Virginia
-
Property Type
LSE Silver Project
Size
74,429 ha
Status
Signed a Definitive Option Agreement with Silver Sands Resources Corp.
Exploration Stage
Completed a NI 43-101 Resource Estimate report
Location
- Located in the prolific epithermal province of Santa Cruz, Argentina
- Approx. 100 km south of Newmont’s Cerro Negro Mine
Mirasol discovered the Virginia silver deposit in 2009 following-up a high-priority reconnaissance target identified by its generative team. Mineralization at Virginia consists of high-grade vein/breccia structures most of which outcrop on surface. After drilling at Virginia from 2010 to 2012, Mirasol completed a NI 43-101 Resource Estimate report (amended and filed in 2016) defining seven outcropping bodies of high-grade silver mineralization, constrained[1] within conceptual pits, with an indicated mineral resource of 11.9 million ounces of silver at 310 g/t Ag and a further inferred 3.1 million ounces of silver at 207 g/t Ag.
Mirasol Resources later expanded its claims holdings at the project and in 2018 announced that high-grade silver assays were returned from three new reconnaissance target areas located to the south and southeast of the resource drilling, suggesting that further exploration may identify new veins and expand the size of the Virginia silver district.
DEFINITIVE OPTION AGREEMENT
On May 21, 2020, Mirasol announced that it signed a definitive agreement with Silver Sands Resources Corp. (Silver Sands) for its Virginia Silver project. Silver Sands has completed two private placements raising almost C$5 million and providing it with ample capital to move the project forward.
Mirasol has granted Golden Opportunity the option to acquire 100% of the Project over 3 years by:
- Making share issuances totalling 19.9% of the shares outstanding of Golden Opportunity at the time of vesting
- Completing US$6 M in exploration expenditures, including a US$1 M firm commitment
Upon completion of the option, Golden Opportunity will have earned a 100% interest in the Project and Mirasol will retain a 3% NSR royalty, of which 1% can be bought back by Silver Sands for US$2 M.
[1] The Qualified Persons responsible for this amended Technical Report were commissioned by Mirasol Resources Ltd. to review all geologic, geochemical, geophysical, surface trenching, diamond drill core sampling and metallurgical recovery data pertaining to the Virginia project for the purpose of completing a Mineral Resource estimate in accordance with the guidelines of the Canadian Institute of Mining and Metallurgy (CIMM). For calculating conceptual pits, a silver price of US$20 per ounce was used. Sensitivity analyses by the Qualified Persons indicate that the Mineral Resources are not particularly sensitive to operating costs or silver price fluctuations. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
Mirasol first discovered the Virginia silver deposit in 2009, following-up a high-priority reconnaissance target identified by its generative team. Over the next few years, Mirasol defined high-grade, intermediate sulfidation epithermal style mineralization in a series of prominent outcrops of vein-breccia that are associated with a rhyolitic volcanic flow dome field. Rock chip and saw-cut channel sampling over these outcrops defined significant strike lengths of continuously mineralized vein-breccia, with many samples assaying over 1,000 g/t Ag. From 2010 to 2012, Mirasol completed a series of drill programs at the project, drilling a total of 23,318 m of diamond core in 223 holes, testing the mineralized structures to a maximum depth of 266 m. This work was followed by the filing of an amended NI 43-101 Resource Estimate report in 2016 defining seven outcropping bodies of high-grade silver mineralization, constrained[1] within conceptual pits, with an indicated mineral resource of 11.9 million ounces of silver at 310 g/t Ag and a further inferred 3.1 million ounces of silver at 207 g/t Ag (amended NI 43 -101 technical report filed February 29, 2016).
Later that year, Mirasol reported that preliminary prospecting of new claims identified quartz vein and vein-breccia rock float, scattered along a 2 km trend. With a strong belief in the exploration potential of the Virginia district, Mirasol further expanded its property holdings in 2017 with an extra 27,017 ha of claims to the south of the limit of the previous drilling. In May 2018, high-grade silver assay results were reported from the additional prospecting of three new target areas, suggesting the potential for an unrecognized, shallow soil covered, high-grade mineralization that would expand the potential of the Virginia silver project.
2020/2021 Exploration Program
In late 2020, Mirasol completed the Phase I exploration program at Virginia, under the partnership with Silver Sands, that tested the potential for new high-grade silver zones to expand on the existing NI 43-101 resource. The program comprised a total of 2,831m in 18 diamond drill holes (“DDH”), which was 331m more than originally planned. All the drilling, except for the holes at the Magi target, focused on potential strike extensions along the known trends that host the current resource and also previously untested, but proximal and related, vein structures. Initial results confirm the potential to identify new well-mineralized structures that do not outcrop on surface.
Drill Results
The initial six DDH, representing 903 m (32%) of the 2,831 m Phase I exploration program completed in Q4 2020 at the Virginia Silver project were reported on January 21, 2021 and the DDH completed at Martina and Ely Central clearly show the potential for significant new mineralization outside the current resource area. An additional twelve DDH for 1,928m have assay results pending and will be reported as results are received.
- Martina Target: MSE-DDH-001
The Martina hole MSE-DDH-001 collared 70m to the south of the current conceptual pit outline was located to test a significant structural “jog” in the mineralized Martina structure. The drill hole encountered significant Ag mineralization at a depth of 79.5m downhole returning a wide intersection of 33.5m grading at 198 g/t Ag, with a higher-grade section of 17.7m grading 313 g/t Ag. Additional anomalous Ag intersections were also encountered in this hole and are reported in Table 1.
- Ely Central Target: EC-DDH-001
This first hole at Ely Central was collared along the structure within an 850m gap between the Ely South and Ely North conceptual pit shells, some 470m south of the Ely North resource. The hole returned a 12m intercept of 184 g/t Ag, which includes a higher-grade intersection of 4.5m at 442 g/t Ag. This intersection is significant and confirms the potential to grow the current resource base along the Ely structural trend.
- Naty Extension Target: NE-DDH-001
Drill hole NE-DDH-001 at the Naty Extension target intersected a near surface, wide zone of mineralization from top of the hole at 14m down to 42.75m with an overall intercept of 28.75m grading 55 g/t Ag. The highest-grade intersection in this section returned 2.43m grading 143 g/t Ag, with a peak sample of 244 g/t Ag over 0.7m. This result potentially extends the higher-grade Ag mineralization footprint associated with the Naty conceptual pit 250m to the north.
- Magi Target: MG-DDH-001
The two previous drill holes at Magi from Mirasol’s 2012 drilling intersected interesting low temperature epithermal veining with anomalous Ag values. For example, hole VG-91, the deepest of the previously drilled holes in this target area, returned 8m of 52 g/t Ag. This drilling suggested that Magi may represent a higher elevation in both the Virginia volcanic stratigraphy and the mineralized epithermal column on the eastern most side of the Virginia vein field. Due to the high and cooler epithermal environment, it is to be expected that higher grade silver values should exist at a greater depth. If mineralized shoots do exist at Magi, they will be 100% preserved and not affected by erosion as were the outcropping ore shoots at Julia, on the western side of the vein field.
The recently completed drill hole at Magi, MG-DDH-001, was located to test for higher grade Ag grades at moderate depths below the historical drilling. This hole successfully intersected veining at approximately 20m below the vertical extent of the historical drill holes returning 6m of 54 g/t Ag, including 1m at 70 g/t Ag, thus supporting the concept that Ag values are increasing at depth. However, it is not yet clear that the actual vein structure intersected in Magi hole MG-DDH-001 is the down dip extension of the historical intersections or a parallel blind structure located further to the west. A scissor hole, drilled from the east side of the exposed structure, is planned for the Phase II program to verify the geology. Further drilling at Magi is warranted based on the results of this Phase I drilling.
- Margarita Target: MR-DDH-001
A similar situation may potentially exist at the Margarita prospect where it is uncertain if the structure intersected in drill hole MR-DDH-001 is a parallel blind structure located further to the west of the targeted outcropping structure exposed on surface. The intersected vein returned anomalous Ag in the range of 10 – 32 g/t Ag over a width of 3.5m, but these grades are not reflective of the strong Ag values returned from outcrop channel samples of this vein, including peak values of 1,705, 2,020 and 3,170 g/t Ag (see February 16, 2010 News Release). This suggests that the Margarita structure target dips to the east-northeast and would not have been intersected in the current Margarita hole MR-DDH-001. A scissor hole is also planned in the Phase II drill program to test this concept.
- RoxaneTarget: RO-DDH-001
Finally, a single initial drill hole on the Roxane vein, a possible splay off the main Ely trend intersects the target structure and with a “cloud” of anomalous Ag returning 17m of 12 g/t with a peak result of 27 g/t Ag associated with strongly silicified phreatic and crackle breccias. This cloud of Ag could potentially be sourced from an anomalous halo related to a proximal undiscovered mineralized structure. Further drilling is planned to prospect for the source to multiple high grade surface values of over 2,000 g/t Ag hosted in large, locally derived and well aligned float boulders (see September 15, 2010 News Release).
Mirasol also completed two IP pole dipole (PDP) geophysical campaigns at Virginia. Most of the previous electrical geophysics at Virginia used the gradient array method, which is effective at mapping the chargeable mineralized vein structures. The PDP method was deployed to better understand the orientation of the structures at depth, enabling improved planning for drill campaigns. In total, 95.5 line-km were completed with 80.5km in Virginia and 15km at the Santa Rita prospect in the north of the Project.
Planning for the Phase II program is progressing well and Mirasol’s exploration crew is mobilizing to recommence drilling later in January,2021.
[1] The Qualified Persons responsible for this amended Technical Report were commissioned by Mirasol Resources Ltd. to review all geologic, geochemical, geophysical, surface trenching, diamond drill core sampling and metallurgical recovery data pertaining to the Virginia project for the purpose of completing a Mineral Resource estimate in accordance with the guidelines of the Canadian Institute of Mining and Metallurgy (CIMM). For calculating conceptual pits, a silver price of US$20 per ounce was used. Sensitivity analyses by the Qualified Persons indicate that the Mineral Resources are not particularly sensitive to operating costs or silver price fluctuations. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.-
Virginia 2020/2021 Exploration Program Initial Phase I Assay Table
Hole ID
From
To
Interval (m)1
Ag g/t2
Ag x Interval3
Cut-off4
MSE-DDH-001
36.00
37.00
1.00
30.23
30
30 g/t
68.00
71.00
3.00
36.09
108
30 g/t
72.60
73.00
0.40
35.93
14
30 g/t
74.60
75.60
1.00
37.70
38
30 g/t
79.50
113.00
33.50
198.51
6,650
30 g/t
Including
83.30
83.80
0.50
92.79
46
63 g/t
and
85.80
103.50
17.70
316.86
5,608
63 g/t
and
105.00
109.00
4.00
82.37
329
63 g/t
and
111.00
113.00
2.00
65.34
131
63 g/t
115.00
130.00
15.00
40.91
614
30 g/t
133.00
134.00
1.00
30.94
31
30 g/t
EC-DDH-001
21.20
21.70
0.50
35.61
18
30 g/t
92.75
102.00
9.25
233.54
2,160
30 g/t
Including
94.55
99.05
4.50
441.71
1,988
63 g/t
103.00
105.00
2.00
32.77
66
30 g/t
NE-DDH-001
14.00
42.75
28.75
51.45
1,479
30 g/t
Including
15.00
15.50
0.50
70.20
35
63 g/t
and
17.70
18.70
1.00
64.28
64
63 g/t
and
27.00
28.00
1.00
63.95
64
63 g/t
and
40.00
41.10
1.10
250.06
275
63 g/t
and
41.90
42.45
0.55
65.47
36
63 g/t
MG-DDH-001
152.00
158.00
6.00
53.51
321
30 g/t
Including
156.00
157.00
1.00
70.08
70
63 g/t
MR-DDH-001
43.70
44.00
0.30
32.52
10
30 g/t
RO-DDH-001
no interval above cut off
30 g/t
Notes:
1 Reported interval length are down hole widths and not true widths.
2 Reported intervals are stated at a cut-off grade of 30 g/t and 63 g/t Ag, but may include up to a maximum of 1m individual section below cut-off grade.
3 Ag Gram Meter interval is calculated using: Ag (g/t) x down hole intersection length (m)
4The higher-grade intervals were selected using the 63 g/t cut-off grade used in the NI 43-101 resource estimate.- March 29, 2016
March 29, 2016
February 20, 2014
