Mirasol Resources Makes a New High-Grade Silver Discovery at Virginia Silver Project, Argentina

Mirasol Resources Makes a New High-Grade Silver Discovery at Virginia Silver Project, Argentina

Phase II Drilling Highlights:

• 9.98m at 560 g/t Ag, Including 2.87m at 1,578 g/t Ag
• 9.60m at 639 g/t Ag
• 10.80m at 625 g/t Ag, Including 5.70m at 1,110 g/t Ag

VANCOUVER, BC, May 17, 2021 - Mirasol Resources Ltd. (TSX-V: MRZ) (OTCPK: MRZLF) (the 'Company' or 'Mirasol') is pleased to report results from the recently completed Phase II diamond drilling program at the Virginia Silver Project ('Virginia'), located in Santa Cruz province, Argentina. A new high-grade zone has been discovered at Ely Central, where drilling has intersected strong and continuous Ag grades in four drill holes over a 200m strike length (see Figure 1, 2 and Table 1). Mineralization remaining open to expansion both laterally to the north, south and to depth.

The Phase II drilling comprised 20 core holes (3,104m) bringing the total holes drilled to 38 (5,935m) during the current field season at Virginia. This program is being funded by Silver Sands Resources Corp. (CSE: SAND) (OTCQB: SSRSF) ('Silver Sands') under an option to purchase agreement in terms of which Mirasol will retain a 19.9% ownership in Silver Sands and a 3% NSR royalty, if the option is excercised (see News Release May 21, 2020).

Mirasol's President, Tim Heenan, commented: 'We are excited with the results from this Phase II drill program completed at Virginia. The Ely Central discovery confirms that through further drilling, new high-grade zones can be identified, and this supports the potential to significantly increase the resource base at Virginia. Planning is underway for an aggressive Phase III drill program scheduled for late Q3 2021.'

The Phase II drilling program was designed both to follow-up on encouraging Phase I intersections and to test several new prospective zones. Significant intercepts have been encountered at the Ely Central, Ely North, Martina NW and Julia South targets, confirming that the potential for new mineralization to be defined in this system, which currently hosts a NI 43-101 indicated mineral resource of 11.9 million ounces of Ag at 310 g/t Ag and a further inferred resource 3.1 million ounces of Ag at 207 g/t Ag. (Refer to Amended NI 43-101 technical report filed February 29, 2016: 'Amended Technical Report, Virginia Project, Santa Cruz Province, Argentina - Initial Silver Mineral Resource Estimate' prepared by D. Earnest and M. Lechner).

[Link]Figure 1: Plan map with Phase I and II drill hole collar locations and targeted zones for resource expansion

Significant New Target Results (see Figure 2 and Table 1)

• Ely Central Target:

A newly emerging 200m open ended strike length of strong Ag mineralization has been discovered at Ely Central and lies within a 580m 'gap' left untested from the original drilling at Virginia by Mirasol in 2012. This new zone is currently defined by Phase II holes EC-DDH-003, EC-DDH-004, EC-DDH-005 and hole EC-DDH-001 completed in Phase I.

Ely Central hole EC-DDH-003, collared 80m south of hole EC-DDH-001 (9.25m at 233.54 g/t Ag from 92.75m) intersected a 10m section grading 560 g/t Ag, including 2.87m at 1,578 g/t Ag at a depth of 50m vertically below surface. In addition, hole EC-DDH-004 intercepted a 9.6m interval grading 639 g/t Ag at similar depth and is located 50m to the south of the mineralization encountered in EC-DDH-003. A large, highly prospective, 280m-long untested 'gap' in the structure exists to the south of EC-DDH-004. Hole EC-DDH-005 was collared 70m north of EC-DDH-001, and intersected a 10.80m interval grading 625 g/t Ag, including 5.70m at 1,110 g/t Ag. North from EC-DDH-005, a 120m, highly prospective, untested 'gap' also remains open along the structure. This 'gap' terminates at hole VG-183, drilled by Mirasol in 2012 which intersected 12.8m at 95 g/t Ag. A further 40m north of VG-183, hole VG-164 intersected 3.26m at 199 g/t Ag. These prospective gaps at Ely Central will be priority areas for infill, step-out and deeper drilling during the next campaign at the Virginia project.

It is also encouraging to note that these strongly Ag mineralized drill intersections at Ely Central are hosted in a more subdued gradient array induced polarization ('IP') chargeability response, as opposed to the typical strong chargeability responses associated with the current resource areas. This weaker IP response may represent the upper levels of the mineralized structure, and potentially help vector to a stronger IP response and mineralization at a greater depth, and below the current 125-150m depth range of the current gradient array IP survey. Furthermore, with significant Ag mineralization now directly associated with these lower-level IP anomalies, additional areas with similar responses throughout the Virginia vein field will be reviewed as they may become higher ranked and valid drill targets to test in subsequent drill campaigns.

• Ely North Target:

Ely North, which currently represents the northern most known extension along the same structure from Ely Central, also returned encouraging intersections of Ag mineralization. Hole EN-DDH-001 was collared 70m north of the Ely North conceptual resource open pit and intersected highly anomalous Ag mineralization within a fault zone between 30-50m downhole. This fault zone hosts repetitive zones of silica hematite matrix breccia with matrix supported quartz clasts with a range of Ag values between 66 and 91 g/t Ag with an overall average of 75 g/t Ag. A narrow select sample, not included in the above average, was sourced from the lower contact of one of these hematite-rich hydrothermal breccias which contained well coliform/crustiform banded epithermal vein clasts and returned an elevated value of 156 g/t Ag over a narrow width of 0.33m. These anomalous Ag grades associated with the mineralized banded quartz clasts in the silica-hematite matrix breccias are regarded as particularly encouraging and are valuable as geochemical vectors to the higher grade zones along and within these structures.

Continuing north from EN-DDH-001 through an untested 'gap' of 400m hole EN-DDH-003 encountered a low although anomalous value of 0.6m at 67 g/t Ag from a narrow structure, interpreted not to be part of main structure. Of higher significance, hole EN-DDH-002, located just 70m north of EN-DDH-003, returned 4.0m at 476 g/t Ag including 1.85m at 929 g/t Ag, from silica-hematite hydrothermal breccias, that appear to be from the same mineralized fault zone encountered in hole EN-DDH-001. It may be concluded that EC-DDH-003 did not hit the main structure, whereas EC-DDH-002 did and it is encouraging to see that the Ag values are increasing in the northern most extensions of the Ely North structure. It is also important to note that the structure remains open and untested from this point north.

The structure at Ely North, is characterized by fault zone hosted hydrothermal breccias with mineralized quartz vein fragments, very similar to those present at Ely Central. Both step-out and deeper drilling will be required in this area to test for the higher-grade epithermal vein structures.

• Martina NW Target:

At Martina NW, hole MNW-DDH-001 encountered an encouraging intersect of 5.90m with 190 g/t Ag including 1.52m at 300 g/t Ag and 1m at 212 g/t Ag. This hole indicates that a strong potential for significant Ag mineralization along the Martina trend exists further to the northwest along the same structure that hosts the Martina resource pit 300m to the southeast. Hole MNW-DDH-001 was collared in a 200m untested 'gap' along the Martina structure. Previous holes VG-125 lies 55m southeast where drilling encountered 0.5m at 272 g/t Ag. It is encouraging to see the increase in width of the mineralized structure in MNW-DDH-001 as the structure extends to the northwest.

The hosting mineralized structure is the silica matrix hydrothermal breccia, hosting mineralized quartz/silica fragments, suggesting a potential source of the mineralized fragments at a deeper elevation in this structure.

• Julia South Target:

At Julia South, the recent holes from both Phase I and Phase II indicate that a strong potential for significant Ag mineralization along the Julia South structural trend exists further to the south of the current Julia South conceptual resource pit. Recent hole JS-DDH-003, which is located approximately 70m to the SE of the Julia South conceptual resource pit, intersected an encouraging zone of 5.5m at 192 g/t Ag. This could potentially represent a parallel structure to the east of the main Julia South structure, where previously reported Phase I hole JS-DDH-001 intersected 3.9m at 168 g/t Ag. Further drilling will be required to fully understand this structure. Hole JSE-DDH-002, located 310m directly south of the current Julia South conceptual resource pit resource returned an encouraging, although narrow, intersection of 0.7m at 259 g/t Ag hosted in a strongly silicified fault zone with hematitic micro-fractures and silica stockworks. Hole JSE-DDH-003, located 110m west and 60m south of JSE-DDH-002 also returned a narrow but higher grade intersection of 0.4m at 360 g/t Ag. These two intersections may represent separate parallel structures but indicate that the mineralization continues further south. Follow-up drilling will be important to determine the significance of these recent intersections.

[Link]Figure 2: Drilling results in key target areas and untested prospective zones

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