Shares Issued and Outstanding: 54,116,043
TSX-V:
MRZ
OTCPK: MRZLF
- Homenaje project to be explored under Option to Joint
Venture Agreement
- Nico project interest to be converted to 1.5% NSR
royalty
VANCOUVER, BC, Dec. 30, 2020 /CNW/ - Mirasol Resources Ltd.
(TSX-V: MRZ) (OTCPK: MRZLF) (the "Company" or
"Mirasol") is pleased to announce it has entered into
two non-binding letters of intent ("LOIs") with an arm's length
third party regarding potential transactions in respect of its
Homenaje and Nico projects in Santa
Cruz province, Argentina.
The Nico project was previously explored by Mirasol, while the
Homenaje project, which is adjacent to two mining operations, holds
targets that have yet to be drilled. Mirasol continues to
rationalize its project portfolio in Santa Cruz to allow the Company to focus
exploration on other high potential targets.
Mirasol's Chair and Interim CEO, Patrick
Evans, stated: "We are pleased to be working on these two
transactions, which are expected to close in the first quarter of
2021. The Nico royalty has the potential to generate an income
stream to offset our exploration costs in Argentina, while the Homenaje transaction will
allow for testing of an attractive target adjacent to existing
mines. Further information will be provided when the transactions
close."
Figure 1: Projects Location in Santa
Cruz Province
Summary of Proposed Terms
Mirasol will grant an option to earn 75% of the project over six
years once the acquiror completes:
- An initial work program over 2.5 years of US$1,400,000 in exploration expenditures,
including 2,500m of drilling. The
first 18-month expenditure of US$400,000 is a firm commitment; and
- A positive Prefeasibility Study (as defined by NI 43-101) by
the end of the option period.
Upon completion of the option, Mirasol and its partner will hold
25% and 75%, respectively, in a participating joint venture company
holding the project. If either party's equity interest is diluted
below 10%, it will convert to a 2% net smelter return ("NSR")
royalty.
Mirasol will transfer its interest in the Nico property in
return for a 1.5% NSR royalty. If by the end of third year
production from the property has not commenced Mirasol will have
the right to regain full ownership of the property at no cost.
The transactions contemplated in both LOIs are subject to due
diligence, board approvals and finalization of definitive
agreements. Mirasol has granted a 90-day exclusivity period to
negotiate and finalize these transactions.
Project Overview
The Homenaje project covers 10,056 ha and is located at the
western margin of the Deseado Massif Au-Ag metallogenic province,
just 3km south and southwest from the COSE and Cap Oeste mines
operated by Pan American Silver and Patagonia Gold,
respectively.
Exploration to date has been limited as more than 90% of the
project area is covered by thin post-mineral rocks, including
Tertiary plateau basalt and gravels. However, small erosional
windows show Middle to Upper Jurassic tuffs assigned to La Matilde
Formation, which hosts localized hydrothermal breccias, veinlets
and stockworks of chalcedonic quartz.
Analysis and interpretation of outcropping alteration,
mineralization, structural setting, magnetics and
chargeability/resistivity gradient arrays responses have defined 4
NW trending prospective structural trends, with similar geologic
characteristics to those of the adjacent COSE and Cap Oeste
mineralized areas.
Figure 2: Homenaje targets showing combined anomalies and rock
chip samples results
Initial rock chip sampling of mineralized structures,
discontinuously outcropping on a NW trending corridor, identified
in an area of 1,500m x 800m that returned anomalous Au, Ag, As, Sb, Mo,
Cu and Pb. Anomalous samples are characterized by altered tuff with
thin chalcedony veinlets (see Figure 2).
The Nico project, located in the central part of the Deseado
Massif, is traversed by a major highway and 45km and 80km north of
the Mina Martha and Manantial Espejo mines, operated by Patagonia
Gold and Pan American Silver, respectively. Four prospects have
been identified at the Nico project (Endeavor, Aurora, Resolution
and Vittoria), all hosting intermediate sulfidation epithermal
veins and breccia systems associated with rhyolitic flow-dome
centers intruding the Jurassic age Chon Aike ignimbrite sequence.
Mineralization is structurally-hosted in quartz-iron oxide breccias
and chalcedonic veinlets along multiple mineralized trends with
individual lengths of up to 4km.
Figure 3: Nico prospects and rock chip samples results
At the Resolution prospect, Mirasol has defined a NE trending
quartz vein and hydrothermal breccia structure, which is over 1.5km
long with several sub-parallel structures forming a structural
corridor at least 120m wide. The
structure pinches and swells along strike with local zones reaching
over 8m in width. Geochemistry
results on rock chips returned significant Au and Ag grades.
At the Aurora prospect, Mirasol has defined an area of
approximately 6.4km2, hosting narrow quartz vein
structures and hydrothermal breccias. The structures are mostly
sub-meter in width but returned significant high-grade results in
rock chips.
At the Endeavour prospect,
Mirasol has defined an area of approximately 2.5km2
hosting quartz vein structures and hydrothermal breccias, with good
geochemistry results.
Finally, the Vittoria prospect hosts two parallel NNW trending
sub-meter wide quartz vein structures separated by approximately
250m with more subdued geochemical
results.
Aurora
|
Ag
|
Au
|
|
Endeavour
|
Ag
|
Au
|
Total
Samples
|
1374
Samples
|
|
Total
Samples
|
180
Samples
|
High Grade
Samples
|
> 50 g/t
Ag
|
> 1 g/t
Au
|
|
High Grade
Samples
|
> 50 g/t
Ag
|
> 1 g/t
Au
|
- % of
total
|
17%
|
20%
|
|
- % of
total
|
22%
|
10%
|
- # of
Samples
|
234
|
274
|
|
- # of
Samples
|
41
|
18
|
-
Average
|
242
g/t
|
5.94
g/t
|
|
-
Average
|
140
g/t
|
2.8
g/t
|
Max
|
3,742
g/t
|
185
g/t
|
|
Max
|
324
g/t
|
8.56
g/t
|
|
|
|
|
|
|
|
Vittorria
|
Ag
|
Au
|
|
Resolution
|
Ag
|
Au
|
Total
Samples
|
243
Samples
|
|
Total
Samples
|
774
Samples
|
High Grade
Samples
|
> 50 g/t
Ag
|
> 1 g/t
Au
|
|
High Grade
Samples
|
> 50 g/t
Ag
|
> 1 g/t
Au
|
- % of
total
|
2%
|
<1%
|
|
- % of
total
|
32%
|
10.50%
|
- # of
Samples
|
5
|
2
|
|
- # of
Samples
|
245
|
82
|
-
Average
|
99
g/t
|
1.4
g/t
|
|
-
Average
|
269
g/t
|
2.69
g/t
|
Max
|
174
g/t
|
1.44
g/t
|
|
Max
|
6181
g/t
|
12.28
g/t
|
Table: Summarized Au and Ag geochemistry results showing
distribution of high-grade samples
Based on the surface results, Mirasol completed 3,083m of reverse circulation and diamond
drilling in 38 holes, intercepting isolated mineralization between
50 and 130 meters below surface. However, there is the potential
for near-surface high-grade oxidized mineralization, which could be
mined and processed at an existing plant.
About Mirasol Resources Ltd
Mirasol is a well-funded exploration company focused in
Chile and Argentina. Mirasol has six partner-funded
projects, two with Newcrest Mining Ltd (Chile), and one each with First Quantum
Minerals (Chile), Mine Discovery
Fund (Chile), Mineria Activa
(Chile) and Silver Sands Resources
(Argentina). Mirasol is currently
self-funding exploration at two projects, Inca Gold (Chile) and Sacha
Marcelina (Argentina).
Website: www.mirasolresources.com
Qualified Person Statement: Mirasol's disclosure of technical
and scientific information in this press release has been reviewed
and approved by Chris Ford, CEng
FIMMM, a senior consultant for the Company, who serves as a
Qualified Person under the definition of National Instrument
43-101.
Forward Looking Statements: The information in this news release
contains forward looking statements that are subject to a number of
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those anticipated in
our forward-looking statements. Factors that could cause such
differences include: changes in world commodity markets, equity
markets, costs and supply of materials relevant to the mining
industry, change in government and changes to regulations affecting
the mining industry and to policies linked to pandemics, social and
environmental related matters. Forward-looking statements in this
release include statements regarding future exploration programs,
operation plans, geological interpretations, mineral tenure issues
and mineral recovery processes. Although we believe the
expectations reflected in our forward-looking statements are
reasonable, results may vary, and we cannot guarantee future
results, levels of activity, performance or achievements. Mirasol
disclaims any obligations to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise, except as may be required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Mirasol Resources Ltd.