Mariana Resources and Hochschild intersect quartz veinlets at Los Amigos gold-silver JV

Mariana Resources (AIM: MARL) has been advised by the operator of the Los Amigos joint venture, Hochschild Mining (LSE: HOC), that three RC (reverse circulation) holes have been drilled for a total 900 metres at the project in the Santa Cruz province of Argentina and all three intersected wide alteration zones containing intervals between 1 and 10 metres wide with quartz veinlets.

Hochschild took the opportunity to do preliminary drilling with one rig available in the area to test various vein targets for epithermal gold-silver mineralization. The companies expect to report assay results in February 2010.

The JV comprises Mariana’s Amigos I and Amigos II and Hochschild’s San Augustin tenements some 110 kilometres south of Hochschild’s gold-silver San Jose Mine. The two companies have agreed to spend US$2 million on exploration within a three year period, 40% of which will be covered by Mariana and 60% by Hochschild to confirm participating interests of 49% and 51% respectively, having committed a budget of US$0.5 million in the first year.

Hochschild has an option to earn a further 9% by funding 60% of the next US$3 million in the next two years and a further 10% by either completing a feasibility study or providing project financing, repaid out of 80% of Mariana’s share of cash flow, which could bring Hochschild’s interest up to a total 70%.

IAMGOLD Corp (TSX: IMG; NYSE: IAG), which previously had a JV agreement over the San Augustin property with Hochschild, will retain a royalty interest of 1.5% of net smelter returns from any mineral produced from the properties.

The area contains well developed structures hosting vein breccias; rock chip samples have previously returned anomalous precious metal values.

Hochschild is a major shareholder in Mariana, holding 10.53 percent as of June 30 2009. It invested US$1.5 million in Mariana in December 209, securing the right of first offer over Mariana’s portfolio of wholly owned properties and applications in Santa Cruz province.  http://www.proactiveinvestors.co.uk/companies/news/12641/mariana-resources-and-hochschild-intersect-quartz-veinlets-at-los-amigos-gold-silver-jv-12641.html