herencia resources plc (HER) Snapshot

Herencia Resources plc announced the completion of the Feasibility Study for the Paguanta Project, its flagship silver- zinc-lead Project in northern Chile. The Feasibility Study, carried out during 2012-13, has been successful in incorporating a three year open pit into the overall mine plan, with underground mining commencing in year three and continuing until at least the end of year eight. Open pit mining will 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. Throughput will increase to 460,000tpa with the introduction of underground mining in year four. It is proposed that a total of 3.75 million tonnes (Mt) at 3.16% zinc, 78.4g/t silver and 1.22% lead will be mined over an eight year mine life from a combination of open pits and underground mine operations. It is also intended that an additional 300,000 to 400,000 tonnes (t) of silver- rich oxide material (at a grade of approximately 99g/t Ag) will be mined and stockpiled as part of the open pit mining operation, for treatment at a future date. At this stage it is proposed that two open pits will be mined, one on the Cathedral veins and the other on the Rosada vein. Open pit mine design parameters include bench heights of 20m, with 2.5m - 5.0m mining horizons (flitches), ramp widths of 20m (double lane) and variable slope angles not exceeding 51 degrees. The main design parameters for the underground mining operations include 5m x 5m decline access and 4m x 4m production development  headings. It is intended that final concentrate will be transported by truck to the nearby ports of Arica and Iquique for consolidation and shipping to selected customer(s). It is estimated that the project workforce will total approximately 110 persons on site at any one time (in year's one and two), increasing to approximately 140 persons on site in year three as the underground mining phase commences. It is anticipated that the Project's entire workforce will be sourced from Chile due to the highly experienced mining personnel readily available in that country. The Feasibility Study has also identified a number of potential areas to significantly expand the Mineral Resource at Paguanta, as much of the resource is still open, including: within the existing Resource envelope; below the existing Resource envelope via extensions to the existing veins; above the existing Resource envelope in the silver-oxide zone; to the east of the Resource envelope via extensions to the existing veins (following up high grade mineralization already confirmed in previous drilling to the east); and to the south of the Resource envelope via parallel veins (similar to Carlos & New Vein). The Project schedule currently targets mine construction potentially commencing in the second half of 2014 with production commencing in 2015.

Herencia Resources PLC reported audited consolidated and company earnings results for the year ended December 31, 2012. For the year, operating loss was £2,497,551 compared to £2,621,171 a year ago. Loss before tax was £2,479,909 compared to £2,554,579 a year ago. Loss attributable to the equity holders of the company was £2,047,566 or 0.13 pence per basic and diluted share compared to £2,190,038 or 0.16 pence per basic and diluted share a year ago. Net cash outflow from operating activities was £2,134,405 compared to £1,991,488 a year ago. Payment for property, plant and equipment was £28,604 compared to £191,366 a year ago. For the year, on company basis, net cash outflow from operating activities was £950,266 compared to £1,081,368 a year ago. Payment for property, plant and equipment was £3,066 compared to £1,093 a year ago.

Herencia Resources PLC announced that Mr. Greg McMillan, a director of the company and the nominated board representative for Nyrstar International B.V., a wholly owned subsidiary of Nyrstar NV, will resign from the board of Herencia effective 5 March 2013 and will be replaced, also effective 5 March 2013, by Mr. Chris James, Group Manager, Corporate Development for Nyrstar.