Herencia Resources reviewing open-pit potential at Paguanta zinc-silver project
Herencia Resources (LON:HER) said it is reviewing the open pit potential of the Patricia deposit, part of its flagship Paguanta zinc-lead-silver project in Chile.
It expects to release an updated mineral resource estimate for Patricia before the end of the month.
Given the recent high silver and lead grades reported at shallow depths in several drill holes at Patricia, as announced at the end of April, it is now reviewing the open pit potential for Patricia.
Herencia has dispatched additional diamond drill core for metallurgical testwork and has started re-logging and assaying existing diamond drill core, which it believes have potential for returning elevated silver grades.
The work is expected to be completed during the third quarter of 2012.
The review will investigate whether, through an open pit, Herencia can gain earlier access to potentially higher grade ore zones, lower operating costs and reduce start-up working capital.
The directors believe this work is justified because of the potential positive economic and operational outcomes which could be generated if an open pit were to be included in the mine plan.
Work continues on the Patricia feasibility study and the environmental permitting process which is targeted for submission before the end of the year. The abovementioned activities will be incorporated into this work.
Managing director Michael Bohm said: "We believe the high silver and lead assay grades achieved at shallow depths at Patricia provides potential scope for open pit mining.
"The metallurgical testwork on drill core from the oxide and transitional zones work will assist in determining the economic and practical aspects of incorporating an open pit into the overall mine design."
