VANCOUVER, Feb. 27, 2020 /CNW/ - Mirasol Resources Ltd.
(TSX-V: MRZ) (OTCPK: MRZLF) (the "Company" or
"Mirasol") is pleased to announce the signing of a Letter of
Intent ("LOI") with Golden Opportunity Resources Corp. ("Golden
Opportunity") (CSE: GOOP) for its Virginia
Silver project (the "Project") in the Santa Cruz Province of Argentina. With its
known resource and clear exploration targets, the Project is a
compelling asset for Golden Opportunity to further explore and
advance.
Norm Pitcher, President and CEO
of Mirasol stated: "We are pleased to partner with Golden
Opportunity to see the exploration upside at Virginia drill tested.
With this transaction, Mirasol will retain exposure to new
discoveries through our right to earn a significant share position
in Golden Opportunity and as a royalty holder."
Terms of the Transaction
Mirasol shall grant Golden Opportunity the option to acquire
100% of the Project over 3 years by:
- Making share issuances totalling 19.9% of the shares
outstanding (the "S/O") of Golden Opportunity at the time of
vesting:
-
- On signing of the definitive agreement: 9.9% of the S/O
- On first anniversary: 5% of the S/O
- On Second anniversary: 5% of the S/O
- On third anniversary: top up to 19.9% of the S/O (inclusive of
the previous issuances)
- Completing US$6M in exploration
expenditures
-
- Year 1: US$1M (firm
commitment)
- Year 2: US$2M
- Year 3: US$3M
- Mirasol will be the operator of the project during the option
period and receive a management fee.
Upon completion of the option, Golden Opportunity will have
earned a 100% interest in the Project and Mirasol will retain a 3%
NSR royalty, of which 1% can be bought back by Golden Opportunity
for US$2M.
The LOI is subject to customary conditions including exchange
approval, definitive agreement drafting as well as to Golden
Opportunity completing an equity financing of not less than
US$ 1 million within 90 days. Mirasol
has granted Golden Opportunity an exclusivity period to complete
this transaction.
Virginia Silver Project Overview
Mirasol first discovered the Virginia silver deposit in 2009,
following-up a high-priority reconnaissance target identified by
its generative team. Over the next few years, Mirasol defined
high-grade, intermediate sulfidation epithermal style
mineralization in a series of prominent outcrops of
vein-breccia that are associated with a rhyolitic volcanic
flow dome field. Rock chip and saw cut channel sampling over these
outcrops defined significant strike lengths of continuously
mineralized vein-breccia, with many samples assaying over 1,000 g/t
Ag. From 2010 to 2012, Mirasol completed a series of drill programs
at the Project, drilling a total of 23,318
m of diamond core in 223 holes, testing the mineralized
structures to a maximum depth of 266m. This work was followed by the filing of an
amended NI 43-101 Resource Estimate report in 2016 defining seven
outcropping bodies of high grade silver mineralization,
constrained1 within conceptual pits, with an
indicated mineral resource of 11.9 million ounces of silver at 310
g/t Ag and a further inferred 3.1 million ounces of silver at 207
g/t Ag (figure 1 and amended NI 43 -101 technical report
filed February 29, 2016).
Later that year, Mirasol reported that preliminary prospecting
of new claims identified quartz vein and vein-breccia rock float,
scattered along a 2 km trend. With a strong belief in the
exploration potential of the Virginia district, Mirasol further
expanded its property holdings in 2017 with an extra 27,017 ha of
claims to the south of the limit of previous drilling. In
May 2018, high grade silver assay
results were reported from the additional prospecting of three new
target areas, suggesting the potential for an unrecognized, shallow
soil covered, high grade mineralization that would expand the
potential of the Virginia silver project (figure 2, 3 and
4).
Mirasol looks forward to testing the exploration upside at
Virginia with Golden Opportunity at a time of improving precious
metal prices.
About Mirasol Resources Ltd
Mirasol is a premier project generation company that is focused
on the discovery and development of profitable precious metal and
copper deposits, operating via a hybrid joint venture and
self-funded drilling business model. Strategic joint ventures with
precious metal producers have enabled Mirasol to maintain a tight
share structure while advancing its priority projects that are
focused in high-potential regions in Chile and Argentina. Mirasol employs an
integrated generative and on-ground exploration approach, combining
leading-edge technologies and experienced exploration geoscientists
to maximize the potential for discovery. Mirasol is in a strong
financial position and has a significant portfolio of exploration
projects located within the Tertiary Age Mineral belts of
Chile and the Jurassic age gold
and silver district of Santa Cruz Province
Argentina.
Qualified Person Statement: Mirasol's disclosure of technical or
scientific information in this press release has been reviewed and
approved by Norm Pitcher, P.Geo.
President and CEO for the Company. Mr. Pitcher 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. 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.
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1 The
Qualified Persons responsible for this amended Technical Report
were commissioned by Mirasol Resources Ltd. to review all geologic,
geochemical, geophysical, surface trenching, diamond drill core
sampling and metallurgical recovery data pertaining to the Virginia
Project for the purpose of completing a Mineral Resource estimate
in accordance with the guidelines of the Canadian Institute of
Mining and Metallurgy (CIMM). For calculating conceptual pits, a
silver price of US$20 per ounce was used. Sensitivity analyses by
the Qualified Persons indicate that the Mineral Resources are not
particularly sensitive to operating costs or silver price
fluctuations. Mineral Resources which are not Mineral Reserves do
not have demonstrated economic viability.
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SOURCE Mirasol Resources Ltd.