South American focused junior miner Herencia Resources (AIM: HER) has raised £1.37 million through an issue of 250 million new shares for its Paguanta zinc-silver-lead-gold project in Chile and its adjacent La Rosa porphyry-copper prospect.

“The Paguanta orebody remains open both along strike and at depth. We are very pleased with the support we continue to receive in relation to our plans to target the potential extensions to the known areas of high grade mineralization at Paguanta and to further evaluate the gold-copper prospectivity of the project,” said Managing Director of Herencia Michael Bohm.

The Paguanta project hosts a JORC-compliant indicated and inferred resource of 3.15 Mt (million tonnes) graded at 3.9% zinc, 1.3% lead and 74 g/t silver. The highest gold grade has so far been 4.57 g/t (grams per tonne) over an interval of 1 metre and 1.56 g/t in a 150 kilogramme bulk metallurgical sample.

The next drilling programme is scheduled to commence early next year, targeting the high grade extensions along strike and down dip of the holes that returned high assay results during the previous programme.

The company said that Bohm’s wife Charmaine Lobo acquired 1.8 million shares in the placing, bringing Bohm’s stake in the company to 0.62%. Cape Lambert Iron Ore Limited does not have a notifiable interest in the company after disposing of all of its 279.4 million shares.

Herencia Resources

Herencia Resources plc is a resources company listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange with a focus on project development in Chile.

The Company has an advanced zinc-lead-silver Project (Paguanta) in northern Chile. Following a successful drilling program in 2008, Herencia announced an upgraded Indicated and Inferred Mineral Resource of 3.15Mt at 3.9%Zn, 1.3%Pb and 74ppm Ag (at 2% Zn cut-off). Included in that Resource was a high grade component of 1.01Mt at 6.6%Zn, 2.2%Pb and 119ppmAg (at a 4%Zn cut-off).

Herencia aims to progress Paguanta toward development, with a Scoping Study currently being managed by Golder Associates due for completion in December.