Shares Issued and Outstanding: 54,175,543
TSX-V:
MRZ
OTCPK: MRZLF
Mirasol to Operate 2,000-meter Drill
Program
VANCOUVER, BC, Oct. 15, 2020 /CNW/ - Mirasol Resources Ltd.
(TSX-V: MRZ) (OTCPK: MRZLF) (the "Company" or
"Mirasol") is pleased to announce the signing of a
definitive option agreement for its Rubi Copper Porphyry Project
(the "Project" or "Rubi") in northern Chile with Mine Discovery Fund Pty Ltd.
("MDF"), a private Australian company. Through this transaction,
Mirasol adds two additional large-scale copper-molybdenum-gold
targets to be drill tested this fiscal year.
MDF is a private investment vehicle focused on the discovery of
tier-one base metal and gold deposits by funding drilling of well
defined, large-scale exploration targets. The Rubi Project hosts
two such targets and is readily accessible year-round. MDF is fully
funded to complete the committed 2,000m drill program at the project. It is
expected that drilling will occur in the second quarter of 2021,
following completion of the permitting process, which is
underway.
Mirasol's Chair and Interim CEO, Patrick
Evans, stated: "We are pleased to partner with MDF to drill
test the Lithocap and Zafiro targets at Rubi, which have the
potential to host large-scale porphyry deposits. Drilling will
commence as soon as permits are in hand."
Terms of the Agreement
Mirasol has granted to MDF the option to earn-in 80% of the
Project over eight years. MDF has committed to funding a
2,000 m drill program at Rubi.
Following the completion of this initial commitment, MDF is
required to spend a minimum of US$1
million per year in exploration expenditures over the term
of the Agreement. In addition, and to exercise the option, MDF must
deliver a positive NI 43-101 compliant Prefeasibility Study Report
on the Project. Mirasol will be the operator during the
option period.
Following the completion of the 80% earn-in, MDF will have a
one-time option to acquire the remaining 20% interest on terms to
be negotiated between the parties. If this option is not exercised,
the parties will form a participating joint venture to further fund
the development of the Project.
If either party's interest in the joint venture is diluted to
10% or below, it will convert to a 1.5 % net smelter returns
("NSR") royalty. The non-diluting partner can buy back 0.5% of the
NSR royalty for the fair market value as determined by a qualified
independent valuator.
Rubi Project Overview
The 7,543 ha Rubi Project is located within the Paleocene age
porphyry belt of northern Chile
that hosts a number of significant, currently producing, porphyry
copper deposits. The Project lies at relatively low elevation
(1,900-2,100 m), within 20 km of the
El Salvador and Portrerillos
porphyry copper-molybdenum-gold mines and with good access to port
facilities at Chanaral approximately 80 km to the west.
In a regional context, the Project has a prospective geological
setting being centered on the structural intersections of the
Domeyko fault system and the Ojos del Salado trans-orogen
structural corridor, which is interpreted to have influenced the
emplacement of the nearby El
Salvador and Potrerillos deposits.
Figure 1 – Project Location and Regional Settings
The Rubi Lithocap target ("Lithocap") covers a 3.5 km by 2.0 km
area centred on a large, deeply weathered, advanced argillic
alteration zone that is surrounded by gravel cover with thicknesses
modelled from a gravity survey of 10-50
m. Large and productive porphyry copper deposits can be
found below or adjacent to the type of lithocap alteration zones
present at Rubi.
At Lithocap, previous explorers have drilled peripheral to, but
not beneath or adjacent to, the post-mineral gravel covered western
edge of the copper and locally strong Mo anomaly. Mirasol's mapping
and re-logging of previous drill holes have defined veining and
brecciation with anomalous copper and molybdenum mineralization and
alteration patterns that indicate potential concealed porphyry
mineralization to the north and north-west of the previous drill
holes.
This combined information suggests the presence of a deep
weathering profile that could potentially overlie supergene
enriched and sulfide mineralization, as indicated by an Induced
Polarization geophysical chargeability anomaly, which remains open
to the north. This type of deep weathering in porphyry environments
in northern Chile is often
conducive for the development of supergene enriched copper
mineralization akin to the nearby El
Salvador mining district.
Figure 2 – Lithocap Target
The Zafiro target ("Zafiro") features a 2.8 km by 2.2 km gravel
covered area characterized by a subtle circular magnetic high
surrounded by an incomplete, doughnut-shaped magnetic low. This
magnetic signature may be indicative of a large gravel-covered
intrusive with a pyritic alteration halo. The gravel cover in this
area ranges from approximately 25 m
to more than 200 m in thickness
concealing the central target area. However, a large canyon 1 km to
the north of the target cuts through the gravel profile exposing
the basement rock. Mirasol's stream sediment sampling of gullies,
located immediately north/northwest of the Zafiro target, have
returned widespread and strongly anomalous copper over 2,400 m with multiple results in the 500 ppm to
1,530 ppm range, suggesting either an "exotic" source of copper in
the gravels and/or a primary porphyry source for the copper in the
gravel-covered basement.
High grade "exotic" copper or a supergene enriched porphyry are
both attractive exploration targets at Zafiro. Significant ore
bodies of these types of mineralization occur at the nearby
El Salvador mining district.
Figure 3 – Zafiro Target
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.
SOURCE Mirasol Resources Ltd.