Miranda Signs Final Agreement and Provides Update ON Its Mallama Project IN Colombia
Page 1
MIRANDA SIGNS FINAL AGREEMENT
AND PROVIDES UPDATE ON ITS MALLAMA PROJECT IN COLOMBIA
Vancouver, BC, Canada – October 10, 2017 - Miranda Gold Corp. ("Miranda") (TSX -V: MAD) is
pleased to announce it has completed the acquisition of the Mallama project , and to provide an
update of work conducted by Miranda.
The Mallama project comprises two titles totaling 9,036 hectares in the Nariño Department, 56
kilometers west of the city of Pasto. The Mallama project is part of a large district that contains
more than thirty mapped intermediate sulfidation epithermal veins with strike lengths of over 4km.
In 1984 , t he Japanese Internation al Cooperation Agency (JICA) mapped, sampled, and drilled a
portion of the larger vein system - of which the Mallama project covers approximately half . The
private El Diamante Mine is just north of Miranda’s Mallama project, and has been active for 30
years or more . All of the areas of Miranda exploration intere st are below the high elevation,
environmentally protected Paramo.
Miranda’s and historic work suggest the Mallama District has exploration potential for numerous
sub-parallel high-angle veins on both the mine and district scale, with a prevalence of hi gh-grade
gold and silver values that show good continuity in continuous veins and related competent shear
zones. The JICA data shows that the known veins can be traced well with soil sampling, and JICA
soil anomalies indicate that numerous veins may be unexposed near existing workings. Vein
packages occur over or within an area of at least 30 square kilometers on the Miranda titles ,
indicating a large IS (intermediate sulfidation) epithermal gold system.
In order to p rogress to drilling at a faster pace and proactively address the concerns of community
stakeholders, Miranda is initially focusing on a 1,200-hectare portion of the two titles. By focusing
on a smaller area initially, Miranda intends to accelerate subtracting the titles from a Second Law
1959 forestry reserve, completing a Consulta Previa, and providing a framework of legalization and
accommodation for informal miners.
Exploration work has concentrated in the Bombona Zone, where fourteen known sub-parallel and or
anastomosing veins and mineralized shear zones extend northwest to southeast over a distance of
over four kilometers.
In the Olmedo Pastas Mine, within the Bombona Zone, a northwest-southeast, sub-vertical vein and
related mineralized shear extends with notable consistency for the entire 400 meters of the main
level of the mine . The vein and shear a ppear nearly coeval and it is believed this relationship
reflects a ductile shear zone progressing to open-space dilational deformation hosting veins over
time. The vein, the shear , and granitic wall rock lack significant post mineral deformation and are
competent. The shear zone is consistently mineralized and can carry grades (0.35 meters at 50.2g
Au/t as a high) similar to the vein - but it commonly shows lower values. The vein and shear share a
Page 2
common margin and together are typically from 0.6 meters to 1.7 meters wide.
In the mine, e ight close-spaced sub-levels developed from raises and winzes, but without stoping ,
occur in a small area above and below the midpoint of the main level. These levels are currently in
small scale production, and extend 40 meters horizontally and 30 meters vertically.
In order to confirm historic reconnaissance samples provided by the owner - and make a gross
estimate of in situ gold and silver grades in this production area - fifteen channel samples of vein
and shear on levels below the main level were taken. These samples show a weighted average
grade of 23.2g Au/t over an average width of 0.69 meters - with a range from 2.44 to 76.9g Au/t –
and a mean value for the fifteen samples of 22.0g Au/t. The gold to silver ratio is seven-to-one, and
the weighted average for silver values is 182.3g Ag/t.
Sampling shows 0.78 meters at 29.34 g Au/t, and 0.95 meters at 36.77 g Au/t where the vein
continues beyond the limit of level development to the southwest and northwest , respectively.
High-grade mineralization extends beyond the limit of workings in all directions in the Olmedo
Pastas Mine. The vein and adjacent shear in the Olmedo Pastas Mine are continuous, with very
little structural disruption - and high gold and silver assay values show a consistent distribution.
Miranda’s recent sampling of the Olmedo Pastas Mine show s preliminary confirmation of historic
sampling from Miranda’s titles. Historic sampling from the previous titles owner indicates six other
open artisanal mines providing reconnaissance ch annel samples ranging from 11.8g Au/t to 73g
Au/t and 47g Au/t to 1114 g Ag/t. These samples are reported to reflect ar tisanal mine production
faces at the time of visit and sample widths were not recorded, but probably do not exceed, the
average 0.69 meter width seen in the Olmedo Pastas Mine . Further s ystematic sampling by
Miranda will be needed to verify the accuracy of, and determine if these reconnaissance sa mples
have significant geologic context – however - the historic samples are similar to the Miranda
confirmation sampling done in the Olmedo Pastas Mine. Ingeominas (“Colombia Geologic Survey”)
also reports two reconnaissance samples taken of 75g Au/t (1,400g Ag/t) and 130 g Au/t (120g
Ag/t), east and west respectively of the Olmedo Pastas Mine , but within the Bombona zone. The
Ingeominas sample widths are also not recorded.
Overall, Miranda has taken forty -seven channel samples in the course of its work in the Olmedo
Pastas Mine and two other Bombona Zone workings – one-third of all samples taken exceed 15g
Au/t. These samples include those taken for characterization of the weakly mineralized wall rock.
The veins contain sphalerite and galena, commonly in banded habit, in quartz and minor carbonate
gangue. Arsenopyrite is locally abundant, but there is no correl ation between gold and arsenic -
while there is a correlation between silver and arsenic. The adjacent and parallel mineralized shear
shows competent sigmoidal shear fabric of quartz lenses and multi -stage healed breccia. The wall
rock is competent granite with sericite alteration halos to the vein.
Commonly, subsidiary narrower low angle veins dip away from the hanging wall of the sub-vertical
main vein , extending into the wall rock - and are interpreted as possible “ladder” tension veins
linked to parallel high angle veins northeast of the Olmedo Pastas main adit. This interpretation is
supported by reports of multiple close spaced veins occurring in cross cuts in other workings in the
district. For example, m apping in the Carlos Eli Mine , also in the Bombona Zone , shows a
“package” of ten narrow veins and shears o ver an interval of eight meters and m apping in the
William Cuastumal Mine shows anastomosing shear zones combined with internal segments of
vein.
Page 3
Twenty active or sporadically active artisanal mines are recorded in the Bombona Zone. Similar
parallel vein packages occur 1.5 kilometers to the north east, and 3 kilometers to the south west;
they are informally named La Cruz and La Fortuna respectively. La Cruz has more mining activity,
and has more veins of greater strike length recorded than the Bombona . Little is known about La
Fortuna because it is remote and it is the most recent vein discovered in the Mallama District.
Miranda is conducting meetings with indigenous and civil community leaders and other
stakeholders including informal miners. Miranda is optimistic that drill permits can be received in 6
to 8 months. Miranda may, at that time , perform its own scout drilling as part of a n exploration
program to attract a joint venture partner.
Agreement Details:
On August 31, 2017, Miranda signed the final agreement completing the acquisition of the Mallama
project - by purchasing a Colombian simplified share company , Minera Mallama SAS. The formal
transfer of the share certificates will occur upon review by the Chamber of Commerce in Colombia.
Miranda has paid $298,216 in outstanding license fees (2014 to 2017) on the two titles - and upon
receipt of sui table drill permits - Miranda will be required to make an additional payment of
US$200,000 to the former shareholders of Minera Mallama SAS. A residual net proceeds royalty of
4% (as defined in the Rocky Mountain Form 5 ) will be payable to the former shareholders, with a
minimum of US$1.0 m payable within three years of the commen cement of commercial production,
capped at US$4.0m over the life of the mine. Otherwise, there are no additional annual payments
or minimum work commitments on Mallama, and no acquisition restrictions imposed on M iranda for
any adjacent property.
Data disclosed in this press release, has been reviewed and verified by Miranda’s Chief Executive
Officer, Joseph Hebert, C.P.G., and B.Sc. Geology, a Qualified Person as defined by National
Instrument 43-101.
About Miranda
Miranda is a gold Prospect Generator active in Colombia with a production joint venture in Alaska .
Our emphasis is on acquiring gold exploration projects with world -class discovery potential.
Miranda performs its own grass roots exploration and t hen employs a joint venture business model
on its projects to maximize investor exposure to discovery and minimize financial risk. Miranda has
ongoing relationships with Gold Torrent, Inc. and IAMGold Corporation.
ON BEHALF OF THE BOARD OF DIRECTORS
Joseph (Joe) Hebert, Chief Executive Officer
+1-775-340-0450
Email: [email protected]
www.mirandagold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defi ned in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.
U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our prope rties. We
advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. This
news release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward -looking
statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate",
"suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such for ward-looking
Page 4
statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially
from estimated or anticipated events or results implied or expressed in such forward -looking statements. Such factors include, among
others: the actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans to
continue to be refined; possible variations in ore grade or recovery rates; accidents, labor disputes and other risks of the mining industry;
delays in obtaining governmental approvals or fin ancing; and fluctuations in metal prices. There may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. Any forward -looking statement speaks only as of the date on which it is
made and, except as may be r equired by applicable securities laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward -looking statements are
not guarantees of f uture performance and accordingly undue reliance should not be put on such statements due to the inherent
uncertainty therein.