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Mirasol reports high grade extension at depth at La Morocha prospect, Joaquin Silver-Gold Project, Argentina

VANCOUVER, BC, October 18, 2010, Mirasol Resources Ltd. (TSX-V: MRZ, Frankfurt: M8R) is pleased to announce further results from Phase 5 drilling at Joaquin including hole DDJ-100 containing a core length of 39.2 metres of 434 grams per tonne (g/t) silver and 0.23 g/t gold commencing at 129.0 metres down hole. This is the deepest, widest and highest silver grade hole drilled at the La Morocha prospect, and the third best hole at Joaquin property to date based on interval-grade thicknesses. Complete results from the remainder of Phase 5 are pending.

Mirasol’s joint venture partner, Coeur d’Alene Mines Corporation (“Coeur”), on completion of Phase 5 drilling, has commenced a 6,000 metre resource definition drilling program at the La Negra prospect. This program will infill the drill hole spacing at La Negra to approximately 50 metre centers.

At La Morocha, two holes were drilled in Phase 5 approximately 150 metres apart, deeper than all previous drilling, to test the down dip extension of the strongly mineralized intervals intersected in holes DDJ-25, 26, 55 and 49 (Figure 1, plan and section). At 129 metres down hole, DDJ-100 intersected a wide interval of clay alteration and quartz veining with disseminated and stockwork sulphide mineralization. Assay results from this interval returned a down hole intersection 39.2 metres long of 434 g/t silver and 0.23 g/t gold that included a best sub-interval of 2.52 metres containing 2,214 g/t silver and 0.67 g/t gold.

This long intercept is interpreted to intersect the down-plunge extension of a high-grade shoot at La Morocha that, to date, has a strike extent of up to 360 metres near surface and 260 metres at depth, using the 2,000 gram-metre contour (Figure 1), with a down dip extent of at least 260 metres, and maximum true widths near surface of 49 metres and at depth of 27.7 metres. The shoot remains open at depth with the highest grade intersections occurring in the deepest hole, DDJ-100. In DDJ-100, a second, deeper intercept contained a more gold-rich, interval of 2.6 metres core length containing 15 g/t silver and 1.19 g/t gold for a silver equivalent grade of 92 g/t (Table 1).

Hole DDJ-101 appears to have intersected the eastern edge of the shoot. It contains sulphide mineralization in several intervals with low silver and gold grades, including a core length of 6.15 metres of 32 g/t silver and 0.03 g/t gold.

The true width of the main intercept in DDJ-100 is interpreted to be 27.7 metres as seen on section. In plan (Figure 1), Hole DDJ-101 appears to limit the thick, high-grade zone in DDJ-100 to the east, but the zone is open down dip and to the north. The nearest hole to DDJ-100 is the previously published DDJ-19, 141 metres up dip from DDJ-100, which contained an intercept with an interpreted true width of 31.6 metres grading 105 g/t silver and 0.06 g/t gold. Hole DDJ-55, also previously published, contained an estimated true width of 39.3 metres with a grade of 123 g/t silver and 0.10 g/t gold at a similar distance from DDJ-100.

Table 1. Joaquin Project – La Morocha Prospect Drill Results Phase 5

Drill Hole

Intercept

From
(metres)

To
(metres)

Intercept
length
(metres)

Core
Recv.
(%)

Silver
(g/t)

Gold
(g/t)

AgEQ
(g/t)

DDJ-100

1st

128.95

168.10

39.15

96%

434

0.23

449

including

 

133.70

155.10

21.40

98%

477

0.26

494

including

 

165.58

168.10

2.52

96%

2,214

0.67

2,257

DDJ-100

2nd

181.35

183.90

2.55

100%

15

1.19

92

DDJ-101

 

164.05

170.20

6.15

na

32

0.03

34

– Silver equivalent is calculated as AgEQ g/t = Ag g/t + 65 x Au g/t. Metallurgical recoveries are unknown and therefore set at 100%.
– Primary intersections are calculated at a cutoff grade of 20 g/t (La Negra) silver equivalent (AgEQ) and 30 g/t (La Morocha) with some internal dilution allowed at the discretion of the project’s Qualified Person.
– “Included” intersections are calculated at a 50 g/t or higher cutoff grade.
– Reported grades are not capped.
– Estimated true widths have not been calculated.
– “na” denotes not available at this time

Two reconnaissance prospecting holes were drilled on magnetic low trends that are similar to, and parallel to, La Morocha, which also occupies a northwest-trending magnetic low (Figure 2). Both lows are located to the northeast of La Morocha with the first one being about 350 metres to the northeast and the second about 750 metres to the northeast. Both occupy valley bottoms which are soil-covered with no known mineralization. The first of these holes, DDJ-103 intersected a zone of anomalous silver values containing 4.5 metres of 24 g/t silver. The significance of this intercept is uncertain, however similar silver values are present along strike from the higher grade mineralization on La Morocha, therefore this magnetic low may merit testing at shallow depths along its 1,000 metre strike length. A second magnetic low target was tested by hole DDJ-104 and did not intersect any anomalous silver or gold values.

Table 2. Joaquin Project – Low Magnetic Targets North of La Morocha Drill Results

Drill Hole

From
(metres)

To
(metres)

Intercept
length
(metres)

Core
Recv.
(%)

Silver
(g/t)

Gold
(g/t)

AgEQ
(g/t)

DDJ-103

113.0

117.5

4.5

na

24

0.00

24

DDJ-104

no significant intercepts

 

 

 

 

– Silver equivalent is calculated as AgEQ g/t = Ag g/t + 65 x Au g/t. Metallurgical recoveries are unknown and therefore set at100%.
– “Included” intersections are calculated at a 50 g/t or higher cutoff grade.
– Reported grades are not capped.
– Estimated true widths have not been calculated.

In conclusion, results for hole DDJ-100 at La Morocha are significant as they indicate a combination of potentially increasing silver grades and mineralization thickness that could be of potential economic interest for underground development, beneath wide, lower grade mineralization that could be amenable for open cut mining. This discovery will require further evaluation and drilling in the area of hole DDJ-100 as well as engineering and other studies to determine its economic potential, which cannot be assured at this early date.

Mirasol’s management is pleased with the exploration progress and drill results delivered to date from the Joaquin Project and looks forward to continued drilling and property-wide exploration. The Joaquin project is located in the Area of Special Interest for Mining in Santa Cruz, Argentina where mining development is favoured and four precious metal mines are currently operating.

Paul G. Lhotka, Principal Geologist for Mirasol, is the Qualified Person under NI 43-101 who has approved the technical content of this news release.

For further information, contact:
Mary L. Little
President and CEO

Tel:(604) 602-9989: Fax:(604) 609-9946

Email: contact@mirasolresources.com
Website: www.mirasolresources.com

Quality Assurance/Quality Control: Coeur d’Alene operates the Joaquin Joint Venture and generated the drilling data used in this news release and reported it to Mirasol. Drill core samples were submitted to Alex Stewart (Assayers), Argentina S.A. or ALS Laboratory Group, in Mendoza, Argentina. Gold and silver results were determined using standard fire assay techniques on a 50 gram sample with an atomic absorption finish for gold and a gravimetric finish for silver. Coeur’s QAQC program includes the insertion of blanks and standards into the sample stream on all Joaquin drill holes. For Phase three it has added duplicate core samples as part of the QAQC program. Mirasol has performed an independent analysis of the QAQC data generated by Coeur. Dr. Paul Lhotka has reviewed the Coeur data, calculated the intercepts in this news release, and is a qualified person as defined by National Instrument 43-101.

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.

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