Mariana Resources (LON:MARL) – BUY*: Ergama update
Market Cap: £95m; Current Price: 75p
Large intercepts of low-grade Au-Cu mineralisation on margins of porphyry target
Mariana Resources has completed three of the seven drill holes at its 100%-owned Ergama Project, located in Turkey.
Drill holes ERD-01 and ERD-02 were collard at the northern margin of the main porphyry target and intersected large intercepts of low-grade gold and/or copper mineralisation, including 626.4m at 0.18g/t Au over the entire ERD-02 hole with the grade increasing at the bottom 56.4m at 0.33g/t Au and 0.12% Cu from 570m. ERD-01 returned 66m at 0.22g/t Au from 43.8m, 88m at 0.19g/t Au from 117.8m and 22m at 0.25g/t Au from 215.8m. The host rock alteration assemblages, which are dominantly phyllic, suggest the drill holes may be distal to the potassic-altered core of the porphyry system which is likely to contain higher grades, if present.
Hole ERD-03 was drilled on the northern western margin of the main porphyry target and intersected a dominantly argillic and phyllic altered andesite porphyry (with quartz - pyrite stockwork) and localized blocks of recrystallized carbonate-rich rocks (probably sourced from basement rock sequences). Assays are pending.
The next holes ERD-04 and ERD-05 will target high-grade vein/fault hosted epithermal gold-silver systems where rocks chip samples returned gold values of up to 16g/t Au.
Permits for the holes over the central portion of the main porphyry target are pending and drilling will commence as soon as the permits are granted.
Forecasts and target price remain under review as we are awaiting the publication of the Hot Maden NI-43 101 Report.
NORTHLAND CAPITAL PARTNERS VIEW: Very interesting initial results from Mariana Resources at its 100%-owned Ergama Project, located in Turkey. Mariana’s initial drill holes tested the margin of the main porphyry target as permits are pending for the central zones. The initial large incepts of low-grade mineralisation, including 626.4m at 0.18g/t Au, combined with the presence of a dominantly phyllic alteration assemblage, could be indicative of drilling the margin of a porphyry deposit. Another significant discovery to sit alongside the ultra-high grade Hot Maden Project would be a game changer for Mariana.
Veltyco Group plc (LON:VLTY) – BUY*: Trading update
Market Cap: £27m; Current Price: 40p
2016 results expected to be ahead of forecasts
Veltyco Group issued a trading update for the year ended 31 December 2016.
The Group anticipates that results will be significantly ahead of market expectations.
Net revenues are now expected to be in excess of €5.7 million (2015: €2.6m) and adjusted operating EBITDA in excess of €2.0 million (2015: € 0.7m).
BUY rating maintained while our forecasts and price target are under review.
NORTHLAND CAPITAL PARTNERS VIEW: Veltyco issued a very strong FY-2016 trading update. Revenue at €5.7m was ahead of our €4.9m target and Adj. EBITDA at €2.0m was substantially ahead of our €1.4m forecast. We maintain our BUY rating while our forecasts and price target are under review.
Keras Resources (LON:KRS) – CORP: Warrawoona update
Market Cap: £9.2m; Current Price: 0.5p
High-grade mineral resource defined at Copenhagen deposit.
Keras Resources has produced a JORC-complaint mineral resource estimate for the Copenhagen deposit within the Warrawoona Project. The Inferred Mineral Resource Estimate is for 36,000oz Au at a high-grade of 6.1g/t Au.
The Warrawoona Gold Project now has a total JORC-compliant Mineral Resource Estimate of 410,000oz Au at a grade of 2.2g/t Au and covers a strike of 140m to a depth of 100m.
The deposit remains open along strike and at depth with surface rock chip samples from along strike showing the potential for expansion. Keras plans to make Copenhagen a priority post the ASX listing.
NORTHLAND CAPITAL PARTNERS VIEW: The initial high-grade resource from the Copenhagen deposit is relatively small because of the limited amount of work completed at the deposit. Keras now plans to make the deposit a near-term priority as it remains open and initial surface sampling results are positive. Copenhagen is proving to be an exciting area within the larger area of the Warrawoona Gold Project where the Company is targeting the definition of over 1moz Au.
Sunrise Resources (LON:SRES) – CORP: County Line Diatomite Project
Market Cap: £1.8m; Current Price: 0.16p
EP Minerals terminates lease
Sunrise Resources has been given notice by EP Minerals that it is terminating its lease over the County Line Diatomite Project.
EP Minerals will provide Sunrise with the results of its exploration programme at the project.
NORTHLAND CAPITAL PARTNERS VIEW: Sunrise Resources continues to believe there is an on-going opportunity for the production of high-value filter products from County Line diatomite, despite EP Minerals terminating its lease over the project. Sunrise is investigating other routes to commercialisation of this project.