VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 4, 2012) - Mariana Resources Ltd (TSX:MRY)(AIM:MARL) ('Mariana' or 'the Company'), the AIM and TSX quoted exploration and development company focused in southern Argentina and Chile, is pleased to announce that it has signed a Letter of Intent ("LOI") with Condor Resources Inc. (TSX VENTURE:CN) ("Condor") for Condor's 102km2 Condor del Oro project located in the Cordillera del Condor in northern Peru, one of the most significant underexplored gold-copper belts in South America, and approximately 130km southwest of Kinross' Fruta del Norte gold deposit.
Condor has granted Mariana two options (the "Options") by which the Company may earn a 51% interest and operate the Pucayacu Gold-Copper Property ("Pucayacu") and the Yuracyacu Copper-Silver Property ("Yuracyacu"). Based on current geological prospecting, surface geochemical sampling, mapping and geophysics, the two separate extensive intrusive-related mineralized centres are approximately 8km apart. The properties are characterised by broad alteration haloes, quartz stockworks, alluvial gold and highly anomalous precious and base metal geochemistry, each forming 4km2 target areas which have not been previously drill tested.
Under the terms of the LOI, Mariana has the right to acquire a 51% interest in each property within four years by incurring direct exploration costs of US$12,500,000, and making cash and/or share equivalent payments to Condor for a cumulative sum of US$2,500,000 for each property. A non-refundable US$50,000 payment was made on signing the LOI for Pucayacu and a further US$50,000 is due following successful due diligence completion. Mariana's commitment at the more advanced Pucayacu is a minimum expenditure of US$500,000 in Year 1, including 1,500 metres of drilling. Mariana also has a 90 day exclusive period to option Yuracyacu by payment of US$50,000 within 15 days of signing the LOI and carrying out a geochemical sampling program. A further US$50,000 is due before the end of the 90 day exclusive period should Mariana elect to proceed with the Yuracyacu option.
The LOI includes a due diligence provision to be completed by Mariana by October 17, 2012, and parties have agreed to replace the LOI with a Definitive Agreement containing general industry standard terms and conditions. Upon Mariana earning the interests in the Pucayacu and/or Yuracyacu properties, the parties will form a joint venture in accordance with their respective interests to further develop the properties.
The grant of the Options is subject to the receipt of regulatory and TSX Venture Exchange approvals as required.
Ray Angus, COO of Mariana, said, "This is an opportunity for Mariana to drill untested potential company-maker gold and base metal targets in this highly prospective belt in conjunction with our current ongoing exploration programme in Argentina."
Patrick Burns, Founder, President and CEO of Condor, said, "I am delighted to have Mariana as a partner on our Condor de Oro project because they are of the same opinion as we are that the large Pucayacu and Yuracyacu targets are among the most significant untested bulk tonnage porphyry gold-copper targets currently within the Cordillera del Condor of northern Peru."
For project maps and a summary of exploration results to date on this project see Condor's website http://www.condorresources.com/s/ProjectCondoro.asp and the following links to maps sourced from Condor's website:
For further information please visit website at www.marianaresources.com.
About Mariana Resources
Mariana Resources Ltd is an AIM and TSX quoted exploration and development company with an extensive portfolio of gold, silver and copper projects in Argentina and Chile. In southern Argentina, the Company's core gold-silver projects are Las Calandrias (100%), Sierra Blanca (100%), Los Amigos JV (49%) and Aguila-Picadero (100%). These projects are part of a 200,000+ Ha land package in the Deseado Massif epithermal gold-silver district in mining-friendly Santa Cruz Province. In Chile, Mariana has a joint venture with US based international mining and natural resources company Cliffs Natural Resources Inc., to explore for iron oxide-copper-gold deposits in a 92,000 km² area in north-central Chile along the highly prospective Atacama Fault Zone. Mariana is also evaluating a number of gold-silver and copper-gold opportunities away from the Cliffs JV area.
On 19 December 2011, Mariana announced that AngloGold had completed a strategic placement whereby AngloGold was issued 45,000,000 shares in Mariana at a price of 12 pence per share. AngloGold has the right to maintain its equity of 19.9% in Mariana in further issues by Mariana.
About Condor Resources Inc.
Condor Resources Inc. was incorporated in 2003 by field exploration specialists focused on the generation of precious and base metals projects in South America, where management has extensive experience and a proven track record of discovery. The Company's long term objective is the discovery of a major new precious/base metals deposit and its business plan offers shareholders access to an exciting portfolio of fifteen properties in Peru and Chile, each offering a unique path to discovery.
This press release contains "forward-looking information" within the meaning of Canadian securities legislation ("forward-looking statements"). These forward-looking statements are made as at the date of this press release and include, without limitation, statements regarding discussions of future plans, the realization, cost, timing and extent of mineral resource estimates, estimated future exploration expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, and requirements for additional capital. The words "plans", "expects", "budget", "scheduled", "estimate", "forecasts", "intend", "anticipate", "believe", "may", "will", or similar expressions or variations of such words are intended to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results to vary materially from those expressed or implied by such forward-looking statements, including, but not limited to: the effects of general economic conditions; the price of gold and silver; misjudgments in the course of preparing forward-looking statements; risks associated with international operations; the need for additional financing; risks inherent in exploration results; conclusions of economic evaluations; changes in project parameters; currency and commodity price fluctuations; title matters; environmental liability claims; unanticipated operational risks; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or in the completion of development or construction activities; political risk; and other risks and uncertainties described in the Company's annual information form and MD&A for the most recently completed financial year available on SEDAR. Although we believe that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. We do not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
Incorporated in Guernsey registered number 44276.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.