🕐10.11.09 - 16:24 Uhr

FinnCap Research - Mariana Resources - amended



Mariana Resources is in the process of raising at least �2.6 million to carry out further exploration at its wholly-owned Calandria South project in Santa Cruz province of Patagonia, Argentina.

On 28 October, the company announced the assay results of the first hole in what has subsequently proved to be a significant near-surface gold discovery.

The markets subsequent reaction to this news flow suggests to us that the majority believe that the discovery has good potential to be economic.

We value this initial discovery, post fundraise, at 19 pence per share.

But this does not include the considerable potential upside from further drilling next year. 4Initial assessment of potential at Calandria South is encouraging.

We think that drilling 91.5m at 1.6g/t gold starting from 3.5m below surface is an exceptional result.

Placed in context with the results for the remaining holes, shown in Table 5, and considering that 75% of the strike length remains untested, this near-surface discovery could get a lot bigger. 4Mineralisation new to the region.

This low sulphidation epithermal discovery is hosted in mineralisation not previously known in this region of Patagonia.

We think that Mariana Resources, with its detailed knowledge of the Calandria South discovery, is well positioned to make similar discoveries on ground held elsewhere in the region. 4Proceeds from fundraise will be used to fund further exploration of Calandria South.

The company plans to carry out a major follow up exploration programme that will include additional geochemistry, geophysics, step out drilling, deeper testing of the known mineralisation and scout drilling of the remaining strike length.

This programme is to start immediately with geophysics in January and drill results in June at the latest. 4Following in the footsteps of Patagonia Gold.

We have based our initial valuation of Calandria South on Patagonia Golds more advanced Cap-Oeste deposit 200km to the west.

We think that Cap-Oeste provides a good example of the potential upside to South Calandria at its much earlier stage of development on the resource value curve shown in Chart 1.

We find that 19 pence per share is fair value for Calandria South based on an assumed initial resource of 250,000 ounces over the strike length drilled to date valued at $150 per ounce
The Research Team
FinnCap 4 Coleman Street London EC2R 5TA 0207 600 1658
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