Silver-Gold Intercepts Lift Mirasol

VANCOUVER — Starting but 18 metres down-hole, joint-venture partners Coeur d’Alene Mines (CDM-T, CDE-N) and Mirasol Resources (MRZ-V) hit 25 metres grading 1,164 grams silver per tonne and 0.21 gram gold at the Joaquin project in Argentina.

News of the bonanza-grade silver intercept, among other strong drill results, catapulted Mirasol’s share price up 97% or 65¢ to $1.32.

The intercept, from hole 43, includes a 3-metre portion grading 7,753 grams silver and 1.17 grams gold.

In total, project operator Coeur d’Alene — which has an option to earn up to a 71% interest of Joaquin — released intercepts from seven drill-holes collared in Joaquin’s La Negra zone. The other holes by and large intercepted mineralization in the 10-to 50-metre range — 65% to 80% true width — with silver grading around 100-200 grams.

Hole 39, for example, hit 24 metres grading 129 grams silver and 0.08 gram gold starting at 27 metres depth, then another 43-metre intercept starting at 75 metres that graded 119 grams silver and 0.11 gram gold. Both intercepts returned higher-grade sections as well, with 1 metre grading 952 grams silver in the upper intercept and 1 metre of 1,939 grams silver in the lower.

Mirasol characterizes mineralization at La Negra, which is so far about 700 metres long and open at depth and along strike, as potentially amenable to open-pit mining given the broad lower-grade mineralization.

But Mirasol added in a statement outlining the results: “Hole DDJ- 43 confirms that in addition to the previously identified larger volumes of lower-grade mineralization, which may be amenable to bulk-mining, that La Negra contains zones of very high-grade silver mineralization.”

Mirasol notes the high-grade intercept in hole 43 contains fresh sulphides, including pyrite, in contrast to oxidized-looking mineralization with remnant sulphides hitherto more typical of La Negra.

Mirasol staked the 186.6-sq.-km Joaquin project, 80 km north of Coeur d’Alene’s Martha silver mine, in 2004. Discovery of several zones of mineralization in 2006, including the Joaquin Main, La Morena, La Morocha and La Negra zones, grabbed the attention of Coeur d’Alene, which soon acquired an option on Joaquin.

The option agreement, covering Mirasol’s 100%-owned Sascha and Joaquin projects, allows Coeur d’Alene to earn a 51% interest after spending US$8 million on exploration over four years and making a US$800,000 cash payment to Mirasol. Thereafter, Coeur d’Alene can increase its stake to 61% by paying for a feasibility study.

At this juncture, Mirasol can decide whether to keep a 39% participatory interest of the projects or give Coeur d’Alene the right to earn a 71% interest in return for agreeing to fund all project development costs.

Now that Coeur d’Alene has finished drilling at La Negra, Mirasol says its partner has moved on to Joaquin’s La Morocha zone, where past drill programs have returned grades and widths of silver mineralization similar to those outlined at La Negra.