Mariana Resources: South American Exploration

Mariana Resources, (MRRE) is developing a strategic short- to medium-term asset base in Peru, having made a long-term decision to reprioritise its exposure to Argentina. The due diligence on Condor Resources’ Soledad project has been completed successfully and Mariana will proceed with an option to earn-in 70% of the project. Payment will be US$1.125m in cash or shares over a four-year period and US$4m total work commitment expenditure over the same length of time. This complements the current Condor de Oro project in Northern Peru, which is being drilled.

Diversifying into Peru
In addition to its Soledad option, Mariana Resources has optioned the Condor de Oro project in Peru from Condor Resources. The Condor de Oro project consists of two assets: the Pucayacu gold-copper deposit and the Yuracyacu copper-silver property. Mariana is able to earn-in up to 51% in each property, with cash and share payments of US$2.5m and US$12.5m expenditure on each property over a four-year period, of which US$500,000 must be spent by January 2014. The project has a community agreement in place and has official notification from the authorities that it may start exploration activities. The initial 1,500m diamond drilling

Programme has begun.
Argentinian assets in good standing The Argentinian properties are being maintained in good standing while shifting to a low-cost exploration strategy to develop new targets, with particular focus on highgrade opportunities. Mariana has said it may sell or joint venture its more advanced projects in Argentina if commercially viable terms could be achievable.

Financials: £900,000 raised
As at 30 June 2013, Mariana had cash of £328,229, but raised £900,000 after the balance sheet date through a share placement at 1p per share. AngloGold Ashanti holds 13.7% of Mariana, while Hochschild Mining, which mines gold and silver in Peru and Argentina, holds 3.41%. It also has assets classified as held for sale worth £8.3m, which relates to the intended sale of its Argentinian assets. Its sixmonthly operating and investment expenditure amounted to £1.1m in the half year to 30 June 2013. Price to book value (June 2013) is 0.81x.

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