The project was generated by Mirasol as part of its ongoing Atacama-Puna generative program, further confirmation of Mirasol’s ability to attract quality partners on prospective exploration projects, the company said in a statement.
With four partnership agreements now active, Mirasol continues to build a unique portfolio of exploration assets in Chile.
“We are pleased to partner with FQM to advance the Coronación project, and look forward to results from the coming field season,” said Mirasol CEO Norm Pitcher. "With this agreement, Mirasol further expands its portfolio of quality exploration targets being tested by majors in the prolific Mio Pliocene belt of Chile.”
Under the terms of the agreement, Mirasol granted to First Quantum the option to earn-in 80% of the project over six years by making annual cash payments totaling US$875,000, completing at least 10,000 meters of drilling and delivering a NI 43-101 compliant pre-feasibility study report.
Mirasol also said First Quantum is committed to completing 3,000 meters of drilling and a systematic geophysical program on the project over the first 24 months of the agreement.
And following this period, First Quantum is required to spend a minimum of US$500,000 per year over the term of the agreement and will be the operator during the option period.
Following the completion of the 80% earn-in, First Quantum will have a one-time option to acquire the remaining 20% on terms to be negotiated between the parties. If this option is not exercised, the parties will form a participating joint venture to further fund the development of the project.
Background on the project
The 1,200-hectare Coronación project is in Region II of Chile near the border with Argentina at an altitude of 4,000 to 4,600 meters.
Mirasol said the work it has completed indicates the potential presence of a porphyry/breccia system intruding a layered Miocene aged volcanic sequence of dacitic domes and pyroclastic units. Alteration consists of an advanced argillic lithocap (alunite/jarosite) developed in the central-eastern side of the property and intermediate argillic alteration (white micas) in the western portion of the property, along with pervasive, and locally vuggy silica alteration.
These two distinct and coincident areas display affinities to a high sulfidation epithermal system to the east, with the western side displaying a more typical porphyry deposit related style of alteration.
Alteration signatures have been interpreted using ASD spectral analysis and the geochemistry is supportive of these interpretations.
Geochemical sampling has defined a large 600 by 800-meter Cu-Mo geochemical anomaly on the western side within the overall 3 by 2.5 kilometer alteration halo.
Mineralization occurs as sheets and stockworks of banded quartz veins with up to three phases of silica emplacement recognized.
Relic sulfide boxworks within the veins and wall rocks contain iron oxides (hematitegoethite and jarosite), with secondary copper and manganese oxides occurring along (or lining) fractures.
Mirasol Resources, based in Vancouver, is a project generator and exploration company with gold, silver and precious metal properties in Chile and Argentina.
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