Mirasol Resources has signed an option agreement with Cerro Vanguardia SA Gold-Silver Mine (CVSA mine) for exploring its Claudia gold-silver project in the Santa Cruz province in Argentina.

The Claudia asset is situated directly south of the producing CVSA mine and 15kms from the associated mill in the province of Santa Cruz, Argentina.

The owners of the CVSA mine are AngloGold Ashanti (92.5%) and Fomicruz (7.5%).

According to Mirasol Resources, Claudia gold-silver is spread over 65,192ha and is a highly prospective, low sulphidation epithermal (LSE) gold/silver project in the Deseado Massif.

Including the Curahue vein field and the Rio Seco prospect, five distinct prospective vein trends have been identified at the gold-silver project, said the Canada-listed exploration company.

As per the terms of the agreement, under the first two years, CVSA could wrap up mapping and sampling, trenching, and geophysics as needed in its full discretion for developing drill targets, and fulfilling a minimum drilling commitment of 2,500m diamond drilling.

After that, it will get the option to complete at least an aggregate of 6,000m of diamond drilling within three years or within four years, complete not less than an aggregate of 12,500m of diamond drilling.

Following the meeting of the commitments, CVSA will be entitled to exercise the option under the agreement. Based on the terms of the royalty agreement, it will grant a 2% net smelter royalty to Mirasol Resources on future production from the Claudia gold-silver project.

Mirasol Resources president Tim Heenan said: “The Agreement with CVSA demonstrates the potential for continued discovery and resource development at Claudia.

“The 2% royalty has the potential to offer significant near-term value to Mirasol shareholders as resources defined at Claudia could be processed quickly and efficiently at the nearby Cerro Vanguardia mill.”

Originally staked in 2004 as a part of Mirasol Resources’ Santa Cruz exploration programme, the project has seen the execution of more than 19,000m of drilling, encompassing both reverse circulation (RC) and diamond core (DDH) methods.