Drill results at Pariguanas

RNS Number : 5103A

Hochschild Mining PLC

02 February 2011

 



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2 February 2011

Positive drill results at new Pariguanas joint venture

Hochschild Mining plc ("Hochschild" or "the Company") is pleased to report positive drilling results from Pariguanas, a new joint venture ("JV"), with Compañía de Minas Buenaventura ("Buenaventura"). The JV (signed in June 2010) covers 4,437 hectares located approximately 18 kilometres from the Company's existing Ares operation.

The Pariguanas project was created through the combination of neighbouring properties of similar size owned by Hochschild and Buenaventura. Buenaventura currently holds 60% of the JV with the obligation to achieve production by 2018. In the event that Buenaventura does not commence production within this timeframe, Hochschild will have the option to assume control of the project by committing to certain payments linked to Buenaventura's investment.

Pariguanas is a low sulphidation, predominantly underground vein system where up to five prospective areas have been outlined. A total of 7,290 metres in 31 holes has been drilled by Buenaventura to date, mainly focused on the San Pedro vein. Positive results include:

·      2.7metres at 0.7 g/t Au & 1,194 g/t Ag including 0.9 metres at 1.6 g/t Au & 3,016 g/t Ag

·      4.4 metres at 3.1 g/t Au & 2,376 g/t Ag including 1.6 metres at 7.5 g/t Au & 6,288 g/t Ag

Ignacio Bustamante CEO of Hochschild Mining plc commented:

"It is encouraging to report positive drill results from the early stage Pariguanas project, following the signing of the joint venture agreement with Buenaventura. The JV is located in a highly prospective area close to Hochschild's Southern Peruvian cluster and represents an attractive addition to our project pipeline."

Results to date (as reported to Hochschild by Buenaventura):

Hole ID	From	To	Length	Au_gt	Ag_gt	Ag_Eq_gt
PAR09-03	123.95	124.40	0.45	0.13	226	234
PAR09-04	105.80	106.00	0.20	0.17	404	414
	114.55	114.90	0.35	0.56	397	431
	115.65	115.80	0.15	0.30	324	342
	118.65	119.65	1.00	0.31	214	233
	121.30	124.15	2.85	0.48	257	286
PAR09-05	104.90	107.60	2.70	0.69	1,194	1,235
Including	104.90	105.75	0.85	1.55	3,016	3,109
PAR09-05	109.70	110.05	0.35	0.45	412	439
PAR09-14	173.50	174.85	1.35	0.14	490	498
PAR10-01	53.65	53.95	0.30	0.33	524	544
PAR10-02	39.15	40.10	0.95	0.21	279	292
	82.10	82.55	0.45	2.50	696	846
PAR10-03	118.30	119.30	1.00	0.71	462	505
PAR10-09	185.75	190.15	4.40	3.05	2,376	2,558
Including	185.75	187.35	1.60	7.46	6,288	6,736
PAR10-11	244.05	244.40	0.35	0.55	272	305
PAR10-11	246.50	246.75	0.25	0.55	364	397

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Enquiries

Hochschild Mining plc

Charles Gordon                                                                                    [phone]

Head of Investor Relations

Finsbury

Faeth Birch                                                                                          [phone]

Public Relations 

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About Hochschild Mining plc

Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru, one in southern Argentina and one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout the Americas.

Buenaventura 

(NYSE:BVN / BVL: BVN) Peru's largest precious metal company. Buenaventura operates several mines in Peru and has controlling interests in other mining companies (El Brocal, La Zanja and CEDIMIN) as well as minority interests in Yanacocha (43.65%), via a partnership with Newmont Mining, one of the most important gold mining companies in the world, and Cerro Verde (19.26%), an important Peruvian copper producer located in southern Peru.

 

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