Mariana, the exploration and development company with an extensive portfolio of gold, silver and copper projects in South America and Turkey, yesterday announced its maiden mineral resource estimate (MRE) on its Hot Maden project in north-eastern Turkey. The JORC (Code 2012) compliant MRE was prepared by independent mining consultants RungePincoMinarco (RPM) and was based on the 17 diamond drill holes drilled as at 25th June 2015. Drilling to date has been completed by Mariana’s JV partner Lidya Madencilik Sanayi ve Ticaret A.S (Lydia) earning in up to 70% interest in the Hot Maden project. The total maiden resource estimate is 8.4Mt grading 8g/t Au and 2% Cu which is equivalent to 2.9Moz Au at gold equivalent (Au eq) grade of 10.9g/t (based on current spot prices). On an Au eq basis the indicated resources total 4.7Mt grading 13.1g/t and the inferred resources total 3.7Mt grading 8.0g/t. Of note is the ultra-high grade zone (within the Main Zone) that has a total resource of 1.4Mt grading 36.2g/t Au eq. Mariana’s attributable gold ounce equivalent is 900,000oz, assuming Lydia exercises its exclusive right to earn in up to 70% by spending US$2.5m in exploration expenses and a US$0.5m cash payment within a 48 month period as per the Definitive Agreement signed on 24th June 2014.
Beaufort Securities view on Mariana Resources: The exceptional maiden resource estimate of 2.9Moz Au eq grading 10.9g/t Au eq (based on current spot prices and weighted average) is an important milestone for the company and its JV partner. Of note is that already 68% of the gold equivalent resource is within the Indicated category, which suggests to us a high degree of confidence of the continuity of mineralisation. We are also encouraged with the rapid progress from initial discovery to compliant resource estimate over a very short time period of six months. More importantly, the MRE was completed on just 17 drill holes and remains open towards the South, North and at depth. We also note that the deposit contains significant Zn mineralisation that was excluded from the initial mineral estimate. We look forward to further drill results and the forthcoming technical report from this potentially world class deposit. In the meantime, we reiterate our Speculative Buy on the stock.
