Mineral exploration outfit Mariana Resources (AIM: MARL) releases a comprehensive update on activities in South America, where it is advancing numerous precious and base metal projects.
The key thrust of the update was a continued shift in focus away from Ecuador towards Argentina and Chile as the company focuses its efforts on its most promising projects with the lowest country risk.
Mariana said that it was gearing up for drilling programs in both Chile and Argentina.
At Sierra Blanca, in Santa Cruz Province, Argentina, where the Company has a joint venture with TSX mid-tier gold producer IAMGOLD, Mariana confirmed that it would begin a drilling program in September. The JV has indentified four ‘important new targets’ from last year’s scout drilling and mapping program, including the Chala Vein which returned several bonanza silver-gold intersects. On the corporate front, the company also confirmed that it had amended its JV with IAMGOLD. A previous buy-back clause had been removed and instead any project that reaches production will result in Mariana issuing shares to the Canadian gold company. Also in Argentina, Mariana confirmed that a Geophysical Induced Polarisation survey would commence this month at La Borita, a copper porphyry target, and that additional concessions in Santa Cruz had been applied for.
Meanwhile in Chile, Mariana said that it expected to drill later in 2008 at Buenaventura where it has secured at Iron Oxide Copper-Gold project in partnership with ASX listed Minotaur Exploration. Previous exploration at Buenaventura indentified copper mineralisation in outcrop and at depth in four locations. Drilling is also planned at its Iron Oxide Copper-Gold skarn project at Perro Chico, where previous work has identified a copper bearing skarn over 400 metre strike and with widths of a least 5 metres.
Finally, in Ecuador, Mariana said it believed a new constitutional mandate “will seriously affect” the future of country’s mining outlook. New rules will include a limit on the number of concession a company can hold, and the revoking of licences that do not have approval for their EIA environmental study, or in certain locations where the country has banned development.
Managing Director John Sutcliffe said:
"Sierra Blanca in Santa Cruz continues to shape up as a significant precious metals discovery and we are pleased to see Mariana's increased exposure to the upside on this project by the removal of the buy-back. Mariana's main focus has for some time been in Argentina and Chile, where we believe the strength and future of the Company lies. As a consequence, the recent developments in Ecuador will have only minimal effect on Mariana."