Herencia greets positive feasibility study results at Paguanta

Herencia Resources, the Chile-focussed mineral exploration and development company, has completed a feasibility study for its flagship silver-zinc-lead project in northern Chile, the Paguanta Project.

Herencia Resources, the Chile-focussed mineral exploration and development company, has completed a feasibility study for its flagship silver-zinc-lead project in northern Chile, the Paguanta Project.

The company said that the study had found that the initial mine life was eight years and that the time frame would involve three years of mining by open pit followed by a minimum five years of underground mining operations.

The initial project capital cost would be $60m, with Herencia's 70% share being $42m, the company added.

It said that first mine production was being targeted for 2015 while the feasibility study was described as having identified "excellent potential to expand both production rate and mine life."

Open pit mining would be scheduled at an initial Run of Mine (ROM) production rate of 400,000 tonnes per annum (tpa), at a proposed waste to ore strip ratio of approximately 11.7:1, the group said.

Throughput would increase to 460,000 tonnes per annum (tpa) with the introduction of underground mining in year four.

Graeme Sloan, Managing Director of Herencia Resources, commented: "The Paguanta Feasibility Study has returned first class results and its completion is a major milestone for Herencia. The next step is to progress with the lodgement of the Project permitting application, as a pre-cursor to a development decision for the Project with the goal of commencing production in 2015."

Herencia Resources's share price was up 4.32% to 0.84p at 08:59 on Friday.

MF

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023