VANCOUVER, Aug. 29, 2018 /CNW/ - Mirasol Resources Ltd.
(TSXV: MRZ), (OTCPK: MRZLF) (the "Company" or
"Mirasol") is pleased to announce that it has signed a
letter of Intent (the "LOI") for the Company's Indra
epithermal precious metal project in Chile (the "Project"), with Hochschild
Mining plc (LON: HOC) ("HOC"). The
LOI gives HOC the right to acquire, in multiple stages, up to 70%
of the Project by completing a series of exploration and
development milestones and making staged option payments. Mirasol
can elect to contribute its 30% of development expenditures or
exercise an option for HOC to finance 100% of the development costs
through to production, in this latter scenario, Mirasol would
retain a 25% interest in the project and HOC's interest would be
increased to 75%.
HOC is a leading precious metals producer focusing on high grade
silver and gold deposits, with over 50 years of experience in the
Americas. HOC has four operating mines and has extensive experience
developing and operating underground epithermal vein mines.
Stephen Nano, CEO of Mirasol,
stated: "We are very pleased to be partnering once again with
Hochschild to explore and advance one of our projects. We
look forward to concluding the binding agreement and starting an
aggressive exploration program at the Project. Indra is an
attractive conceptual epithermal gold – silver target located at
low altitude in the Paleocene age belt, which allows for year-round
work and will complement our seasonal exploration activities in the
Mio-Pliocene belt of Chile and in
the Santa Cruz region of
Argentina."
Terms of the LOI
Option phase:
- A US$50,000 cash payment upon
signing the Agreement;
- A minimum commitment for HOC to spend US$800,000 in the first 18-month exploration
program and to drill a minimum 1,500m
within 30 months of the date of the Agreement;
- Mirasol will operate the Project during the Option phase and
will receive a 10% management fee from exploration contracts with
values of less than US$250,000 and 5%
from contracts with values of more than US$250,000; and
- At the end of the 18-month period, HOC will have the right to
exercise the earn-in phase of the Agreement.
Earn-in phase:
- Stage 1: If HOC elects to exercise the option to
earn-in, HOC will have the right to earn 51% of the Project over a
3-year period (total 4.5 years) by spending an additional
US$5.2 million (total US$6 million) and making two staged payments
totalling US$675,000;
- Stage 2: If HOC elects to proceed to Stage 2 of the
earn-in, HOC will have the right to earn 60% of the Project over an
additional 3-year period (total 7.5 years), by funding the delivery
of a positive preliminary economic assessment, in accordance with
NI 43-101 on a resource of not less than 1,000,000 ounces of gold
at a cut-off grade of 0.50 grams per tonne (g/t);
- Stage 3: If HOC elects to proceed to Stage 3 of the
earn-in, HOC will have the right to earn 70% of the Project over an
additional 3-year period (total 10.5 years) by funding the delivery
of a feasibility study, in accordance with NI 43-101;
- Stage 4: After completion of Stage 3, Mirasol can elect
to contribute its proportionate share (30%) of further development
expenditures or exercise a financing option requiring HOC to
finance Mirasol's share of the development costs through to
production in exchange for a further 5% interest in the Project. If
Mirasol exercises the financing option Mirasol's interest will be
reduced from 30% to 25% and HOC's interest will be increased from
70% to 75%.
The LOI contains other customary terms including extension
rights to increase the duration of each stage 1, 2 or 3 for cash
payments to Mirasol and 2% NSR dilution royalty, triggered upon
dilution of a party's interest to 10% if the Agreement proceeds
beyond 51% earn-in.
The LOI is subject to HOC completing its due diligence review
and the parties settling the formal option agreement on or before
September 14, 2018. Mirasol has
granted an exclusivity period to HOC to complete these
conditions.
The Indra Project
The Company's 100% owned 21,000 ha Indra epithermal precious
metal project is located in the Paleocene Age Mineral Belt, 5 km
south of the 1.37 Moz1 El Guanaco gold mine in northern
Chile.
The Project was staked by Mirasol as an outcome of the Company's
Atacama – Puna Generative program, encompassing what Mirasol
interprets may be the upper levels of a large epithermal gold –
silver system. The Project is characterized by a large carbonate –
silica vein and breccia system with weakly anomalous gold - silver
rock chip assays and strongly anomalous epithermal path finder
geochemistry. The Indra vein-breccia outcrop shows geological
characteristics in common with carbonate-silica veins know to be
present overlying the ore zone in the HOC Arcata gold – silver mine
in Peru. Mirasol has not
identified any evidence of modern exploration at the Project
despite its year-round access and its location adjacent to an
operating mine. A news release providing a technical summary of the
project will be issued in the near future.
About Mirasol Resources Ltd
Mirasol is a premier project generation company that is focused
on the discovery and development of profitable precious metal and
copper deposits. Mirasol employs an integrated generative and
on-ground exploration approach, combining leading-edge technologies
and experienced exploration geoscientists to maximize the potential
for discovery. Mirasol is in a strong financial position and has a
significant portfolio of exploration projects located within the
Tertiary Age Mineral belts of Chile and the Jurassic age gold - silver
district of Santa Cruz Province
Argentina.
Stephen Nano, President and CEO
of Mirasol, has approved the technical content of this news
release. Mr Nano is a Charter Professional geologist and Fellow of
the Australasian Institute of Mining and Metallurgy (CP and
FAusIMM) and is a Qualified Person under NI 43 -101.
Quality Assurance/Quality Control of the Indra exploration
program: All exploration on the project was supervised by Mirasol
CEO, Stephen C. Nano, who is the
Qualified Person under NI 43-101.
Mirasol applies industry standard exploration sampling
methodologies and techniques. All geochemical rock and drill
samples are collected under the supervision of the company's
geologists in accordance with industry practice. Geochemical assays
are obtained and reported under a quality assurance and quality
control (QA/QC) program. Samples are dispatched to an ISO 9001:2008
accredited laboratory in Chile for
analysis. Assay results from surface rock, channel, trench, and
drill core samples may be higher, lower or similar to results
obtained from surface samples due to surficial oxidation and
enrichment processes or due to natural geological grade variations
in the primary mineralization
Forward Looking Statements: The information in this news release
contains forward looking statements that are subject to a number of
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those anticipated in
our forward looking statements. Factors that could cause such
differences include: changes in world commodity markets, equity
markets, costs and supply of materials relevant to the mining
industry, change in government and changes to regulations affecting
the mining industry. Forward-looking statements in this release
include statements regarding future exploration programs, operation
plans, geological interpretations, mineral tenure issues and
mineral recovery processes. Although we believe the expectations
reflected in our forward looking statements are reasonable, results
may vary, and we cannot guarantee future results, levels of
activity, performance or achievements. Mirasol disclaims any
obligations to update or revise any forward looking statements
whether as a result of new information, future events or otherwise,
except as may be required by applicable law.
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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SOURCE Mirasol Resources Ltd.