28th Jan 2014 09:54
LONDON (Alliance News) - Mariana Resources Ltd Tuesday said it will continue its Condor de Oro option in Peru after achieving further positive results from its scout drilling programme.
The AIM-listed exploration and development company with operations in South America said the latest drill hole CDOYE-5 has yielded the strongest porphyry-style copper-molybdenum mineralisation of testing to date, including a 102.8 metre space at 0.19% copper from 277.9 metres in depth.
The company also noted that molybdenum mineralisation is widespread in the site with scout drilling finding a 192.5 metre space at 132 parts per million of molybdenum from 277.9 metres in depth.
Mariana said the results of the CDOYE-5 drill and four others at the site have confirmed the size and intensity of a key mineralised zone called Pucayacu and, as such, the company decided to continue with its Condor de Oro option into a second year.
Mariana can acquire a 51% interest in parts of the Condor de Oro site from Condor Resources Inc within four years through certain exploration costs and payments.
The option means that Mariana will now pay USD200,000 to Condor and continues its expenditure commitment of USD1.5 million, most of which has already been spent on the site.
The company said that scout drilling has now been extended to test new priority targets next month.
Mariana also noted that it envisages a further drill campaign at the Soledad gold-silver-copper project in Peru to commence in the second quarter 2014, and said it is fully funded for these new development plans.
In November, the company raised GBP2.7 million through a placing issued by RFC Ambrian and Fox-Davies Capital.
Mariana Resources shares were down 14% to 4.25 pence, putting it in the top ten AIM fallers Tuesday morning.
By Tom McIvor; [email protected]; @TomMcIvor1
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