Mariana Resources upbeat in spite of delays at Peruvian project

28th Jun 2013 07:34

Mariana Resources, the AIM-listed exploration and development company operating in South America, has reported delays in the drill permitting process for the Condor de Oro copper-gold project in Peru.The company, which is earning in to a 51% interest in the project, said it had been taking longer than was anticipated at the beginning of the year. After meeting with regulatory officials, the company said "we are optimistic that progress is being made". Despite a current backlog of approvals pending by numerous other companies, it said that it believed it would be able to commence drilling during the next quarter of 2013. Meanwhile, community support had been reaffirmed at local meetings and the option to assess the adjacent Yuracayacu property had been further extended by mutual agreement with Condor Resources, the company added.Key exploration prospects advancing in ArgentinaIn Argentina, the company said it was continuing to maintain properties and assets in good standing as well as advancing key exploration prospects on a low cost basis. The company's current focus is on the evaluation of high grade gold-silver targets. At the Los Cisnes silver-gold project, 100%-owned by Mariana, the company said that channel sampling at the El Brio silver prospect had extended the strike length of the high level epithermal vein system discovered in the fourth quarter of 2012 to 1,100m, with values of up to 144 grams per tonne (g/t) of silver (Ag) over 0.7m. Earlier channel sampling at the eastern end, returned assays up to 4.4m at 535g/t Ag. The company said that it is currently in discussions regarding potential strategic tenement acquisitions which it said could enhance known priority targets. Cash flows minimisedGiven the permitting delays in Peru, the company said that it had minimised its cash outflows whilst it evaluated strategies for raising working capital to bolster its current cash balance of around $450,000. Further permitting delays in Peru would impact the company's ability to raise funds however, the Directors said they believed funding for the impending drilling at the Condor De Oro project in Peru and working capital would be available.CEO: Mariana "well poised" going forwardGlen Parsons, Chief Executive Officer of Mariana Resources, commented: "Despite the delays in Peru, Mariana remains well poised going forward especially with the recent spate of licenses being awarded in Peru." He added: "I expect we will soon be in a position to proceed with exploration drilling, which will greatly benefit the company and its ability to fund the next round of exploration activities. Mariana continues to evaluate more advanced opportunities, particularly those that are drill permitted."MF