Mariana Share Discussion Threads

[cpap man] 02/12/2016 14:00

This short term hold up [otherwise known as consolidation] though does potentially make the MARL chart stronger moving forwards.

The trend upwards does still look very strong chart wise but unfortunately nothing ever moves in a straight line!

[cpap man] 02/12/2016 13:55

Been away so a bit disappointed that MARL has only had 1 of the 2 RNSs but the PEA will no doubt be here very soon [with hind sight end of November should never have been mentioned when say during the 4th QTR would have sufficed] plus another MAJOR RNS on drilling results from HM

[barrywhit] 02/12/2016 11:24

another interview...

[gersemi] 02/12/2016 09:27

The pleasure is all mine. Owt that puts upward pressure on the share price is surely to be warmly welcomed

[greenrichard] 02/12/2016 09:16

Might just grab a few more shares today and sit back and wait. Thanks once more for finding that article.

[gersemi] 02/12/2016 09:09

Just published today. With thanks to Taylor Dart at S-Alpha:

Top 2 Gold Juniors For 2017
Dec. 2, 2016 3:49 AM ET|
Taylor Dart








#1 - Mariana Resources

Mariana Resources (OTCPK:MRLDF) only recently came under my radar, but has since taken over top spot as my favorite junior miner. The company is currently sitting on the largest discovery in the past decade, and is hitting the highest grade drill results I've seen since Ventana Gold. For those not familiar with Ventana Gold, the company was taken over in 2011 by Eike Batista for $1.43 billion dollars. At the time Ventana Gold had a resource of 3.9 gold equivalent ounces, at an average grade of 4.0 grams per tonne gold.

(Source: Stockcharts.com)

The above chart is of Ventana Gold which provided shareholders with a 7000% return over the course of only 3 years. The discovery was the largest one since Aurelian Resources, and received a takeover price of $366 / oz. Mariana Resources has only just started drilling its Hot Maden Project in Turkey, but thus far the results are jaw-dropping. The grades reported at Hot Maden are nearly double that of Ventana's drill results, in addition to being over thicker intersections. For those who are not familiar with Ventana Gold, I have shown drill intercepts from each company below to compare the two.

Below are examples of Ventana Gold's five most significant drill intercepts during its 2009-2011 drill campaign:

1. LB-051: 51.6 meters of 7.85 grams per tonne gold

2. LB-047: 56.5 meters of 6.60 grams per tonne gold

3. LB-143: 84 meters of 13.66 grams per tonne gold

4. LB-01: 107 meters of 7.81 grams per tonne gold

5. LB-112: 94.5 meters of 5.83 grams per tonne gold

Most junior explorers would dream of hitting even one of these intercepts, yet Ventana had several of them on the path to delineating its nearly 4 million ounce resource. In 2015, investors were introduced by Mariana's Hot Maden Project and thus far, we have seen results like these:

1. HTD-04: 109 meters of 9.0 grams per tonne gold

2. HTD-05: 82 meters of 20.4 grams per tonne gold

3. HTD-15: 117 meters of 13.9 grams per tonne gold

4. HTD-34: 71 meters of 32.7 grams per tonne gold

5. HTD-71: 69 meters of 62.7 grams per tonne gold

Taking a look at the above drill results, Mariana's drill intercepts are thicker intersections with over double the grades. While Ventana's LB-047 hit a 56 meter intercept of 6.60 grams per tonne gold, Mariana hit a 69-meter intercept of 62.7 grams per tonne. This is a slightly thicker intercept with 900% higher grades, and was released just last week. The other impressive part about Mariana when comparing to Ventana is the minimal exploration work that has been done at Mariana's Hot Maden. Ventana needed over 150 holes to prove up these five intercepts and a resource of over 3.5 million ounces gold equivalent. Thus far, it has taken Mariana Resources 70 holes to release more impressive drill results and delineate the same size resource.

(Source: Company Presentation)

The most recent drill results reported from Hot Maden were also the highest grade drill results at the property to date. Mariana reported 69 meters of 62 grams per tonne gold, which is the highest grade drill result I have ever seen since I started looking at gold stocks. Given this most recent intercept, I believe there is a possibility the project is very close to the 4 million ounce mark already.

Mariana Resources currently has 121 million shares outstanding, giving the company a market capitalization of $145 million (NYSEARCA:CAD) at its current share price. While Mariana Resources only owns 30% of the Hot Maden Project, this is still a far way from the $1.4 billion price tag that Ventana fetched in 2011. Mariana Resources most recent resource estimate was an eye-opener for shareholders. The new resource for Hot Maden stands at 3.5 million ounces at 15.0 grams per tonne gold. Currently, Mariana Resources' 30% ownership at Hot Maden is worth roughly $145 million CAD. This means that the total project is worth $478 million dollars. While I agree that a discount should be given as it is in different mining jurisdictions, I believe the current discount to be far too large.

I believe Mariana's ounces have a fair value of $325.00/oz compared to Ventana Gold's $366.66/oz. While I believe it is fair to place a 30% discount on Mariana's ounces compared to Ventana's due to country risk, 25% of this discount should be added back to account for grade disparity. Mariana Resources' grades are almost 400% higher than that of Ventana's with a resource that is almost the exact same size. This should make a significant difference when comparing cash costs for the two companies, and I expect the PEA should show all-in sustaining cash costs at Hot Maden of under $500/oz. By applying my fair value of $325 / oz to Hot Maden, the project should have a value of $1.13 billion dollars. This means that Mariana's 30% ownership should be worth $341 million dollars, more than double their current market capitalization. For this re-rating to occur if my assessment is correct, Mariana Resources would command a share price of $2.85 CAD.

(Source: Company Presentation)

(Source: Company Presentation)

Mariana Resources is currently moving towards development with the expectation that a PEA will be released for Hot Maden within the next month. This should give investors a much better idea what mining will look like at the project, and where costs might come in for this ultra high-grade gold deposit. I expect all-in sustaining cash costs will be projected at below $500 / oz, which would be the lowest all-in sustaining cash costs in the industry currently. The pre-feasibility study is also planned for 2017, and this should put Mariana even more on gold majors' radars. Typically gold majors want to see as much as a gold junior's hand as possible, before making a move on their deposit. The pre-feasibility study will be significant enough for gold majors to decide whether they want to make a move on Mariana's 30% stake.

[barrywhit] 02/12/2016 08:57

Cheers pr0t0n,

Those are the warrants RNS'd. in my opinion most are forward sold before RNS issued. will be interesting to see the size of the next warrant release.

[pr0t0n] 02/12/2016 08:31

Warrants exercised since July :


25,000
384,614
120,937
928,050
47,550
237,750
1,132,696
300,000
28,530
105,561
287,500
------------------

3,598,188

[barrywhit] 02/12/2016 08:01

I hope we get an updated shareholder list fairly soon,would be good to know what's been happening lately, so we can see who has retained warrants and who has sold into the market...

[bittorrent] 02/12/2016 06:42

Thanks for the summary Gersemi, it is much appreciated. I too think this is one to hold for long term gains.

[greenrichard] 01/12/2016 23:19

Thanks for that post and your efforts. A bit more factual than wiseacre's one liner!

[buffythebuffoon] 01/12/2016 18:31

Another moron filtered.

Buffy

[cwh1980] 01/12/2016 18:28

More warrants on the way no doubt. Wouldn't surprise me if a placing is on the cards too early next year.

[wiseacre] 01/12/2016 16:38

I wouldn't count on it.

[barrywhit] 01/12/2016 16:15

wiseacre,

I think you may be on the wrong thread, we are funded through 2017...

[wiseacre] 01/12/2016 16:01

Heavily loss making; stretched balance sheet; over-remunerated management. Not to be touched with a barge-pole.

[barrywhit] 01/12/2016 14:50

No wonder we haven't seen any buying into the PEA, insiders know of the delays and warrant holders still pumping out stock.......imo

[billthebank] 01/12/2016 09:40

Let us know if he has a PEA?!

[gersemi] 01/12/2016 09:39

Parson's now up on the podium and doing his presentation in London though not sure what he's gonna say considering the news we were expecting is not in the public domain

[barrywhit] 01/12/2016 09:36

Very disappointed the way MARL have let the PEA drag on......

[barrywhit] 01/12/2016 08:01

Is it me or has the Mariana website gone offline????

edit: got it,

[wisteria2] 30/11/2016 19:48

I think that in the recent interview (barrys link) Glen broadened the prospective view for the company! well it hooked me in regards to Argentina..
Todays share price is completely disregarding any value in the assets there, and that we will get a constant stream of news for the foreseeable future pushing the Mcap higher.
Bring it on... all depending on the price of precious metals!! GLA

[barrywhit] 30/11/2016 18:45

Another 100k delayed trade from yesterday afternoon........