🕐17.03.11 - 09:27 Uhr

Mariana Resources - Drilling Commences at Sierra Blanca Silver-Gold Project, Arg
entina (FinnCap Note - sp 31.75p target price 64p)




FinnCap Comment Mariana Resources* Sierra Blanca returns to the fore CORP Since assay results were last reported in November 2008, little news flow has been reported on Marianas 70%-owned Sierra Blanca silver exploration project in Patagonia with the focus in 2009/2010 almost exclusively on the gold discovery at Las Calandrias.

But this mornings announcement of the start of a minimum 4,000m drilling programme suggests the onset of renewed market interest in this project.

Investors with an appetite for risk may be thin on the ground at the moment, but we believe those that do would have to look long and hard for another early-stage silver exploration play of this quality.

We think that, on a risk reward basis, the shares are currently priced attractively and represent good value.

Valuation maintained at 64 pence per share. Mining Analyst: Joe Lunn
[cid:image002.gif@01CBE47C.07895730] Mariana Resources Ltd AIM and PLUS code: MARL 17 March 2011 Mariana Resources - Drilling Commences at Sierra Blanca Silver-Gold Project, Southern Argentina Mariana Resources Ltd (Mariana or the Company), the AIM quoted exploration and development company focused in Argentina and Chile, has commenced drilling at its 70% owned Sierra Blanca Silver-Gold Project (Sierra Blanca), located in the Deseado Massif gold district in southern Argentina. Overview � 4,000m drill programme underway primarily targeting the 1.4km Veta Chala silver-gold epithermal vein system at Sierra Blanca to depths of up to 200m below surface � Impressive intersections from 2008 scout drilling programme to be followed up include: 3.0m @ 4.3 g/t Au & 236 g/t, 11.0m @ 3.4 g/t Au & 386 g/t Ag and 14.3m @ 2.8 g/t Au & 242 g/t Ag � Recent soil sampling (up to 10.2 g/t Au in lag), ground magnetics and IP surveys have highlighted new targets at Central and Eastern Chala at the project Commenting today, Chairman John Horsburgh said, "The previous exploration results highlight the exploration potential of Sierra Blanca.

The 1.4km long trending silver-gold vein system is a prime target with intersections such as 11.0m @ 3.4 g/t Au & 386 g/t Ag.

The aim is to quantify the economic potential with this 4,000m campaign.

Coupled with our flagship Las Calandrias gold project, this will enhance Marianas position as a leading exploration player in the Santa Cruz region with significant upside potential." Sierra Blanca Silver-Gold Project Mariana discovered intermediate sulphidation epithermal vein-style silver-gold (Ag - Au) mineralisation along the Veta Chala target area in 2008.

Veta Chala is an east-west striking vein system occurring within a 1,400m x 300m area.

Targets along the trend comprise the Chala West, Chala Central and Chala Splay.

Cumulative strike length of individual veins at surface is about 2.2km.

The 2008 drilling was limited to 17 Reverse Circulation (RC) and six diamond holes totalling 1,750m with less than half of the 1.4km long vein system tested to a depth of 60m.

The scout drilling targeted epithermal quartz veining and breccias exposed along the trend in backhoe trenches from which numerous bonanza and high grade assays were obtained in channel sampling (see news release 2 April 2008 and results below). * 4.5m @ 3.6 g/t Au, 694 g/t Ag * 16.5m @ 0.5 g/t Au, 384 g/t Ag * 9.4m @ 0.9 g/t Au, 236 g/t Ag * 8.3m @ 1.7 g/t Au, 507 g/t Ag * 9.4m @ 1.3 g/t Au, 2,362 g/t Ag * 3.4m @ 10.1 g/t Au, 1,238 g/t Ag Best intersections from the 2008 scout drilling campaign included: * 9.0m @ 0.9 g/t Au and 426 g/t Ag from 44m incl.

2.0m @ 2.7 g/t Au, 1,435 g/t Ag - SBR27 * 3.0m @ 4.3 g/t Au, 236 g/t Ag from 30m - SBR38 * 4.0m @ 2.3 g/t Au, 120 g/t Ag from 33m - SBR40 * 0.75m @ 3.7 g/t Au 727 g/t Ag from 23.5m SBR50 * 11.0m @ 3.4 g/t Au, 386 g/t Ag from 4m incl.

2.8m @ 12.7 g/t Au 1,172 g/t Ag - SBD51 * 14.3m @ 2.8 g/t Au, 242 g/t Ag from 31m incl.

1.5m @ 15.2 g/t Au and 775 g/t Ag - SBD55 A review by consultant epithermal specialist Dr.

R.

H.

Sillitoe in Q1 2009 indicated potential for vein type economic ore shoots along the Veta Chala trend with infill and deeper drilling recommended (see news release 2 March 2009). The current drilling programme will both undercut and infill 2008 intersections and test new targets along the trend. Mariana owns 70% of Sierra Blanca and has an option to acquire the 30% held by joint venture partners IAMGOLD by paying US$500,000, issuing Mariana shares to the value of US$500,000 and awarding a 3% royalty on net smelter returns from any future gold-silver production at Sierra Blanca. Veta Chala Geochemical Sampling Geochemical sampling of the coarse soil fraction on a 50m x 50m grid at the Veta Chala target revealed a coherent 1,300m x 350m zone of +10ppb Au including a 900m x 200m core of +50ppb Au.

High gold values (>250 ppb to 10,200 ppb Au) over a 500m x 120m area highlight Central and Eastern Chala as key target zones within the Veta Chala area.

The lag sampling outlined other gold anomalies to the north and south of Veta Chala trend. Veta Chala Geophysical Surveys Mariana carried out ground magnetics over a 3.2km x 2.7km area on 50m spaced lines and Induced Polarisation surveys comprising gradient array (1.5km x 1.5km area, 25m dipole spacing) and 3D offset pole-dipole (1m x 1.4km area, 25m line spacing, 20m dipoles).

Magnetic lows highlight structures north of the Veta Chala target.

Coincident magnetic, chargeability and resistivity anomalies were located 500m south of Chala West.

A number of chargeability anomalies along the Veta Chala trend indicate possible sulphides at depth.

Anomalous chargeability was also recorded west of Chala Splay where bonanza silver intercepts were returned in the 2008 drilling. Las Calandrias Project - Santa Cruz, southern Argentina Mariana is currently drill testing for extensions to the Calandria Norte vein system and Calandria Sur.

Assays are pending from 65 holes at El Nido, Nido Norte, Calandria Norte and Calandria Sur. ADDITIONAL INFORMATION Drilling is being undertaken by ECOMINERA.

The drill programme is being directed by the Argentina Exploration Manager, Dr Gustavo Rodriguez under supervision of Executive Chairman Mr John Horsburgh.

Exploration information in this announcement has been compiled by John Horsburgh who is a Fellow of the Australasian Institute of Mining and Metallurgy.

Mr Horsburgh has sufficient experience relevant to the style of mineralisation and types of gold deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code. Quality Assurance/Quality Control All technical information for the Companys Argentina projects is obtained and reported under a quality assurance and quality control (QA/QC) programme.

All samples are collected under the supervision of the Company geologists and dispatched via commercial transport to ALS laboratories in Mendoza, Argentina, and assayed in Santiago de Chile.

ACME quality system complies with the requirements for the International Standards ISO 9001:2000 and ISO 17025: 1999.

Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses.

Systematic assaying of sample duplicates and commercially prepared standards and blanks is performed for analytical reliability. **ENDS** For further information please visit website at www.marianaresources.com or contact the following. John Horsburgh (Chairman) Mariana Resources Ltd +61 2 94374588 Glen Parson (CFO) Mariana Resources Ltd +612 94374588 Rob Adamson RFC Corporate Finance Limited (Nomad) +61 2 9250 0041 Will Souter RFC Corporate Finance Limited (Nomad) +61 2 9250 0050 Joe Lunn (Analyst) FinnCap (Broker) +44 20 7600 1658 Matthew Robinson FinnCap (Broker) +44 20 7600 1658 Felicity Edwards St Brides Media and Finance Ltd (PR) +44 20 7236 1177 Hugo de Salis St Brides Media and Finance Ltd (PR) +44 20 7236 1177
About Mariana Resources Mariana Resources Ltd is an AIM quoted exploration and development company with an extensive portfolio of gold, silver and copper projects in Argentina and Chile.

In southern Argentina, in addition to the Las Calandrias gold-silver discovery, the Company has the Sierra Blanca silver-gold prospect (70%); the Los Amigos joint venture (49%) with Hochschild Mining and a 160,000 Ha land package (100%) in the country.

All of these projects are located in the Deseado Massif epithermal gold-silver district in mining-friendly Santa Cruz province of southern Argentina, which hosts four mines and several advanced projects. 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 (IOCG) in a 92,000 km� area (SCM Mariana Area) in north-central Chile along the highly prospective Atacama Fault Zone.

The SCM Mariana Area includes the 44km� Buenaventura and 46km� Perro Chico IOCG projects.

Mariana is also evaluating a number of gold-silver and copper-gold opportunities away from the Cliffs JV area, as part of a new initiative.
Felicity Edwards St Brides Media and Finance Ltd Chaucer House 38 Bow Lane London EC4M 9AY Tel: +44 (0) 207 236 1177 Mob: +44 (0) 7748 843871 Fax: +44 (0) 207 236 1188 Email: Web: www.stbridesmedia.co.uk



Products & Services | Jobs