Mariana Resources Ltd, the AIM listed exploration and development company with projects in South America and Turkey, has told DirectorsTalk that it has signed a comprehensive agreement with Joint Venture partner Lidya Madencilik Sanayi ve Ticaret A.S..
Highlights
- Signing of SHA to formalise Mariana’s JV relationship with Lidya to further explore and develop the potential of Hot Maden.
- The SHA governs Mariana’s 30% and Lidya’s 70% interest in the project, managed by a four-member Board comprising three directors from Lidya and one from Mariana.
- 2016 total budget of circa US$8 million dollars is proposed for the Hot Maden project.
- Mariana anticipates that 20,000m of extension and infill drilling will be completed in the resource area during 2016, with a minimum of 5,000m completed during Q1.
- A Preliminary Economic Assessment (“PEA”) on Hot Maden is anticipated to be completed by Q4 2016.
Chief Executive Officer, Glen Parsons, today commented: “The signing of the SHA cements Mariana’s growing relationship with Lidya and will enable the JV to fast track the development of the high grade gold-copper Hot Maden asset.”
“The Company looks forward to the upcoming extension and infill drilling of the mineralised footprint, which is open to the north and south. The planned drilling, and additional technical studies, will lead to a PEA later this year, which would include various mining scenarios of this exciting gold-copper discovery. The result of this work will better define potential valuations with estimated cash-flow projections.”
“In addition, we anticipate that the exploration for further mineralised bodies along the unexplored sectors of the 6km Hot Maden fault zone will become more of a focus.”
“Furthermore, the announcement by Sandstorm Gold Ltd, 19 January 2016, regarding the acquisition of a package of Net Smelter Royalties (“NSR”), previously held by Teck Resources Inc, for US$22 million, included the key asset Hot Maden 2% NSR. This consideration was achieved at current metal prices and clearly gives Hot Maden a very encouraging value benchmark for our shareholders and investors and arguably, given current market conditions, the best way to realise an attributable return is to look at the considerable cash flows that can be generated by such a high grade quality asset.”
The SHA
The SHA formalises Mariana’s JV relationship with Lidya within the JV company Artmin Madencilik a.s (“JVCO”) (Previously named AMG Mineral Madencilik a.s) to further explore and develop the potential of Hot Maden, with the intention of ultimately bringing the high-grade gold-copper project into production.
The SHA governs Mariana’s 30% and Lidya’s 70% interest in the project, managed by a four-member Board comprising three directors from Lidya and one from Mariana. Mariana’s representative on the Board will be Eric Roth, with Glen Parsons having the right to attend, but not vote, at Board Meetings.
2016 Programme
The JV is now formalised and the new 2016 total budget of circa US$8 million dollars is proposed for approval by JVCO. For Q1 2016, Mariana anticipates a minimum of 5,000m of extension and resource drilling in the resource area, as well as advancing detailed metallurgical studies for inclusion in a PEA with anticipated completion by early Q4 2016. A maiden mineral resource on the Hot Maden project was previously announced in Q3 2015 (see details below).
| 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. |
