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Mariana interims reveal progress in Turkey

Last updated: 09:23 30 Aug 2016 EDT, First published: 03:08 30 Aug 2016 EDT

Coresampling
The results to date have been exceptional.

Interims from Mariana Resources Limited (LON:MARL, CVE:MRY) chart an ‘exceptional’ period in which the full potential of the Hot Maden gold-copper project became apparent.

Drilling produced some high-grade results, including a bonanza 71-metre section at almost 33 grams per tonne and 1.9% copper.

The work was distilled down into an updated resources statement published shortly after the period end, which bumped the indicated gold resources to 2.79mln ounces, while the copper component weighed in at 166,000 tonnes.

Combined this was the equivalent of 3.43mln ounces of the precious metal, which represented a near 70% increase on the last updated figure of just under 2mln ounces gold equivalent.

Within July’s update was a maiden resource estimate for zinc, which was 11,600 tonnes listed in the indicated category with a further 114,000 tonnes inferred.

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In fact there was scope for further upgrades to what is shaping up to be a significant, high-grade polymetallic discovery with 439,000 ounces of gold equivalent residing in the lower confidence inferred category.

More exploration drilling is part of an exciting programme of work being carried out on Hot Maden by Mariana, which owns 30%, and its local partner Lidya.

Also scheduled is the production of the preliminary economic assessment of the project, which is due at the end of September, or early October. This will be followed by the prefeasibility study in the first half of next year.

“The on-going programme at Hot Maden has delivered outstanding results in the period, justifying the board’s confidence and excitement in this project, as well their decision to focus the majority of the company’s resources and time on the project,” said chief executive Glen Parsons. 

Shares up 260%

The company, which also has assets in South America, narrowed its losses marginally to £2.6mln in the six months to June.

It is normal for a mining junior at this formative stage of development to post a shortfall; the market is much more interested how much cash it has on its balance sheet to fulfil its programme of work.

In Mariana’s case it has a decent cushion with £5.7mln in the bank.

Its success with the drill bit is reflected in the share price, which has advanced over 260% in the year to date.

But the stock has further to go. Restating his ‘buy’ advice, Northland Capital analyst Ryan Long said he reckons Mariana is worth £1 a share. By 2.15pm the price had edged up 1.5p to 56p.

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