Mirasol prepares to drill new silver discovery (November 29, 2010)

As it prepares to begin drill testing a grassroots silver find in Argentina’s Santa Cruz province, Mirasol Resources (MRZ-V, M8R-F) is topping up its treasury with a $9.3-million financing.

The non-brokered private placement will comprise up to 3 million units priced at $3.10 apiece. Each unit consists of one share and half a warrant. A whole warrant is exercisable for a period of one year at $4 per share.

Mirasol holds a large portfolio of gold and silver prospects in the Patagonia region of southern Argentina and a copper-gold property in northern Chile. The company recently received government approval of an environmental impact report for a proposed drilling program on its wholly-owned Virginia silver prospect.

The Virginia vein zone describes a newly discovered area on the Santa Rita silver-gold property in western Santa Cruz, 100 km southeast of the town of Las Heras. The property package was first staked by Mirasol in 2004 and subsequently expanded. A prospecting program in late 2009 targeted parts of the property that had never been explored, resulting in the discovery of the Julia vein.

An initial 30 rock-chip samples, collected from outcrop, subcrop and float of the Julia vein, averaged a grade of 696 grams silver per tonne. Silver values ranged from 21.9 to 2,660 grams, while gold values peaked at 0.14 gram.

The Julia vein is traceable for more than 2 km in outcrop, subcrop and as large float blocks. It displays changes in direction as well as probable vein splits or splays. The width of the vein appears to range from less than 1 metre to at least 5 metres.

Julia is described by Mirasol as an epithermal quartz vein containing high silver-to-gold ratios. The vein displays both banded and brecciated textures.

More systematic sampling was completed on the Julia vein earlier this year. Mirasol’s geological staff took saw-cut channel samples at nominal 50-metre spacing along the vein’s strike length of more than 2 km. Additional infill sampling reduced the distance between channel samples to 26 me-tres in the north segment of the structure and 15 metres in the south segment. In total, 58 surface channels averaged an impressive 805 grams silver and 1.16% lead across a 1.8-metre true width.

During the initial work on Julia, more new veins were quickly found in the immediate area. Julia is one of eight new veins identified to date in the Virginia prospect area, which now exceed 9.6 km in cumulative strike length and footprint. Assay results from rock-chip grabs and saw-cut channels show significant silver values in all of the new vein discoveries, which include Ely, Margarita, Naty, Roxane, Martina, Priscila and Magi.

Roxane, one of the more recent discoveries, is adjacent to and parallels the central part of the Julia vein system. As it is known to date, Roxane is defined by a northwesterly trend of float blocks up to 0.7 metre wide that can be traced for a distance of 590 metres. Twenty-four rock-chip samples of the Roxane vein yielded silver values ranging from 103 to 2,880 grams, for an average grade of 1,039 grams.

“Virginia vein zone is clearly demonstrating potential to become an important silver vein system of significant dimensions in terms of total strike length of veins, vein width and silver grades, based on surface work in a very short period of time,” Mirasol reported.

With a drill rig now being mobilized to the project, Mirasol plans to drill up to 25 holes totaling 1,500 metres in a first round targeting the Julia vein. Holes will be spotted at multiple sites along its 2,200-metre strike length and designed to test the vein system at 25 to 50 metres below surface.

Depending on results, a follow-up drill program in 2011 will more extensively test the Julia vein at depth, as well as begin testing some of the other nearby vein targets.

In related news, Coeur d’Alene Mines (CDM-T, CDE-N) wrapped up a definition drilling campaign on the main part of the La Negra zone at Mirasol’s Joaquin silver-gold property in the central part of Santa Cruz. The infill drilling reduced the drill spacing at La Negra to roughly 50-metre centres. An initial resource estimate is expected in early 2011.

Coeur d’Alene, which optioned the property from Mirasol in late 2006, is required to spend US$8 million in exploration over four years to earn an initial 51% interest. By electing to fund a bankable feasibility study, Coeur d’Alene can increase its interest to 61%, at which point Mirasol can maintain a 39% participating interest or let Coeur d’Alene arrange mine financing in exchange for an additional 10%.

The Joaquin property is 80 km north of Coeur d’Alene’s Martha silver mine. It was staked by Mirasol in 2004. Reconnaissance exploration resulted in the discovery of four mineralized zones, known as Joaquin Main, La Morena, La Morocha and La Negra.

Since optioning the Joaquinproperty, Coeur d’Alene has completed 135 drill holes for a total of 22,800 metres.

Recent drilling on the La Morocha prospect intercepted a true width of 30 metres averaging 408 grams silver and 0.22 gram gold in hole 100, starting at about 125 metres below surface. This hole represents the deepest mineralized intercept thus far on the zone, which remains open at depth. La Morocha is less than 1 km west of La Negra, where the majority of the drilling has been done.

The main mineralized corridor at La Negra has a strike of at least 925 metres and remains open below currently drilled depths of 225 metres. Several holes were recently extended; the most significant of these is hole 40, which cut 36.5 metres averaging 140 grams silver and 0.2 gram gold, starting from 243 metres downhole. This interval included a higher grade 3.1-metre section grading 773 grams silver.

The infill drilling at La Negra comprised 24 holes totaling 5,700 metres. Initial results of this work are available for two holes, with the remainder of the results pending.

Mirasol currently has 33.8 million shares outstanding, or 37.6 million fully diluted.