Mariana Resources Ltd.

Mariana Resources Ltd.

November 30, 2011 08:00 ET

Mariana Exercises Option Over Santa Cruz Joint Venture (Sierra Blanca Project), Argentina

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 30, 2011) - Mariana Resources Limited (TSX:MRY)(AIM:MARL)(PLUS:MARL) ("Mariana" or "the Company") has exercised its option to acquire the 30% interest held by IAMGOLD Corporation ("IAMGOLD") in the Santa Cruz Joint Venture, to take Mariana's interest from 70% to 100%, subject to an IAMGOLD royalty of 1.5% of net smelter returns. To exercise the option Mariana is to pay US$500,000 and issue shares to the value of US$500,000 to IAMGOLD. The number of shares to be issued is based on the 15 days volume weighted average price of Mariana shares on AIM, in this instance 9.41 pence per share. Settlement will occur in two equal tranches, the first immediately and the second on 18 February 2012. Consequently Mariana will issue 1,687,345 fully paid ordinary shares to IAMGOLD under the first tranche when documentation is completed.

Under the AngloGold Ashanti Ltd ("AngloGold") strategic investment agreement, announced on the 17th November 2011, AngloGold has the right to maintain its percentage interest in Mariana at 19.862%. As a consequence of AngloGold electing to maintain this percentage interest, Mariana will issue 418,212 fully paid ordinary shares to AngloGold under the first tranche at 9.41 pence per share upon completion of the strategic investment.

Mariana will therefore issue 2,105,570 fully paid ordinary shares under the first tranche. Under TSX rules the shares will be subject to a four months hold period. The issues will take the Company's issued capital to 183,665,487 ordinary shares.

Santa Cruz Joint Venture Background

Mariana earned a 70% interest in the Joint Venture by spending US$2,000,000 on exploration of Sierra Blanca and Cañadon Largo projects. Subsequently Mariana negotiated an option to acquire IAMGOLD's 30% interest by paying US$500,000 cash and issuing Mariana shares to the value US$500,000. In recent times the Company's exploration has centred on the Sierra Blanca silver-gold project.

In early 2011, diamond drilling along the 1.1km Chala-Achen vein system discovered wide intervals of gold-silver mineralisation with high grade zones at Chala Central and Achen. Best Achen intersection was 20.3m @ 1.5 g/t gold ('Au') and 34 g/t silver ('Ag') (2.0 g/t AuEq**) from 121.7m including 2.65m @ 6.8 g/t Au and 23 g/t Ag from 135.6m in Hole CHD71. Best Chala Central intersection was 30.1m @ 2.2 g/t Au and 101 g/t Ag (3.9 g/t AuEq) from 23.0m, including 2.1m @ 15.9 g/t Au and 38 g/t Ag(16.5 g/t Au Eq) from 41m in CHD84. (**Gold equivalent grade is calculated by dividing silver assays by 60 and adding to the gold value and this assumes 100% metallurgical recovery.)

Induced Polarisation geophysics, detailed mapping and sampling at Chala-Achen and other key targets resulted in5,000m of recently completed follow up drilling. The campaign included Achen-Chala, Lucila, Trafwe (the one kilometre long gravel covered zone between Lucila and Achen), and Veterron target zones with assay results awaited.

The 7,000 Ha Sierra Blanca project is located 70km NW of Cerro Vanguardia along the Tranquilo regional fault system and is adjacent to Argentex Mining's Pinguino epithermal gold-silver/polymetallic discovery. Mariana discovered intermediate sulphidation epithermal gold-silver mineralisation at Veta Chala in 2008. Drilling was limited to 17 reverse circulation and six diamond holes totalling 1,750m targeting veins and breccias exposed in trenches from which numerous bonanza and high grade assays were obtained in channel sampling.

Exploration information in this announcement has been compiled by John Horsburgh who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Horsburgh has sufficient experience relevant to the style of mineralization and types of gold deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code. Mr. Horsburgh is a qualified person within the meaning of national Instrument 43-101.

Quality Assurance/Quality Control

All technical information for the Company's Argentina projects is obtained and reported under a quality assurance and quality control (QA/QC) program. All samples are collected under the supervision of the Company geologists and dispatched via commercial transport to ALS Chemex laboratories in Mendoza, Argentina, and assayed in Chile. ALS Chemex's quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses.

Systematic assaying of sample duplicates and commercially prepared standards and blanks is performed for analytical reliability.

For further information please visit website at

About Mariana Resources

Mariana Resources Ltd is an AIM and TSX quoted exploration and development company with an extensive portfolio of gold, silver and copper projects in Argentina and Chile. In southern Argentina, in addition to the Las Calandrias gold-silver discovery, the Company has the Sierra Blanca silver-gold prospect (70%); the Los Amigos joint venture (49%) with Hochschild Mining and a 160,000 Ha land package (100%) in the country. All of these projects are located in the Deseado Massif epithermal gold-silver district in mining-friendly Santa Cruz province of southern Argentina, which hosts four mines and several advanced projects. In Chile, Mariana has a joint venture with US based international mining and natural resources company Cliffs Natural Resources Inc., to explore for iron oxide-copper-gold deposits ('IOCG') in a 92,000 km² area ("SCM Mariana Area") in north-central Chile along the highly prospective Atacama Fault Zone. The SCM Mariana Area includes the 44km² Buenaventura and 46km² Perro Chico IOCG projects. Mariana is also evaluating a number of gold-silver and copper-gold opportunities away from the Cliffs JV area, as part of a new initiative.

Safe Harbour

This press release presents "forward-looking statements" within the meaning of Canadian securities legislation that involve inherent risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold and other minerals and metals, the estimation of mineral resources, the capital expenditures, costs and timing of the resources, the realization of mineral reserve estimates, the capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage.

Generally, these forward-looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Mariana to be materially different from those expressed or implied by such forward looking statements, including but not limited to: risks related to international operations, actual results of current exploration activities; actual results of current or future reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold and other minerals and metals; possible variations in ore reserves, grade or recovery rates; failure of equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the management of Mariana believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Mariana Resources does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Incorporated in Guernsey registered number 44276.


Contact Information

  • In Australia:
    Mariana Resources Ltd
    John Horsburgh (Chairman)
    +61 2 94374588

    Mariana Resources Ltd
    Glen Parsons (CFO)
    +612 94374588

    RFC Corporate Finance Limited (Nomad)
    Rob Adamson
    +61 2 9250 0041

    RFC Corporate Finance Limited (Nomad)
    Will Souter
    +61 2 9250 0050

    In U.K.:
    FinnCap (Broker)
    Matthew Robinson
    +44 20 7600 1658

    Fox Davies Capital (Co UK Broker)
    Jonathan Evans
    +44 20 3463 5000

    St Brides Media and Finance Ltd (PR)
    Felicity Edwards
    +44 20 7236 1177

    St Brides Media and Finance Ltd (PR)
    Hugo de Salis
    +44 20 7236 1177

    In Canada:
    Mariana Resources Ltd (Vancouver Office)
    Kathryn Witter
    +1 604 669 9336

    Renmark Financial Communications (PR)
    Arash Shahi
    +1 514 939 3989

    Renmark Financial Communications (PR)
    Philip Robin
    +1 416 644 2020