Mirasol Resources Ltd. (TSX-V:MRZ, OTC:MRZLF) has reported encouraging drill results from the phase IV diamond drill campaign funded by Silver Sands Resources at the Virginia silver project in Argentina, which have underscored the asset's potential.
Mirasol struck an option-to-purchase deal on the project in 2020 and will gain a 19.9% stake in Silver Sands and a 3% net smelter returns (NSR) royalty if it is exercised.
"Virginia is one of Mirasol's key projects located in a prolific silver mining district," Mirasol president Tim Heenan told investors in a statement. "The latest drill results continue to confirm the strong potential to build on Virginia's current resource base within this very prospective silver-rich epithermal vein field."
He added that the "new very high-grade" Margarita discovery will play an important role in potential future additions to resources, while the "entire Ely Vein trend" is coming together to potentially form one continuous 870 metre (m) long mineralized zone.
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"We are also pleased to see some of the outlying 'blue sky' targets, such as the Patricia Trend located approximately 1.5 kilometers to the north of the Ely North Resource conceptual pit, delivering indications of stronger silver mineralization," Heenan said.
Among the highlights at the Margarita high-grade silver trend, three holes for 333 metres (m) successfully extended the vein by more than 150m to the north-west with one hole hitting 4.85m at 720 grams per ton (g/t) silver, including a discreet intercept of 0.30m at 1,775 g/t silver, noted Mirasol.
Elsewhere, at Ely Central, three holes were drilled for a total of 261m with one hole encountering 11.95m at 124 g/t silver, including 1.8m at 192 g/t silver.
At the Patricia and Daniela veins, one hole tested each of these veins. The Patricia hole intersected 1.45m at 120 g/t silver, including 0.5m at 198.5 g/t silver, and another parallel structure with 2.95m at 95.7 g/t silver, including 0.35 meters at 163 g/t silver.
Also in the statement, Mirasol noted that the option agreement on the Libanesa silver-gold project in Argentina with partner Golden Arrow Resources Corporation had been terminated.
Golden Arrow has exceeded its contractual minimum commitment by spending over US$500,000 on exploration since the option agreement was announced. The exploration program included field mapping, surface sampling, trenching and 1,716 meters of drilling at the Cerro Plomo/Cerro Rodonda and the Lagunita prospects, said Mirasol.
Mirasol firmly believes that quality drill targets remain at Libanesa (Cerro Plomo) and once the data has been officially received, Mirasol will review and evaluate how to test these remaining targets.
Mirasol is a well-funded explorer with 18 years of operating, permitting and community relations experience in the mineral-rich regions of Chile and Argentina. Currently, Mirasol is self-funding exploration at two flagship projects, Sobek and Inca Gold, both in Chile. Mirasol has six partner-funded projects.
Contact the writer at giles@proactiveinvestors.com