Mirasol Resources Ltd (CVE:MRZ) (OTCMKTS:MRZLF), the project generator, updated on the Newcrest drilling program at the Gorbea gold project in northern Chile, which is the subject of an option and farm-in deal struck last year.
Newcrest can buy, in stages, up to 75% of the project by meeting exploration and development milestones and making payments. It must spend a minimum of US$4 million and complete a minimum of 3,000 metres (m) of drilling over an initial 18-month period.
Since October last year, it has drilled seven diamond holes for a total of 3,148 m and is currently on an eighth.
Highlight assays from the first four holes included 164 m at 0.52 grams per ton (g/t) gold and 6.81 g/t silver from 372 m, and 14 m at 1.07 g/t gold and 7.18 g/t silver.
The Gorbea belt consists of nine 100%-owned claim blocks totaling 32,000 hectares, including the Atlas and Titan projects. The latter is focused on a plus 25 sq km gold alteration system hosting multiple gold and silver targets.
"We continue to hit long intervals of alteration and mineralization at the Atlas property," said Norm Putcher, CEO of Mirasol in a statement.
"While we have received encouraging assay results from the holes reported to date, the geologic interpretation of the results is at an early stage and will not be complete until results from the last few holes are available.
"As such, it is too early to conclude whether the Newcrest holes represent a lower grade halo around the higher-grade mineralization encountered in our previous partner hole DH15 or simply a lower grade portion of the main system."
"Significant" untested gaps
Pitcher noted that there were still "significant" untested gaps within the mineralized envelope to host a higher grade potentially economic core.
"We look forward to working with Newcrest as the project advances," he added.
Mirasol wants to develop profitable precious metal and copper deposits, via a hybrid joint venture and self-funded drilling business model.
Shars in Toronto added 1.96% to C$0.52.
---Updates for share price---
Contact the author at [email protected]