WH Ireland analyst Paul Smith talks about Herencia Resources: “Today Herencia begin to answer some of the questions about the development of its Picachos copper project in Chile. Herencia has signed an MOU with the Errazuriz Group for a JV to create a mid-tier copper-silver-gold production company. This will allow the processing of Picachos ore through the Tambillos treatment plant (nominal capacity 1Mt/a) to supplement ore from the two underground mines currently tied to the plant. Herencia would provide the key technical and operating expertise to optimise feed from the three operations through the plant.
Both sides are now looking to undertake due diligence on their respective projects with a full agreement hopefully by the end of the year.
This is great news this morning for Herencia to gain access to production facilities to treat its ore – a mill which we understand is used for treating ore with similar metallurgical characteristics to its own Picachos ore. We also like the tie up with an established Chilean-owned producer for help at the local level and access to further project opportunities in the area. The additional sources of ore available mean flexibility and security of supply to optimise production and react to price changes.”
