(MENAFN- ProactiveInvestors)A big year so far for junior gold explorer Mariana Resources (LON:MARL) is not being reflected in its share price according to broker Northland which has upgraded its rating to 'buy'. Mariana is in the ultra-high grade gold group of juniors says the broker due to the results from its exploration at Hot Maden in Turkey. A maiden resource of 2.9moz of gold equivalent at a 10.9g/t grade is exceptional says the broker which has published forecasts in its analysis for the first time as a result. The resource was based on only seventeen drill holes but four additional resource expansion holes and five exploration holes already have already been completed in a new programme adding to the defined area of mineralisation. 'That is to say it is now known that the resource will increase but the share price has not increased in fact it has decreased providing an opportunity to take advantage of positive share price movement following the resource upgrade.' Peer group operations which range from early stage exploration to production have an average valuation per ounce of £61/oz gold equivalent with some as high as £146/oz says Northland while Mariana currently trades on a multiple of £17/oz. Hot Maden is being explored by Mariana's Turkish partner Lidya which has taken a 70% stake with a further resource upgrade and a preliminary economic assessment due before the end of 2016. Northland now has a price target of 4.8p compared to a current market price of 1.75p. 'Our price target is fully diluted taking into account the increase in share capital that would occur from an equity financing in 2016 at the current market price' it adds. Having been a 'speculative buy' previously the rating is now 'buy'. Shares rose 2% to 1.78p today.
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