Herencia. Anglo Amercian suitor?
Following on from the high-grade drill assays announced to the market last week, Herencia Resources today released more good news for holders of the stock, further high-grade drill results in relation to its Paguanta Project (Herencia 70% owner) in northern Chile:
I did get the heads up yesterday from two of the Blogs contacts, one hinted regarding good news today. (Hence the hint to research them) It seems that Investors out there have a wealth of news and are certainly well placed with their research, emails from holders of the stock did contact the site admin and I must say I was very impressed with the earth of knowledge forwarded. Thanks. So as requested I will not deal with La Serena which is basically only a paper play at the moment. The two main assets are dealt with below.
Herencia Resources describe themselves as “a multi-commodity development company whose main focus, at the moment, is to develop its Paguanta Project in northern Chile”.The Feasibility Study into the proposed Patricia Mine (zinc, silver, lead, gold) within the Paguanta Project, could be a turning point for the company with the goal of bringing the mine into production. Drilling of the exciting “Doris” copper-silver prospect and the ‘La Rosa’ porphyry-copper target plus infill/step out drilling of the Patricia Mineral Resource are all scheduled for 2011.
Herencia also have a 51% interest in the Guamanga Copper-Gold Project which has a mineralization style appearing to correspond to a potential Iron Oxide Copper Gold system which is located 15 kilometres from Anglo America’s large Mantoverde Mine. Now the close proximity of Mantoverde to Guamanga needs to be remembered. Any success here would surely see Anglo-American sniffing around if only out of common interest. Anglo-American are a greedy global company. In Chile they own and operate, Mantoverde (100%),Chagres (100%),Elsodado(100%),Collahuasi(44%),Los Bronces(100%),MantoBlancos(100%) so make no mistake any success at Guamanga will bring Anglo-American knocking at the door.
Herencia are also well placed and have a tie-in with Nyrstar International a Belgian company (a global zinc/mining player) who have a 10% holding.. Now they did raise funds in November of last year. 270 Million shares placed at 1.75p the proceeds being used to fund company activities in Chile and also in July of this year 125million shares at 2.25p hence why we are where we are now re’ todays news. As of Dec’ 31. 2010 they had approx’ £4.5million in cash taking into account the £2.8million raised in July they have raised approx £7.3 million pounds in the last 7 months what’s interesting is that given the Global meltdown the Herencia SP has held up rather well this year. All AIM stocks are vulnerable to the vagaries of the market and the whims of Privateers. Herencia has a very large Private Investor following (a quick check of the share register reveals this) which should be viewed as one reason why the stock gyrates up and down. I can see them rising over the next 12 months as the company progress their Chilean assets. With a possible knock on the door from Anglo American Herencia look like a company destined to rise of course that all depends on good news but I can see nothing but good news here over the next 6 months or so. Watchlist them and give them a good old research. They could very easily hit 5/6p! They are certainly well worth a punt at 2p!
Viva!
Dan
Hopefully Herencia will start to move northwards.
On the subject of miners, still can’t believe that Condor (CNR) seems to be the share that no-one talks about – surely Jim Mellon’s involvement alone makes it an automatic entry on most watchlists?
When you jumping back aboard the Cadogan wagon. Recent RNS misunderstood and took a plunge but bounced back. It is poised to jump soon