Zeus Gold Project


Previous Option Agreement

Zeus is a high sulfidation epithermal (HSE) gold project covering 18,480 ha that is located 40 km east-south-east of Goldfields’ HSE Salares Norte project in Northern Chile, in an undulating high-altitude terrain with drive-up access to targets via gravel roads and tracks. Mirasol is targeting large-scale bulk-mineable HSE gold mineralization at Zeus. There has been no previous systematic surface exploration nor drilling at the Zeus project, where Mirasol has identified two large breccia-hosted gold targets at the Artemisa and Apollo prospects.  Apollo has yielded gold grades from rock chip sampling of up to 1.28 g/t Au in a permissive high-level epithermal breccia setting. The reconnaissance stage results from both prospects are considered very encouraging for this early stage of exploration work.

On February 26, 2018, Mirasol announced the signing of an Option and Farm-in Agreement with a wholly owned subsidiary of Newcrest Mining Limited (NCM).  NCM had the right to acquire, in multiple stages, up to 75% of the Zeus Project by completing a series of exploration and development milestones and making staged option payments to Mirasol. On December 10, 2018, Mirasol reported that the parties agreed to the early termination of the Zeus Option to Farm-in Agreement. Under the terms of the Zeus agreement, NCM had a minimum spend commitment of US$1.5 million in the first 18-month exploration program. The balance of the minimum commitment expenditures for Zeus that have not yet been incurred, will be applied towards the $4 million initial commitment for the Gorbea Project. NCM has also agreed to a US$200,000 early termination payment to Mirasol. Upon termination, NCM will have no retained rights in the Zeus project.

Project Details

Zeus is located 40 km east-south-east of Gold Fields’ multimillion ounce “Salares Norte” HSE project which contains a resource of 23.3 Mt grading 4.9g/t Au and 66.0g/t Ag for 4.3Moz gold equivalent* along the trans-orogen Culampaja structural corridor, which is believed to have played a critical role in localizing a number of large-scale tertiary age HSE and porphyry copper gold deposits in Chile and Argentina.

The two HSE precious metal targets at Artemisa and Apollo are interpreted to be twin phreatomagmatic breccia bodies.  Brecciation plays an important role of rock preparation that facilitates later hydrothermal fluid access and may act as host rock to precious metal mineralization in large HSE deposits, such the new Mio-Pliocene Salares Norte and Barrick Gold’s Alturas discovery in Chile, containing a resource of 211Mt grading 1.0 g/t for 6.8Moz gold**.

At Artemisa, Mirasol’s exploration has outlined an 800 m diameter advanced argillic altered breccia where reconnaissance level soil sampling has defined a low-level coincident Au, Ag, As, Cu, Pb, Sb, Mo anomaly, which overlies the edge of the mapped breccia body.  The level of the geochemistry anomaly is similar to that seen at surface overlying the Salares Norte orebody; at Artemisa this may represent geochemical leakage from a concealed zone of mineralization at depth.

At Apollo, a 0.6 x 1.2 km wide crescent-shaped zone of advanced argillic and intermediate argillic altered pyroclastic breccias and epiclastic sediments outcrop through a window in post-mineral lava flows.  This alteration is interpreted by Mirasol’s geologists to be hosted by a partially exposed phreatomagmatic breccia and flow-dome complex.  Mirasol has undertaken initial mapping, rock chip sampling and alteration modelling from 218 samples recently collected throughout the Apollo alteration window.  Assay results show wide-spread strongly anomalous Ag, As, Ba, Hg, Sb, with 38 of 218 samples collected in the altered window returning gold assays in the range 0.1 to 1.28 g/t Au.  Gold mineralization reports to silica-pyrite flooded breccias, and oxidized vuggy quartz-jarosite breccias.

Mirasol will report the exploration results from last season’s Zeus exploration program shortly. Mirasol has initiated the business development process to identify a new joint venture partner to continue exploration at the Zeus project during the 2019 southern hemisphere summer season. Mirasol maintains the view that Zeus is a prospective, underexplored, Au+Ag project located in prospective geological setting, 43km East of the Goldfields Salares Norte HSE project in the Mio-Pliocene belt of Northern Chile.

*Source: Gold Fields 2017 Results

**Source: Barrick 2017 Full Year Results

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