Mariana Resources Ltd the AIM listed exploration and development company with projects in South America and Turkey, ha told DirectorsTalk that Sandstorm Gold Ltd (SSL-TSX, SAND-NYSE) announced on the 19th of January 2016 that it had purchased a package of royalties from Teck Resources (TCK.B:TSX) for US$22 million.
The key component of this package is a 2% Net Smelter Royalty (“NSR”) on the Hot Maden high-grade gold-copper project in Turkey owned by Mariana (30%) and joint venture partner Lidya Madencilik Sanayi ve Ticaret A.S. (“Lidya”) (70%).
According to the news release by Sandstorm, the acquired package consists of 56 royalties with 7 classed as “key assets”, and Hot Maden sitting at the top of this list. (http://www.sandstormgold.com/_resources/news/2016/2016-01-19.pdf )
For 2016 the Lidya-Mariana JV is concentrating on the mineral resource area, as previously reported, with extension and exploration drilling as well as detailed studies continuing for the completion of a Preliminary Economic Assessment (“PEA”) anticipated by early Q4 2016. This PEA will further enhance the Hot Maden project giving greater confidence in economics and ultimately valuation.
Chief Executive Officer Glen Parsons today commented: “Encouragingly, this third party purchase of the Hot Maden high grade gold-copper 2% NSR gives Mariana shareholders and investors a benchmark valuation of what is achievable in terms of cash flows going forward in the future.”
“This is going to be an exciting year at the project for the JV and we look forward to updating the market accordingly through 2016.”
| Hot Maden Mineral Resource Estimate On August 18, 2015, Mariana reported a maiden mineral resource estimate for the Hot Maden project. The Mineral Resource estimate was prepared by independent mining consultants RungePincockMinarco Limited (“RPM”), and was based on assay results received for drill holes up to, and including, HTD-17 completed on 25th June, and is reported in accordance with the JORC Code 2012 edition and estimated by a Competent Person as defined by the JORC Code. The total maiden Mineral Resource estimate comprises (Mariana has an attributable interest of 30% of this total): Indicated Category (100%): 2.033 Million Oz Gold Equivalent** (“AuEq”) – (4.71 million tonnes (“Mt”) at 10 grammes per tonne (“g/t”) gold and 102,000 Tonnes (“t”) copper, for a gold equivalent grade* of 13.4 g/t) Inferred Category (100%): 0.968 Million Oz AuEq** – (3.65 Mt at 5.5 g/t gold + 65,000 tonnes copper, for a gold equivalent grade* of 8.2 g/t) Au Equivalence (AuEq) calculated using a 100 day moving average of $US1,178/ounce for Au and $US2.70/pound for Cu as of July 29, 2015. No adjustment has been made for metallurgical recovery or net smelter return as these remain uncertain at this time. Based on grades and contained metal for Au and Cu, it is assumed that both commodities have reasonable potential to be economically extractable. *- The formula used for Au equivalent grade is: AuEq g/t = Au + [(Cu% x 22.0462 x 2.7)/(1178/31.1035)] and assumes 100% metallurgical recovery. **- Au equivalent ounces are calculated by multiplying Mineral Resource tonnage by Au equivalence grade and converting for ounces. The formula used for Au equivalent ounces is: AuEq Oz = [Tonnage x AuEq grade (g/t)]/31.1035. |
