Miranda Signs Letters of Intent ON TWO Large District-Scale Epithermal Systems IN Colombia
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MIRANDA SIGNS LETTERS OF INTENT ON TWO LARGE
DISTRICT-SCALE EPITHERMAL SYSTEMS IN COLOMBIA
Vancouver, BC, Canada – January 20, 2017 - Miranda Gold Corp. ("Miranda") (TSX -V: MAD) is
pleased to announce it has signed Letters of Intent (“LOI”) on two important district -scale epithermal
vein systems. The Colombian project titles are Mallama and San Lucas in the Nariño and South
Bolivar departments, respectively.
Both acquisitions are the result of reconnaissance and evaluations during the last res ource market
down-cycle. Miranda has maintained its presence in Colombia, while waiting for quality projects to
become available and for securit y risks in certain areas to become more manageable - as a result
of the armistice that was signed between the Colombian government and opposition groups.
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. The Japanese International
Cooperation Agency (JICA) mapped, sampled , and drilled a portion of the larger vein system - of
which the Mallama project covers a part - in 1983. The El Diamante Mine is just north of Miranda’s
Mallama project, and has been active for 30 years or more - with its interesting gold metallurgy
studied and published by the joint efforts of Co lombian and European scientists - the gold at El
Diamante, in particular , is associated with pyrite and quartz and secondarily with arsenopyrite,
sphalerite and galena . Historic sampling presented by the owners of the tit les on the Mallama
project shows vein grades from 33 g Au/t to 87 g Au/t with silver occurring on an averag e ratio of
10:1 silver to gold. Limited confirmation sampling assays by Miranda geologists shows 42 g Au/t
over 0.5m in an active artisan mine that displays numerous parallel veins. Mallama consists of
government granted titles.
The San Lucas project is part of a large district that contains numerous high -grade veins extending
for several kilometers. San Lucas is particular ly interesting in that it displays banded quartz -
carbonate veins with high tellurium. This is the same vein characteristic that is seen in Buritica
(reported reserves of 3.7m ounces gold at 8.5 g Au/t - and 10.7m ounces of silver at 24.3 g Ag /t),
which is being advanced to production by Continental Gold Inc. The analog for San Lucas is
mesozonal to epithermal carbonate base metal (CBM) gold systems. Miranda’s acquisition of San
Lucas is a direct result of the recognition of this rare analog model in Colombia. San Lucas is a
core property internal to Mineros S.A.’s Guamoco Project to the north, and a large land position to
the south maintained by Anglo Ashanti. Miranda considers San Lucas the core of the district. San
Lucas has reported gold values of between 12.5 g Au/t and 105 g Au/t over 3m. San Lucas
consists of government granted titles.
Miranda cannot yet independently verify historically reported samples for Mallama or San Lucas –
however – Miranda’s Exploration Manager has past experience in and knowledge of both of these
districts through prior work history. The assay values provided above for San Lucas are from a n NI
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43-101 Independent Technical Report ( Quia Resources Inc & Onsino Capital Corp, prepared by
Caracle Creek International Consulting Inc., July 2010).
Both Mallama and San Lucas are not without challenges. Mallama will require a Consulta Previa
and good cooperation from the local stakeholders. The initial work for Mallama will start
immediately – with the goal of initiating physical exploration in the areas of highest interest. San
Lucas is within a n area that is temporarily withdrawn for additional mineral entry, so no work can
commence until that prohibition is lifted . Regarding San Lucas – Miranda is in a similar position to
that of Mineros SA and Anglo Ashanti – who both maintain their land positions i n the district in
anticipation of the area’s release from an environmental study area. The demonstrated potential of
both Mallama and San Lucas make the “risk vs. reward” profile for these two projects acceptable for
acquisition by Miranda.
Agreement Details
Mallama: On November 5, 2016 , Miranda signed a binding letter of intent, subject to Mir anda
satisfactorily completing a 30 -day due diligence (complete), to enter into a binding purchase
agreement. Miranda has paid the initial US$140,000, and we now have a further 60-day perio d
(extended) in which to draft the final binding purchase agreement. Upon receipt of suitable drill
permits on Mallama, Miranda is required to make an additional payment of US$ 200,000. A residual
net proceeds royalty of 4% ( as defined in the Rocky Mountain Form 5 ) will be payable to the
vendor, with a minimum of US$1.0m payable within three years of the commen cement of
commercial production, capped at US$4.0m over the life of t he mine. There are no minimum work
commitments on Mallama, and no acquisition restrictions imposed on Miranda for any adjacent
property.
San Lucas: On January 19, 2017, Miranda signed a non -binding letter of intent, subject to Miranda
satisfactorily completing a 30 -day due diligence ( in process ), to enter into a binding purchase
agreement. Once the initial payment of outstanding license fees of US$120,000 is paid, Miranda
will have a further 30 -day period in which to draft the final binding purchase agreement. A furthe r
payment of approximately US$60 ,000 will be required at the signing of the agreement. When the
San Lucas property is withdrawn from the “ Study Area Resolucion 1628 ”, Miranda will be required
to make an additional payment of US$100,000. Upon receipt of suitable drill permits on San Lucas,
Miranda will be required to make an additional payment of US$75,000. Finally, a p ayment of
US$500,000 will become due, in two tranches, when Miranda produces a NI 43-101 technical report
showing 500,000 or more gold equivalent ounces in the Measured and Indicated categories . A
residual net proceeds royalty of 4% ( as defined in the Rocky Mountain Form 5 ) will be payable to
the vendor, with a minimum of US$1.0m payable within three years of the commencement of
commercial production, capped at US$4.0m over the life of the mine. There are no minimum work
commitments on San Lucas, and no acquisition restrictions imposed on Miranda for any adjacent
property.
Data disclosed in this press release, ha s 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 Alaska and Colombia, who se emphasis is on
acquiring gold exploration projects with world -class discovery potential. Miranda performs its own
grass roots exploration and then employs a joint venture business model on its projects to maximize
our exposure to discovery and minimize exploration risk. Miranda has ongoing relationships with
Gold Torrent, Inc., and Montezuma Mines Inc.
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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 defined 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 informat ion 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", "e xpect", "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
statements involve known and unknown risks, uncertai nties 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 financing; and fluctuations in metal prices. There may be other factors that cause action s,
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 required by applicable securities laws, the Company disclaims any intent or obligation to update a ny
forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward -looking statements are
not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent
uncertainty therein.