Mirasol Resources eyeing busy year ahead, with 15,000m of drilling planned on seven projects

A project generator and explorer focused on Chile and Argentina Well-funded with around C$13M in cash Share buy-back underway What Mirasol Resources does: Mirasol Resources Ltd (CVE:MRZ) (OTCMKTS:MRZLF) is a project generator and exploration company with gold, silver and precious metal properties in Chile and Argentina. The Vancouver-headquartered company has seven partner-funded projects, two of which are with Newcrest Mining Ltd (Chile), and one each with First Quantum Minerals (Chile), Mine Discovery Fund (Chile), Mineria Activa (Chile), Silver Sands Resources (Argentina), and Patagonia Gold (Argentina). It is self-funding two of its projects, namely the flagship Inca Gold (Chile) and Sacha Marcelina (Argentina). Mirasol’s exploration efforts are focused on two highly productive mining regions: the Atacama-Puna region of northern Chile and the Santa Cruz Province in southern Argentina. These regions are richly endowed with mineralization and have world-class gold, silver and copper mines operated by some of the world’s largest mining companies. Mirasol’s exploration strategy combines the project generator business model and self-funded exploration and drilling. Under this hybrid model, the company first secures ownership of the property, completes preliminary exploration work and defines drill targets. Then Mirasol assesses the risk-reward trade-off to determine whether to invest further by drill-testing the property itself or to team up with quality partners to test the property via an earn-in agreement. In these partnerships, the partner - typically a well-funded major mining company - invests its money over several years in Mirasol-owned properties, saving Mirasol from risking its own cash as it retains exposure to a potential discovery through a retained interest and also generates an income stream. Mirasol’s management has decades of experience in the geological terrains and deposit types common to Chile and Argentina, and experience in claims management, permitting regimes and community/government relations in both countries. The company has a market cap of around C$30 million and is well funded, with around C$13 million in cash. How is it doing: It's been a busy year already and Mirasol says over 15,000 metres (m) of drilling is planned on seven projects in 2021. In March, 2021, the company revealed that a maiden 1,500m drill program had started at its flagship Inca gold project in Chile, targeting three of the most prospective zones on the underexplored Sandra trend, namely the Lomo Ballena, Veta Escuela and Veta Valle targets. The program is scheduled to be completed in the second quarter of 2021, with assay results expected by mid-2021. Mirasol is earning into the 16,300 hectare Inca project under an option deal with mining major Newmont Corp. The company also recently announced the start of a 2,600m drill program at its Sascha Marcelina gold and silver project in Argentina - focusing, again, on three priority drill targets - the Estancia, Pellegrini Silica Cap and Igloo prospects. And in February, there was drilling news as a 2,700m program kicked off at Mirasol's Virginia Silver project in Santa Cruz, Argentina. That Phase 2 program, which is being funded as part of a partnership with Silver Sands Resources Corp is designed to test gaps and extensions of the main veins at six targets on the property. Mirasol said it will also follow up and drill down-dip and adjacent to some of the more promising intersections from the Phase I program completed in the fourth quarter of 2020. Diamond drill assays from that showed the potential to expand the current NI 43 101 resource, which shows an open-pit constrained indicated resource of 11.9 million ounces of silver at 310 g/t and a further inferred 3.1 million ounces of silver at 207 g/t. Highlight assays included 33.5m at a grade of 198 grams per ton (g/t) silver, with a higher-grade section of 17.7m grading 313 g/t silver in one hole at the Martina target, while at the Ely Central target, another hole hit 4.5m at 442 g/t silver. Mirasol's most recent announcement confirmed that the group is partnering up with Argentina-focused Patagonia Gold Corp on its Nico and Homenaje projects, the latter of which lies next to Patagonia's Cap Oeste mine. At Homenaje, Patagonia can earn an undivided 75% interest over six years by delivering a positive pre-feasibility study for a resource of no less than 300,000 ounces (oz) of gold-equivalent and spend at least US$2.55 million in exploration. At Nico, Mirasol has transferred its interest to Patagonia in exchange for a 1.5% net smelter return (NSR) royalty. In the boardroom, in April, the company announced that Timothy Heenan had been named permanent president for the company. He was one of the original founders of Mirasol and has led the company’s exploration in South America since its inception in 2003. Inflection points:  More drilling news More partnerships/ deals Preccious metals moves What the boss says: Tim Heenan spoke to Proactive in February, 2021 touching on the group's potential catalyst-rich plans for 2021.   "We've got self-funded programs but don't forget the programs that our joint venture partners are also funding and operating so lots of news coming in the next six months," he said. Contact the author at giles@proactiveinvestors.com