Mirasol Resources has signed a letter of intent (LoI) with OceanaGold Corporation to explore La Curva Gold Project in Argentina under a joint venture (JV).
La Curva project is 100%-owned by Mirasol.
Oceana Gold Corporation is a gold producer with operations in New Zealand and the Philippines.
It is also in the process of commissioning the new multimillion ounce Haile gold mine in the US.
La Curva is a 36,100ha exploration-stage project in Santa Cruz Province, Argentina.
Over several years, Mirasol has undertaken an extensive exploration and geophysical programme at the property, which has outlined three key drill ready prospects.
These prospects comprise the Cerro Chato, Loma Arthur and South West targets located along the company’s 6km La Castora gold trend.
A series of further prospects are also recognised in the Curva West area, which require further exploration to define additional drill targets.
The LoI earn-in terms enable OGC to secure a 51% interest in La Curva by completing $7m of exploration expenditures over four years, and making $1.5m of cash payments to Mirasol in stages.
This includes a first-year exploration spending commitment of $1.25m with a minimum technical commitment of 3,000m of drilling, and a signing payment of $100,000 to Mirasol as minimum obligation.
Oceana may also stop further spending if it has met the minimum obligations after notifying Mirasol.
After completion of the initial earn-in, OGC can choose to raise its interest in La Curva to 60% by funding and delivering within two years a preliminary economic assessment (PEA) as per NI 43-101 on an inferred resource of not less than 500,000oz of gold-equivalent at a cut-off grade of 0.25g/t gold-equivalent for an open-pit resource.
In addition, it must produce at least 500,000oz of gold equivalent at a cut-off grade of 1.5g/t gold equivalent for an underground resource.
Following completion of the PEA milestone, OGC can choose to increase its interest in La Curva to 65% by funding and delivering a feasibility study on the project as per NI 43-101 within two years of completing the PEA milestone.
OGC could also further choose to increase its interest in La Curva to 70% within two years of the feasibility milestone. For this, the feasibility study should be suitable enough to be submitted to financial institution as a basis for receiving funds for the development and operation of mining activities on the project; and a decision to mine should be approved by the OGC board.