Herencia Resources says feasibility study is close to completion

Mining group Herencia Resources said Tuesday the feasibility study on its 70 per cent owned Paguanta flagship project is close to completion.

Mining group Herencia Resources said Tuesday the feasibility study on its 70 per cent owned Paguanta flagship project is close to completion.

The company anticipates that the project will begin with an open pit operation (up to a three year mine life), transitioning to an underground operation (up to a five year mine life) providing an overall mine life of approximately eight years.

The deposit, a high grade silver-zinc-lead deposit located in northern Chile, is now close to being ready to begin operations, with work on key project parameters now either complete or nearing completion.

The feasibility study has also identified numerous high-grade drill targets within the limits of the existing Patricia Resource and potential extensions to known lodes outside of the resource. The group has multiple drill targets currently available for testing, all of which could add significantly to the current resource and potentially the feasibility mine plan.

Herencia's Managing Director, Graeme Sloan, said: "It is a great pleasure to report that we remain on track to receive the draft report from Golder by the end of March.

"I am very encouraged by the fact that as we have progressed through the study it has become clear just how much of the mineral resource at Patricia remains open in all three directions, providing numerous areas in which to expand the project scale and mine life.

A combination of open pit and underground mining will provide a number of project benefits, previously outlined, including earlier access to ore and a smoother capital spend profile. We see an eight year mine life as just the start of a long life operation at Paguanta, and we are looking to leverage off the forecast strength in zinc pricing from 2015 onward to achieve strong cash flows early in the project life."

The company is not required to make an immediate investment decision on the project given the scheduled permitting period, meaning it has time to identify and lock-in project funding opportunities, whilst monitoring the commodity price regime and completing a number of detailed project engineering and design programmes, such as detailed engineering drawings for eventual tendering/construction purposes.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020