Late last month, Mirasol Resources (MRZ.V) released the results of its maiden resource calculation at the Virginia silver project in Argentina’s Santa Cruz province. The outcome is quite encouraging with almost 12 million ounces of silver at an average grade of 10 ounces per tonne of rock, as well as an inferred estimate of 3 million ounces at a lower grade of 207 g/t silver.
This is pretty good considering the estimate was based on seven outcropping veins so there’s considerable potential to expand the current resources. However, keep in mind the company used a relatively low cut-off grade of 63g/t based on a silver price of $20/oz. This shouldn’t be a problem as the average grade of the indicated resources is pretty good and even though the average recovery rate of 75-81% isn’t shocking, the average grade is sufficient to indicate a profitable project.
Disclosure: The author holds no position in Mirasol Resources. Please see our disclaimer for current positions.