Herencia Resources

Chile-focused Herencia Resources (HER) says it is 'full steam ahead' after copper and silver discoveries within its Paguanta zinc project. Based in Western Australia and quoted on AIM, the company has reported intersections ranging from 0.36% copper and 20 grammes of silver per tonne of ore to 1.09% copper and 51 grammes-a-tonne silver at its Doris prospect, with a potential new vein identified at the Patricia prospect.

Managing director Michael Bohm has spoken of eventually producing one million oz of payable silver a year as a copper by-product from the project. The company, which signed a memorandum of understanding earlier this year about a new copper-gold project in Chile, still has £4.2m cash after losing £1.1m in 2010.

Floated at 1p six years ago, Herencia's somewhat tightly held shares have proved volatile. Highlighted by Growth Company Investor at 0.74p last July, they subsequently hit 4.05p and now trade at 2.48p.

With prospects for further strong metal price increases now debated, partial profit taking would make sense, while keeping some for potential future growth.

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