Herencia Resources shares surge on new discoveries at Guamanga
South America-focused minerals explorer Herencia Resources (LON:HER) announced this morning that it has identified two new potential porphyry-copper targets at its Guamanga copper-gold project in northern Chile.
Shares in the firm were up 14.9 per cent at 2.5 pence each in mid-morning trading as a result.
The discoveries follow recent geological fieldwork at Guamanga, in which Herencia has a 51-per cent interest, and the receipt of a detailed geological report prepared by independent consulting group RM Limitada. The firm said that these targets are additional to the existing copper-gold target identified by high-grade assays returned from previous diamond drilling and announced in early February this year.
Mapping and sampling has identified localised geological indicators and returned several anomalous surface assays for gold (up to 1.5 grams per tonne), copper (up to 0.4 per cent) and molybdenum (up to 22 parts per million). Herencia said that these anomalies provide the potential for the existence of a porphyry system.
"This is a very significant and unexpected development in our evaluation of the Guamanga Project," said Herencia's managing director, Michael Bohm. "Our focus has been the high grade copper/gold target previously identified, which remains on schedule for drilling this quarter. To be presented with two additional drill targets with the potential to host porphyry mineralisation at Guamanga is a real bonus for the company. This new information is being further assessed in order to consider our next steps."
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