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Mirasol inks option agreement for Rubi copper porphyry project in Chile

Mine Discovery Fund is fully funded to complete the committed 2,000-meter drill program at the project, which the company expects to occur in the second quarter of 2021

Copper
Mirasol has granted MDF the option to earn-in 80% of the project over eight years in exchange for funding the drill program at Rubi

Mirasol Resources Ltd (CVE:MRZ) (OTCPINK:MRZLF) has signed a definitive option agreement with Mine Discovery Fund Pty Ltd (MDF) for its Rubi Copper Porphyry Project in northern Chile.

MDF is a private investment vehicle in Australia focused on the discovery of tier-one base metal and gold deposits by funding well-defined, large-scale exploration drill targets. The Rubi Project hosts two such targets and is readily accessible year-round, the company said.

MDF is fully funded to complete the committed 2,000-meter drill program at the project, which the company expects to occur in the second quarter of 2021, following completion of the permitting process, which is underway.

READ: Mirasol Resources announces departure of CEO Pitcher to 'pursue other opportunities'

“We are pleased to partner with MDF to drill test the Lithocap and Zafiro targets at Rubi, which have the potential to host large-scale porphyry deposits,” Mirasol Chairman and interim CEO Patrick Evans said in a statement. “Drilling will commence as soon as permits are in hand.”

Under the terms of the deal, Mirasol has granted MDF the option to earn-in 80% of the project over eight years in exchange for funding the drill program at Rubi. Following the completion of this initial commitment, MDF will spend a minimum of US$1 million per year in exploration expenditures. 

After the 80% earn-in, MDF will have a one-time option to acquire the remaining 20% interest on terms to be negotiated between the parties. If such an option is not exercised, the parties will form a participating joint venture.

If either side’s interest in said joint venture is diluted to 10% or lower, it will convert to a 1.5% net smelter returns (NSR) royalty. The non-diluting member can buy back 0.5% of the NSR, the company added.

Rubi targets 

The first target, known as Lithocap, covers a 3.5 kilometer by 2 km area on an argillic alteration zone surrounded by gravel cover with thicknesses modelled from a gravity survey of 10 meters to 50 meters. Large and productive porphyry copper deposits can be found below or adjacent to the type of lithocap alteration zones present at Rubi, the company said.

Mirasol’s mapping and re-logging of previous drill holes have defined veining and brecciation with anomalous copper and molybdenum mineralization and alteration patterns that indicate potential concealed porphyry mineralization to the north and north-west of the previous drill holes.

This suggests the presence of a deep weathering profile that could potentially overlie supergene enriched and sulfide mineralization, the company said, as indicated by an induced polarization geophysical chargeability anomaly, which remains open to the north.

The second target, Zafiro, consists of a 2.8 km by 2.2 km gravel covered area characterized by a subtle circular magnetic high surrounded by an incomplete, doughnut-shaped magnetic low, the company said. 

Mirasol’s stream sediment sampling of gullies, located immediately north/northwest of the Zafiro target, have returned widespread and strongly anomalous copper over 2,400 m with multiple results in the 500 parts per million to 1,530 ppm range, suggesting either an exotic source of copper in the gravels and/or a primary porphyry source for the copper in the gravel-covered basement.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

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