the presence of a broad high grade manto zone which returned an average grade of 2.0% Cu and a highest grade of 5.9% Cu.
The extensive copper mineralisation tested shows clear potential for a significant copper resources within (and around) the Montenegro Mine.
The results from the sampling program are attached in Table 1 and the mines location is shown on a diagram available at http://www.rns-pdf.londonstockexchange.com/rns/8803G_-2015-11-25.pdf
Managing Director, Graeme Sloan, commented: “The results achieved from sampling at the Montenegro Mine clearly support not only the logic behind our pending acquisition of the Pastizal tenement, but also our belief in the huge potential of the Picachos Project.
Despite a continuation of poor market conditions, the Picachos Project is shaping up to be a long term mining option for the Company, with clear potential for a 10+ year mining operation with both open pit and underground mining opportunities. The fact that all this lies within just a few kilometres of the existing Tambillos processing plant cannot be overstated.”
About the Picachos Project
The Picachos Project is located approximately 50km south of the coastal city of La Serena, 8km west of both the existing Andacollo copper-gold project operated by Teck Resources and the mining town of Andacollo (population approximately 10,000 people), and 10km south of the privately owned Tambillos copper mine. The Project is very well positioned for infrastructure with existing high voltage power located approximately 3km east of the Project area and serviced by two all-weather access roads.
Small scale mining is currently being undertaken by private miners via small open pit and underground mining operations. Ore is being trucked to a Chilean government owned processing plant (ENAMI plant) where it is processed. This mining will continue up until such time as the Option to fully acquire Picachos is exercised (at Herencia’s discretion) and is seen by the Company as an excellent mechanism to achieve geological and grade data across many zones of mineralisation.
A review of available data and recent site visits have identified up to six separate zones of mineralisation. In some areas the close relationship of these zones coupled with multiple occurrences of out-cropping wide zones of mineralisation, highlights the excellent potential for large scale open pit mining to take place at Picachos. Historic mining has focused mainly around the high grade structures, however in some areas the mantos has been mined up to 50m wide. Mineralisation generally commences from one to five metres below the surface and appears open at depth.
