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

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Properties for sale for around £1m
Houses for sale

Properties for sale for around £1m

From a stone-built farmhouse in the Snowdonia National Park, to a Victorian terraced house close to London’s Regent’s Canal, eight of the best propert…
15 Oct 2021