Herencia Resources (AIM: HER) has reported a high grade strike extension to the Cathedral vein at its flagship Paguanta zinc-silver-lead-gold project in northern Chile. The company received assay results from a further four holes in the current diamond drill program.
The highlights from holes PTDD042-045 include drill hole PTDD043 which intersected high grade mineralisation approximately 50m to the east of PTDD041, which previously reported high grade intersects.
"The consistency of mineralisation seen in both PTDD041 and PTDD043 is very encouraging, as is the grade and thickness of the high grade interval”, Herencia Resources MD Michael Bohm commented. “An important point to note is that whilst zinc remains the primary metal at Paguanta, the high lead and silver grades achieved in these holes are excellent”.
The best intersect encountered in PTDD043 consisted of 7.5 metres at 7.1% zinc, 7.3% lead, 324 grams per tonne (gpt) silver and 0.20gpt gold, from a depth of 189.5m and included a higher grading 4.95m at 9.5% zinc, 10.6% lead, 467gpt silver and 0.22gpt gold.
Herencia noted that PTDD043 effectively extends the Cathedral vein by a further 50m eastwards, and the vein still remains open to the east and at depth.
“The program remains on track to be in a position to potentially commence a Feasibility Study in 4Q2010", Bohm added.
At Paguanta, Herencia has completed approximately 3,700m of drilling to date, with approximately 1,800m of the scheduled drilling remaining. The company said that drilling is scheduled for completion by early-July 2010, to accommodate an additional 2,000m extension to the original 3,500m drill program as a result of early, positive assay results.
Herencia expect that all assay results will be returned by end-July 2010, with an update to the Mineral Resource Estimate expected by late August/early September 2010.
The Paguanta project currently has an indicated and inferred mineral resource of 3.15 Mt at 3.9 percent zinc, 1.3 percent lead and 74 g/t silver including a higher grade component of 1.01 Mt at 6.6 percent zinc, 2.2 percent lead and 119pm silver.
The drill programme began in February this year, and it aims to test the depth extension potential of the known mineralisation, test the potential for eastern and western expansion and gather information in respect to gold potential. Most importantly, the programme is expected to help update the mineral resource estimate and provide the basis to move the project towards a feasibility study.