Mariana Resources (LON:MARL) – BUY*: Hot Maden update
Market Cap: £72m; Current Price: 57p; Target Price: Under review
High-grade Gold-Copper mineralisation continues to expand the area of mineralisation
Mariana Resources reports results from 19 holes completed at the Hot Maden Gold-Copper-Zinc deposit, located in Turkey.
Holes HTD-88 to HTD-106 were completed around the Main Zone resource area and the Ridge Area, which is the zone between the Main Zone and the Southern Zone. Two of the holes were infill drill holes while the remainder were step-out holes to extend the high-grade gold-copper mineralisation.
Results from the resource expansion drilling in the Main Zone include; 79m at 8.1g/t Au and 1.9% Cu from 248m (HTD-90), 116.6m at 6.7g/t Au and 1.7% Cu from 244.5m (HTD-106) and 74m at 3g/t Au and 1.57% Cu from 326m (HTD-88).
Results from the step-out drilling in the Ridge Area include; 32.8m at 15.5g/t Au and 1.07% Cu from 311.8m (HTD-100) and 29m at 6.8g/t Au and 0.49% Cu from 151m (HTD-92).
Infill drilling will continue in the Main Zone, while the second drill rig will focus on expanding the Southern Zone. A third drill rig has now arrived onsite and will focus on exploration drilling around the area of Russian workings to the south, which has yet to be drilled.
Cash position on the 01/03/17 was US$4.75m, Mariana expects to receive US$1.3m from warrants in the money, next month and there are an additional US$5m of warrants that remain outstanding exercisable before 2018.
Forecasts and price target under review. BUY rating maintained.
NORTHLAND CAPITAL PARTNERS VIEW: Mariana Resources and joint venture partner Lidya continue to increase the area of defined mineralisation at the Hot Maden Project with further exceptional high-grade gold-copper drill results. These latest drill results expand the area of known mineralisation in the Main Zone but also define additional mineralisation in the Ridge Zone that lies between the Main Zone and Southern Zone. Mariana has a significant cash balance that is expected to be bolstered by continuing funds from the exercise of warrants, reducing the risk of dilution from equity financing in the near-term. With the price 30% off its January high the valuation looks very undemanding at this level.
Venture Life Group (LON:VLG): Final results
Market Cap: £26m; Current Price: 70p
Revenues up 57%, maiden EBITDA (Adj.) profit
Venture Life issued Final results for the year ended 31 December 2016
Revenues were up 57% to £14.3 million (2015: £9.1 million)
Gross margin improved to 38%, vs. 33% in 2015
The Group reported a maiden positive EBITDA (Adj.) contribution of £0.8 million (2015: loss of £0.6 million)
The Year-end cash balance was £2.0 million (2015: £2.9 million)
NORTHLAND CAPITAL PARTNERS VIEW: Venture Life produced a strong set of results. In 2016 the Company has: integrated the UltraDEX brand; signed thirteen new long term distribution agreements; enabled nine new product launches by partners; developed three new products; among other achievements. Importantly, the Group achieved maiden reported EBITDA (Adj.) profitability. With 2017 off to a strong start, we estimate that the company will continue to benefit from further operational gearing going forward.