8 Sept 2015
Hochschild Announces Significant New Discovery at Pallancata
Highlights
§ Significant discovery of high grade, wide vein
§ Easily accessed through existing mine infrastructure
§ Sufficient plant capacity available at Pallancata
§ Expected short lead time to be brought into production
Hochschild Mining plc ("Hochschild" or "the Company") is pleased to announce the discovery of a new vein, Pablo, at the Pallancata mine property in south west Peru. The new east-west vein, is expected to lead to a significant expansion of the mine's mineral resources and substantially improve the operational outlook for the Pallancata mine.
Ignacio Bustamante, Chief Executive Officer commented:
"This important discovery at our 100% owned Pallanata mine confirms our historic confidence in the long term potential of the deposit and in the district as a whole. The Pablo vein has the significant advantage of being within our property and with its proximity to our current infrastructure, the capital required to access the vein is expected to be low. There is also sufficient capacity at the operation's plant, Selene, to process the new higher grade material. The next steps are to delineate an inferred resource and we expect to update the market on our progress and the operational strategy going forward in the fourth quarter."
Discovery of the Pablo vein
The exploration team at Pallancata began a 19,100 metre exploration and drilling programme in May 2015 with the aim of focusing on inferred resource exploration at surface. In mid August, whilst pursuing the west extension of the Yurika vein to the north west of the main Pallancata vein, a new blind structure at a depth of 200 metres below surface was discovered. The Pablo vein has been recognised along an east-west strike for 700 metres and dips 50-75° south. The structure's significant thickness (greater than 10m wide) is associated with dilation zones in flexures and fault jogs. The Pablo vein is a fine-to-medium grain white quartz vein and shows a banded texture and multiple brecciation events filled with adularia and quartz crystals. It is part of a major regional structure, currently extending to about 2 km, which will be explored over the medium term.
The following table displays assay results from the programme:
Drill Hole |
From
(m) |
To
(m) |
Width
(m) |
Estimated True
Width (m) |
Au
(g/t) |
Ag
(g/t) |
Ag Eq
(g/t) |
DLEP-A01 Including Including Including |
267.85 267.85 281.10 293.65 |
299.40 277.35 287.40 299.40 |
31.55 9.50 6.30 5.75 |
23.54 7.09 4.70 4.29 |
1.67 2.23 1.59 3.56 |
510 651 499 1127 |
610 785 594 1,340 |
DLEP-A02 Including |
335.00 338.45 |
340.40 340.40 |
5.40 1.95 |
4.86 1.75 |
0.62 1.15 |
175 324 |
212 394 |
DLEP-A03 Including |
284.50 284.50 |
314.15 303.40 |
29.65 18.90 |
15.39 9.81 |
2.32 3.59 |
690 1,064 |
830 1,279 |
DLEP-A04 Including |
261.60 262.65 |
272.15 269.10 |
10.55 6.45 |
8.26 5.05 |
2.56 4.06 |
805 1,285 |
959 1,528 |
DLEP-A05 Including Split Pablo |
301.55 301.55 326.65 |
309.55 302.60 329.60 |
8.00 1.05 2.95 |
6.23 0.82 2.30 |
0.66 3.42 0.86 |
209 1,074 291 |
248 1,279 342 |
DLNS-A01 |
521.70 |
529.70 |
8.00 |
3.63 |
1.35 |
140 |
221 |
DLNS-A03 |
351.80 |
355.40 |
3.60 |
1.18 |
0.17 |
58 |
68 |
DLRI-A164 Including Including Including |
267.00 267.00 281.55 294.55 |
295.65 269.10 285.40 295.35 |
28.65 2.10 3.85 0.80 |
25.09 1.84 3.37 0.70 |
0.84 3.53 1.60 3.03 |
246 821 485 3,227 |
296 1,033 581 3,769 |
DLRI-A165 Including |
355.10 366.55 |
379.00 374.70 |
23.90 8.15 |
20.52 7.00 |
0.79 2.13 |
218 585 |
266 713 |
DLYU-A87 |
244.80 268.65 |
246.42 269.38 |
1.62 0.73 |
1.58 0.71 |
0.93 0.43 |
140 108 |
196 134 |
DLYU-A88 |
234.60 |
235.70 |
1.10 |
1.05 |
0.33 |
124 |
144 |
DLYU-A90 |
Unmineralised fault zone |
DLYU-A92A |
Unmineralised fault zone |
Next steps
The intention is to conduct a comprehensive exploration and infill drilling programme until the end of the year to better understand the potential of the new discovery and to achieve an initial inferred resource.
__________________________________________________________________________________
Enquiries:
Hochschild Mining plc
Charles Gordon +44 (0)20 3714 9040
Head of Investor Relations
Hudson Sandler
Charlie Jack +44 (0)207 796 4133
Public Relations
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