Mariana Resources ends Soledad earn-in option in Peru

7th Sep 2015 09:15

(ShareCast News) - AIM-listed exploration and development company Mariana Resources has notified Condor Resources that it has terminated its earn-in option agreement for the Soledad copper-gold-silver project in Central Peru.Mariana said it discovered high-grade breccia pipes but these were of limited tonnage potential, therefore subsequent exploration activities were focused on the targeting of a deep, potentially mineralized intrusive/porphyry source.The company said drilling these deep targets represents significantly elevated discovery risk and cost and as a result, deemed it prudent to withdraw from this option agreement and focus on Turkey and the balance of its highly prospective portfolio.Chief executive officer Glen Parsons said: "Mariana's strategic commitment is focussed exploration on its portfolio of assets; however expenditures associated with this deeper drilling have considerably higher risks and costs. This decision to withdraw comes at a time when financial discipline is required given current market conditions."In the current market Mariana believes these deeper porphyry targets are not sustainable for junior explorers, unless early success in the actual porphyry itself can be achieved with economic grade being the defining factor."At 0930 BST, Mariana shares were down 7.8% at 2.1660p.