Mirasol Resources Ltd. (TSX-V: MRZ) (OTCPK: MRZLF) has signed an option agreement with subsidiaries of Newmont Corporation to acquire the Inca Gold Project in Northern Chile.
Mirasol’s President and CEO, Norm Pitcher, said the agreement gives Mirasol the opportunity to add a district-scale and underexplored, intermediate sulfidation epithermal project in the prolific Paleocene belt of Chile to its portfoli
He said the project hosts multiple attractive targets that have never been drill tested, and it fits well with the company’s strategy to fund drilling on high quality prospects with favourable infrastructure.
“We are pleased to add the Inca Gold Project to our portfolio and to work toward delivering a second Mirasol-funded exploration and drilling programme in Chile,” Mr Pitcher said.
“This is an attractive transaction allowing Mirasol to acquire Inca Gold by exploring and drilling the property. If our exploration demonstrates the potential for a Newmont size target, the agreement will allow them to earn back 70% of the project by reimbursing our costs and investing in significant additional exploration expenditures.”
The agreement is over a number of option stages with Mirasol initially granted an option over five years to earn-in 100% of the Project, subject to a 1.5% NSR royalty, by:
- Drilling 1000m on the Project over two years; and
- Incurring US$3 million in exploration expenditures over five years.
The 14,000 ha Inca Gold project is located in Region III of Chile, approximately 100km north of Copiapo.
Newmont’s exploration work to date has been limited to surface and prospecting activities, which have identified five target areas, none of which have been drill tested.
Locally, the project is within the Inca Del Oro mining district, which hosts Santiago Metals’ San Pedro de Cachiyuyo Cu-Au tourmaline breccia deposit and PanAust/Codelco’s Inca de Oro Cu-Mo-Au porphyry deposit.
The two main targets identified at the Inca Gold Project are the Sandra and Vania prospects The other three prospects areas (Rincon, Guerda, Inca North) are secondary priorities at this time.
Mr Pitcher said Mirasol’s exploration plans include a systematic geological mapping and sampling program as well as electrical IP geophysics to aid in the selection of the best targets for the maiden drill program. Structural mapping and interpretation will be used to gain a clear understanding of the controls on mineralisation and to define drill targets.