In 2012, Mirasol staked a large land package containing nine projects in the newly discovered Gorbea Belt, securing an area with broad prospective alteration systems identified by its generative team. Detailed ground follow-up of these targets identified large outcropping gold systems at the Atlas and Titan projects.
After some initial work completed by Mirasol, the Gorbea package was optioned to Yamana Gold from 2015 to 2018. During this period, Yamana spent more than C$10M in exploration expenditures and drilled more than 11,000m on the project. In early 2019, Mirasol entered into a new agreement with Newcrest Mining to further advance exploration on this property package.
On January 28, 2019, the Company announced that it signed a definitive Letter Agreement for an Option and Farm-in Agreement with a subsidiary of Newcrest Mining Limited (NCM) for the Gorbea gold project in Chile. NCM has the right to acquire, in multiple stages, up to 75% of the Gorbea Project by completing a series of exploration and development milestones and making staged option payments to Mirasol.
NCM has also committed to spend a minimum of US$4 million and complete a minimum of 3,000 m of drilling over an initial 18-month period, subject to drill permitting timelines. Upon NCM earning 75% of the Project, Mirasol can elect to fund its share and retain a 25% project equity position, or exercise a one-time equity conversion option to convert up to 10% of its equity into a NSR royalty at a rate of 2.5% equity per 0.5% NSR royalty (max 2% NSR royalty).
The Gorbea belt comprises of nine 100%-owned claim blocks totalling 32,000 ha and includes the Atlas and Titan projects. The Atlas project is centred on a +25 sq. km HSE gold alteration system hosting multiple gold and silver targets and contains many of the key geological and mineralization features of recent multi-million-ounce discoveries at Alturas (Barrick Gold) and Salares Norte (Gold Fields), supporting its potential to host large-scale gold mineralization.
During the first half of 2019, NCM as operator of the Gorbea exploration program, completed two diamond drill holes for 391m and 512m respectively (of a planned a 2,000m drilling program), 50km of CSAMT geophysics over the Atlas target as well as reconnaissance mapping and sampling over several other target areas in the Gorbea property package. The first hole drilled by NCM was terminated in mineralization and abandoned early due to ground conditions. Drilling was targeting a coincident geophysical, geochemical and alteration anomaly at depth below a barren steam-heated leach cap and was following up on the drilling results from Mirasol’s previous partner. Best assay intervals included:
ATL-DDH-001*: 19.3 m @ 0.89g/t Au from 372m, including 13m @ 1.1g/t Au from 372m
*Note: ATL-DDH-001 was lost 20m into the mineralized zone at 391m
ATL-DDH-002: 59 m @ 0.39g/t Au from 274m, including 10m @ 1.0g/t Au from 289m
NCM has informed the Company that they have recommenced drilling at the Gorbea project with 3,000m of diamond drilling planned. The drilling is initially focused on completing the 4-hole program, started in the previous season. The first hole drilled this year will twin hole ATL-DDH-001.
During the three years of exploration at Gorbea, Yamana focused its drilling activity exclusively on the Atlas and Titan projects. The best drilling results on the Atlas project were received in 2017 from holes 15 and 16 with 114.1 m at 1.07 g/t Au and 1.78 g/t Ag, including 36 m at 2.49 g/t Au and 3.08 g/t Ag (hole 15) and 45.8 m at 0.32 g/t Au and 0.81 g/t Ag (hole 16). The intersection in hole 15 starts from 347 m down hole with hole 16 is interpreted to have drilled across the top of this same breccia body.
To learn more about the project and recent exploration results see all Current and Historical News Releases.