Unaudited Preliminary Results for year ended 31 December 2007
Mariana Resources Limited
Registered in Guernsey No. 44276
CHAIRMAN'S REPORT
Dear Shareholder,
Since its debut on AIM in May 2006, your Company has been actively
pursuing its objective of discovering valuable mineral deposits in
Argentina, Chile and to a lesser extent, Ecuador. I am pleased to
report that there has been an encouraging breakthrough at Sierra
Blanca in Santa Cruz Province, Argentina which is both mining
friendly and an emerging epithermal gold/silver district of world-
class significance. Sierra Blanca is part of the Santa Cruz Joint
Venture with IAMGOLD Corporation.
Despite the somewhat disappointing results from preliminary drilling
last year, the Mariana team persisted and discovered new vein systems
at Sierra Blanca. Moreover, initial rock chip sampling at Chala Vein
returned some exceptional silver and gold assays which have
subsequently been confirmed by outcrop channel sampling and backhoe
trenching. These include:
* 9.4 m @ 2,362 g/t silver ( 76 oz/t) and 1.3 g/t gold in Trench 1
* 3.4 m @ 1,238 g/t gold and 10.1 g/t gold in Trench 3
* 16.5 m @ 384 g/t silver and 0.6 g/t gold in Trench 14 (backhoe
trench)
The Chala Vein trenching indicates multiple veins up to 9 m wide over
an 800 m trend, bonanza silver mineralization, broad halos of
disseminated silver-gold mineralization and possible targets between
the silicified outcrops. In other words, we have an exciting new
target, ready for drilling.
The other interesting new vein system is Vetarrón. It is a partly
concealed zone of strongly silicified/breccias and quartz veinlets
over a 1.6 km trend and 200 m width. Rock-chip and soil sampling,
together with geophysics (IP/resistivity) highlight potential for
concealed mineralization.
Furthermore, the remaining 25 km of veins at Sierra Blanca are
substantially under-explored, with cover obscuring the full
dimensions of this impressive vein system. Drilling is planned in
September 2008.
Also in Argentina, Mariana has optioned La Borita copper prospect on
the Alumbrera porphyry copper trend in Catamarca Province.
Coincidence of a topographic basin, magnetic low and 1.5 km2 of
copper-bearing travertine may indicate a concealed porphyry copper.
Induced polarisation (IP) surveys will test for disseminated
sulphides below cover rocks.
As reported recently, Mariana has joined forces with Minotaur
Exploration Ltd, a highly successful Australian exploration company
specialising in Iron-Oxide-Copper-Gold (IOCG) deposits to explore the
Buenaventura copper prospect located 50 km NNE of Copiapó in Northern
Chile. Minotaur/Mariana may earn a 51% interest by staged expenditure
of US $3 million and 80% by completing a bankable feasibility study
within a further three years.
The project is in the Chilean IOCG belt, mid-way between the
Candelaria (Freeport) and Manto Verde (Anglo American) major copper
mines. Previous drilling by concession owners Buenaventura CSM,
mainly in areas of outcrop, intersected from 10 m to 90 m of 0.2 to
0.5 % copper. Three untested targets are evident from geophysics to
date. Approximately 75% of the area is masked by gravels and ground
gravity will be extended from a previous survey to cover the whole
area. Drill testing of prioritised targets is planned during the
initial evaluation stage in 2008.
Also in Chile's IOCG belt, Mariana has optioned the Perro Chico
copper-gold prospect and has applied for surrounding areas. The area
has a number of copper-gold occurrences and a skarn hosted copper-
gold target extending over 500 m and at least 5.5 m thick with rock
chip assays of up to 1.8% Cu and 2.2 g/t Au. The area also has IOCG
potential.
The percussion drilling programme at Exploradora in the El Salvador
Porphyry Copper Region of Chile in joint venture with Anglo American
tested for secondary copper adjacent to Codelco's low grade
Exploradora porphyry copper-gold deposit. Two of five holes drilled
by Mariana intersected substantial zones of low grade copper
mineralization over intervals of 188 m and 168 m averaging 0.2%
copper, but the targeted supergene enrichment was not present.
In order to prioritise efforts in Argentina and Chile, a farm out
policy has been adopted for Ecuador with joint ventures in place at
Fierro Urco and Loma Alta. At Fierro Urco, partners Apex Silver have
found bonanza grade gold and silver in narrow veins exposed in old
workings with exploration continuing. Drilling at the Macara Project
(50-50 Joint Venture with Dynasty Mining) intersected up to 1.7 m @
33.2 g/t Au hosted by skarn. Because of the focus in Argentina and
Chile, the impact on Mariana of onerous mining and exploration
regulations that are being considered by the Ecuadorian Government
will be minimal.
In June, experienced economic geologist Mr. Ray Angus was appointed
to the Board as a Non-Executive Director. He was co-founder of
Monterrico Metals plc which is developing the world-class Rio Blanco
copper-molybdenum project in Northern Peru. He brings to the company
an excellent track record in South American resources and experience
in the London capital markets.
In closing, the efforts of Managing Director John Sutcliffe and his
team throughout the year are acknowledged. Fellow directors join me
in thanking shareholders for their support. Shareholders can look
forward to an exciting year, particularly as new targets are tested
at Sierra Blanca, Perro Chico and Buenaventura.
John Horsburgh
Chairman
MARIANA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the financial year ended 31 December 2007
Unaudited
2007
2006
Eleven
Months
£ £
Turnover - -
Operating Expenses
Administrative expenses (829,327) (474,886)
Share based payments (71,600) -
Exploration expenditure written off (669,824) -
Net operating expenses (1,570,751) (474,886)
Operating loss (1,570,751) (474,886)
Interest receivable 76,114 63,614
Loss on ordinary activities
before taxation (1,494,637) (411,272)
Taxation on loss
on ordinary activities - -
Loss for the financial year/period (1,494,637) (411,272)
(Pence) (Pence)
Loss per share - basic and diluted (4.1)
(1.5)
The operating loss for the financial year arises from the group's
continuing activities. There is no difference between results
reported above and their historical cost equivalents.
MARIANA RESOURCES LIMITED AND ITS CONTROLLED ENTITIES
CONSOLIDATED BALANCE SHEET
at 31 December 2007
Unaudited
2007
2006
£
£
Fixed assets
Intangible assets 1,477,822
966,508
Tangible assets 101,611
97,314
1,579,433
1,063,822
Current assets
Debtors 51,846
24,302
Cash at bank and in hand
and on deposit 1,501,075
2,491,258
1,552,921
2,515,560
Creditors:
Amounts falling due within one year 5,610
126,637
Net current assets 1,547,311
2,388,923
Net Assets 3,126,744
3,452,745
Capital and reserves
Called up share capital 4,581
3,539
Share premium account 4,935,790
3,896,333
Other reserves 92,282
(35,855)
Profit and loss account (1,905,909)
(411,272)
Equity shareholders' funds 3,126,744
3,452,745
CONSOLIDATED CASH FLOW STATEMENT
for the financial year ended 31 December 2007
Unaudited
2007
2006
£
£
Cash outflow from
operating activities (896,439)
(435,831)
Returns on investments 76,114
63,614
Capital expenditure and
financial investment (1,210,357)
(319,797)
Cash outflow before use of
iquid resources and financing (2,030,682)
(692,014)
Management of liquid resources (475,000) 1,750,000
Financing 1,040,499 3
,183,272
(Decrease)/Increase in
cash in the year (1,465,183) 4,241,258
Reconciliation of Net Cash Flow
to Movement in Net Cash funds
(Decrease)/Increase in cash
in the year (1,465,183) 4,241,258
Cash outflow/(inflow) from
increase in liquid resources 475,000
(1,750,000)
Net funds at beginning of
financial year 2,491,258
- -
Net funds at end of financial year 1,501,075 2,491,258
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