Mirasol Resources Ltd. (OTCMKTS:MRZLF) is emerging as an exciting pick in the mining industry, after breaking a key resistance level and setting the stage for further movement on the upside. The stock is the subject of renewed interest on Wall Street, as investors take note of the company’s large and portfolio of large-scale HSE gold projects and strong financial position.Stock Price MovementWith the stock trading above 2017 highs, we believe there is room for further movement on the upside, which would allow investors to generate significant returns. Taking into consideration the current uptrend, the stock faces immediate support at the $1.60 handle, below which it could drop to the $1.40 handle, another key support level. MRZLF Daily ChartOn the upside, Mirasol Resources faces immediate resistance at the $1.80 mark, above which it could make a push for its 52-week high of $2.11 a share. The stock is already up by more than 25% for the year, which affirms sentiments it could spike higher especially after a minor correction from 52-week highs of $2.11.For those who don’t have a clear idea of Mirasol Resources, let us review what it does in pursuit of shareholder value.Mirasol Resources Business ProfileMirasol Resources bills itself as a project generation company focused on the discovery and development of profitable precious metal and copper deposits. The company operates mines in Chile and Argentina, where it is aggressively exploring for gold, silver and copper deposits.The company operates via joint ventures to maintain a tight share structure for advancing its priority projects. It also deploys an integrated generative and on ground exploration approach, to maximize the potential for discovery.What makes Mirasol Resources an exciting pick in the mining business is the fact that it is in a strong financial position with a significant portfolio of exploration projects that have the potential to generate significant returns.Latest DevelopmentsIn an attempt to build, a portfolio of large-scale HSE gold projects in an underexplored section of the Mio-Pliocene age mineral belt, Mirasol Resources has completed the acquisition of Zeus high-sulfidation epithermal gold project. Located in the prolifically mineralized Mio-Pliocene age belt in Northern Chile, Zeus covers 18,480 ha of contiguous exploration claims.
“Mirasol Resources continues to build a portfolio of exciting new large-scale HSE gold projects in this underexplored section of the Mio-Pliocene age mineral belt. Zeus represents the 3rd of Mirasol's district-scale project packages in this belt including Mirasol's Altazor and Gorbea projects that are being explored under Joint Venture by Newcrest Mining and Yamana Gold” said CEO Stephen Nano.
Zeus presents an opportunity for Mirasol Resources to target large-scale bulk-mineable HSE gold mineralization. There has never been any systematic surface exploration or drilling at the project, even though the company has already identified two large breccia gold targets.The company intends to carry out a systematic soil sampling, geological mapping, and rock chip sampling as well as magnetic and electrical geophysical surveys at the Zeus project. Acquired data sets will be used to drive integrated analysis for drill target analysis.In addition, Mirasol Resources has entered into an agreement with New Crest International Pty Limited to explore the Altazor gold project. Pursuant to the agreement, New Crest has the right to acquire up to 80% of Altazor project on completion of exploration and development milestones for $1.8 million.The Altazor belt in Northern Chile is prospective for the discovery of new world-class Au+ Ag deposits given the recent discovery of 3.8 million ounces Salares Norte by Gold Fields. Barick Gold has also discovered 6.8 million ounces of HSE gold deposits.The two companies are preparing for an aggressive exploration program in the Southern Hemisphere this summer.
“We are very pleased to be partnering with Newcrest to explore the Altazor gold project. This is Newcrest's first Chilean farm-in since its strategic decision to reinitiate exploration in the Americas. Newcrest has made a significant first-year commitment to the project that will allow us to accelerate this season's exploration program and consider a decision to drill,” said Mr. Nano.
In the last quarter of last year, Mirasol Resources signed a definitive and exploration agreement with Oceana Gold Corporation. The agreement is for the exploration of Claudia Au+Ag project in Santa Cruz Argentina.The project hosts five exploration stage gold and diamond prospects with drill ready targets. The two plan to spend $3 million on exploration activities, which will result in about 6000m of drilling during the first year of the joint venture. Conclusion Mirasol resource is an exciting pick in the exploration and mining business given the portfolio of HSE gold projects it boasts of in its ranks. The company has already entered into a partnership with some of the largest mining companies such as New Crest Mining Limited, which should accelerate this season’s exploration program.The company remains well positioned to start production works in some of its high grade and prospective projects. This explains why the stock has been spiking higher as investors take note of the opportunities at hand on the mining of diamond and gold.We believe a recent pullback of the stock from a 52-week high of $1.74 is a minor correction, presenting a unique buying opportunity for investors who missed out on the initial run.We will be updating our subscribers as soon as we know more. For the latest updates on MRZLF, sign up below!Disclosure: We have no position in MRZLF and have not been compensated for this article.
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