Coal and base metal exploration company, Herald Resources (HER) said on Thursday it had received positive metallurgical testing results from its Dairi zinc/lead project in Sumatra, North Indonesia.
The ore from the Lae Jehe deposit at Dairi project has a resource of 6.5 million tonnes at 11% zinc and 6% lead.
Herald Resources said it is the most advanced prospect to provide future mill feed following its initial 7 year mine life.
"The results are very encouraging in terms of the confirming Herald's belief that Lae Jehe could provide mill feed that would take the Dairi project significantly beyond its initial planned mine life of seven years," executive director Michael Wright said.
Shares in Herald Resources remained flat at $2.20 at 12.26PM AEST.
Herald's shares rose recently after receiving a hostile take offer from PT Bumi Resources on 14 December.
Directors of Herald Resources said the $455 million takeover offer is hostile and advised shareholders to take no action until further review.
In a note to the market on 20 December 2007, directors said they are holding talks with the relevant parties and will make a recommendation to the shareholders once the offer has been considered in full. Until then, shareholders have been advised to take no action.
Bumi has its eyes on Herald's prized $253 million zinc-lead Dairi project, which had completed a feasibility study and is waiting for environmental approvals to proceed to full development.
Chairman Terry Allen described the Dairi project, in which Herald has an 80% stake, as the most exciting in the company's history.
HER Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
