🕐12.11.09 - 09:44 Uhr

Mariana Resources - FinnCap Buy note - signs gold JV with Hochschild Mining (cur
rent sp 14p target 19p)



FinnCap (Joe Lunn Mining Analyst) morning comment on South American AIM explorer Mariana Resources (MARL)
Mariana Resources - MARL.L - (15p) - hot to trot We think the Amigos joint venture with Hochschild, the FTSE Latin American silver miner, is a sensible approach for Mariana to unlock value for its shareholders by leveraging off the resources of a larger partner.

Under the terms of the JV, the two companies will jointly explore 3 contiguous properties in Patagonia, located 200km to the west of Marianas recent Dos Calandrias gold silver discovery and 25km north east of Patagonia Golds Cap Oeste near-surface gold silver deposit.

The JV creates an enlarged area of 13,455 hectares to explore for gold silver-rich epithermal vein systems, similar to those at Cap Oeste, which may extend across property boundaries - this is why the JV makes sense.

Ownership is split initially 49/51 percent in favour of Hochschild who have the option of increasing its interest to a maximum of 70 per cent through expenditure.

But we expect Mariana Resources, having demonstrated its expertise from its recent gold silver discovery at Dos Calandrias, to make a significant contribution to the exploration effort.

The recent fundraise of �2.6 million means that Mariana has the cash to contribute its share of exploration spend in year one of the JV, which will be at least $245,000.

We think that this JV adds further credibility to the recently demonstrated ability of Mariana Resources to make economic gold silver discoveries.

The company is now poised to add considerable value to a series of highly prospective projects in Latin America next year.

If further exploration success were to happen in 2010 for Mariana, we believe that the shares would significantly increase beyond our current valuation of 19 pence per share.
Mariana Resources Ltd / Epic: MARL / Market: AIM / Sector: Gold Mining 12 November 2009
Mariana Resources Ltd (Mariana Resources or the Company) Joint Venture Agreement with Hochschild - Argentina
Mariana Resources Ltd, the AIM quoted exploration and development company focussed in Argentina and Chile, has signed a joint venture agreement with Hochschild Mining Holdings (Hochschild) to explore and develop three adjoining prospective gold-silver tenements totalling 13,455 hectares, located in the Santa Cruz area in the western sector of the Deseado Massif in southern Argentina.

These tenements consist of the Companys Amigos I and Amigos II licence areas and Hochschilds San Augustin property which are located circa 110km south of Hochschilds producing gold-silver San Jose Mine.


Highlights * Joint venture agreement signed with Hochschild to explore adjoining properties in southern Argentina (Mariana - 49% and Hochschild - 51%) * Licences under review are under-explored, large intact high-level epithermal vein system, prospective for gold and silver * Mariana and Hochschild to spend US$2 million over three years on a 40/60 basis * Hochschild can increase its interest in the joint venture to 70% through committing 60% of US$3 million in the subsequent two years and taking the project to a Pre-Feasibility stage * Exploration drilling anticipated to commence Q2 2010
Managing Director John Sutcliffe said, "With Hochschild as a major shareholder in Mariana, we are delighted to have further strengthened our relationship and look forward to working with such an experienced producer on this exciting project.

We believe that the project offers considerable opportunities, providing both companies access to a large consolidated target area where gold and silver mineralisation may extend across common property boundaries.


"Additionally, following our success at the Dos Calandrias project, having recently made a significant gold-silver discovery, we believe this deal further underpins our position as a significant explorer in the emerging Santa Cruz gold district and our ability to generate projects with high potential."
Joint Venture Terms
Under the terms of the agreement, Mariana will put its Los Amigos I and II properties into the joint venture whilst Hochschild will contribute its San Augustin property.

A US$2 million budget on exploration has been agreed within a three year period, 40% paid by Mariana and 60% by Hochschild, to confirm participating interests of 49% and 51% respectively.

US$500,000 of this budget is committed in the first year.


Hochschild can earn into a further 9% of the joint venture 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, if requested by Mariana, providing project financing, repaid out of 80% of Marianas share of cash flow.

This could see Hochschilds interest in the joint venture increase to a total 70%.
Hochschild previously held the San Augustin property in a joint venture with IAMGOLD Corporation (IAMGOLD).

Under the terms of the new joint venture agreement between Hochschild and Mariana, IAMGOLD will retain a royalty interest 1.5% of net smelter returns from any mineral produced from the properties.
Work Planned
The initial exploration programme will comprise geological mapping together with lag soil, rock-chip, diamond saw channel sampling and backhoe trenching as required.

Geophysics may include ground magnetics and Induced Polarisation/Resistivity surveys.

Targets will be tested by preliminary drilling in 2010.

Hochschild will operate the programme with technical and operational input from Mariana.
Geology and Mineralisation
Previous exploration is limited.

Five holes were drilled in 2005 by Minera Andes Inc.

in the new J.V.

area for a total of 1,440m which followed surface sampling and Induced Polarisation geophysics.

The drilling did not intersect economic gold-silver mineralisation, but abundant hydrothermal breccias with a banded chalcedonic quartz-pyrite matrix were reported.
The area contains well developed NW and NNW structures hosting vein breccias.

Rock chip samples have returned anomalous precious metal values.

Silicified lacustrine sediments indicate a palaeosurface and an intact epithermal system.

Exploration potential therefore exists at depth for precious metal mineralisation of low sulphidation epithermal type.
**ENDS**
See website www.marianaresources.com for accompanying diagrams.
John Horsburgh (Chairman) Mariana Resources Plc Tel +61 2 94374588 John Sutcliffe (MD) Mariana Resources Plc Tel +593 99 808080 Rob Adamson RFC Corporate Finance Limited (Nomad) +61 2 9250 0041 Will Souter RFC Corporate Finance Limited (Nomad) +61 2 9250 0050 Joe Lunn (Analyst) FinnCap (Broker) +44 20 7600 1658 Matthew Robinson FinnCap (Broker) +44 20 7600 1658 Felicity Edwards St Brides Media and Finance Ltd +44 20 7236 1177 Hugo De Salis St Brides Media and Finance Ltd +44 20 7236 1177
ADDITIONAL INFORMATION
The exploration programme is being directed by the Argentina Exploration Manager, Dr Gustavo A.

Rodriguez under supervision of Managing Director Mr John Sutcliffe.

Exploration information in this announcement has been compiled by John Sutcliffe who is a Fellow of the Geological Society of London, a Chartered Engineer and a Member of the Institute of Mining and Metallurgy.

Mr Sutcliffe has sufficient experience relevant to the style of mineralisation and types of gold deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code. Quality Assurance/Quality Control All technical information for the Companys Argentina projects is obtained and reported under a quality assurance and quality control (QA/QC) programme.

All samples are collected under the supervision of the Company geologists and dispatched via commercial transport to ALS Chemex laboratories in Mendoza, Argentina, and assayed in Santiago de Chile.

ALS Chemexs quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999.

Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses.

Systematic assaying of sample duplicates and commercially prepared standards and blanks is performed for analytical reliability.


Felicity Edwards St Brides Media and Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY
Tel: +44 (0) 207 236 1177 Mob: +44 (0) 7748 843871 Fax: +44 (0) 207 236 1188 Email: Web: www.sbmf.co.uk
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