Herencia Resources advances on new potential at Chile mine

Herencia Resources shares soared 23 per cent Wednesday after the mining company said it identified three untested targets on its Paguanta silver, zinc and lead project in northern Chile.

The group found the targets following a review of collated data and a pole dipole induced polarisation (IP) survey, a method of imaging what might lie beneath the surface.

The IP data from all previous surveys covering 11.5km2 was merged with existing geological data, to produce coverage across the La Rosa prospect and Patricia mineralisation.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The review showed a broad geophysical response that trends southwards in the La Rosa area and to the south-east in the Patricia area.

It unveiled potential for an extension of the Patricia deposit and for a deeper porphyry-style mineralising system.

The company is conducting a feasibility study, reviewing open pit and underground methods for the exploitation of Patricia.

Graeme Sloan, Managing Director of Herencia said: "The IP method has proved to be extremely successful at Paguanta with excellent correlation between geophysical signatures and the known mineralisation at Patricia.

"We believe that the three new untested target areas identified all have the potential to be mineralised and could add significantly to the existing Paguanta Resource."

RD