12th Sep 2014 07:33
LONDON (Alliance News) - South America-focused minerals company Mariana Resources Ltd saw its shares drop on Friday after the group said it got positive new results from its Condor de Oro copper-gold-molybdenum project in Peru but said the targets at the site are likely to prove a better fit for a major company.
Mariana shares were down 34.2% to 1.25 pence in early trade, making it the worst performer on the AIM All-Share index in early trade.
The company said it has received positive indications from all wide spaced scout holes drilled at Condor de Oro so far, adding the most recent results show a large anomalous area for the current shallow drilling programme which indicates the potential for economic grade at depth within the project.
Mariana said it was now evaluating the scope for deeper drilling targets, though it said the targets would be a better strategic fit for a major company.
Glen Parsons, the Chief Executive of Mariana, also cautioned that the grades found so far at the site have not yet met the company's original objective of project defining grades.
"Mariana is in the process of analysing all results which will lead to ways to advance Condor de Oro which include possible joint venturing with a major. Deeper drilling is certainly not uncommon in these times with companies chasing large bulk tonnage potential deposits and this can be an exciting option going forward especially with the very large mineralised target area of Condor de Oro," Parsons added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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