Northland Capital partners view of Mariana Resources: The maiden mineral resource estimate of 3moz gold equivalent at a grade of 11.2g/t Au eq. is a spectacular achievement for Mariana Resources. Equally impressive is the narrow time frame in which the Company and its joint venture partner have advanced the project from discovery to this large and high grade resource in just six months. This discovery cost has been an exceptionally modest US$0.83/oz Au eq. In our last note (27.07.15), we compared Hot Maiden with Roxgold’s 90%-owned 1moz Yaramoko deposit that has an average grade of 15g/t Au. As we expected, Hot Maden has now demonstrated itself to be superior deposit. Roxgold currently has a market cap of £99m. Taking into account Roxgold’s 90% ownership it is valued at £101/oz Au, while Mariana is only valued at £19/oz Au eq. for its 30% ownership of Hot Maden. If Mariana was valued on the same multiple as Roxgold it would have a market cap of £91m and a share price of 11.9p (435% upside) for its 30% interest in Hot Maden, highlighting that the shares currently have plenty of head room at this level.
| Maiden mineral resource estimate of 3moz gold equivalent |
| n Mariana Resources and joint venture partner Lidya have defined a total maiden mineral resource estimate of 8,364,000t containing 2,159,000oz Au at a grade of 8g/t Au and 167,000t Cu at 2% Cu. This is equivalent to 3,001,000oz Au eq. at a grade of 11.2g/t Au eq.
n The indicated resource is 4,710,000t containing 1,518,000oz Au at a grade of 10.0g/t Au and 102,000t Cu at a grade of 2.2% Cu. This is equivalent to 2,033,000oz Au at a grade of 13.4g/t Au eq. The inferred resource of 3,654,000t containing 640,000oz Au at a grade of 5.5g/t Au and 65,000t of Cu at a grade of 1.8% Cu. This is equivalent to 968,000oz Au eq. at a grade of 8.2g/t Au eq. n The ultra-high grade zone has a total resource of 1,357,000t containing 1,346,000oz Au at a grade of 30.9g/t Au and 52,000t Cu at a grade of 3.8% Cu. This is equivalent to 1,608,000oz Au eq. at a grade of 36.9g/t Au eq. n Hot Maden remains open to both the South and at depth and also contains significant zinc mineralisation not included in this estimate. n A Technical report for this mineral resource estimate is currently being prepared. |
