Mirasol Signs Agreement with Hochschild Mining for Option to Joint Venture on the Indra Precious Metals Project, Chile
Suite 910 - 850 West Hastings Street, Vancouver, B.C. Canada, V6C 1E1
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Mirasol Signs Agreement with Hochschild Mining for Option to Joint
Venture on the Indra Precious Metals Project, Chile
VANCOUVER, BC, October 17, 2018 — Mirasol Resources Ltd. (TSXV: MRZ), (OTCPK: MRZLF ) (the “Company”
or “Mirasol”) is pleased to announce that it has signed a binding letter agreement (the “ Agreement”) for the
Mirasol’s Indra epithermal precious metal s project in Chile (the “Project”), with Hochschild Mining plc ( LON:
HOC) (“HOC”). As detailed in Mirasol’s August 29, 2018 press release, t he Agreement 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 is also pleased to report that it has initiated work on the Indra Project. The initial program will
comprise of detailed geological mapping and surface rock and trench geochemical sampling, along with a 2,100
line km ground magnetic and additional electrical geophysical surveys to define drill targets at the Project.
Stephen Nano, CEO of Mirasol, stated : “We are pleased to have completed the due diligence review and
executed the Agreement in such a short timeframe. The exploration program is already underway at the
Project and we look forward to reporting results as they become available. Indra is an attractive , conceptual
epithermal gold – silver target located at low altitude , nearby to existing mine infrastructure in the highly
prospective Paleocene age mineral belt of northern Chile.”
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.
Terms of the Agreement
Option phase:
• A US$50,000 cash payment upon signing the Agreement;
• A minimum commitment for HOC to spend US$ 800,000 in the initial 18-month (the “Option Period”)
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 Option P eriod, 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 no less than 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 6 0% 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 o n 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);
NEWS RELEASE
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Tel: +1 604 602 9989 Fax: +1 604 609 9946 E-mail: [email protected]
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• Stage 3: If HOC elects to proceed to Stage 3 of the earn-in, HOC will have the right to earn 7 0% of the
Project over an additional 3-year period (total 10.5 years) by funding the delivery of a feasibility s tudy,
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 opti on 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 2 5%
and HOC’s interest will be increased from 70% to 75%.
The Agreement contains other customary terms including extension rights to increase the duration of each
stage 1, 2 or 3 for cash payments to Mirasol , pre-emptive rights provisions should either party elect to sell its
interest in the Project, and a 2% NSR dilution royalty, triggered upon dilution of a party’s interest to 10% or
below, if the Agreement proceeds beyond 51% earn-in.
The Indra Project
Mirasol’s 100% owned 21,000 ha Indra epithermal precious metal s project is located in the Paleocene Age
Mineral Belt, 5 km south of the 1.37 Moz Au equivalent 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 a ssays and strongly anomalous epithermal path finder geochemistry. The Indra vein-breccia
outcrop shows geological characteristics in common with carbonate -silica veins known 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. Mir asol 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 ed Professional geologist and Fellow of the Australasian Institute of Mining and Metallurgy
(CP and FAusIMM) and is a Qualified Person under NI 43 -101.
For further information, contact:
Stephen Nano
President and CEO
or
Jonathan Rosset
VP Corporate Development
Tel: +1 (604) 602-9989
Suite 910 - 850 West Hastings Street, Vancouver, B.C. Canada, V6C 1E1
Tel: +1 604 602 9989 Fax: +1 604 609 9946 E-mail: [email protected]
www.mirasolresources.com
Email: [email protected]
Website: www.mirasolresources.com
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 obtaine d 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, lo wer 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 contai ns 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 suc h 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 rele ase 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 rele ase.