LSE Silver Project
Option Agreement with Silver Sands Resources Corp.
Completed a NI 43-101 Resource Estimate report
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 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.
Since the execution of the option agreement with Silver Sands, Mirasol completed 3 drill programs at Virginia, which encompassed 58 drill holes for a total of 8,867m. The drill programs confirmed the potential to identify new well-mineralized structures that were not previously included in the NI 43-101 resource and the potential for new mineralization to be defined in the system at the Ely Central, Ely North, Martina NW, Margarita and Julia South targets. Mirasol also completed maiden drilling at the Santa Rita Central and East prospects.
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:
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.
 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 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.
Exploration Program under Option Agreement with Silver Sands
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, which was 331m more than originally planned. The results confirmed the potential to identify new well-mineralized structures that do not outcrop on surface and the potential to identify new well-mineralized structures that were not previously included in hte current resource estimate. See news release January 21, 2021 and February 23, 2021 for more details on the drill program.
Notable intersects from the Phase I drill program include:
In May 2021, Mirasol reported on the results from the Phase II drilling program at Virginia, which encompassed 20 drill holes for a total of 3,104m. The program was designed both to follow-up on encouraging Phase I intersections and to test several new prospective zones. This program led to the discovery of a new high-grade zone at Ely Central, where drilling has intersected strong and continuous Ag grades in four drill holes over a 200m strike length. Mineralization remains open to expansion both laterally to the north, south and to depth. Significant intercepts have also been encountered at the Ely North, Martina NW and Julia South targets, confirming that the potential for new mineralization to be defined in this system. See news release May 17, 2021 for more details on the drill program.
Highlighted intercepts from the Phase II program at Ely Central include:
The results from Phase I and II exploration programs, which included drilling, mechanical trenching, sampling and geophysical surveys, were reviewed for planning the 2,700m Phase III program which was completed in Q4 2021.
At the main Virginia vein field, high-grade mineralization was discovered on the Margarita vein trend in a single core hole intersecting 2.63m at 1,456 g/t Ag. This hole was collared to follow up on elevated Ag results in trenches and float-block sampling on surface and represents the first mineralized interval from this new target. This confirms the prospectivity of the Margarita target and opens a new mineralized trend to be aggressively explored along strike and at depth.
At the Martina NW target, two holes were collared to test the depth extent of the mineralized polymictic hydrothermal breccia structure that was previously drilled. A drill hole was targeted at the Martina NW structure at 107m below surface and intercepted the same breccia structure. Unfortunately, core recuperation in this drill hole was poor within the mineralized zone (<50%) and a second drill hole was completed at a shallower dip and intersected 4.75m at 242 g/t Ag, including 2.45m at 404 g/t Ag, 68m vertically below surface. The results from Martina NW are very encouraging as these new intersections support the potential to increase the mineral resource along this trend (news release February 1, 2022).
At Ely, continued drilling returned a broad interval of 33.8m at 88 g/t Ag from 71.3m which successfully closes the gap between the mineralized structure delineated last season at Ely Central and Ely North. In addition, Au mineralization was intercepted with hole EC-DDH-007 which returned 4.55m at 0.33 g/t Au and 30 g/t Ag from 173.65m (including 1.2m at 0.63 g/t Au and 26 g/t Ag). The presence of this Au pulse may indicate the introduction of a stronger and more consistent gold-rich pulse in the deeper parts of the Virginia vein system that could potentially add significant Au credits to the project (news release January 25, 2022).
At Santa Rita Central and East, the maiden drilling intercepted encouraging Au and Ag mineralization confirming that the structures mapped and sampled on surface extend to depth, providing vectors for further deeper drilling. The Santa Rita prospects have low sulfidation epithermal mineralization signatures characterized by elevated Au values compared to those returned from the main silver-rich Virginia vein field. The best results were obtained at Santa Rita East with two drill holes 50m apart returned 5.65m at 0.68 g/t Au from 35.65m, including 1.35m at 1.87 g/t Au and 5.20m at 0.63 g/t Au and 7 g/t Ag from 35.30m (news release February 10, 2022).
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