Mirasol Resources Ltd (CVE:MRZ) (OTCPINK:MRZLF) (FRA:M8R) has kicked off a new drilling program at its Virginia silver project in Argentina, optioned from Silver Sands Resources (CSE:SAND) (OTCQB:SSRSF), the company said Thursday.
The junior explorer is planning an initial 2,500-metres program designed to test gaps and extensions of the principal veins and recently identified vein structures.
The new drill targets are located near the current Virginia resource area, which boasts an NI 43-101 indicated resource of 11.9 million ounces grading 310 grams per ton (g/t) silver and 3.1 million ounces at 207 g/t silver in the inferred category.
In a statement, the company said the new targets represent “high potential, drill-ready” zones within the overall vein field.
Map showing new drill targets on the Virginia property
Vancouver-based Mirasol is the operator of the project, which is located in the province of Santa Cruz. Under the option agreement, Silver Sands will fund the first phase of drilling as part of a US$6 million exploration commitment over the next three years. Silver Sands also will issue 19.9% of its outstanding shares to Mirasol over the three-year term, 9.9% of which were granted earlier this year.
Silver Sands has the right to earn 100% interest in Virginia, with Mirasol retaining a 3% net smelter return royalty.
Previous exploration at the property has identified new trends of vein float with multiple assays over 500 g/t silver, according to Mirasol chair and interim CEO Patrick Evans. The company is also advancing a geophysical survey and trenching program designed to add new drill targets to test in the first quarter of 2021.
“Drill-ready targets have been identified at ten vein structures with surface exposure and floats blocks with elevated silver grades,” Evans said in a statement. “The potential to expand the Virginia resources is very good and we are excited to once again be drilling at Virginia."
Mirasol is partnered on six exploration projects in Chile and Argentina and is the sole owner of two additional projects.
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