Mirasol Resources Ltd (CVE:MRZ) (OTCPINK:MRZLF) (FRA:M8R) and Golden Arrow Resources Corporation (CVE:GRG) (OTCQB:GARWF) have inked an option agreement on Mirasol’s drill ready Libanesa project in Argentina.
Located in Santa Cruz province, Libanesa is 14,500-hectareS silver-gold-lead project that was discovered and staked by Mirasol. The property lies about 70 kilometres west of the port of Puerto Deseado and near two producing gold mines owned by Yamana Gold Inc. (NYSE:AUY) (TSE:YRI) (LON:AUY) (FRA:RNY) and Cerrado Gold Corp (CVE:CERT) (OTCMKTS:CERRF).
The agreement gives Golden Arrow an option to acquire a 75% undivided interest in the project by spending US$4 million in exploration and making staged cash payments totaling US$1 million over a six-year period.
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Mirasol President Tim Heenan called Libanesa “an advanced exploration project with multiple attractive drill targets.”
“Golden Arrow has been a successful explorer in Argentina for well over a decade and will be a strong partner to advance Libanesa,” Heenan said in a statement.
Mirasol is securing the permits necessary for the start of exploration during the second half of 2021, Heenan added.
Golden Arrow told shareholders that based on the work to date, Cerro Plomo is the principal target and is characterized by a mineralized gold-silver hydrothermal breccia that is exposed at surface, and both chargeability and resistivity geophysical anomalies at depth. Trench results include 6 metres (m) at 0.8 grams per ton (g/t) gold, 243.8 g/t silver and 0.4% lead; 10.5m at 0.98 g/t gold, 53.4 g/t silver and 0.9% lead; and 11m at 1.21 g/t gold, 13.5 g/t silver and 1.4% lead.
"Libanesa presents an excellent opportunity for discovery and provides Golden Arrow with a new exploration entry into this exciting area of Santa Cruz, which hosts multiple high-grade gold and silver mines," Golden Arrow CEO Joseph Grosso told investors.
READ: Golden Arrow Resources sees significant gold intervals at the Esperanza property on the Flecha de Oro gold project in Argentina
Under the terms of the agreement, Golden Arrow must spend US$500,000 per year on exploration over the first two years, and US$750,000 per year thereafter. The initial $500,000 budget is a “firm commitment,” according to both companies, but it may be incurred over a two-year period instead of 12 months if permits are not received by October 2021.
As the operator, Golden Arrow is also required to complete at least 2,000 metres of drilling by the end of the second year.
In return, Mirasol will receive cash payments totaling US$1 million, with US$100,000 to be paid on the second, third and fourth anniversaries of the signing date. Another US$250,000 is due on the fifth anniversary and the remaining US$450,000 is due on the sixth anniversary.
Golden Arrow is actively exploring a portfolio that includes a new epithermal gold project in Argentina, a district–scale frontier gold opportunity in Paraguay, a base-metal project in the heart of a lading mining district in Chile and more than 180,000 hectares of properties in Argentina.
Mirasol is a well-funded exploration company focused in Chile and Argentina with seven partner-funded assets and two self-funded projects.
Contact Angela at angela@proactiveinvestors.com
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