Northland Capital partners view: The discovery of the 3moz Au eq. ultra high-grade (11.2g/t Au eq.) Hot Maden orebody was arguably the discovery of the year in 2015, yet its value has yet to be recognised by the market. With a resource upgrade expected and a PEA expected to be completed during the year, there are a number of major catalysts coming up for Mariana. We have made a relatively minor change to our forecasts as the total US$8m expected to be spent on Hot Maden in 2016 (30% Mariana) was slight lower than our expectations of US$10m.
| Mariana Resources (MARL.L) – BUY*: JV update | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Market Cap: £14m; Current Price: 1.6p; Target Price: 4.8p | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Joint venture and shareholders agreement with Lidya | ||||||||||||||||||||||||||||||||||||||||||||||||||
| n Mariana Resources and joint venture partner Lidya have signed a comprehensive agreement to further explore and develop the Hot Maden Project, located in Turkey.
n The agreement governs Mariana’s 30% interest and Lidya’s 70% interest in the project, which will be managed by a four-member Board. Three members of the Board will represent Lidya and one will represent Mariana. n For 2016, a total budget of US$8m is proposed at Hot Maden to complete 20,000m of extension and infill drilling with around 5,000m expected to be complete in Q116. n A preliminary economic assessment (PEA) is expected to be completed for the Project by Q416. n Minor changes to Forecasts. No change to BUY rating or 4.8p price target. |
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Source: Northland Capital Partners Limited. *Northland provides commissioned research coverage † assumes a £4.5m equity financing at current market price
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