Mirasol Resources Ltd.

Cerro Moro District Play

Mirasol has four 100% owned properties adjoining and in the immediate vicinity of the fast developing Cerro Moro Project of Exeter. They are called Morito, Julio, Zoe and Los Loros and total just under 36,500 hectares. All of the projects are located in eastern Santa Cruz Province, Argentina, approximately 65kilometre southwest of the city of Puerto (Port) Deseado on the Atlantic Coast ( Figure 1 ). Good gravel roads connect the area to Puerto Deseado and to National Highway #3 about 70kilometre to the west where a major natural gas pipeline is located so access and infrastructure are excellent.

Figure 1: Location Map Cerro Morro District

These properties were acquired by Mirasol by staking prior to Exeter’s announcement of the high-grade gold and silver Escondida Vein in August 2006 or immediately thereafter. Early stage work has commenced on Los Loros and Morito. No signs of any significant prior exploration have been observed on any of the four properties and no exploration drilling has ever been done on any of the projects.

Geology & Mineralization

The Mirasol Projects are located in the Deseado Massif geological province of southern Patagonia within 10 kilometres of the advanced gold-silver exploration project Cerro Moro-Bahia Laura of Exeter and Fomicruz. The Jurassic-aged Chon Aike, Matilde and Bajo Pobre Formations comprising felsic to intermediate volcanic and sub-volcanic intrusive rocks are locally overlain by Tertiary marine sediments. Precious metal mineralization occurs within the Jurassic formations.

Morito

At Morito, geological mapping defined an altered felsic flow dome. The silica is low temperature, generally chalcedonic and is associated with hematite in some cases as well as hydrothermal breccias forming multiple events.

Rock sampling in the area of the altered dome has produced results anomalous in arsenic, zinc and lead with low but anomalous values in silver. A float rock sample 2,000 metres southeast of the flow dome with fine veinlets of silica contains 61.4 ppm silver (Figure 2).

Mirasol conducted ground magnetic and gradient induced polarization (IP) surveys in the southeast part of the Morito Project.  Figure 2 shows the results of our magnetic survey along with those of the Cerro Moro Project which have been published on Exeter’s website. Exeter’s maps indicated that two veins known as Georgina and Laura exist south of the Mirasol property and trend north-westerly towards our property (Figure 2).

Interpretation of the Mirasol magnetic data delineates several possible flow domes and faults, some of which may contain vein structures.

Figure 2. Magnetic Image Morito

Los Loros

This project lies along a major WNW trending structural corridor visible in government airborne magnetic data that extends from Los Loros southeast towards the Cerro Moro Project and the high-grade Escondida Vein. Los Loros has low topographic relief and scattered outcrops, but with generally thin soil cover.
Mirasol geologists have found occurrences of quartz veins, hydrothermal breccias, pyrite veinlets, chalcedonic veinlets, geyserite and dacite flows and or domes on Los Loros in or near the structural corridor.
Ground magnetic surveying was done by Mirasol on Los Loros and confirmed the airborne magnetic anomaly and provided detailed information on its location and internal structure (Figure 3).
Rock sampling and analysis show that anomalous values in arsenic are widespread, with anomalous values in lead, molybdenum and silver present locally. Two samples have anomalous values in silver of 3.6 and 4.4 ppm (Figure 3).

Figure 3: Ground Magnetic Image and Interpretation Los Loros

The presence of geyserites and other signs of hydrothermal activity in Jurassic rock units associated with a WNW trending structure of regional scale are favourable especially as the major regional structure is known to be associated with important precious metal mineralization on adjoining properties. Together these characteristics can be interpreted as signs of a mineral district.

Discussion

Results to date are encouraging on both the Morito and Los Loros Projects where early stage work by Mirasol has encountered favourable geology, signs of mineralization and a favourable structural setting in what appears to be an emerging new precious metal district. Geophysical surveying on these properties has confirmed the setting and suggests the presence of structures of exploration interest.

Photo Gallery

Morito hand sample showing reddish coloured rock cut by intense red-orange silica and hematite in the form of breccia infill.

Morito outcrop photo of red hematitic silica structure cutting the felsic flow dome.

Los Loros typical low relief topography with scattered rock outcroppings and extensive but thin soil cover. Truck in distance for scale.

Los Loros outcrop photo of Geyserite rock formed in an ancient hot spring environment where agitation of the water forms concentric spherical balls of mud on small rock fragments.

Los Loros hand sample of white to brown to red chalcedonic silica infilling open spaces in crystal tuff host rock.