Shares Issued and Outstanding: 54,175,543
TSX-V:
MRZ
OTCPK: MRZLF
- First Phase 2,500m Partner
Funded Drill Program
- 49-line km of Geophysics and 1,500m of Trenching Completed
- Second Phase Drill Program Planned for Q1 2021
VANCOUVER, BC, Oct. 29, 2020 /CNW/ - Mirasol Resources Ltd.
(TSX-V: MRZ) (OTCPK: MRZLF) (the "Company" or
"Mirasol") is pleased to announce that drilling recently
commenced at its Virginia
silver project, located in the province of Santa Cruz, Argentina. The Company is the operator under
an option to purchase agreement (the "Agreement") with Silver Sands
Resources (CSE: SAND) (OTCQB: SSRSF) ("Silver Sands").
Under the Agreement, Silver Sands is funding the first phase
2,500m drill program; part of a
US$6 million exploration funding
commitment over three years (see release May
21, 2020). In addition, Silver Sands is to issue to
Mirasol 19.9% of its shares outstanding over the three-year term.
The first tranche representing 9.9% of Silver Sands outstanding
shares, was granted to Mirasol in May of this year. Silver Sands
has right to earn 100% interest in Virginia with the Company retaining a 3% Net
Smelter Return royalty.
Mirasol's Chair and Interim CEO, Patrick
Evans, stated: "The Virginia project hosts a NI 43-101 indicated
resource of 11.9 million ounces grading 310 g/t silver and an
inferred resource of 3.1 million ounces grading 207 g/t silver.
Exploration since the 2016 technical report has identified new
trends of vein float with multiple assays over 500 g/t
silver. Drill-ready targets have been identified at ten vein
structures with surface exposure and floats blocks with elevated
silver grades. The potential to expand the Virginia resources is very good and we are
excited to once again be drilling at Virginia."
This initial diamond drill program with Silver Sands is designed
to test both gaps and extensions of the principal veins as
previously defined at Naty
West, Ely Central, Martina and Magi veins, as well as newly
identified vein structures at the Margarita, Patricia and Daniela
veins, that have returned high silver assay results from rock chip
sampling. At Margarita, out of 53 samples, 17 returned above 250
g/t Ag, 4 samples above 1,000 g/t Ag, with a high of 1,730 g/t Ag.
At Patricia, 40 samples were collected with 5 returning above 250
g/t Ag, including 2 over 10,000 g/t Ag with a high of 18,800 g/t
Ag. At Daniela, of 16 samples collected, 14 returned over 250 g/t
Ag, including 8 over 1,000 g/t Ag and a high of 29,400 g/t Ag
(Figures 1 and 2). The new drill targets are located to the north,
south and east of the current Virginia resource area (amended NI 43 -101
technical report filed February 29,
20161) and represent high potential
drill-ready zones within the overall extensive vein field.
On the eastern most side of the vein field, where the Magi and
Johanna veins are located, observed cooler silica species and
textures together with comparatively lower surface silver grades in
outcropping/subcropping expressions of the veins, appear to
indicate a much higher level in the epithermal system than is found
to the west. Previous limited drilling by Mirasol to shallow depths
under these eastern veins showed a marked increase in silver grade
with depth, indicating that completely preserved and higher-grade
ore shoots might exist at depth.
Figure 1: Virginia – Drill
program
Mirasol's exploration team is also advancing rapidly with an
on-going Pole Dipole induced polarity ("IP") program in key target
areas, in order to both better define drill hole locations and to
identify potentially buried targets (Figure 2). Given that
significant IP chargeability responses are directly associated with
the Virginia resource, the current
survey is as expected to provide valuable information that is being
used as an indicator to identify the more prospective veins in the
system. The current IP survey will cover vein structures with
silver anomalies from rock chips and trench samples where there has
been no previous drilling.
Figure 2: Virginia –
Geophysical Survey program
In parallel, a program of mechanical trenching is also underway
(Figure 3). The primary focus of this program is to define the
continuity of new vein targets, identified by previous geochemical
rock chips sample programs, under cover. In addition, it will
expose bedrock for assessment and geochemical sampling in
prospective covered areas, which host coincident IP chargeability
and ground magnetic anomalies.
Figure 3: Virginia – Trenching
Program
These surface exploration programs are designed to identify
additional new drill targets for prioritized testing in Q1 of 2021.
To date, 49-line km of IP geophysics has been completed and
1,500m of trenches have been opened,
with geological mapping and geochemical sampling currently
underway. This first phase drill campaign is anticipated to be
completed by mid-December. Assay results will be released as soon
as they have been received, validated and interpreted.
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).
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.
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.
SOURCE Mirasol Resources Ltd.