Mirasol Resources Ltd has released an update on two partner-funded projects located in the province of Santa Cruz, Argentina.
The South American focused company has seven partner funded projects, and two additional properties it is funding solely.
At the Libanesa project in Argentina, Mirasol has executed a definitive agreement granting Golden Arrow Resources Corporation an option to acquire a 75% interest in the project. A surface exploration program conducted by Golden Arrow is to start shortly to refine drill targets, with a maiden drill program planned for 1Q 2022.
READ: Mirasol Resources discovers “drill-ready” copper-gold targets at its Osiris project in Chile
While a 2,685-meter (m) Phase III drill program is currently underway at the Virginia project which is under an option agreement with Silver Sands Resources Corp and operated by Mirasol
“We are pleased to be partnered at Libanesa with Golden Arrow, a well-funded exploration company with a successful discovery record in Argentina,” Mirasol’s president, Tim Heenan said in a statement. “We look forward to Golden Arrow moving forward aggressively with its exploration plan to refine the drill targets in preparation for the maiden drill program expected to start in early 2022.”
The president continued: “We are also pleased that drilling has started again at Virginia to follow up on our successful Phase I and II programs. The 2,685m Phase III program is designed to increase the Ag resources at Virginia by following-up on prospective targets discovered last field season. This is shaping up to be a very busy season on our properties in Santa Cruz, Argentina.”
The precious metals company also outlined the option agreement that will see Golden Arrow earn a 75% undivided interest in Libanesa over six years. In order to attain the 75%, Golden Arrow must:
- Incur exploration expenditures totaling US$4,000,000- US$500,000 per year during the first two years; and US$750,000 per year thereafter;
- Make cash payments to Mirasol totaling US$1,000,000 - US$100,000 to be paid on the 2nd, 3rd and 4th anniversaries;
- US$250,000 on the 5th anniversary; and
- US$450,000 on the 6th anniversary.
Once fulfilled Mirasol and Golden Arrow will hold 25% and 75%, respectively, in a participating joint venture company holding Libanesa. If either party’s equity interest is diluted below 10%, it will convert to a 2% net smelter return royalty, the press release noted.
Presently, Golden Arrow is mobilizing an exploration team to Santa Cruz this month to conduct additional surface exploration, which may include geophysical surveys, to refine targets for a drill program expected to start in the first quarter of 2022.
Virginia project update
At the Virginia property, Mirasol’s exploration team has mobilized and drilling is now underway. The Phase III drill program follows the successful completion of nearly 6,000m of drilling last season, which led to the discovery of a new high-grade zone at the Ely Central target.
“Drilling intersected strong and continuous Ag (silver) grades in four core holes over a 200m strike length. Significant intercepts were also encountered at the Ely Central, Ely North, Martina NW and Julia South targets,” the Mirasol statement read.
It was also noted that the drill campaigns are successfully defining additional mineralization at Virginia, which currently hosts a NI 43-101 indicated mineral resource of 11.9 million ounces of Ag at 310 grams per ton (g/t) Ag and a further inferred resource 3.1 million ounces of Ag at 207 g/t Ag.
The current drill program is focused on expanding the known mineralized zones at Virginia by drilling within gaps, along strike and depth at Ely Central, Ely North, Julia South and Martina NW. This program is being funded by Silver Sands under an option-to-purchase agreement in terms of which Mirasol will retain a 19.9% equity ownership in Silver Sands and a 3% NSR (net smelter) royalty.
Contact the writer at georgia@proactiveinvestors.com
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