Mariana to proceed with Condor option

PUBLISHED: Nov 04 2013 @ 04:23 | Comments (7) |

Mariana Resources (LSE:MARL), an AIM quoted exploration and development company focused in Peru and southern Argentina, has announced that following successful due diligence, it is proceeding with the option to earn a 70% interest in Condor Resources Inc. (TSX-V:CN) 100% owned 7.13 sq km gold-silver-copper Soledad prospect in Peru.

The Soledad property is located in the prospective Cordillera Negra metallogenic province in the central Peruvian Andes approximately 34 km to the south of the Pierina gold-silver mine operated by Barrick Gold Corporation, and is fully drill permitted.

Overview:

· The Soledad Project contains a high sulphidation epithermal system, with potential for a gold-copper-silver mineralised intrusive at depth. Advanced argillic-type alteration assemblages predominate in the northern (higher elevation) portion of the Soledad property, with at least eight gold-silver-copper bearing breccia pipes known in the south (Fig3).

· Historic drilling* confirms prospectivity of the Project with previous best assays of:

o DDH3 61.5m @ 1.9 g/t Au, 146 g/t Ag, 1.8% Cu from 68m hosted by a quartz-tourmaline breccia pipe

o DDH5 28.5m @ 5.0 g/t Au, 28 g/t Ag, 1.1% Cu from 55.5m

o DDH2 33.0m @ 2.5 g/t Au from 72m

· Only one of the eight breccia pipes identified on the Soledad property has been drill tested to date – significant upside potential

· A drill permit was approved in July 2013 with agreements in place with land owners

· Mining district, with a current sizeable private underground mining operation adjacent to the Soledad property, chasing high sulphur epithermal veining

Mariana Resources Chief Executive Officer Glen Parsons said, “We are delighted to announce the completion of due diligence and our decision to proceed with our option to acquire 70% of this exciting gold-silver-copper project. Soledad has been historically drilled with compelling grades and offers a mineralised breccia complex, a potential high sulphidation epithermal target as well as a deep intrusive related anomaly. It is our intention over the next few months to perform a systematic soil and rock sampling programme, in addition to better integrating existing geophysical data, to define drill targets with the view of commencing drilling in H1 2014. Encouragingly, the San Gregorio mining operations (privately held) located immediately adjacent to Soledad lie along structural corridors that trend into the property and further corroborate our view on the upside potential.

“This completion also follows close on the heels of commencing drilling at our Condor del Oro gold-silver-copper option project, a potentially large porphyry system also in Peru, and complements Mariana’s diversification strategy into this mineral-rich country. I look forward to the results of the intended exploration programme going forward at both of our Peru projects as well as building on our existing partnership with Condor Resources.”

Exploration by Condor:

Condor has completed 25.5km line of induced polarization (‘IP’) and magnetics, prospecting, mapping and sampling. This has led to the discovery of a large (650 x 450m) zone of intense advanced argillic alteration within the northeastern sector at an elevation of 4,500m (Figure 3). Pervasive quartz-alunite, along with vuggy quartz have been interpreted by Condor to indicate a high sulphidation epithermal system with potential for a gold-copper-silver mineralised intrusive at depth.

An additional eight similar breccia bodies, up to 200m in diameter, have been identified, and are also anomalous in gold and silver.

Exploration Targets:

Condor considers Soledad to be a hydrothermal breccia complex along with a high sulphidation gold-silver epithermal system at higher elevations. In addition, the combined distribution of the mineralized breccia pipes and anomalous geophysical data may indicate the presence of a potential gold-silver-copper mineralised intrusive at depth. The historical drilling has only been conducted in one of the breccia pipes (Breccia #1), with the other [eight] breccia pipes on the Soledad property remaining untested.

Following a more in-depth review of the property, a likely drill programme will include verification of the reported 1996 intersections of Breccia #1, testing of several of the newly discovered breccias on the property, and initial drilling of the high sulphidation epithermal system discovered in the northeastern sector.

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