Mariana Resources and Hochschild say results from Los Amigos gold-silver JV warrant further exploration

Mariana Resources Ltd (AIM: MARL) has reported the initial exploration results from its Los Amigos joint venture with Hochschild Mining (LSE: HOC), located in Santa Cruz, Argentina. The company said that encouraging exploration results, including geochemical sampling and an airborne magnetic survey, warrant further exploration on the 13,455 hectares in 2010.
Mariana carried out rock chip sampling along a 5.5 km north-west mineralised trend, with 25 out of 100 samples returning highly anomalous precious metal values. The samples displayed values ranging between 0.1 grams per tonne (gpt) to 5gpt gold and 5gpt to 100gpt silver. The company said the anomalous values relate to zones of silicification, quartz veins and sulphide vein breccias.

Preliminary interpretation of the airborne magnetic survey has identified several major magnetic trends in covered areas that have not been previously explored. The airborne magnetic survey was flown on east-west lines spaced 200m apart. 

"The Los Amigos Joint Venture offers partners access to a consolidated target area prospective for gold-silver mineralisation”, Mariana MD John Sutcliffe commented. “The recent geochemical sampling returned encouraging results ... Coupled with new unexplored trends emerging from the airborne magnetic survey, additional exploration is warranted”.

Also during the initial phase of exploration, Mariana tested one target area with three scout drilling holes totalling 900m, at the south-eastern extremity of the 5.5 km north-west trend. Each hole, spaced 150m apart, intersected wide alteration zones but the assays did not contain significant gold and silver mineralisation, the best assay was 2m at 1.15gpt gold from 249m.

Mariana signed the JV agreement with Hochschild in November 2009, to explore and develop three adjoining prospective gold-silver tenements totalling 13,455 hectares. The tenements consist of Mariana’s Amigos I and Amigos II licence areas and Hochschild's San Augustin property. Mariana has a 49% interest and Hochschild owns 51%. The JV partners agreed to spend US$2 million on exploration within a three year period, divided on a 40% Mariana, 60% Hochschild basis. The Los Amigos year one budget is US$500,000.

During 2010 the exploration schedule includes follow-up of airborne magnetic work and induced polarisation (IP) surveying. The Los Amigos ground work will consist of project and prospect scale geological mapping, coarse fraction soil sampling and systematic rock chip sampling. “exploration planned for 2010 is designed to define additional drill targets", Sutcliffe stated. Ultimately the JV intends to drill the resulting priority gold targets during the year.

Beyond the agreed three-year exploration schedule, Hochschild can potentially increase its interest in Los Amigos to 70%. Hochschild may earn a further 9% by funding 60% of the next US$3m in the next two year phase of exploration, and a further 10% by completing either a pre-feasibility study or by providing a proportion of Mariana’s project financing.

http://www.proactiveinvestors.co.uk/companies/news/13558/mariana-resources-and-hochschild-say-results-from-los-amigos-gold-silver-jv-warrant-further-exploration-13558.html