Projects
Ecuador
New Constitutional Mandate will seriously affect future Ecuador's mining outlook
On 18 April 2008, the Assamblea Constituyente (constitutional reform body) issued a mandate on mining which, fully implemented, will have a major effect on the future of many of Ecuador's potential mining projects.
Under the terms of the mandate, concessions located in protected woodlands (Bosque Protector), where under current mining legislation is permitted, are to be revoked. At least two major gold projects will be affected by this provision. Mariana has one low priority concession located in a Bosque Protector area.
Another of the provisions of the Mandate is that a maximum of 3 concessions may be held by individual companies. Mariana currently holds has 10 concessions, 3 of which cover the main Fierru Urcu and La Virgen projects.
Also revoked are concessions for which the EIA environmental study has not been approved. The Fierru Urcu and La Virgin projects will be affected by this provision.
All work on all concessions has to cease, with immediate effect until the Ministry of Mines implements these instructions - within a period of up to 180 days. This will affect work on the Fierru Urcu, and Macara joint ventures.
For some time now Mariana has been reducing its exposure in Ecuador by prioritising exploration projects in Argentina and Chile, and has sought to progress the Ecuadorian projects through joint ventures, and so the effect on Mariana's future overall exploration plans will be minimal. The company's Ecuadorian office has already been scaled down and the number of staff has been significantly reduced over the past six months with remaining technical staff transferred to Chile and Argentina at the end of April.
The company's main Ecuador projects are:
Fierro Urcu, a joint venture between Mariana, the concession owner, and Silex Ecuador S.A., a subsidiary of Apex Silver Mines Ltd. In October 2007, the company announced very encouraging results obtained at Fierro Urcu, with quartz veins in the W part of the concession assaying up to 34.5 g/t gold with 230 g/t silver over a vein width of 1.5 m.
Loma de la Virgen, is a 100% owned epithermal silver-gold vein target with surface assays of up to 5.7 g/t gold and 800 g/t silver. Mariana was seeking a joint venture partner for La Virgen.
Macara is a 50/50 JV with Dynasty Metals and Mining with skarn-type mineralisation is related to a porphyry system. A 1,113 m drill program was completed in January 2008 returning significant gold intercepts in 3 of 8 scout holes with best intercepts of 33.2 g/t gold over 1.7 m (MD 5) and 25.7 g/t gold over 1.13 m (MD 1)
The La Victoria skarn project and the Norcay JV (with IAMGOLD) have been dropped following lack of encouraging results as previously reported.
