MIRASOL RESOURCES LTD.
CONSOLIDATED FINANCIAL STATEMENTS
For the years ended June 30, 2023 and 2022
(Expressed in Canadian Dollars)
INDEPENDENT AUDITOR’S REPORT
To the Shareholders of
Mirasol Resources Ltd.
Opinion
We have audited the accompanying consolidated financial statements of Mirasol Resources Ltd. (the “Company”), which
comprise the consolidated statements of financial position as at June 30, 2023 and 2022, and the consolidated statements of
loss and comprehensive loss, changes in equity, and cash flows for the years then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, these consolidated financial statements present fairly, in all material respects, the financial position of the
Company as at June 30, 2023 and 2022, and its financial performance and its cash flows for the years then ended in accordance
with International Financial Reporting Standards (“IFRS”).
Basis for Opinion
We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section
of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of
the consolidated financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have obtained in our audit is sufficient and appropriate to provide a
basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Assessment of Impairment Indicators of Exploration and Evaluation Assets (“E&E Assets”)
As described in Note 12 to the consolidated financial statements, the carrying amount of the Company’s E&E Assets was
$1,467,378 as of June 30, 2023. As more fully described in Note 3 to the consolidated financial statements, management
assesses E&E Assets for indicators of impairment at each reporting period.
The principal considerations for our determination that the assessment of impairment indicators of the E&E Assets is a key
audit matter are that there was judgment made by management when assessing whether there were indicators of impairment
for the E&E Assets, specifically relating to the assets’ carrying amount which is impacted by the Company’s intent and ability
to continue to explore and evaluate these assets. This in turn led to a high degree of auditor judgment, subjectivity, and effort
in performing procedures to evaluate audit evidence relating to the judgments made by management in their assessment of
indicators of impairment that could give rise to the requirement to prepare an estimate of the recoverable amount of the E&E
Asset.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall
opinion on the consolidated financial statements. Our audit procedures included, among others:
Evaluating management’s assessment of impairment indicators.
Evaluating the intent for the E&E Assets through discussion and communication with management.
Reviewing the Company’s recent expenditure activity and expenditure budgets for future periods.
Assessing compliance with agreements and expenditure requirements including reviewing option agreements and
vouching cash payments.
Obtaining confirmation of title to ensure mineral rights underlying the E&E Assets are in good standing.
Other Information
Management is responsible for the other information. The other information obtained at the date of this auditor's report includes
Management’s Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated.
We obtained Management’s Discussion and Analysis prior to the date of this auditor’s report. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with
IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company's ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally
accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal
control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue
as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current year and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Stephen Hawkshaw.
Vancouver, Canada
October 26, 2023
Chartered Professional Accountants
Mirasol Resources Ltd.
Consolidated Statements of Financial Position
As of June 30, 2023 and 2022
(Expressed in Canadian Funds, except where indicated)
ASSETS
Current Assets
Cash and cash equivalents (Note 6)
Prepaid expenses, receivables, and advances (Note 7)
Current portion of lease receivable (Note 11)
Due from JV partner (Note 12m)
Marketable securities (Note 8)
$
Non-Current Assets
Equipment (Note 9)
Right-of-use assets (Note 10)
Non-current portion of lease receivable (Note 11)
Exploration and evaluation assets (Note 12)
Total Assets
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities (Note 13b)
Current portion of lease liabilities (Note 11)
Long-Term Liabilities
Non-current portion of lease liabilities (Note 11)
Total Liabilities
EQUITY
Share Capital (Note 14)
Reserves (Note 14)
Accumulated Other Comprehensive Loss
Deficit
June 30,
2023
June 30,
2022
8,123,682 $
203,786
38,064
16,693
155,669
8,537,894
116,596
46,966
22,618
1,467,378
1,653,558
5,698,539
112,258
35,684
219,051
726,456
6,791,988
143,059
70,194
49,514
1,419,519
1,682,286
$
10,191,452 $
8,474,274
$
744,547 $
87,690
832,237
53,115
885,352 $
475,242
82,140
557,382
115,048
672,430
$
$
67,592,500 $
19,578,061
(29,756)
(77,834,705)
57,502,177
18,362,103
(24,558)
(68,037,878)
9,306,100
7,801,844
Total Liabilities and Equity
$
10,191,452 $
8,474,274
Nature of business (Note 1)
Commitment (Note 17)
Subsequent event (Note 18)
On Behalf of the Board:
“ Patrick Evans ”
“ Nick DeMare ”
,
,
Director
Director
The accompanying notes are an integral part of these consolidated financial statements
Page 5
Mirasol Resources Ltd.
Consolidated Statements of Loss and Comprehensive Loss
For the Years Ended June 30,
(Expressed in Canadian Funds, except where indicated)
Income
Option income (Notes 12b and 12c)
Management fees income
Expenses
Exploration expenditures (Notes 12 and 13a i)
Business development (Note 13b i)
Marketing and investor communications
Management fees (Note 13a i)
Office and miscellaneous
Share-based payments (Note 13a ii,14c)
Professional fees (Note 13b)
Director fees (Note 13a iii)
Travel
Transfer agent and filing fees
Depreciation (Notes 9 and 10)
Interest income
Interest expense (Note 11)
Bad debt expense (Note 12)
Foreign exchange gain
Unrealized loss on marketable securities fair value (Note 8)
Other income
Write off expenses (Note 12)
2023
2022
$
- $
15,982
15,982
7,068,730
251,514
123,282
554,221
254,585
954,593
193,843
100,800
89,869
24,956
69,049
(9,685,442)
343,397
153,300
496,697
3,738,706
141,167
91,886
441,497
186,602
578,477
149,246
95,550
40,668
26,041
96,752
(5,586,592)
(9,669,460)
(5,089,895)
628,872
(25,758)
(495,369)
287,250
(570,787)
68,591
(20,166)
(127,367)
523,497
(33,546)
-
249,022
(739,691)
9,600
-
8,882
Loss for the Year
$
(9,796,827) $
(5,081,013)
Other Comprehensive Loss
Items that will not be reclassified to profit and loss:
Exchange differences on translation of foreign operations
4,303
(6,925)
Loss and Comprehensive Loss for the Year
Loss per Share (Basic and Diluted)
$
$
(9,792,524) $
(5,087,938)
(0.17) $
(0.09)
Weighted Average Number of Shares Outstanding
(Basic and Diluted)
57,273,802
53,959,279
Page 6
Mirasol Resources Ltd.
Consolidated Statement of Changes in Equity
For the Years Ended June 30
(Expressed in Canadian Funds, except where indicated)
Share Capital
Number of
Common
Shares
Common
Shares
Amount
Balance – June 30, 2021
Treasury shares cancelled
Share issue costs
Share-based payments
Foreign currency translation adjustment
Loss for the year
53,895,043
(45,000)
-
165,000
-
-
$57,477,459
(48,002)
(705)
73,425
-
-
Accumulated
Other
Comprehensive
Loss
$(17,633)
-
-
-
(6,925)
-
Reserves
$17,828,859
28,192
-
505,052
-
-
Deficit
$(62,956,865)
-
-
-
-
(5,081,013)
Total
Equity
$12,331,820
(19,810)
(705)
578,477
(6,925)
(5,081,013)
Balance – June 30, 2022
54,015,043
$57,502,177
$18,362,103
$(24,558)
$(68,037,878)
$7,801,844
Treasury shares cancelled
Private placement financing
Share issue costs
Shares issue for options exercised
Share-based payments
Foreign currency translation adjustment
Loss for the year
Balance – June 30, 2023
(35,000)
10,986,267
-
683,750
-
-
-
64,650,060
(37,259)
10,019,328
(349,012)
457,266
-
-
-
$67,592,500
23,609
413,672
-
(175,916)
954,593
-
-
$19,578,061
-
-
-
-
-
(5,198)
-
$(29,756)
-
-
-
-
-
-
(9,796,827)
$(77,834,705)
(13,650)
10,433,000
(349,012)
281,350
954,593
(5,198)
(9,796,827)
$9,306,100
The accompanying notes are an integral part of these consolidated financial statements
Page 7
Mirasol Resources Ltd.
Consolidated Statement of Changes in Cash Flows
For the Years Ended June 30
(Expressed in Canadian Funds, except where indicated)
Operating Activities
Loss for the year
Adjustments for:
Interest income
Interest expense
Bad debt expense
Depreciation
Other expense
Share-based payments
Write off exploration and evaluation assets
Unrealized loss on marketable securities fair value
Unrealized foreign exchange
Changes in non-cash working capital items:
Receivables and advances
Accounts payables and accrued liabilities
Due from joint venture partner
Provision for bad debt
Cash used in operating activities
Investing Activities
Purchase of exploration and evaluation assets
Purchase of equipment
Interest received
Cash provided by investing activities
Financing Activity
Lease payments
Proceeds from private placement
Shares issuance costs
Options exercised for cash
Treasury shares repurchased
Cash provided by (used in) financing activities
2023
2022
$
(9,796,827) $
(5,081,013)
(628,872)
25,758
495,369
69,049
7,203
954,593
20,166
570,787
(192,967)
(8,475,741)
(83,046)
269,305
49,300
(342,311)
(8,582,493)
(68,025)
(19,358)
602,018
514,635
(46,456)
10,433,000
(349,012)
281,350
(13,650)
10,305,232
(526,829)
33,546
-
96,752
5,047
578,477
-
739,691
(344,053)
(4,498,382)
46,646
(423,934)
(172,961)
-
(5,048,631)
-
(45,918)
525,301
479,383
(72,228)
-
(705)
-
(19,810)
(92,743)
Effect of Exchange Rate Change on Cash and Cash Equivalents
187,769
337,128
Change in Cash and Cash Equivalents
Cash and Cash Equivalents - Beginning of Year
2,425,143
5,698,539
(4,324,863)
10,023,402
Cash and Cash Equivalents - End of Year
$
8,123,682
$
5,698,539
Cash and Cash Equivalents Consist of:
Cash
Cash equivalents
$
$
1,077,682
7,046,000
8,123,682
$
$
1,154,889
4,543,650
5,698,539
The accompanying notes are an integral part of these consolidated financial statements.
Page 8
Mirasol Resources Ltd.
Consolidated Statement of Changes in Cash Flows
For the Years Ended June 30
(Expressed in Canadian Funds, except where indicated)
Supplemental Schedule of Non-Cash Investing and Financing
Transactions:
Residual value of warrants
Reserve value from options exercised
Marketable securities received as recovery of exploration and
evaluation assets
Recognition of sublease receivable
Cash paid during the year for interest
Cash paid during the year for income taxes
$
$
413,672
175,916
$
-
-
25,758
-
$
-
287,060
90,668
33,546
-
The accompanying notes are an integral part of these consolidated financial statements.
Page 9
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
1. Nature of Business
Mirasol Resources Ltd. (“Mirasol” or the “Company”) is incorporated under the laws of the Province of British
Columbia, Canada. The Company’s corporate registered and records office is located at 700 – 1199 Hastings
Street, Vancouver, British Columbia and the head office is located at 1150-355 Burrard Street, Vancouver, British
Columbia.
Mirasol engages in the acquisition and exploration of mineral properties, principally located in Chile and Argentina,
with the objective of identifying mineralized deposits economically worthy of subsequent development, mining or
sale.
The business of mining and exploration involves a high degree of risk and there can be no assurance that current
exploration programs will result in profitable mining operations. The Company has no source of revenue and has
significant cash requirements to meet its administrative overhead and maintain its exploration and evaluation
assets. The recovery of the Company’s exploration and evaluation assets is dependent on the discovery of
economically recoverable reserves, the ability of the Company to obtain the necessary financing to complete the
development of these properties, and future profitable production or proceeds from disposition of exploration and
evaluation assets. While the Company has been successful in the past with its financing efforts, there can be no
assurance that it will be able to do so in the future.
Recent global issues, including the ongoing COVID-19 pandemic and geo-political conflicts have adversely
affected workplaces, economies, supply chains, and financial markets globally. It is not possible for the Company
to predict the duration or magnitude of the adverse results of these issues and their effects on the Company's
business or results of operations this time.
Management estimates that the Company has sufficient working capital to maintain its operations and activities
for at least the next twelve months.
2. Basis of Presentation
Statement of compliance
The consolidated financial statements of the Company have been prepared in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and
interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”). The policies presented
in Note 3 were consistently applied to all years presented. The Board of Directors approved the consolidated
financial statements on October 26th, 2023.
Basis of measurement
These consolidated financial statements have been prepared on a historical cost basis. Financial instruments
classified as financial instruments at fair value through profit or loss are stated at their fair value. In addition, these
consolidated financial statements have been prepared using the accrual basis of accounting except for the cash
flow information.
Page 10
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies
a) Consolidation
These consolidated financial statements include the accounts of the Company (the “Parent”) and its subsidiaries.
The principal subsidiaries of the Company, their activities, and their geographic locations as of June 30, 2023,
were as follows:
Subsidiary
Principal activity
Location
Minera Mirasol Chile Limitada
Cabo Sur S.A.
Australis S.A.
Minera Del Sol S.A.
Nueva Gran Victoria S.A.
Recursos Mirasol Holdings Ltd.
MDS Property Holdings Ltd.
Mineral exploration
Mineral exploration
Mineral exploration
Mineral exploration
Mineral exploration
Holding company
Holding company
Chile
Argentina
Argentina
Argentina
Argentina
British Virgin Islands
British Virgin Islands
Proportion of
interest held
by the
Company
100%
100%
100%
100%
100%
100%
100%
Subsidiaries are included in the consolidated financial results of the Company from the effective date of
acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the
Company has power over the investee, is exposed to or has rights to variable returns from its involvement with
an investee and has the ability to affect those returns through its power over the investee.
The transactions among the entities in the consolidated group pertain to the transfer of funds and payment of
third-party costs. All inter-group transactions and balances have been eliminated upon consolidation.
b) Significant Accounting Estimates and Judgments
The preparation of financial statements requires management to make judgments, estimates and assumptions
that affect the application of policies and reported amounts of assets and liabilities, profit, and expenses. The
estimates and associated assumptions are based on historical experience and various other factors that are
believed to be reasonable under the circumstances, the results of which form the basis of making the judgments
about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimate is revised if the revision affects only that period or in the period
of the revision and further periods if the review affects both current and future periods.
Significant accounting estimates and judgments are related to, but are not limited to, the following:
a)
Impairment of exploration and evaluation assets: The capitalized carrying value of each property group is
reviewed regularly for conditions that are indicators of impairment. This review requires significant judgment
as the Company does not have any proven and probable reserves that enable future cash flows to be
compared to the carrying values. Factors considered in the assessment of asset impairment include, but
are not limited to, whether there has been a significant adverse change in the legal, regulatory, accessibility,
title, environmental or political factors that could affect the claims’ value; whether there has been an
accumulation of costs significantly in excess of the amounts originally expected for the claims’ acquisition,
or cost of holding; whether exploration activities produced results that are not promising such that no more
Page 11
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
b) Significant Accounting Estimates and Judgments (Cont’d…)
a)
Impairment of exploration and evaluation assets (Cont’d…)
work is being planned in the foreseeable future; and whether the Company has the necessary funds to be
able to maintain its interest in the mineral claims.
The Company has concluded that impairment conditions do not exist for its exploration and evaluation
assets hold as of June 30, 2023.
Ownership of exploration and evaluation assets involves certain risks due to the difficulties of determining
and obtaining clear title to claims as well as the potential for problems arising from the frequently ambiguous
conveyance history characteristics of many exploration and evaluation assets.
The Company has investigated ownership of its exploration and evaluation assets, and, to the best of its
knowledge, ownership of its interests is in good standing.
b) Valuation of share purchase options: The Company provides compensation benefits to its employees,
directors and officers through a stock option plan. The fair value of each option award is estimated on the
date of the grant using the Black-Scholes option pricing model.
Expected volatility assumption used in the model is based on the historical volatility of the Company’s share
price. The Company uses historical data to estimate the period of option exercises and their forfeiture rates
for use in the valuation model.
The risk-free interest rate for the expected term of the option is based on the yields of government bonds.
Changes in these assumptions, especially the volatility and the expected life determination could have a
material impact on the Company’s profit or loss. All estimates used in the model are based on historical data
which may not be representative of future results.
c)
Income taxes: The Company is subject to income taxes in numerous jurisdictions. Uncertainties exist with
respect to interpretations of tax regulations.
Judgment is required in determining whether deferred tax assets are recognized on the statement of
financial position. The recognition of deferred tax assets requires management to assess the likelihood that
the Company will generate taxable income in future periods to utilize the deferred tax assets. Due to a
history of losses deferred tax assets have not been recognized.
d) Functional currencies: The functional currency of an entity is the currency of the primary economic
environment in which an entity operates. The determination of an entity’s functional currency requires
judgment based on analysis of relevant factors identified in IAS 21, The Effects of Changes in Foreign
Exchange Rates (“IAS 21”).
Except for the Company’s subsidiaries in the British Virgin Islands (Note 3a), the Company has determined
that its subsidiaries in Chile and Argentina incur costs in United States Dollars, Canadian Dollars, as well
as the Chilean and Argentine Pesos and therefore do not indicate a single primary currency for operating in
these jurisdictions. These subsidiaries are financed entirely by its Canadian Parent and therefore act as its
extension. The Company has therefore determined that the functional currency of all of its subsidiaries in
Chile and Argentina is the Canadian Dollar, similar to the Parent.
Page 12
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
c) Foreign Currencies
The functional currency of the Company and its operating subsidiaries, Minera Del Sol S.A., Australis S.A.,
Nueva Gran Victoria S.A., Cabo Sur S.A., and Minera Mirasol Chile Limitada, is the Canadian Dollar (“$”). The
functional currency of its holding subsidiaries, Recursos Mirasol Holdings Ltd., and MDS Property Holdings Ltd.
is the United States Dollar.
Any transactions in currencies other than the functional currency have been translated to the Canadian Dollar in
accordance with IAS 21. Transactions in currencies other than the functional currency are recorded at the rates
of exchange prevailing on dates of transactions. At the end of each reporting period, monetary assets and
liabilities that are denominated in foreign currencies are translated at the rates prevailing at that date. Non-
monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at
rates prevailing at the date when the fair value was determined. All gains and losses on translation of these
foreign currency transactions are included in profit or loss. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
Assets and liabilities of entities with a functional currency other than the Canadian Dollar are translated at the
period end rates of exchange, and the results of their operations are translated at average rates of exchange for
the period. The resulting changes are recognized in accumulated other comprehensive income (loss) (“AOCI”)
in equity as a foreign currency translation adjustment. The Company’s presentation currency is the Canadian
Dollar.
d) Cash and Cash Equivalents
Cash and cash equivalents consist of cash on deposit with banks and short-term redeemable interest-bearing
investments with maturities of three months at the purchase date. Deposits with banks and short-term interest-
bearing investments with original term to maturity greater than three months but less than one year are presented
as short-term investments.
e) Financial Instruments
Classification
Financial assets are classified at initial recognition as either: amortized cost, fair value through profit or loss
(“FVTPL”), or fair value through other comprehensive income ("FVTOCI"). The classification depends on the
Company’s business model for managing the financial assets and the contractual cash flow characteristics. For
assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income.
Fair value through profit or loss (“FVTPL”) – Financial assets carried at FVTPL are initially recorded at fair value
and transaction costs are expensed in profit or loss. Realized and unrealized gains and losses arising from
changes in the fair value of the financial asset held at FVTPL are included in profit or loss in the period in which
they arise. Derivatives are also categorized as FVTPL unless they are designated as hedges.
Fair value through other comprehensive income (“FVTOCI”) - Investments in equity instruments at FVTOCI are
initially recognized at fair value plus transaction costs. Subsequently, they are measured at fair value, with gains
and losses arising from changes in fair value recognized in other comprehensive income. There is no subsequent
reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.
Financial assets at amortized cost - A financial asset is measured at amortized cost if the objective of the
business model is to hold the financial asset for the collection of contractual cash flows, and the asset's
contractual cash flows are comprised solely of payments of principal and interest. They are classified as current
assets or non-current assets based on their maturity date and are initially recognized at fair value and
subsequently carried at amortized cost less any impairment.
Page 13
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
e) Financial Instruments (Cont’d…)
Derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never
separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL or the
Company has opted to measure at FVTPL.
The Company classifies its financial instruments as follows:
Cash and cash equivalents
Marketable securities
Receivables
Lease receivable
Accounts payable and accrued liabilities
Lease liabilities
Advances to/from JV partner
Measurement
Amortized Cost
FVTPL
Amortized cost
Amortized cost
Amortized cost
Amortized cost
Amortized cost
Financial assets and liabilities at FVTPL are initially recognized at fair value and transaction costs are expensed
in profit or loss. Realized and unrealized gains and losses arising from changes in the fair value of the financial
assets or liabilities held at FVTPL are included in profit or loss in the period in which they arise. Where the
Company has opted to designate a financial liability at FVTPL, any changes associated with the Company's
credit risk will be recognized in OCI.
Financial assets and liabilities at amortized cost are initially recognized at fair value, and subsequently carried
at amortized cost less any impairment.
Impairment
The Company assesses on a forward-looking basis the expected credit loss ("ECL") associated with financial
assets measured at amortized cost, contract assets and debt instruments carried at FVOCI. The impairment
methodology applied depends on whether there has been a significant increase in credit risk.
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s
original effective interest rate. Losses are recognized in profit or loss and reflected in an allowance account
against receivables. When a subsequent event causes the amount of impairment loss to decrease, the decrease
in impairment loss is reversed through profit or loss.
f)
Impairment of Non-Financial Assets
The carrying amounts of non-financial assets are reviewed for impairment whenever facts and circumstances
suggest that the carrying amounts may not be recoverable. If there are indicators of impairment, the recoverable
amount of the asset is estimated in order to determine the extent of any impairment. For the purpose of
measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately
identifiable cash flows (“cash-generating units” or “CGUs”).
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use (being the present
value of the expected future cash flows of the relevant asset or CGU). An impairment loss is recognized for the
amount by which the asset’s carrying amount exceeds its recoverable amount.
Page 14
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
f)
Impairment of Non-Financial Assets (Cont’d…)
Non-financial assets that have been impaired in prior periods are tested for possible reversal of impairment
whenever events or changes in circumstances indicate that the impairment has reversed. If the impairment has
reversed, the carrying amount of the asset is increased to its recoverable amount but not beyond the carrying
amount that would have been determined had no impairment loss been recognized for the asset in the prior
periods. A reversal of an impairment loss is recognized in profit or loss in the period of such reversal.
g) Equipment
Equipment is stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes
expenditures that are directly attributable to the acquisition of the asset. Subsequent costs are included in the
asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future
economic benefits associated with the item will flow to the Company and the cost can be measured reliably. The
carrying amount of a replaced asset is derecognized when replaced.
The Company provides for depreciation as follows:
Exploration equipment: 30% declining balance; and
Computer hardware: 30% declining balance.
The Company allocates the amount initially recognized to each asset’s significant components and depreciates
each component separately. Residual values, depreciation methods and useful lives of the assets are reviewed
periodically and adjusted on a prospective basis as required.
h) Exploration and Evaluation Assets
The Company capitalizes the direct costs of acquiring mineral property interests as exploration and evaluation
assets. Option payments are considered acquisition costs if the Company has the intention of exercising the
underlying option.
Exploration and evaluation costs are charged to operations in the period incurred until such time as it has been
determined that a property has economically recoverable reserves, and is technically feasible, in which case the
balance is tested for impairment and subsequent development costs are capitalized. Exploration costs include
value-added taxes because the recoverability of these amounts is uncertain.
The receipt of option payments from the Company’s joint venture partners are applied first towards the
capitalized cost for the acquisition of pertinent mineral property interests. Option payments in excess of the
capitalized acquisition costs are netted against the exploration costs for the period. JV management fees are
included in exploration expenditures on the statement of loss and comprehensive loss.
i)
Lease liability
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. The Company assesses whether the contract involves the use of an identified asset,
whether the right to obtain substantially all of the economic benefits from use of the asset during the term of the
arrangement exists, and if the Company has the right to direct the use of the asset. At inception or on
reassessment of a contract that contains a lease component, the Company allocates the consideration in the
contract to each lease component on the basis of their relative standalone prices.
As a lessee, the Company recognizes a right-of-use asset and a lease liability at the commencement date of a
lease. The right-of-use asset is initially measured at cost, which is comprised of the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any decommissioning
and restoration costs, less any lease incentives received.
The right-of-use asset is subsequently depreciated from the commencement date to the earlier of the end of the
lease term, or the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
Page 15
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
i) Lease liability (Cont’d…)
A lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted by the interest rate implicit in the lease, or if that rate cannot be readily
determined, the incremental borrowing rate. Lease payments included in the measurement of the lease liability
are comprised of:
fixed payments, including in-substance fixed payments, less any lease incentives receivable;
a)
b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at
the commencement date;
c) amounts expected to be payable under a residual value guarantee;
d) exercise prices of purchase options if the Company is reasonably certain to exercise that option; and
e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to
terminate the lease.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there
is a change in future lease payments arising from a change in an index or rate, or if there is a change in the
estimate or assessment of the expected amount payable under a residual value guarantee, purchase, extension
or termination option. Variable lease payments not included in the initial measurement of the lease liability are
charged directly to profit or loss.
j) Lease receivable
At the commencement of a lease, the Company, if acting in capacity as a lessor, will classify the lease as a
finance lease and recognize a lease receivable at an amount equal to the net investment in the lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset or if the lease is a sublease,
by reference to the ROU asset arising from the original lease (the “head lease”). A lease is classified as an
operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an
underlying asset or the lease is a short-term lease. Cash received from an operating lease is included in other
income in the Company’s consolidated statement of profit and loss on a straight-line basis over the period the
lease.
The lease receivable is measured at amortized cost using the effective interest method. It is remeasured when
there is a change in future lease receivables arising from a change in an index or rate, or if there is a change in
the estimate or assessment of the expected amount receivable under a residual value guarantee, purchase,
extension or termination option. Variable lease receivables not included in the initial measurement of the lease
receivable are charged directly to profit or loss.
k) Provisions
(i) Decommissioning and restoration provision: Future obligations to retire an asset, including dismantling,
remediation and ongoing treatment and monitoring of the site related to normal operations are initially
recognized and recorded as a liability based on estimated future cash flows discounted at a risk free rate.
The decommissioning and restoration provision is adjusted at each reporting period for changes to factors
including the expected amount of cash flows required to discharge the liability, the timing of such cash flows
and the pre-tax rate for risk specific to the liability.
The liability is also accreted to full value over time through periodic charges to profit or loss. This unwinding
of the discount is charged to financing expense in profit or loss.
The amount of the decommissioning and restoration provision initially recognized is capitalized as part of
the related asset’s carrying value and depreciated to profit or loss. The method of depreciation follows that
of the underlying asset. The costs related to a decommissioning and restoration provision are only
capitalized to the extent that the amount meets the definition of an asset and can bring about future
economic benefit.
Page 16
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
k) Provisions (Cont’d…)
For the years presented, the Company does not have any decommissioning or restoration provisions.
(ii) Other provisions: Provisions are recognized when a current legal or constructive obligation exists, as a
result of past events, and it is probable that an outflow of resources that can be reliably estimated will be
required to settle the obligation. Where the effect is material, the provision is discounted using an appropriate
pre-tax rate for risk specific to the liability.
l)
Income Taxes
Income tax expense (recovery) is comprised of current and deferred tax. Income tax is recognized in profit or
loss except to the extent that it relates to items recognized directly in equity, in which case the income tax is also
recognized directly in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted, at the end of the reporting period, and any adjustment to tax payable in respect of previous
years.
In general, deferred tax is recognized in respect of temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax is
determined on a non-discounted basis using tax rates and laws that have been enacted or substantively enacted
at the date of statement of financial position and are expected to apply when the deferred tax asset or liability is
settled. Deferred tax assets are recognized to the extent that it is probable that the assets can be recovered.
Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except,
in the case of subsidiaries, where the timing of the reversal of the temporary difference is controlled by the
Company and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are presented as non-current.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities, when they relate to income taxes levied by the same taxation authority and when
the Company intends to settle its current tax assets and liabilities on a net basis.
m) Share-based Payments
The Company grants share options to buy common shares of the Company to directors, officers, employees,
and service providers. The Company recognizes share-based payment expense based on the estimated fair
value of the options. A fair value measurement is made for each vesting instalment within each option grant and
is determined using the Black-Scholes option-pricing model. The fair value of the options is recognized over the
vesting period of the options granted as both share-based payment expense and reserves. This includes a
forfeiture estimate, which is revised for actual forfeitures in subsequent periods. The reserves account is
subsequently reduced if the options are exercised, and the amount initially recorded is then credited to share
capital.
In situations where equity instruments are issued to non-employees and some or all of the goods or services
received by the entity as consideration cannot be specifically identified, they are measured at fair value of the
equity instruments issued. Otherwise, such share-based payments are measured at the fair value of goods or
services received.
Page 17
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
3. Significant Accounting Policies (Cont’d…)
m) Share-based Payments (Cont’d…)
The Company grants to employees, officers, directors and consultants, Restricted Share Units (“RSUs”) in such
numbers and for such terms as may be determined by the Board. RSUs granted under the RSU Plan are
exercisable into common shares for no additional consideration after the vesting conditions, as specified by the
Board, are met. The Company intends to settle each RSU with one common share of the Company and therefore
RSUs are accounted for as equity-settled instruments.
RSUs are measured at fair value on the date of grant and the corresponding share-based compensation is
recognized over the vesting period in profit or loss.
n) Loss per Share
Basic loss per share is computed by dividing loss available to common shareholders by the weighted average
number of common shares outstanding during the year.
The computation of diluted loss per share assumes the conversion, exercise, or contingent issuance of securities
only when such conversion, exercise or issuance would have a dilutive effect on the loss per share. The dilutive
effect of convertible securities is reflected in the diluted loss per share by application of the "if converted" method.
For the year presented, this calculation proved to be anti-dilutive.
o) Comprehensive Income (Loss)
Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss) and
represents the change in equity which results from transactions and events from sources other than the
Company’s shareholders. The Company’s translation of its subsidiaries which have a functional currency other
than the Canadian Dollar is the only item affecting comprehensive income (loss) for the years presented.
p) Share Capital
Common shares of the Company are classified as equity. Transactions costs directly attributable to the issue of
common shares and share options are recognized as a deduction from equity, net of any tax effect.
The Company uses the residual value method with respect to the measurement of shares and warrants issued
as private placement units. The residual value method first allocates value to the more easily measurable
component based on fair value and then the residual value, if any, to the less easily measurable component.
The fair value of the common shares issued in the private placements was determined to be the more easily
measurable component and were valued at their fair value, as determined by the quoted bid price on the
issuance date. The balance, if material, was allocated to the attached warrants. Any fair value attributed to the
warrants on exercise is recorded as equity. If the warrants are exercised the related reserves are reclassified
from reserves to share capital.
Page 18
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
4. Recent Accounting Pronouncements and Adoptions
New accounting standards issued but not yet in effect
Classification of liabilities as current or non-current (Amendments to IAS 1)
The IASB has published Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) which
clarified the guidance on whether a liability should be classified as either current or non-current. The amendments:
(i) Clarify that the classification of liabilities as current or non-current should only be based on rights that
are in place “at the end of the reporting period”;
(ii) Clarify that classification is unaffected by expectations about whether an entity will exercise its right to
defer settlement of a liability; and
(iii) Make clear that settlement includes transfers to the counterparty of cash, equity instruments, other
assets or services that result in extinguishment of the liability.
This amendment is effective for annual periods beginning on or after January 1, 2023. Earlier application is
permitted. The Company does not anticipate the adoption of this standard will have a material impact on the
consolidated financial statements.
Definition of Accounting Estimates (Amendments to IAS 8)
The IASB proposed clarifying the definitions of "accounting policies" and "accounting estimates" in (Amendments
to IAS 8), by making those two definitions more distinct and concise. The IASB also proposed clarifying, through
additional guidance and examples, how accounting policies and accounting estimates relate to each other and
how companies decide whether a change in valuation technique or a change in estimation technique is a change
in an accounting estimate.
This amendment is effective for annual periods beginning on or after January 1, 2023. Earlier application is
permitted. The Company does not anticipate the adoption of this standard will have a material impact on the
consolidated financial statements.
Insurance contracts IFRS 17
IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a more uniform
measurement and presentation approach for all insurance contracts. These requirements are designed to achieve
the goal of a consistent, principle-based accounting for insurance contracts.
IFRS 17 supersedes IFRS 4 and applies to annual reporting periods beginning on or after 1 January 2023. The
Company does not anticipate the adoption of this standard will have a material impact on the consolidated financial
statements.
Page 19
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
5. Financial Instruments
Categories of financial instruments
Financial assets
Fair Value Through Profit or Loss
Marketable securities
Amortized Cost
Cash and cash equivalents
Receivables and advances
Lease receivable
Due from JV Partner
Financial liabilities
Amortized Cost
Lease liabilities
Accounts payable and accrued liabilities
a) Fair Value
June 30,
2023
June 30,
2022
$
155,669 $
726,456
8,123,682
203,786
60,682
16,693
5,698,539
112,258
85,198
219,051
$
8,560,512 $
6,841,502
$
$
140,805
744,547
885,352 $
197,188
475,242
672,430
Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy
according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value
hierarchy are:
Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities;
Level 2 – Inputs other than quoted prices that are directly or indirectly observable for the asset or liability; and,
Level 3 – Inputs that are not based on observable market data;
June 30,
2023
June 30,
2022
Level 1
Marketable securities
$
155,669 $
726,456
The fair values of the Company’s other financial instruments approximate their carrying values because of the
short-term nature of these instruments.
b) Management of Capital Risk
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern to pursue the development of its exploration and evaluation assets and to maintain a flexible capital
structure which optimizes the costs of capital at an acceptable risk. In the management of capital, the Company
includes the components of equity.
The Company manages the capital structure and adjusts it in light of changes in economic conditions and the
risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may
attempt to issue new shares, acquire or dispose of assets, enter into joint ventures or obtain debt financing. In
order to facilitate the management of its capital requirements, the Company prepares annual expenditure
budgets that are updated as necessary depending on various factors, including successful capital deployment
and general industry conditions.
To maximize ongoing exploration, the Company does not pay out dividends.
Page 20
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
5. Financial Instruments (Cont’d…)
b) Management of Capital Risk (Cont’d…)
The Company’s investment policy is to invest its cash in highly liquid short-term redeemable interest-bearing
investments with maturities of twelve months or less from the original date of acquisition, selected with regards
to the expected timing of expenditures from continuing operations.
The Company is not subject to externally imposed capital requirements. There were no changes to the
Company’s approach to capital management during the year.
c) Management of Financial Risk
The Company’s financial instruments are exposed to certain financial risks. The risk exposures and the impact
on the Company's financial instruments are summarized below.
(i) Currency risk
The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The
Company operates in Canada, Argentina and Chile and a portion of its expenses are incurred in United States
(“US”) dollars, Australian dollars and in Argentine and Chilean Pesos. A significant change in the currency
exchange rates between the US and Australian dollar relative to the Canadian dollar and the Argentine and
Chilean Peso to the Canadian dollar could have an effect on the Company’s results of operations, financial
position or cash flows. The Company has not hedged its exposure to currency fluctuations.
At June 30, 2023, the Company is exposed to currency risk through the following assets and liabilities
denominated in US dollars and Argentine and Chilean Pesos:
Cash and cash equivalents
Receivables and advances
Accounts payable and accrued liabilities
US
Dollars
465,243
265,625
(189,519)
Argentine
Peso
6,632,879
1,157,236
(23,504,352)
Chilean
Peso
69,555,938
29,052,199
(150,645,427)
Based on the net exposures as at June 30, 2023, and assuming that all other variables remain constant, a
10% depreciation or appreciation of the Canadian dollar against the US dollar would result in an
increase/decrease of $71,675 in the Company’s comprehensive loss. Likewise, a 10% depreciation or
appreciation of the Canadian dollar against the Argentine and Chilean Peso would result in an
increase/decrease of $8,140 and $8,586, respectively in the Company’s comprehensive loss.
(ii) Credit risk
Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet
its contractual obligations. As part of the Company’s exploration strategy, the Company enters into Joint
Venture (“JV”) agreements with third parties’ companies. As a result, the Company has significant credit risk
if a counterparty fails to meet its JV’s contractual obligations. As of June 30, 2023 one of the Company’s JVs
has defaulted its contractual obligation therefore, the Company has provided for an allowance of doubtful
account and recorded a bad debt expense for $495,369 (note 12g).
The Company’s cash and cash equivalents are held through large financial institutions. The Company’s
receivables primarily consist of interest receivable due from major financial institutions on short term
investments. Management believes that credit risk concentration with respect to receivables is remote.
Page 21
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
5. Financial Instruments (Cont’d…)
c) Management of Financial Risk (Cont’d…)
(iii) Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The
Company manages liquidity risk through the management of its capital structure and financial leverage as
outlined above. As at June 30, 2023, the Company’s financial liabilities consist of accounts payable and
accrued liabilities. All of the Company’s current obligations are expected to be paid within one year.
Management believes the Company has sufficient funds to meet its liabilities as they become due.
(iv) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The risk that the Company will realize a loss as a result of a
decline in the fair value of the Company’s cash and cash equivalents is limited because these investments
are generally held to maturity. The applicable rates of interest on such investments range between 4% and
4.50%.
(v) Price risk
Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in market prices, other than those arising from interest rate risk, foreign currency risk and equity
price risk. As at June 30, 2023, with other variables unchanged, a 10% decrease in the market value of the
Company’s marketable securities would result in an increase of the Company’s loss and comprehensive loss
of $15,567.
6. Cash and Cash Equivalents
Cash and cash equivalents comprise of cash and short-term redeemable Guaranteed Investment Certificates
(“GIC”) placed with major Canadian financial institutions. Maturity dates of these GIC’s are within one year.
7. Prepaid expenses, Receivables and Advances
Prepaid expenses, amounts and other receivables are summarized in the following table:
Goods and services tax receivable
Interest receivable
Other receivables and advances
Prepaid expenses
$
June 30,
2023
6,848
18,123
123,970
54,845
$
$
203,786
$
June 30,
2022
6,094
2,599
83,565
20,000
112,258
Page 22
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
8. Marketable Securities
Common shares:
Balance June 30, 2021
Additions
Balance June 30, 2022
Additions
Balance June 30, 2023
Fair value change:
At June 30, 2021
Additions
Fair value change
At June 30, 2022
Additions
Fair value change
At June 30, 2023
6,550,481
3,827,462
10,377,943
-
10,377,943
$ 1,179,087
287,060
(739,691)
726,456
-
(570,787)
$ 155,669
The Company holds 10,377,943 common shares (June 30, 2022 – 10,377,943) of Silver Sands Resources Corp.
(“Silver Sands”) (Note 12g) that were received as partial consideration on an option agreement. During the year
ended June 30, 2023, the Company received Nil common shares (2022 – 3,827,462) with a fair value of $Nil
(2022 - $0.075) per common share. The fair value of the common shares received of $Nil (2022 - $287,060)
was recorded as a recovery against the acquisition cost of the property.
As at June 30, 2023, the market price of the shares was $0.015 per share (June 30, 2022 - $0.07). Accordingly,
the Company recorded an unrealized fair value loss of $570,787 (2022 - $739,691) in the consolidated statement
of loss and comprehensive loss.
Page 23
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
9. Equipment
Cost
Balance as at June 30, 2021
Additions for the year
Balance as at June 30, 2022
Additions for the year
Balance as at June 30, 2023
Accumulated Depreciation
Balance as at June 30, 2021
Depreciation for the year
Balance as at June 30, 2022
Depreciation for the year
Balance as at June 30, 2023
Carrying Amounts
As at June 30, 2022
As at June 30, 2023
10. Right-of-Use of Assets
Right of Use Assets
Cost:
At June 30, 2021
Sublease deduction (note 11)
At June 30, 2022 and 2023
Depreciation:
At June 30, 2021
Charge for the year
At June 30, 2022
Charge for the year
At June 30, 2023
Net Book Value:
At June 30, 2022
At June 30, 2023
Exploration
Equipment
Computer
Hardware
Total
$
$
$
$
$
$
$
$
690,812 $
45,918
736,730 $
17,093
753,823 $
556,273 $
47,250
603,523 $
42,545
646,068 $
92,735
-
92,735
2,265
$
$
95,000
$
78,661 $
4,222
82,883 $
3,276
86,159 $
783,547
45,918
829,465
19,358
848,823
634,934
51,472
686,406
45,821
732,227
133,207 $
107,755 $
9,852
8,841
$
$
143,059
116,596
$ 311,407
(90,668)
$ 220,739
$ 105,265
45,280
150,545
23,228
$ 173,773
$ 70,194
$ 46,966
Depreciation of right-of-use assets is calculated using the straight-line method over the remaining lease term.
Page 24
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
11. Lease Liabilities and lease receivable
Lease Liabilities
Beginning balance
Lease payments made
Interest expense
Less: current portion
Non-current portion
The following are the remaining minimum lease payments:
Period
In 1 year
Second year
Lease receivable
Beginning balance
Additions (note 10)
Lease payments made
Interest income
Less: current portion
Non-current portion
June 30,
2023
197,188
(82,141)
25,758
$
June 30,
2022
244,672
(81,030)
33,546
140,805
$
197,188
(87,690)
(82,140)
53,115
$
115,048
Amount Payable
$87,690
$74,000
June 30,
2023
85,198
-
(35,685)
11,169
$
June 30,
2022
-
90,668
(8,802)
3,332
60,682
$
85,198
(38,064)
(35,684)
22,618
$
49,514
$
$
$
$
$
$
The following are the remaining minimum lease receivable:
Period
In 1 year
Second year
Amount Receivable
$38,064
$31,720
Page 25
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
12. Exploration and Evaluation Assets
The Company owns 100% of the mineral exploration rights to a large portfolio of properties focused in two mining
regions, namely the Atacama region in northern Chile and the Santa Cruz Province in southern Argentina. As well,
the Company holds several other properties in the San Juan and Catamarca provinces of northern Argentina. The
Company also focuses on generative exploration to identify and acquire new prospects.
A reconciliation of capitalized acquisition costs is as follows:
Acquisition Costs
Chile
Gorbea belt
Argentina
Balance at
June 30, 2022
Cost
Write-offs
and
Recoveries
Balance at
June 30, 2023
$
171,777 $
- $
-
$
171,777
Santa Rita and Virginia
Sascha-Marcelina
Pipeline projects
1,024,549
203,027
20,166
-
68,025
-
-
-
(20,166)
$
1,419,519 $
68,025 $
(20,166)
$
1,024,549
271,052
-
1,467,378
Chile
Gorbea belt
Argentina
Balance at
June 30, 2021
Cost
Write-offs
and
Recoveries
Balance at
June 30, 2022
$
171,777 $
- $
-
$
171,777
Santa Rita and Virginia
Sascha-Marcelina
Pipeline projects
1,311,609
203,027
20,166
-
-
-
(287,060)
-
-
$
1,706,579 $
- $
(287,060)
$
1,024,549
203,027
20,166
1,419,519
Chile
a) Gorbea option to joint venture
The Company owns a 100% interest in certain mineral claims located in northern Chile and referred to as the
Gorbea Gold Project (“Gorbea”).
On January 28, 2019, the Company signed an agreement with Newcrest Mining Limited (“NCM”), whereby
NCM has been granted the option to acquire up to a 75% interest in Gorbea, exercisable in stages over a nine-
year, or shorter, earn-in period.
In August 2022, NCM terminated the option agreement.
Page 26
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
12. Exploration and Evaluation Assets (Cont’d…)
b) Coronación option to joint venture:
On September 24, 2019, the Company entered into a definitive agreement with First Quantum Minerals
(“FQM”) for the Company’s Coronación Copper/Gold Project in northern Chile.
On February 8, 2022, the Company and FQM amended the agreement, and granted to FQM the option to
earn-in 80% of the project over 7 years by:
Making annual cash payments totaling US$875,000:
o On signing of definitive agreement: US$50,000 (received)
o 1st anniversary: US$50,000 (received)
o 2nd anniversary: US$75,000 (received)
o 4th anniversary: US$100,000
o 5th anniversary: US$150,000
o 6th anniversary: US$200,000
o 7th anniversary: US$250,000
o Completing at least 10,000 m of drilling; and
o Delivering a NI 43-101 compliant Prefeasibility Study Report.
During the year ended June 30, 2023, the Company recorded $Nil (2022 – US$75,000) as option income in
the Company’s consolidated statement of loss and comprehensive loss.
In May 2023, The Company terminated the option agreement.
c) Nord Property option to joint venture:
On September 4, 2020, the Company signed a definitive agreement with Mineria Activa (“Mineria”) for the
Company’s 100% owned Nord project in northern Chile.
The Company granted to Mineria the option to earn-in 100% of the project over four years by:
Making annual cash payments totaling US$3,000,000:
o On signing of definitive agreement: US$50,000 (received)
o 1st anniversary: US$200,000 (received)
o 2nd anniversary: US$400,000
o 3rd anniversary: US$600,000
o 4th anniversary: US$1,750,000
Committing to complete at least US$500,000 of exploration expenditures over the first two years
of the option period.
During the year ended June 30, 2023, the Company recorded $Nil (2022 – US$200,000) as option income in
the Company’s consolidated statement of loss and comprehensive loss.
In August 2022, Mineria terminated the option agreement.
Page 27
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
12. Exploration and Evaluation Assets (Cont’d…)
d)
Inca Property option to purchase:
On January 7, 2020, the Company signed an option agreement with subsidiaries of Newmont Corporation
(“NEM”) to acquire the Inca Gold Project in northern Chile.
The Company was granted the option to earn-in 100% of the project, subject to a 1.5% NSR royalty, by drilling
1,000 m on the project over two years and incurring US$3 million in exploration expenditures over five years.
The Company can terminate the agreement at any time after the completion of the initial 1,000 m drilling
commitment.
Following the completion of the maiden drill program on the Vania prospects, the Company met the minimum
drilling and exploration expenditures required for the first three years under the option agreement with NEM.
Upon completion of this option, NEM will have the right to earn back 70% of the project, in two stages, by:
Stage 1:
o Making a cash payment of US$3 million to the Company; and
o Funding US$6 million in exploration expenditures over three years.
If NEM completes Stage 1 but not Stage 2, the Company will retain 100% of the project and NEM will be
granted an additional 0.5% NSR royalty which may be bought back by the Company at fair market value.
Stage 2:
o Delivering a NI 43-101 compliant Prefeasibility Study reflecting a resource of no less than 2
million ounces of gold-equivalent using agreed upon cut-off grades; or
Incurring an additional US$15 million in exploration expenditures over three years.
o
If NEM completes Stage 2, the Company and NEM will hold 30% and 70%, respectively, in a joint venture
company holding the project. The Company will then have the option to either fund its 30% interest or reduce
it to a 25% interest in exchange for a loan from NEM to fund the project development to commercial production.
e) Rubi Property to joint venture:
On June 19, 2020, the Company signed an agreement with Mine Discovery Fund Pty Ltd. (“MDF”), a private
Australian company, for the Company’s 100% owned Rubi project in northern Chile.
Mirasol granted MDF the option to earn-in 80% of the project over 8 years. MDF must complete 2,000m of
drilling on the project over the later of:
18 months from execution of the agreement; or
12 months after receipt of necessary drill permits.
MDF exceeded its contractual minimum commitment by spending US$890,000 on exploration during the term
of the option agreement.
Mirasol was the operator of the project during the option period.
In March 2023 MDF terminated the option agreement.
Page 28
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
12. Exploration and Evaluation Assets (Cont’d…)
Argentina
f) Sascha-Marcelina option to purchase
The Company owns a 100% interest in certain mineral claims, which now form part of the Sascha-Marcelina
Gold Project located in Santa Cruz, Argentina.
During the year ended June 30, 2019, the Company entered into an option agreement to acquire a 100%
interest in certain other claims now included in the Sascha-Marcelina Project. On January 23, 2022, the option
agreement was amended. The Company can acquire the claims under option by making staged option
payments totalling US$3.75 million over five years.
The Company has a minimum US$300,000 exploration spending commitment during the option period. The
property owner retains a 1.5% NSR royalty.
Option payments are due as follows:
On signing (paid)
On or before January 23, 2020 (paid)
On or before January 23, 2021 (paid)
On or before January 23, 2023 (paid)
On or before January 23, 2024
On or before January 23, 2025
Total
US$25,000
US$50,000
US$75,000
US$50,000
US$100,000
US$3,450,000
US$3,750,000
g) Virginia Property option to joint venture:
On May 21, 2020, the Company entered into an option agreement with Silver Sands for the Company’s 100%
owned Virginia Silver Project in the Santa Cruz Province of Argentina. Mirasol granted Silver Sands the option
to acquire 100% of the project over three years by issuing common shares totalling 19.9% Silver Sands upon
completion of the option and completing or funding US$6 million in exploration expenditures over three years.
On February 15, 2023, Silver Sands issued a notice of termination of the option agreement, effective March
17, 2023. On February 21, 2023, Mirasol announced the termination of the option agreement with Silver Sands
to purchase the Virginia Silver Deposit. As at June 30, 2023 Silver Sands is indebted to the Company in the
amount of $495,369 for which the Company is pursuing collection. As the amount is disputed for financial
reporting purposes a provision has been made for the full balance owing.
h) Homenaje
On April 15, 2021, the Company signed a definitive agreement with Patagonia Gold Corp (“PGC”) for the
Company’s Homenaje project in northern Argentina.
The Company granted an option to earn 75% of the project over six years once PGC completes:
An initial work program over 2.5 years of US$1.15 million in exploration expenditures, of which
US$400,000 must be spent within the first 18 months, including 2,500 m of drilling;
A NI 43-101 compliant Prefeasibility Study by the end of the option period; and
Spending a minimum of US$400,000 annually, or US$200,000 in any six-month period, thereafter.
Page 29
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
12. Exploration and Evaluation Assets (Cont’d…)
h)
Homenaje
On July 11, 2023 PGC terminated the agreement with the Company.
i) Nico
On April 15, 2021, the Company signed a definitive agreement with PGC for the Company’s Nico Project in
northern Argentina.
Under the agreement, Mirasol will transfer its interest in the Nico property to PGC in return for a 1.5% NSR
royalty. Mirasol will have the right to regain full ownership of the property at no cost if production on the property
has not commenced by the end of year three.
j) Libanesa
On October 4, 2021, the Company entered into an option agreement with Golden Arrow Resources Corp
(“Golden Arrow”) for the Company’s Libanesa project located in the Santa Cruz Province of Argentina.
Under the terms of the agreement, Mirasol will grant Golden Arrow an option to earn 75% of the Libanesa
project over six years by:
Making annual cash payments totaling US$1,000,000:
o US$100,000 to be paid on the 2nd, 3rd, and 4th anniversaries
o US$250,000 on the 5th anniversary; and
o US$450,000 on the 6th anniversary.
Incurring, or funding exploration expenditures totalling US$4.0 million
o USD $500,000 per year during the first 2 years; and
o USD $750,000 per year for the following 4 years.
In July 2022, Golden Arrow terminated the option agreement.
k) Claudia:
On May 23, 2023, the Company signed an Option Agreement with Cerro Vanguardia SA Gold- Silver Mine
(“CVSA”) for the exploration of Mirasol`s Claudia Gold-Silver Project, located in the province of Santa Cruz,
Argentina.
Under the terms of the agreement, Mirasol granted CVSA the option to acquire 100% of the property over the
next four years by:
Within the first two years of the Agreement, CVSA may complete such mapping and sampling,
trenching and geophysics as required in its absolute discretion to develop drill targets, and fulfill a
minimum drilling commitment of 2,500 meters diamond drilling; and then CVSA will have the option,
subject to the term of the agreement, to:
o Complete within three years, not less than an aggregate of 6,000 meters of diamond drilling;
o Complete within four years, not less than an aggregate of 12,500 meters of diamond drilling;
Upon completion of the above commitments, CVSA shall have the right to exercise the Option under
the Agreement and subject to the terms of the Royalty Agreement, CVSA shall grant Mirasol a 2%
Net Smelter Royalty on future production from the Claudia Project.
Page 30
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
12. Exploration and Evaluation Assets (Cont’d…)
l) Advances to/from joint venture partners:
As at June 30, 2023, the Company has a receivable balance of $16,693 (2022 - $219,051) from exploration costs
in excess of advances received.
13. Related Party Transactions
Details of the transactions between the Company’s related parties are disclosed below.
a) Compensation of key management personnel
Key management personnel include persons having the authority and responsibility for planning, directing, and
controlling the activities of the Company as a whole. Key management personnel consist of the Company’s
Directors and Officers.
The remuneration of management and independent directors was as follows:
Management compensation (i)
Share-based payments (ii)
Director’s fees (iii)
Year Ended June 30,
2023
765,104
639,429
100,800
$
2022
525,580
392,329
95,550
1,505,333
$
1,013,459
$
$
i. Management compensation is included in management fees (2023 - $641,651; 2022 - $384,443) and in
exploration expenditures (2023 – $123,453; 2022 - $141,137) in the Company’s consolidated statements of
loss and comprehensive loss.
ii.
Share-based payments are included in the share-based payments expense in the Company’s consolidated
statements of loss for the years ended June 30, 2023, and 2022.
iii.
The independent directors of the Company are paid $2,100 per month (2022 - $2,100 per month).
b) Transactions with other related parties
Certain of the Company’s officers and directors render services to the Company as sole proprietors or through
companies in which they are an officer, director, or partner.
Page 31
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
13. Related Party Transactions
b) Transactions with other related parties (Cont’d…)
The following companies are related parties through association of the Company’s directors and officers:
Max Pinsky Personal Law Corporation
Chase Management Ltd.
Manning Lee Management Ltd.
Nature of transactions
Legal fees
Professional fees
CFO services
The Company incurred the following fees and expenses with related parties as follows:
Legal fees (i)
CFO services (ii)
Years Ended June 30,
$
$
2023
42,561
-
42,561
$
$
2022
80,986
15,000
95,986
i.
Legal fees are included in professional fees (2023 - $29,048; 2022 - $39,286) and in business development
(2023 – $13,513; 2022 - $41,700) in the Company’s consolidated statements of loss and comprehensive loss.
ii. CFO services are included in management fees in the Company’s consolidated statements of loss for the
year ended June 30, 2022.
Included in accounts payable and accrued liabilities at June 30, 2023, is an amount of $53,958 (2022 - $46,819)
owing to directors and officers of the Company and to companies where the directors and officers are principals.
14. Share Capital
a) Authorized Share Capital
The Company’s authorized share capital consists of an unlimited number of common shares without par value.
All issued common shares are fully paid. As at June 30, 2023 the Company had 65,650,060 common shares
outstanding.
i. Normal Course Issuer Bid
On October 19, 2020, the Company filed a normal course issuer bid (the “NCIB”) which authorizes the Company
to purchase for cancellation up to 3,900,000 of its issued and outstanding common shares. The NICB expired on
October 21, 2021.
On November 25, 2021, the Company announced its intention to renew its NCIB, to purchase for cancellation, up
to 3,500,000 of its issued and outstanding common shares. The Bid commenced on December 15, 2021, and
terminated on December 14, 2022. Pursuant to this NCIB, the Company purchased and cancelled 35,000 (2022
– 45,000) common shares for $13,650 (2022 – $19,810) cash consideration.
ii. Financing
In December 2022, the Company completed a non-brokered private placement issuing 5,076,667 common shares
for gross proceeds of $3,046,000. The Company incurred $121,040 cash finder’s fees, and $30,980 for regulatory
and other related fees.
Page 32
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
14. Share Capital (Cont’d…)
ii. Financing (Cont’d…)
In June 2023, the Company completed a non-brokered private placement issuing 5,909,600 units for gross
proceeds of $7,387,000. Each unit consisted of one common share and one-half of one non-transferable common
share purchase warrant. Each full warrant is exercisable into one common share at a price of $1.70 for one year
from the closing date. The Company incurred $143,750 cash finder’s fees, and $53,242 for regulatory and other
related fees.
Finder’s fee of $189,790 was paid to a brokerage firm of which a director is a shareholder and a director.
iii. Options exercised
During the year ended June 30, 2023, the Company issued 683,750 (2022 - nil) shares on exercise of share
purchase option for gross proceeds of $281,350 (2022 - $nil).
b) Share Purchase Options (“Options”)
The Company has established a share purchase option plan (the “Plan”) whereby the Board of Directors may,
from time to time, grant Options to directors, officers, employees, and consultants under the long-term incentive
plan. Options granted must be exercised no later than five years from the date of grant or such lesser period as
determined by the Company’s Board of Directors.
The exercise price of an Option is equal to or greater than the closing market price on the TSX Venture Exchange
(“TSXV”) on the day preceding the date of grant. The vesting terms for each grant are set by the Board of Directors.
The Plan provides that the aggregate number of shares reserved for issuance shall not exceed 10% of the total
number of issued and outstanding shares. At June 30, 2023, a total of 6,465,006 Options were reserved under the
Plan with 4,446,250 Options outstanding.
i. Movements in share purchase options during the year
A summary of the Company’s share purchase options and the changes for the year are as follows:
Options outstanding as at June 30, 2021
Granted
Expired / Forfeited
Options outstanding as at June 30, 2022
Granted
Exercised
Expired / Forfeited
Options outstanding as at June 30, 2023
Options exercisable as at June 30, 2023
Number of Options
1,575,000
Weighted Average
Exercise Price
$0.87
3,300,000
(840,000)
4,035,000
1,495,000
(683,750)
(400,000)
4,446,250
2,703,750
$0.37
$0.99
$0.43
$0.68
$0.41
$0.81
$0.49
$0.54
Page 33
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
14. Share Capital (Cont’d…)
b) Share Purchase Options (“Options”) (Cont’d…)
ii. Fair value of share purchase options granted
During the year ended June 30, 2023, the Company recognized share-based compensation expense of $890,700
(2022 – $505,052).
The weighted-average fair values of stock options granted, and the assumptions used to calculate the related
compensation expense for the years ended June 30, 2023, and 2022, was estimated using the Black-Scholes
Option Pricing Model with the following assumptions:
iii.
Share purchase options outstanding at the end of the year
Expected dividend yield
Expected share price volatility
Risk-free interest rate
Expected life of options
Fair value of options granted (per share option)
June 30, 2023
0.0%
102.87%
3.55%
4.5years
$0.51
June 30, 2022
0.0%
96.74%
1.78%
4.5years
$0.41
A summary of the Company’s options outstanding as at June 30, 2023 is as follows:
Exercise price
$
0.52
0.34
0.80
0.68
Options
Outstanding
300,000
2,475,000
200,000
1,471,250
4,446,250
Weighted
Average
Remaining Life
of Options
(years)
3.47
Options
Exercisable
300,000
1,062,500
200,000
1,141,250
2,703,750
Expiry Date
November 8, 2023
September 14, 2026
May 01, 2027
December 30, 2027
c) RSU Plan
On June 7, 2023, the shareholders approved an RSU Plan (the “RSU Plan”). The RSU Plan was also approved
by the Board of Directors on May 3, 2023, and by the TSXV on June 28, 2023. The RSU Plan provides for the
issuance of up to 1,000,000 restricted share units (the “RSUs”). Under the RSU Plan, RSUs may be granted to
directors, officers, employees and consultants of the Company (excluding investor relations consultants) as
partial compensation for the services they provide to the Company. The RSU Plan is a fixed number Plan, and
independent of the number of Options available under the Company’s stock option plan.
During the year ended June 30, 2023, the Company granted 205,000 RSU’s (2022 – 165,000). The associated
compensation cost, which is based on the underlying share price on the date of grant, is recorded as share-
based payments expense against share-based payment reserve. During the year ended June 30, 2023, the
Company recognized $63,893 (2022 - $73,425) as share-based payments. As of June 30, 2023, 205,000 RSU’s
were outstanding (2022 – Nil), and Nil was issued (2022 – 165,000)
Page 34
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
14. Share Capital (Cont’d…)
d) Warrants
In June 2023, the Company issued 2,954,800 of share purchase warrants with an exercise price of $1.70 expiring
June 6, 2024. These warrants were outstanding as of June 30, 2023 (2022-Nil). The share purchase warrants
were issued in connection with the Company’s private placement from June 2023 (Note 14 a (ii)). The Company
recorded $413,672 residual value relating to the warrants.
Number of Warrants
Weighted Average
Exercise Price
Warrants outstanding as at June
30, 2022 and 2021
-
-
Granted
2,954,800
$1.70
Warrants outstanding as at June
30, 2023
2,954,800
Warrants exercisable as at June
30, 2023
2,954,800
$1.70
$1.70
15. Segmented Information
The Company’s business consists of a single reportable segment being mineral property acquisition and
exploration. Details on a geographical basis are as follows:
Total Non-Current Assets
Canada
Argentina
Chile
June 30,
2023
$
80,878 $
1,363,620
209,060
June 30,
2022
133,245
1,344,912
204,129
$
1,653,558 $
1,682,286
Page 35
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
16. Income Taxes
The Company is subject to Canadian federal and provincial tax rates.
The Company has no taxable income in Canada.
The tax expense at statutory rates for the Company can be reconciled to the reported income taxes per the
statement of loss and comprehensive loss as follows:
Net loss before income taxes
Canadian federal and provincial income tax rates
Expected income tax recovery based on the above
rates
Non-deductible expenses
Share issuance costs
Change in unrecognized deductible temporary
differences
Foreign exchange and other
Total income tax recovery
The Company’s unrecognized deferred tax assets are as follows:
Unrecognized deferred income tax assets:
Non-capital losses
Exploration and evaluation assets
Share issue costs
Other
Total unrecognized deferred income tax assets
Year Ended
June 30, 2023
Year Ended
June 30, 2022
$
$
$
(9,796,827)
27.00%
(2,645,000)
395,000
(94,000)
2,697,000
(353,000)
$
$
(5,081,013)
27.00%
(1,372,000)
288,000
-
1,190,000
(106,000)
-
$
-
June 30,
2023
June 30,
2022
$
$
5,334,000
4,559,000
76,000
267,000
10,236,000
$
$
3,772,000
3,578,000
-
189,000
7,539,000
In assessing the recoverability of deferred tax assets other than deferred tax assets resulting from the initial
recognition of assets and liabilities that do not affect accounting or taxable profit, management considers whether
it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization
of deferred tax assets is dependent upon the generation of future taxable income during the periods in which
those temporary differences become deductible.
Deductible temporary differences, unused tax losses and unused tax credits:
June 30,
2023
June 30,
2022
Expiry date
Range
Non-capital losses
Exploration and evaluation assets
Share issue costs
Other
$
20,459,000 $
17,993,000
280,000
1,809,000
See below
14,255,000
14,052,000 Not applicable
2044 to 2047
1,233,000 Not applicable
1,000
Page 36
Mirasol Resources Ltd.
Notes to the Consolidated Financial Statements
For the Years Ended June 30, 2023, and 2022
(Expressed in Canadian Funds, except where indicated)
16. Income Taxes (Cont’d…)
The Company has non-capital loss carry-forwards of approximately $14,255,000 that may be available for tax
purposes. The loss carry-forwards are principally in respect of Canadian, Argentine and Chilean operations and
expire as follows:
2024
2025
2026
2027
2028
2036 to 2043
No-expiry
17. Commitment
Canada
$ -
-
-
-
-
10,984,000
-
Argentina
$ 426,000 $
365,000 $
3,611,000
4,135,000
196,000
-
-
$
10,984,000 $
8,773,000 $
Chile
-
-
-
-
-
-
742,000
742,000
On February 6, 2019, the Company signed a lease for its head office located at 1150 - 355 Burrard Street,
Vancouver, British Columbia, effective May 1, 2019, to April 30, 2025. The Company paid a security deposit of
$20,000. On March 15, 2022, the Company signed a license agreement covering the period April 1, 2022, to April
30, 2025, to share the office space with a Company related by virtue of certain directors in common.
18. Subsequent event
On September 12, 2023, Silver Sands completed a consolidation of 10 old shares for one new share. The Company
holds 1,037,794 shares representing 12.91% of Silver Sands common shares.
Page 37
Management Discussion and Analysis
For Mirasol Resources Ltd.
(“Mirasol” or the “Company”)
INTRODUCTION
The Management Discussion and Analysis (“MD&A”) should be read in conjunction with the
Company’s annual audited consolidated financial statements for the year ended June 30, 2023,
which are publicly available on SEDAR at www.sedar.com. All financial information, unless otherwise
indicated, has been prepared in accordance with International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All dollar amounts
referenced, unless otherwise indicated, are expressed in Canadian funds.
The following discussion of the Company’s financial condition and results of operations should be
read in conjunction with its audited consolidated financial statements and related notes for the year
ended June 30, 2023.
Recent global issues, including the ongoing COVID-19 pandemic and geo-political conflicts have
adversely affected workplaces, economies, supply chains, and financial markets globally. It is not
possible for the Company to predict the duration or magnitude of the adverse results of these issues
and their effects on the Company's business or results of operations this time.
This MD&A is prepared as of October 26, 2023.
FORWARD LOOKING INFORMATION
This MD&A contains certain forward-looking statements and information relating to Mirasol that are
based on the beliefs of its management as well as assumptions made by and information currently
available to the Company. When used in this document, the words “anticipate”, “believe”, “estimate”,
“expect” and similar expressions, as they relate to Mirasol or its management, are intended to identify
forward-looking statements.
1
This MD&A may use the terms “Inferred Resource”, “Indicated Resource”, “Measured Resource” and
“Mineral Resource”. The Company advises that these terms are recognized by and defined in
Canadian securities regulations (under National Instrument 43-101 “Standards of Disclosure for
Mineral Projects”). Investors are cautioned not to assume that any part of or all, of the mineral
occurrences in these categories will ever be converted into reserves.
This MD&A contains forward-looking statements relating to, among other things, the Company’s
goals and plans going forward, regulatory compliance, the sufficiency of current working capital, and
the estimated cost and availability of funding for the continued exploration and development of the
Company’s exploration properties. Such statements reflect the current views of Mirasol with respect
to future events and are subject to certain risks, uncertainties and assumptions. The material factors
and assumptions used to develop forward-looking information include, but are not limited to, the
future prices of gold, silver and copper, success of exploration activities, permitting time lines,
currency exchange rate fluctuations, government regulation affecting mining operations and policies
linked to pandemics, social and environmental risks, the estimation of mineral resources, capital
expenditures, costs and timing of the development of new discoveries, unanticipated reclamation
expenses, title disputes or claims and limitations on insurance coverage, continued availability of
capital and financing, and general economic, market or business conditions.
Forward looking statements are based on the beliefs, estimates and opinions of the Company’s
management on the date the statements are made. The Company undertakes no obligation to
update these forward-looking statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change, except as may be required by applicable law.
Tim Heenan (MAIG), President for the Company, and a “Qualified Person” under National Instrument
43-101 (“NI 43-101”), has reviewed and approved the scientific and technical information in this
MD&A. This technical information was prepared by the Qualified Person for the Company at the time
of disclosure.
CORPORATE AND STRATEGIC OVERVIEW
Mirasol (TSXV: MRZ) (OTCPK: MRZLF) is a mineral exploration company targeting gold, silver and
copper (“Au”, “Ag” and “Cu”, respectively) deposits, mainly in the Atacama-Puna region of northern
Chile and Argentina, and in the Santa Cruz Province of southern Argentina. Both regions are highly
prospective and host many large-scale precious and base metal mines, operated by some of the
world’s largest mining companies.
Mirasol’s business strategy combines self-funded exploration of quality projects with the joint venture
funding model. This hybrid strategy was developed to accelerate the drill testing of key projects that
potentially host economic discoveries. This year, Mirasol has been advancing two self-funded
projects, Sobek and Inca Gold in Chile. In addition, Mirasol controls 100% of the high-grade Virginia
Silver Deposit and has an active option agreement in Argentina on the Claudia project. Under the
option agreement, Mirasol’s partner is funding all exploration and land holding costs, which allows
the Company to focus its available resources on self-funded exploration and business development
opportunities, while retaining exposure to potentially significant discoveries. The Inca Gold project is
subject to an option agreement where Mirasol is earning into the property owned by Newmont.
2
Mirasol’s Exploration Focus
Mirasol’s main geographic focus is in the Atacama-Puna region of northern Chile and Argentina and
in Santa Cruz province, southern Argentina, where the Company maintains a high-quality portfolio
of exploration properties with the potential for economic discoveries. This portfolio was assembled
from Mirasol’s project generation activities, which applies innovative, concept-driven geological
techniques combined with follow-up fieldwork.
Chile/Argentina: Atacama – Puna Region
The Company’s portfolio of properties in the Atacama-Puna region is located on a 1,700 km-long
segment of three north-south oriented prolific mineral belts that run through Chile and Argentina.
These belts host many world-class Cu-Au mines and occurrences of differing ages, spanning millions
of years (“Ma”). From youngest to oldest, these belts are:
Miocene to Pliocene (Mio-Pliocene, 23-5 Ma): Targeting high-sulfidation epithermal (“HSE”) Au-Ag
and porphyry Cu-Au-Molybdenum (“Mo”) deposits. In this belt, located to the north of the Maricunga
Belt, Mirasol controls approximately 90,000 ha of granted exploration claims. The Maricunga Belt is
a world recognized geological terrain for its Au-Cu-Mo porphyries and HSE Au/Ag deposits like El
Refugio, Martes/Lobo, La Pepa, Cerro Casale, Caspiche and Volcan Copiapo. The Company also
presently holds approximately 30,000 ha of granted exploration claims in the southern part of the
Mio-Pliocene aged Cu belt proximal to the border between Chile and Argentina.
Middle Eocene to Early Oligocene (Eocene-Oligocene 40-28 Ma): Targeting porphyry Cu-Au-Mo
deposits. Mirasol presently holds approximately 15,000 ha of granted exploration claims in this belt.
Paleocene to Early Eocene (Paleocene, 66-53 Ma): Targeting low-intermediate-sulfidation
epithermal Au-Ag and porphyry Cu-Au-Mo deposits. Mirasol presently controls approximately 16,000
ha of granted exploration claims in this belt.
Argentina: Santa Cruz Province
The Company’s project portfolio in Argentina is located in Santa Cruz Province within the Deseado
Massif, a 60,000 km2 region of upper-middle Jurassic age volcanics that is recognized as having a
high potential to host low- and intermediate-sulfidation epithermal Au-Ag deposits. Mirasol controls
approximately 265,000 ha of exploration and mining claims in the province.
The Company is monitoring the potential impact of the rapid currency devaluation and changing
public policies in Argentina. To date, these issues have not impacted Mirasol’s capacity to operate
and Mirasol continues to receive third-party interest for its projects in both countries.
EXPLORATION, JOINT VENTURE AND BUSINESS DEVELOPMENT ACTIVITIES
Flagship Projects Operated and Funded by Mirasol
Chile
Sobek Copper Project, Northern Chile
The Sobek Cu project (“Sobek”) was staked by Mirasol in 2016 based on prospective local structural
architecture hosted within a highly prospective and productive geological terrain. An important north-
northeast trending mineralized structural corridor encapsulates a large part of the Sobek package,
that is crosscut by a series of north-northwest trending deep seated trans-cordilleran lineaments
evident through the entire property. In addition, the tenure is host to prospective Miocene/Pliocene
aged geological units and intriguing satellite image ASTER alteration responses.
3
The Sobek land position was expanded in 2021 and 2022 following significant results reported by
Filo Mining Corp. from its Filo del Sol project located 7 km to the east of Sobek, which included a
remarkable intercept of 858m at 1.80% CuEq (including 163m at 5.43% CuEq)1. The high-profile
Vicuña Copper-Gold-Silver District is developing in the Sobek area with multiple deposits located in
close proximity, including the Josemaria and Los Helados porphyry Cu-Au deposits located 10 km
east-northeast and 20 km north of Sobek, respectively. The recent NGEX discovery at Lunahuasi
(formerly Potro Cliffs) is just three km directly east of the southeast corner of Sobek North Block.
Mirasol controls 11,100 ha of exploration claims in this district in three blocks, the North, Central and
South blocks, that are all on the Chilean side of the border with Argentina.
2022/23 Exploration Program and Launch of Maiden Drill Campaign
The 2022/23 exploration program included property-wide follow-up geochemical sampling and
geological mapping, a 500 line-km airborne mobile MT geophysical survey and construction of a 7
km access road to support drilling. Targets generated from the airborne Mobile MT survey and the
coincident polymetallic soil anomalies derived from the soil sampling grid results, along with the high-
grade Cu samples collected on surface, strengthen the geological model and reinforce the potential
discovery of mineralization (news release May 15, 2023).
The maiden drill program at Sobek Central started late in the season when road construction was
completed and allowed for access. The results from the first drill holes were inconclusive and will
require follow-up as the drilling did not reach the intended targets and drilling was suspended with
the onset of winter weather (news release August 21, 2023). The maiden drill campaign is expected
to resume in Q4 2023 to test a series of priority targets. Construction of the drill access road will
resume in Q4 2023 to provide unrestricted access to all the priority drill targets at Sobek Central.
At Sobek Central, drill hole SB-DDH-001 was a structural target, testing for the source of the surface
soil grid anomalies over and around the Central Breccia Zone, and also the source of the intensely
phyllic altered porphyry clasts hosted within the breccia (news release August 21, 2023). The drill
hole was stopped at a depth of 352m when it passed through a structural fault zone hosting strong
calcite/gypsum stockworks. Follow-up drilling will aim to test the target from the opposite direction.
Interpretation suggest that the structural source of the breccia may have flattened out resulting in the
hole being drilled parallel and underneath the structure, or the structure may have pinched-out at
depth within the fault zone.
The second hole at Sobek Central, drill hole SB-DDH-002 targeted the northern cusp of the massive
northern-most MT anomaly (news release August 21, 2023). For safety reasons, drilling was halted
at a depth of 586m before it reached the intended target. Based on the weak to moderate “green
rock” peripheral propylitic style of alteration and the lack of consistent mineralization, the target has
been refined and the drill collar will now be repositioned to start at a lower elevation to reach the
center of the target more efficiently. The massive MT anomaly is elongated in a NW-SE direction
and is 2km by 1km in size. The drill hole only reached the outer fringes of the target when it was
halted.
Airborne Mobile MT Geophysical Survey Outlines Several High-Priority Targets: Mirasol completed
a 500-line km Airborne Mobile MT survey (75 sq.km) covering the entire Sobek Central area and a
small area of Sobek North (13 sq.km) prior to demobilization of the MT system. The Airborne Mobile
MT has high-definition depth penetration to greater than 800m depth below surface and has been
proven effective in defining targets in HSE and porphyry systems elsewhere in Chile. The survey
has outlined a very striking cluster of MT anomalies and the interpretation suggests they may
represent intrusive centers. The Central Breccia, and both the VN-Zone and VN-Zone North targets
lie on the peripheral rims of these oval shaped MT responses (news release June 27, 2023).
1 Filo Mining Corp. – 05/13/2021 Press Release
4
Sobek Central – VN-Zone and Other Priority Targets: The VN-Zone was elevated as a high priority
target late in the season when high gold grades were recovered from prospecting, with results up to
5.0 g/t gold and 2,200 ppm Cu being sourced from select grab samples (news release dated June
27, 2023). The VN-Zone sits on the northern outer cusp of a second very large oval shaped Mobile
MT anomaly, with dimensions of 1.5km x 2.0km which is interpreted to represent a prospective
intrusive center. To determine the best location and orientation of the first holes to drill test the
massive anomaly multiple line-based 3D sections of the data have been generated and are currently
being analyzed. Detailed mapping and drilling of this strongly mineralized sheeted vein zone will be
a primary focus of next season’s campaign.
Another new occurrence of mineralized “M” veins (VN-Zone North) was exposed along the road cut
enroute to the VN-Zone. The VN-Zone North is located approximately 1.4 km north-northeast of the
VN-Zone and sits on the eastern edge of the northern-most Mobile MT anomaly. Samples collected
from the road-cut exposure returned values of 1.37 g/t Au and 663 ppm Cu, and 0.54 g/t Au and 411
ppm Cu (news release dated June 27, 2023). These strong gold results are all sourced from sheeted
“Maricunga Type” quartz-magnetite veinlets with argillized margins. The “M” veinlets contain
anomalous values of associated Cu mineralization (2,220 ppm), which is typical in Chilean Au-Cu
“Maricunga Type” porphyry deposits.
Sobek North – Expansion of the Mineralization El Potro Prospect: Mineralization at the El Potro East
Zone located at the southeast corner of Sobek North has been extended further to the east and is
now within 3 km west of NGEx´s recent Lunahuasi discovery in Argentina. The newly encountered
areas of interest within the El Potro Zone appear to host an area of “lithocap type” alteration and
mineralization. Select rock chip samples have returned values ranging from 0.10 to a high of 4.3 g/t
Au with associated Ag from 0.30 up to 25.9 g/t from HSE type intensely altered and silicified areas,
located above the more porphyry Cu-Mo style of mineralization which returned 0.65% Cu and 105
ppm Mo (news release June 27, 2023). Exploration over targets at El Potro East Zone has been
prioritized and is scheduled to be drill tested in the early part of the Q1-2024 (news release August
21, 2023).
Sobek Central - Expansion of Polymetallic Soil Anomaly: The Sobek Central soil sampling grid
expansion and infill indicates a clear extension of the previously defined Central Breccia polymetallic
soil anomaly (Cu/Pb/Zn/Ag/Au) to the southeast and appears to highlight a distinct Cu halo
(approximately 750m long by 500m wide) outboard from the main breccia body with a strong lead
(“Pb”)/zinc (“Zn”) anomaly directly above the breccia. In addition, to the southeast of the Central
Breccia Zone a second widespread Cu soil anomaly is emerging with some continuity (approximately
700m by 300m) and is coincident with anomalous Pb, Zn, Ag and Au. The soil grid is being expanded
further to the southeast and to the south to cover the area which host the Au-bearing veins at the
VN-Zone (news release March 2, 2023).
Sobek Central - Green Wall Zone Extended Further to the East-Southeast Along Trend: Multi-
percentage Cu results were returned from select prospecting rock chip grab samples collected from
a west-northwest trending structurally controlled intrusive dyke over >250m. This dyke hosts strong
Cu mineralization with “white” chalcocite, bornite, azurite, chrysocolla and minor covellite as
confirmed by petrology studies. This structurally controlled dyke may potentially vector to a larger
“manto-type” or intrusive-hosted mineralization at depth (news release December 1, 2023).
Results from recent select grab samples collected at the Green Wall Zone has extended the
mineralization 1,000m to the southeast towards the edge of the Central Breccia Zone. A new narrow
“seam”, now called the Grieta Verde Zone, further to the south of the CLP-Zone and somewhat
oblique to the Green Wall Zone, has returned encouraging Cu values with highly anomalous Au
averaging 0.25 g/t Au from the 10 select grab samples collected from this area. This narrow “seam”
injected into the hosting sediments is similar to that seen in the Green Wall Zone, which is also
hosted in the sediments on the north side of the CLP-Zone. While neither of these zones represent
potential stand-alone targets, the high-grade Cu values with associated Au within the hydrothermal
5
system is potentially sourced from a larger concealed body under either the CLP or the Central
Breccia zones (news release March 2, 2023).
Sobek Central – CLP-Zone: This zone is interpreted to be an area of collapse that exposes outcrops
and large rounded blocks of sedimentary rock with a strong veinlet stockwork of hydrothermal
gypsum, which is especially evident along the margins of this striking geomorphological feature. The
presence of hydrothermal gypsum suggests that the affected sedimentary sequence may be part of
the cupolas zone of a deeper hydrothermal system. The area displays strong geochemical anomalies
including Mo in rock chips and Cu in soils (news release February 28, 2022)
Sobek Central – “Central Breccia Zone”: Located just above and south-southeast of the Green Wall
Zone, the Central Breccia Zone is characterized by what appears to be a hydrothermal explosive
breccia injected into the intersection of two northwest-southeast structural lineaments. The partially
exposed geometry, as it is currently understood, is approximately 140 x 70m, but the actual limits
remain to be verified in the field with detailed mapping. The upward transported material in the
breccia includes strongly clay phyllic altered (quartz-sericite) and silicified granitic quartz-porphyry
clasts, with strong oxide-boxworks, which may indicate a concealed porphyry target at depth. Limited
rock chip sample geochemistry from this breccia shows a “spotty” polymetallic signature with
Cu>Zn)>Pb. In addition, a detailed grid-based soil survey over the breccia also shows a very strong
polymetallic multi-element geochemical signature with coincident anomalies of Pb>Zn>Au>Ag>Cu.
This soil grid survey is currently being enlarged in all directions to fully cover the area of interest
(news release December 1, 2022).
Inca Gold-Silver Project, Northern Chile
In early 2020 Mirasol announced the signing of an option agreement with subsidiaries of Newmont
Mining Corporation (“NEM”) to acquire the Inca Gold project in northern Chile (news release January
13, 2020). Mirasol was granted the option to earn 100% of the project over five years, subject to a
1.5% NSR royalty, by drilling 1,000m over two years and incurring US$3 million in exploration
expenditures over five years. Mirasol may terminate the agreement at any time after the completion
of the initial 1,000m drilling commitment (news release January 13, 2020).
Upon completion of this option, NEM will have the right to earn back 70% of the project in two stages.
In stage 1, NEM will have to make a cash payment of US$3 million to Mirasol and fund $6 million in
exploration over three years. In stage 2, NEM will have to deliver a NI 43-101 compliant Prefeasibility
Study on a resource of no less than two million ounces of Au equivalent using agreed upon cut-off
grades or incur an additional US$21 million in exploration expenditures over six years. If NEM
completes stage 1 but not stage 2, Mirasol will retain 100% of the project and NEM will be granted
an additional 0.5% NSR royalty, which may be bought back by Mirasol at fair market value.
Following the completion of the maiden drill program on the Vania prospects (news release
September 11, 2023), the Company met the minimum drilling and exploration expenditures required
for the first three years under the option agreement with NEM.
The 16,300 ha Inca Gold project is located in Region III of Chile approximately 100 km north of
Copiapo, and within the Inca Del Oro mining district that hosts both Santiago Metals Delirio Cu-Au
mine and Pan Aust and Codelco’s Inca de Oro porphyry Cu-Au deposit. Inca Gold is located at a
relatively low altitude between 2,000 to 3,000m ASL within the Paleocene belt with year-round
access for exploration and nearby mature infrastructure.
Local geology on the southern portion of the project is characterized by a thick volcanic-sedimentary
sequence consisting of ignimbrites, lava flows, and volcanic breccias. The northern portion consists
of an older sequence of intensely folded and faulted ignimbrites and volcanic breccias. These two
geologic domains are separated by a regional northeast lineament mostly covered by Atacama
gravels.
6
Exploration Results
Vania North and Vania South host separate porphyry/IOCG and/or HSE targets concealed under
transported alluvial/colluvial cover in a very attractive structural architectural setting. Vania North and
South are set within a strong north-northeast structural corridor which hosts the Inca del Oro porphyry
(located 12 km to the southwest) and the expansive El Salvador mining district (some 40 km to the
north of Vania North). In addition, the Delirio Cu mine, located 4 km to the west, is owned and
operated by Santiago Metals, which mines Cu-in-tourmaline hydrothermal breccias within an area
characterised by abundant historical alluvial Au workings.
Airborne Mobile MT Geophysical Survey Reinforces High-Priority Targets: Mirasol completed a 378-
line km Airborne Mobile MT survey (53 sq.km) covering the entire Vania prospect at Inca Gold,
including the Vania South and North prospects as well as the recently defined Vania East and SW
prospects, with tightly spaced (100 m) helicopter flight lines over the principal targets.
The Airborne Mobile MT has high-definition depth penetration to greater than 800 m depth below
surface and has been proven effective in defining targets in HSE and porphyry systems elsewhere
in Chile. The survey outlined several MT anomalies and the interpretation suggests they may
represent hydrothermal alteration overlying and surrounding concealed intrusive centers.
Vania Prospects Drill Campaign: The maiden drill program launched at Vania was recently concluded
as planned with two drill holes for a total of 926m complete (news release September 11, 2023).
Vania South was selected as the first priority target because of the coincident geophysical surveys
and geochemical surface results along with its location at the intersection of two prominent structural
trends. As previously reported, the reprocessing and re-interpretation of the original Newmont
ground magnetic (“Mag”) data resulted in the identification of the Vania South anomaly located 3 km
south of Vania North (news release September 7, 2022). At the Vania South target a concealed and
very strong, discrete magnetic response exists within the southeast corner of the Mag grid, showing
smooth magnetic textures surrounding the main anomaly (news release December 8, 2022). Vania
South displays a very interesting and strong magnetic high response in the analytical signal, and a
very compelling target in the magnetic susceptibility processing. Interpretation of the Mag data
suggests that this very strong magnetic anomaly may represent a concealed copper porphyry target,
with the magnetic source potentially characterizing the potassic-altered core of an intrusive body and
the smooth magnetic border representing the envelope of hydrothermal alteration.
Coincident with the northern part of this set of Mag anomalies is a strong conductivity anomaly which
was outlined by the Airborne Mobile MT geophysical survey. Vania South is located along the
intersection of two very prominent structural trends, the north-south trending Quebrada Vasquez
fault and the east-northeast trending Pique Seco fault. A large copper soil anomaly identified from
the deep sensing geochemistry (DSG) survey results, resides above the geophysical anomalies in
the alluvial/colluvial transported cover.
The first hole at Vania South was designed to pass through the horizontal resistive layer, which may
represent a lithocap, and continue to penetrate the large magnetic anomaly, the MT conductivity
anomaly, both of above-mentioned controlling fault structures and the surface geochemical anomaly.
The magnetic anomalies appear to reside in the downthrown block (hanging wall) of a large north-
northeast structural trend which may separate the basement block on the west side, and the
downthrown block on the east side, in a typical horst/graben type structural environment. The Vania
South target appears to host characteristics similar to concealed porphyry intrusive bodies, in a very
attractive structural setting.
Vania North Gold (Copper)
Vania North is characterized by several distinct, coincident geochemical and geophysical anomalies
cradled within an attractive structural intersection. A recent Electrical IP Pole-Dipole survey over the
geochemical anomalies has successfully detected compelling coincident IP anomalies. Vania North
is considered a high-quality drill target (news release September 7, 2022).
7
A strong coherent geochemical Au anomaly was originally identified using Newmont`s proprietary
Deep Sensing Geochemical (DSG) sampling system at Vania North. Coincident with the DGS Au
anomaly is a strong annular geochemical halo of pathfinder elements within magnetic depletion zone
interpreted to be controlled by the intersection of northwest and northeast trending structural
lineaments.
Mirasol’s subsequent reprocessing and reinterpretation of the Newmont magnetic data delineates a
prominent northeast-southwest trend of magnetic depletion, coincident within a long, shallow
topographic valley. The magnetic depletion and low resistivity, identified from the recent IP survey,
suggests that the rocks along this trend may have been subjected to acid-sulphate leaching and may
contain sections of vuggy silica, which are deemed to be prospective zones for late-stage
mineralizing Au events.
On the western edge of the concealed anomaly, within the outcropping wall rocks at the edge of
cover, alteration is seen in the form of locally hornfelsed rocks hosting Cu mineralization in small,
restricted structures.
The electrical IP geophysical campaign highlighted several compelling concealed targets at Vania
North. The geophysical interpretation suggests the potential existence of HSE-type anomalies, which
may represent diatreme and vein-type structures, possibly underlain by a deeper more porphyry-like
geophysical response, which warrants further evaluation, including drilling. In preparation for drilling,
Mirasol has complete infill DSG lines at Vania North to assist in vectoring into the best areas for the
maiden drill program.
Argentina
Virginia Silver Deposit, Santa Cruz
Discovered by Mirasol in 2009, the Virginia Silver Deposit (“Virginia” or the “Deposit”) in the Santa
Cruz Province of Argentina hosts a high-grade, intermediate sulfidation epithermal style
mineralization in a series of prominent outcropping vein-breccias associated with a rhyolitic volcanic
flow dome field. Mirasol completed a series of drill programs from 2010 to 2012 for 23,318m of
diamond drilling in 223 holes, designed to test the potential of the mineralized structures to a
maximum depth of 266m. In 2016 the Company filed an amended NI 43-101 Resource Estimate
defining seven outcropping bodies of high-grade Ag mineralization, constrained2 within conceptual
pits, with an indicated mineral resource of 11.9 million ounces of Ag at 310 g/t Ag and a further
inferred mineral resource of 3.1 million ounces of Ag at 207 g/t Ag (see amended NI 43 -101
technical report titled “Amended Technical Report, Virginia Project, Santa Cruz Province, Argentina
- Initial Silver Mineral Resource Estimate” dated February 29, 2016, prepared by D. Earnest and M.
Lechner and filed on SEDAR ).
Updating the Virgina NI 43-101 Resource Estimate: On May 20, 2020, Mirasol signed an option to
purchase agreement (“Option Agreement”) for Virgina with Golden Opportunity Resources Corp.,
later renamed Silver Sands Resources Corp. (“Silver Sands”). On February 21, 2023, Mirasol
announced it has regained an unencumbered 100% interest in Virginia, following the termination of
the Option Agreement with Silver Sands.
2 The Qualified Persons responsible for this amended Technical Report were commissioned by Mirasol
Resources Ltd. to review all geologic, geochemical, geophysical, surface trenching, diamond drill core
sampling and metallurgical recovery data pertaining to the Virginia Project for the purpose of completing a
Mineral Resource estimate in accordance with the guidelines of the Canadian Institute of Mining and Metallurgy
(CIMM). For calculating conceptual pits, a Ag price of US$20 per ounce was used. Sensitivity analyses by the
Qualified Persons indicate that the Mineral Resources are not particularly sensitive to operating costs or Ag
price fluctuations. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic
viability.
8
Prior to termination of the Option Agreement Silver Sands funded more than US$3.4 million in
exploration, including over 10,250m of diamond drilling, 2,300m of trenching and 190 km of IP
Electric geophysics. An updated NI 43-101 Resource Estimate is currently being completed to
incorporate these drill results.
Four phases of drilling were funded by Silver Sands under the Option Agreement.
Phase I conducted in 2020 included 2,831m of drilling in 20 holes.
Results demonstrated the potential for significant new mineralization outside of the current Deposit
(news release January 21, 2021 and February 23, 2021).
Phase II comprised 20 diamond drill holes (3,104m). A new high-grade zone was discovered at Ely
Central, where drilling intersected strong and continuous Ag grades in four drill holes over a 200m
strike length. Mineralization at Ely Central remains open to expansion both laterally to the north and
south, and also to depth. In addition, significant intercepts were encountered beyond the main
Virginia vein field, confirming the potential for new mineralized zones (news release May 17, 2021).
Phase III included 20 drill holes completed at Virginia and the Santa Rita Prospect, located in the
north of the property package. At the main Virginia vein field, high-grade mineralization was
discovered on the Margarita vein trend in a single diamond drill hole intersecting 2.63m at 1,456 g/t
Ag. This intercept represented the first mineralized interval from this new target and indicates the
potential for a new mineralized trend along strike and at depth (news release February 1, 2022).
At the Martina Northwest target, two holes were collared to test the depth extent of a mineralized
polymictic hydrothermal breccia structure that was previously drilled. The second drill hole completed
at a shallow dip successfully intersected 4.75m at 242 g/t Ag, including 2.45m at 404 g/t Ag, 68m
vertically below surface. The results from Martina Northwest are very encouraging as these new
intersections support the potential to increase the mineral resource along this trend.
To follow up on the 200m strike length of mineralization defined at Ely Central, continued drilling
returned a broad interval of 33.8m at 88 g/t Ag from 71.3m which successfully closes the gap
between the mineralized structures at Ely Central and Ely North. In addition, the deepest
mineralization encountered along the Ely structure to date intercepted 4.55m at 0.33 g/t Au and 30
g/t Ag from 173.65m (including 1.2m at 0.63 g/t Au and 26 g/t Ag). The presence of this comparatively
rich Au pulse may indicate the introduction of a stronger and more consistent Au enriched
mineralization in the deeper parts of the Virginia vein system (news release January 25, 2022).
Maiden drilling at Santa Rita Central and East intercepted encouraging Au and Ag mineralization
confirming that the structures mapped and sampled on surface extend to depth, The best results
were obtained at Santa Rita East where two drill holes collared 50m apart returned 5.65m at 0.68 g/t
Au from 35.65m, including 1.35m at 1.87 g/t Au and 5.20m at 0.63 g/t Au and 7 g/t Ag from 35.30m
(news release February 10, 2022).
Phase IV included 12 diamond drill holes for a total of 1,362m (news release July 21, 2022). The
drilling extended mineralization outside the existing Virginia resource by testing the gaps along the
main vein structures at Ely and Martina and to define new mineralization at the Margarita trend.
Previously untested, outlying targets approximately 1.5 km to the north of the main trend, Patricia
and Daniela were also drilled during this campaign.
At the Margarita high-grade Ag trend, three drill holes successfully extended the mineralized vein by
more than 150m to the north-west. The system remains open in both directions. The Margarita Vein
has similar mineralization to the Julia Vein which hosts most of the current Ag resources at Virginia.
Margarita hole MR-DDH-004 returned 4.85m at 720 g/t Ag, including a discreet intercept of 0.30m
at 1,775 g/t Ag, exhibiting a strongly banded epithermal vein with fine-grained sulphides and Cu-
oxides.
At Ely Central three holes were drilled for a total of 261m testing the gaps within the 500m-long trend.
This newly identified Ag-rich vein trend outcrops on surface and has been drilled to 100m vertically
9
below surface and remains open to depth. Notable intersections from the Ely Central drill holes
include EC-DDH-011 returning 11.95m at 124 g/t Ag, including 1.8m at 192 g/t Ag.
One drill hole tested the northern extension of the 200m-long anomalous southern end of Ely North
vein, which is not currently part of the Ely North conceptual resource pit. The hole intercepted the
vein 100m vertically below surface returning 5.65m at 144.5 g/t Ag, including 0.6m at 418 g/t Ag,
extending the trend 50m to the north. Further infill drilling is required to test the remaining gaps along
the Ely Trend. This could potentially connect the Ely Central, Ely South and Ely North conceptual
resource pits.
Two new holes were drilled at the Martina vein trend. Martina Central drill hole MC-DDH-002 was
designed to start testing the gap between the Martina Central and northwest trends and returned Ag
intersections of 2.9m at 127 g/t Ag, including 1.45m at 179.5 g/t Ag. Gaps still remain to be drilled
along the Martina structure with the potential for Ag grades to be associated with the notable high
chargeability responses. Hole MNW-DDH-0064 (8m at 91 g/t Ag) filled the gap in the Martina
Northwest and extended the mineralization along this 200m-long trend.
One drill hole tested each the Daniela and the Patricia Veins, located approximately 1.5 km to the
north of the Ely North Resource conceptual pit. Both of these veins were untested targets hosting
the highest-grade surface rock-chip Ag samples. The objective of these holes was to test for downdip
extensions of the surface expressions. The Patricia drill hole PA-DDH-001 intersected 1.45m at 120
g/t Ag, including 0.5m at 198.5 g/t Ag, and another parallel structure with 2.95m at 95.7 g/t Ag,
including 0.35m at 163 g/t Ag. These modest drill results did not replicate the extremely high-grade
rock chips from near source float block samples (over 29,000 g/t Ag and 18,800 g/t Ag) from surface.
Follow up drilling along strike will be required to understand the significance of these intersections.
Projects Under Option Agreements
Argentina
Claudia Gold-Silver Project, Santa Cruz (operated and funded by Cerro Vanguardia SA)
On May 23, 2023, Mirasol announced the signing of an option agreement with Cerro Vanguardia SA
Gold-Silver Mine (“CVSA”) owned by AngloGold Ashanti (92.5%) and FOMICRUZ S.E. (7.5%) for
the exploration of Mirasol`s Claudia Gold-Silver Project (“Claudia”), located in the Deseado Massif
of Argentina’s Santa Cruz province, directly adjacent to the southern border of the producing CVSA
Gold-Silver Mine.
Terms of the Claudia Option Agreement:
a) Within the first two years of the Agreement CVSA may complete such mapping and sampling,
trenching and geophysics as required in its absolute discretion to develop drill targets, and fulfill
a minimum drilling commitment of 2,500m of diamond drilling; and then CVSA will have the option,
subject to the terms of the agreement, to:
1) Within three years, complete not less than an aggregate of 6,000m of diamond drilling;
2) Within four years, complete not less than an aggregate of 12,500m of diamond drilling;
b) Upon completion of the above commitments, CVSA shall have the right to exercise the Option
under the Agreement and, subject to the terms of the Royalty Agreement, CVSA shall grant
Mirasol a 2% Net Smelter Royalty on future production from the Claudia Project.
Drill Program Launched: CVSA initiated a drill program at the extensive, 65,192 ha, Claudia project,
located Mine. In this first phase of drilling, over 3,300 m of drilling will be completed at the IO
prospect, in 13 holes ranging from 100 to >400m in depth to test the prospective vein trends which
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are potentially southern extensions and/or parallel trends of the CVSA Mine vein field (news release
October 3, 2023).
History at Mirasol`s Claudia Property
The Claudia Project was originally staked in 2004 as part of Mirasol’s Santa Cruz exploration
program. Mirasol, in conjunction with various JV partners, has completed over 19,000 m of combined
RC and DDH drilling, more than 4,000 line-km of ground magnetometry, 249-line km (43 km2) of
gradient array IP geophysics covering six separate blocks, almost 100-line km`s electrical IP- Pole-
di-Pole geophysical lines, collected over 3,500 rock chip samples, 4,500 rock trench channel
samples from 200 trenches, close to 1000 MMI geochemical soil samples and 1,500 km2 in detailed
geological mapping.
Between 2006 and 2010 two phases of drilling were completed with a JV partner, including 3,794m
of drilling in 26 holes and 3,168m of RC drilling in 25 holes. Drilling results from these campaigns
included multiple intercepts with greater than 100 g/t Ag, including five intercepts from 118 g/t Ag to
217 g/t Ag and up to 1.3 g/t Au.
During 2012, Mirasol`s inhouse exploration team expanded and defined the impressive 15 km long
Curahue vein trend, which is largely concealed by shallow gravel cover (<5m) and is seen to host
six large individual vein trends, namely the Europa, IO, Ganymede, Callisto, Themisto and Sinope
segments. Large extensions of these trends have been traced under cover by electrical IP (Gradient
Array) geophysical campaigns.
At the Rio Seco prospect, located on the easternmost part of Claudia, Mirasol’s early prospecting
discovered the first outcropping veins at Claudia where select surface samples returned up to 20.1
g/t Au and 1,175 g/t Ag from the “J Vein”. Saw-cut channel and trench intersections returned 0.7m
at 13.9 g/t Au and 229 g/t Ag and 10.5m of 1.9 g/t Au and 22 g/t Ag from mineralized zones along
the expansive Rio Seco vein field (news release June 14, 2012).
During Q2 2012, Mirasol drilled a total of 2,599m in 25-holes. The best results included individual
assays of up to 0.83m at 6.59 g/t Au and 139.3 g/t Ag and broad intersections of anomalous Au and
Ag up to 15.3m of 0.29 g/t Au and 50.9 g/t Ag (news release March 4, 2013).
During 2016/17, under a previous JV with CVSA, a combined 7,525m of RC and DDH drilling was
completed at Claudia. The majority of the drilling was focused along a 2.2-km section of the “IO vein”,
one of the six prospects identified to-date along the 15 km long Curahue trend (news release
December 16, 2016 and February 17, 2017).
A major “milestone” of the CVSA drilling at the “IO” vein was the discovery of a 600m long, open-
ended mineralized body hosting silver/gold mineralization which starts a few meters below surface
and has been drill tested to a vertical depth of 135m. This strongly mineralized trend requires follow-
up work both downdip and along the strike of the structure. Highlight results included:
High-grade vein: 0.6m at 11.72 g/t Au and 1,224 g/t Ag.
Vein and veinlet composite: 9.3m at 1.40 g/t Au and 134.6 g/t Ag.
From October 2017 through March 2019, Mirasol with a JV partner drilled 2,529m in 12 holes at
Claudia. Drilling completed to July 2018 focused mostly at the Curahue prospect, with 10 DDH holes
totaling 2,270m completed, to test targets on the Europa, IO, Themisto and Callisto segments, along
the extension of the Curahue trend.
Drill results from the Curahue prospect, Europa and IO vein trends include 0.6m at 0.08 g/t Au and
610.0 g/t Ag, 0.55m at 1.15 g/t Au and 22.9 g/t Ag; and 0.9m at 1.95 g/t Au and 5.7 g/t Ag from the
Cilene prospect (news release September 17, 2018).
Following termination of that JV, Mirasol completed additional surface exploration work resulting in
the definition of new drill targets that remain to be tested. A total of 249 new rock chip samples were
collected from the Curahue trend, with results up to 7.99 g/t gold and 69 g/t silver. In addition, two
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new IP geophysical surveys, focused on the Curahue and Themisto prospects, were completed
extending existing survey coverage at Claudia (news release May 8, 2019).
Priority Pipeline Projects Operated and Funded by Mirasol
Chile
Altazor Gold (Copper) Project, Northern Chile
In 2017 Mirasol signed an option and farm-in agreement with Newcrest Mining (“NCM”) for the
Altazor project, which was later terminated on August 18, 2021. During the term of this agreement,
NCM spent more than US$3M on the project defining two highly prospective drill-ready targets, which
remain untested by drilling. Due to the prospective nature of these targets and the intention to
aggressively progress the project, Mirasol is considering whether to self-fund an initial 2,000m drill
program, or to bring in a funding partner. Engagement with the local community in respect to
exploration plans is progressing. An environmental re-evaluation of the project area was recently
completed to update the environmental base line study to revert the environmental reports and
permits back to Mirasol in preparation for drilling.
Exploration Results
Altazor is a HSE Au project covering 33,000 ha located in an underexplored section of the Mio-
Pliocene age mineral belt. Mirasol completed a first-pass of reconnaissance sampling over
approximately 50% of the project area in 2017. These results showed comparable geology, alteration
patterns and Au ppb-level anomalous assays in soil and rock chip samples to those reported from
surface sampling at Gold Fields’ Au-Ag HSE Salares Norte development stage project. Salares Norte
has a geological setting analogous to Altazor and is also located in the Mio-Pliocene mineral belt of
Chile (news release October 11, 2017).
Altazor has favourable infrastructure situated just 20 km south of 345 kV powerlines that follow
International Highway Route 23, a paved road connecting northern Chile and Argentina. In common
with other Mio-Pliocene mines and projects, Altazor is located at high altitude of between 4,000 and
5,200m; however, Altazor has good “drive-up access” via an open valley and a network of easily
passable gravel tracks.
During Mirasol’s initial reconnaissance sampling, a total of 216 stream sediment, 395 soil and 933
rock chip samples were collected and returned significantly anomalous Au, Ag, Cu, Pb, Zn and
epithermal path finder elements, from sampling in the vicinity of mapped breccia bodies (news
release October 11, 2017).
In late 2018, Mirasol reported the results from the 2017/18 exploration program completed under the
exploration agreement with NCM to define targets for drill testing (news release November 12, 2018).
The program included alteration analysis of soils, radiometric age dating,1,035 line-km ground
magnetic geophysical survey, geological mapping, geochemical rock chip sampling over an area of
128 km2, a 2,030-sample low detection limit soil grid covering 85.6 km2 and a 66.9 line-km Controlled-
source Audio-frequency Magnetotellurics (“CSAMT”) resistivity geophysical survey. Integrated
analysis of the combined data sets indicated Altazor to be a district-scale, zoned alteration system
preserved at a level that could conceal HSE Au deposits beneath “barren” steam-heated cap rocks
and post mineral cover. This program successfully identified multiple compelling large-scale drill
targets in three principal prospects that have alteration, geochemical and geophysical characteristics
in common with the predrill target signatures of the Salares Norte and Alturas Au HSE discoveries.
During the first half of 2019 fieldwork of the large Altazor alteration system was reinitiated to explore
extensions of the prospects identified in the previous season’s program; to undertake first pass
exploration of new claims staked at the end of last season; and to cover interpreted extensions of
the alteration system. Fieldwork consisted of rock chip and alteration sampling as well as detailed
12
geologic mapping. The defined, highly prospective drill-ready targets remain to be drill tested.
Mirasol continues to actively engage with the community in the vicinity of Altazor to secure an
exploration agreement for a drilling program. The concerns of the community are being addressed
to achieve a mutually beneficial agreement.
Coronación Copper-Gold Project, Northern Chile
Coronación is a 1,200 ha project prospective for both HSE and Porphyry hosted Cu-Au
mineralization located in Northern Chile On June 15, 2023, Mirasol announced that it has regained
100% control of Coronación following the termination of the Option and Farm-in Agreement with First
Quantum Minerals (“First Quantum”) (news release October 7, 2019).
Exploration Results
Coronacion is located on a major northwest structural trend that is associated with several Andean
porphyry Cu deposits. Exploration completed by Mirasol indicates the potential presence of a
porphyry/breccia system intruding a layered Miocene aged volcanic sequence of pyroclastic units,
that was subsequently intruded by domes of dacitic composition. Two distinct areas of alteration
have been interpreted with the assistance of Analytical Spectral Device (“ASD”) analysis. The
eastern alteration area displays affinities to a HSE system, with the western area displaying a more
typical porphyry deposit style of alteration. Geochemical rock and soil sampling has also defined a
large 600 by 800m Cu-Mo geochemical anomaly in the western area within the overall 3 by 2.5 km
ASTER image hydrothermal alteration response halo (news release October 17, 2019).
During the last quarter of 2019, FQM completed an initial exploration program that included surface
mapping, geochemical soil and rock chip sampling, IP and Mag magnetic geophysical surveys
(“Mag”) and the collection of rock samples for age-dating. This work outlined an attractive
HSE/Porphyry Au (Cu) targets that displays characteristics similar to other Miocene age systems in
the highly productive Maricunga belt.
Gorbea Gold (Copper) Project, Northern Chile
The Gorbea project (“Gorbea”) comprises a package of mineral claims totaling 27,000 ha located in
the Mio-Pliocene age mineral belt of northern Chile. The project is located approximately 70 km north
of Gold Fields Salares Norte development stage project, at an altitude of 4,100 to 4,500m ASL, and
is easily accessible by seasonally maintained roads and gravel tracks.
Gorbea was subject to previous joint ventures with Newcrest Mining Limited “Newcrest” that was
terminated in August 2022 and Yamana Gold Inc. (“Yamana”) that was terminated in April 2018.
Under the partnership, Yamana incurred exploration expenditures in excess of US$8 million.
Yamana’s exploration identified a significant body of HSE Au mineralization at the Atlas zone, which
returned a best drill intercept of 114m grading 1.07 g/t Au, including 36m grading 2.49 g/t Au (news
release September 11, 2017). Newcrest invested over US$11.6 million in exploration on the Gorbea
Project, completed nearly 7,500m of drilling and made payments of US$600,000 to Mirasol. Over
the last exploration season, in addition to the 2,072m of drilling (reported February 28, 2022),
Newcrest completed surface exploration, mapping and geochemical sampling on the Project. Mirasol
now has all the data in hand and is considering all available options to continue advancing
exploration at Gorbea will be considered, including the potential to identify new partners.
Exploration Results
The Atlas prospect is centred on a sizable +20 km2 HSE alteration system that hosts multiple Au and
Ag targets. The system exhibits many of the key geological and mineralization features characteristic
of economic systems in the area, such as at the Salares Norte development stage project (Gold
13
Fields - Reserves: 3.5 Moz Au and 39 Moz Ag3), Alturas advanced stage project (Barrick Gold -
Inferred Resource: 8.9 Moz Au4) and La Coipa mine (Kinross Gold – Reserves: 0.9 Moz Au and 41.7
Moz Ag / Resources: 1.4 Moz Au and 35.3 Moz Ag5), supporting its potential to host large-scale Au
mineralization.
In late 2021, NCM completed five reverse circulation drill holes for 2,072m with two holes at the Atlas
prospect and three holes at the previously untested El Dorado prospect. No meaningful
mineralization was encountered in these holes. To date, 37 drill holes (16,905m) have been
completed at the Atlas prospect by Mirasol’s previous partners
At Atlas, hole ATLT0011A targeted the extension to the southeast of a silicified polymictic breccia
body outcropping on surface (Apollo Breccia) coinciding with a high-resistivity feature. Although
vuggy silica texture, quartz alunite alteration and pathfinder elements were intersected, the lack of
Au values indicates a peripheral position to the mineralized centre. Hole ATLT0012 was drilled to
test for potential continuation to the north in the Atlas Central zone. The results limit the potential of
the mineralized body in a northerly direction. However, potential remains to extend the mineralization
to both the east and west to and explore for higher-grade mineralization (news release February 28,
2022).
Notably a potential HSE Au target located to the east-southeast of the Apollo Breccia/Atlas Central
Zone, defined by coincident anomalous zones of multiple pathfinder elements, alunite composition,
high Au values and a high-resistivity anomaly, remains to be drill tested.
At El Dorado, the drill holes targeted a combination of positive features, including a high-resistive
feature, a polymictic breccia body with vuggy silica fragment and a steam-heat zone, all associated
with elevated pathfinder elements. No further work is planned at El Dorado in the near term.
Nord Polymetallic Project, Northern Chile
The Nord project was originally staked by Mirasol as part of its Atacama-Puna generative program
and lies adjacent to Mineria Activas Ciclon-Exploradora polymetallic-epithermal project, which is
currently being advanced to production. The 1,967-ha project is located in Region III of Chile within
the Exploradora District, which lies on the western side of the north-south trending regional scale
Domeyko fault zone and within the world class Eocene-Oligocene porphyry Cu belt.
Control of the Nord project was recently returned to Mirasol and the option agreement signed with
Encantada SpA (“Encantada”), an affiliate of Minera (news release September 8, 2020) has been
terminated. Encantada was unable to secure financing to advance the project.
Exploration Results
Based on Mirasol’s initial surface exploration, the project has the potential to host two main styles of
mineralization. The first style is characterized by large vein-type mineralization injected into fault
structures hosting polymetallic (Cu, Zn, Pb, Ag, Au) mineralization, as seen in the active small-scale
mines located near the northeast corner of the claim boundary and at Mineria’s Ciclon-Exploradora
polymetallic development project, which is located adjacent to the eastern blocks of the project. While
surface geochemistry has returned only low to anomalous precious and base metal results, Mineria’s
understanding will be valuable to define drill targets for potential extensions or parallel structures to
the known mineralization (news release October 31, 2019).
In addition, the project also hosts the potential for porphyry Cu-Au style mineralization. In the central
part of the property a large alteration zone displays patterns of quartz-sericite and advanced argillic
3 Goldfields Limited - Mineral Resources and Mineral Reserves Supplement to the Integrated Annual Report
2021
4 Barrick Gold Corporation - Mineral Reserves and Mineral Resources in Q4 Report for the year ended
December 31, 2021
5 Kinross Gold Corporation - 2021 Annual Mineral Reserve and Resource Statement
14
alteration with thin tourmaline veinlets, which are characteristic of some porphyry-style alteration
assemblages.
In the first half of 2021, Encantada completed an initial fieldwork program, which included geological
mapping, geochemistry and geophysical surveys to define targets. A scout diamond drill program
was completed largely on a property controlled by Encantada (Target 1) and adjacent to Nord, with
one initial drill hole completed within the Nord tenure to test a Au-Cu mineralized corridor.
Follow up drilling took place at Nord in October and November 2021 to test the multiple north-
northeast trending mineralized corridors identified on the property. Encantada completed five drill
holes totaling 1,192m on Target 3 in the center of the Nord project. Narrow zones of Zn mineralization
(sphalerite - pyrrhotite) were encountered in the northern holes with higher temperature (garnet-
pyroxene-magnetite) skarn carrying narrow zones of Cu-Au mineralization intercepted in the south.
The skarn and increasing Cu-Au+Mo values may indicate a vector towards a porphyry target to the
southeast.
At Target 2, geological mapping at 1:2,000 and 1:5,000 scale has been completed on a porphyry
prospect interpreted to be of similar Mid Eocene-Oligocene (33-36 Ma) age to the Exploradora
complex, which is located 4 km to the northeast. Three porphyry intrusives with potassic (secondary
biotite) alteration, overprinted by strong sericite-clay alteration with local alunite, limonite and Cu
oxides, occur in two elongated 200 x 500m and 150 x 300m zones. Porphyry-type veining includes
early biotite-magnetite (“EB”) veins and scarce A veins along a north-northwest trend near the
contacts of the porphyry with the monzodiorite intrusive host rock. An IP geophysical survey
completed over the area has defined a strong and broad chargeability anomaly from 100-500m depth
associated with the altered porphyry intrusions.
New attractive porphyry drill targets have been defined and following evaluation Mirasol will consider
advancing exploration, including drill testing, potentially with the participation of a new partner.
Rubi Project, Northern Chile
On May 23, 2023, Mirasol announced that an option agreement for its Rubi project in Chile with Mine
Discovery Fund Pty Ltd (“MDF”), a private Australian company, was terminated. MDF exceeded its
contractual minimum commitment by spending US$890,000 on exploration during the term of the
option agreement (news release dated October 15, 2020).
Exploration Results
The 7,500 ha Rubi project is located within the Paleocene age porphyry belt of northern Chile that
hosts a number of significant producing porphyry Cu deposits. The project lies at relatively low
elevation (1,900-2,100m) within 20 km of the El Salvador and Potrerillos porphyry Cu-Mo-Au mines
and has good access to port facilities at Chanaral approximately 80 km to the west.
In November 2021, Mirasol reported on the 1,887m drill program completed at Rubi. Drilling was
focused on the Lithocap and Zafiro targets, with the results supporting the presence of a large and
strong prospective porphyry-style alteration system. Key indicators included the occurrence of
porphyritic daci-andesite intrusive rocks and hydrothermal brecciation, which exhibit strong quartz-
sericite (phyllic) alteration overprinting a relict K-feldspar alteration that host trace fine pyrite-
chalcopyrite-magnetite mineralization. In addition, good ground preparation was observed, which is
critical for ore deposit formation, with strong to locally intense fracturing infilled with late
gypsum/anhydrite and calcite veining. Importantly, assay results confirmed the presence of
anomalous Cu, Mo and locally elevated As over substantial intervals of approximately 200m (news
release November 8, 2021).
Having recovered an undivided 100% interest in Rubi, Mirasol is evaluating options to refine
remaining drill targets at Rubi and is currently in discussions with potential alternative partners to drill
test these targets.
15
Argentina
Tefnut Prospect – San Juan Porphyry Cu Projects
Tefnut, staked by Mirasol, comprises approximately 4,500 ha of exploration claims. It is located within
the fertile Mio-Pliocene copper-belt in the province of San Juan, Argentina, which hosts several high-
profile advanced projects including Filo del Sol, Josemaria, Altar, Los Azules and El Pachon. The
Company’s preliminary reconnaissance program of prospecting, high level geological mapping,
geochemical sampling and alteration analysis, successfully defined a large 1.5 by 1.5 km porphyry
related phyllic alteration system with outcropping Cu-mineralization (news release June 9, 2022).
Tefnut is located at the intersection of a major orogenic parallel north-south structure and a lesser
defined north-northwest trans-orogenic lineament which is the common structural configuration that
has localized other major deposits and development projects in the province of San Juan. In close
proximity to the west and in Chile, advanced projects such as Novicio, West Wall and Pimenton
represent good analogies for the prospectivity of the immediate area.
Within the large 1.5 x 1.5 km intensely altered phyllic footprint at Tefnut, discrete outcropping
exposures of porphyry-style Cu-mineralization occur in the deeply incised creeks. This mineralization
is associated with high-density stockworks of quartz magnetite and fine magnetite only stringers,
within strongly potassic altered (biotite-feldspar-magnetite) intrusive dioritic porphyry hosting
disseminated chalcopyrite and Cu-oxides. Initial grab samples from these mineralized outcrops have
returned 0.14% and 0.19% Cu. In addition, anomalous Mo values of 42 ppm hosted in type B veinlets,
with the four highest values (from a population of 15) ranging from 17-42 ppm, were recovered from
the overlying rhyolites that exhibit intense phyllic alteration.
These initial geological and geochemical results indicate the presence of an underexplored and
potentially substantive porphyry Cu-Mo system. Potassic alteration (secondary biotite) in dioritic
intrusive rocks, hosting disseminated Cu mineralization, are exposed in discrete erosional windows
through an extensive area of phyllic alteration with local remnant advanced argillic altered sections.
It is considered that Tefnut has been eroded to an optimal level for the exploration with the
prospective Cu mineralized potassic zone preserved at shallow levels and extending to depth.
Given the encouraging results from the initial reconnaissance campaign, Mirasol is planning to
progress its exploration efforts during the upcoming southern hemisphere exploration season
(October 2023 - April 2024). Detailed grid-based geochemical sampling, geological/structural
mapping and geophysical surveys will be required to advance this new and exciting prospect to a
drill ready stage.
Libanesa Gold and Base Metals Project, Santa Cruz
The option agreement on the Libanesa project with Golden Arrow Resources Corporation was
terminated in 2022 (news release July 21, 2022). Golden Arrow exceeded its contractual minimum
commitment by spending over US$500,000 on exploration (news release dated October 12, 2021).
The exploration program included field mapping, surface sampling, trenching and 1,716m of drilling
at the Cerro Plomo/Cerro Rodonda and the Lagunita prospects. Mirasol firmly believes that quality
drill targets remain at Libanesa (Cerro Plomo) and is currently reviewing this data and evaluating
how to best test these remaining targets.
Exploration Results
Libanesa is a 14,500 ha Ag-Au (Pb/Zn) project discovered by Mirasol and is an important part of
Mirasol’s “critical mineral” portfolio in the province of Santa Cruz. Libanesa is located at the
northeastern margin of the Deseado Massif Au-Ag metallogenic province, approximately 70 km west
of the port of Puerto Deseado, 40 km northwest of the Cerro Moro Au-Ag Mine operated by Yamana
Gold and 100 km northeast of the Don Nicolas Au-Ag mine operated by Cerrado Gold.
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Libanesa hosts several diversified geological, geochemical and geophysical-supported drill targets.
There are two main prospective areas, Libanesa Main and the Lagunita Vein Field. Libanesa Main
hosts several targets supported by strong base metal and Au mineralization from quartz veins,
stockworks and hydrothermal breccias, including the Cerro Plomo prospect. Cerro Plomo is
characterized by a well-mineralized Au/Ag hydrothermal breccia that is exposed at surface and
supported by both chargeability and resistivity geophysical anomalies at depth.
The Lagunita prospective zone, which has reported encouraging rock chip Au values from more
typical low sulfidation-type epithermal veins and breccias. This prospect warrants additional surface
exploration to vector into the potentially better mineralized parts of this extensive vein system, where
intermittent vein occurrences, outcropping/sub-cropping through post mineral cover, have been
mapped over a strike length of more than 2.3 km. (news release June 1, 2021, for a summary on
previous work completed at Libanesa).
Results from the maiden, 1,780m, drill program completed by Golden Arrow at the Libanesa project
at several of the prospects at Libanesa Main, including Cerro Plomo, Playa Vetas, Bajo Aspero and
Breccia Plata, as well as two holes at Lagunita, were encouraging and delineated several prospective
targets that require follow-up drilling as the program was cut short due to weather (news release
November 9, 2022).
At the Cerro Plomo target, highly anomalous Au-Ag and multi-percent Pb-Zn values reporting from
what appears to be the mineralized halo of a large vertical conductive zone. Notable intersection at
Cerro Plomo through the hydrothermal breccia zone include 26m at 0.98 g/t AuEq756 (0.38 g/t Au &
44.7 g/t Ag). A follow up step-back hole is recommended to test these zones and also to pass
completely through the entire conductive anomaly to test for higher grade gold-silver mineralization,
which no hole to date has accomplished.
At the Lagunita Vein Field Prospect two drill holes were completed to test outcropping vein trends
where multi-gram Au values were previously recovered from rock chip and trench samples. Notable
results include 3m at 1.79 g/t AuEq75 (1.71 g/t Au & 5.4 g/t Ag) and 1m at 4.30 g/t AuEq75 (4.20 g/t
Au & 7.4 g/t Ag). The vein trend, where the highest trench gold result was sourced, remains to be
drill tested.
Sascha – Marcelina Gold-Silver (Lead/Zinc) Project, Santa Cruz
Mirasol staked the Sascha Project in 2003 to secure the 5 km-long Sascha Vein Zone, which was
partially drill-tested while under an exploration agreement with Coeur Mining (“Coeur”) from 2006 to
2009. Coeur terminated the agreement in 2009 and returned 100% of the project to Mirasol. The
project is an important part of the “critical mineral” portfolio in the province of Santa Cruz.
On January 23, 2019, Mirasol signed an option-to-purchase agreement with a private mining
company for the 5,700 ha Marcelina exploration claims, consolidating the full district under the
Company. The agreement was amended in January 2022 to extend the option period by two years.
Under the amended agreement, Mirasol can acquire 100% of the Marcelina claims by making staged
option payments totalling US$3.75 million (of which $200,000 has been paid) over six years and
granting a 1.5% NSR royalty. Cash payments for US$100,000 and US$ 3.45M are due in January
2024 and 2025, respectively.
Following the consolidation of Sascha-Marcelina, Mirasol completed an integrated interpretation of
Mirasol’s district-scale exploration data sets collected prior to 2009. Anomalous rock chip Au-Ag
assays and Aster satellite alteration anomalies define a 16.5 x 4.0 km (65 km2) hydrothermal
“footprint” to the district, showing a large-scale, zoned alteration system characteristic of a sizable
6 Gold equivalent (“AuEq”) is calculated using a ratio of 1.0 g/t Au is equivalent to 75g/t Ag. The cut-off ranges are 0.1,
0.3, 0.5 and 1.0 g/t AuEq, and do not consider the Pb/Zn values. Recoveries are assumed to be 100% as no
metallurgical test data is available.
17
Au-Ag LSE system. Five multi-km-long mineralized vein and silicified breccia trends have been
recognized to date across the consolidated district. The trends traverse the Pellegrini Silica Cap, or
outcrop through post-mineral gravel and basalt cover that surrounds the Silica Cap (news release
January 25, 2019).
The geologic and geomorphic setting of the Pellegrini Silica Cap and related silica structures and
veins is analogous to the setting of the Cerro Negro mine operated by Newmont, which is a high-
grade, low-cost, Au-Ag underground mine located approximately 100 km to the north of Sascha-
Marcelina (Proven and Probable Reserves: 3.03 Moz Au and 19.49 Moz Ag / Measured and
Indicated Resource: 0.63 Moz Au and 3.21 Moz Ag / Inferred Resource: 1.16 Moz Au and 6.52 Moz
Ag7).
In the first half of 2019 Mirasol completed additional surface exploration activities on the Sascha-
Marcelina project (news release July 18, 2019), which included geological mapping, detailed rock
chip geochemical sampling, extensive soil grid geochemical sampling and the acquisition of
alteration data using in-house handheld ASD technology on all the rock chips and soil samples
collected. This work has defined a large alteration footprint located in the immediate vicinity of the
Marcelina claims, hosting an epithermal silica vein system with multiple mineralized trends. Within
this area, new prospects have been recognized with the Estancia Trend and the Igloo Trend, both
located in close proximity to an extensive Pellegrini Silica Cap, which is interpreted as representing
the preserved fossil paleosurface of a low sulfidation system.
Mirasol followed up with a total of 40 line-km of IP geophysics surveys completed over the three
principal areas - the Estancia Trend (20.5 line-km), the Pellegrini silica cap (14.2 line-km) and the
Igloo trend (5.35 line-km). Significant chargeability and resistivity anomalies were defined, indicating
the possible presence of sulphides and silica bodies, which could represent zones of hydrothermal
alteration and mineralization at shallow depths. Mirasol incorporated this geophysical data with the
results from the surface exploration to define a series of large-scale drill targets supported by a
prospective geological setting, widespread indications of Au and Ag mineralization, and near surface,
coincident geophysical anomalies (news release April 15, 2021).
A 2,814m drilling program completed in 2021, focused on three prioritized target areas, returned
encouraging results. The Pellegrini Trend drilling defined a broad zone of Au and Ag mineralization
overprinting a younger Pb and Zn rich base metal pulse, that is interpretated to represent the high-
level expression in this epithermal system. Drilling on the Igloo and Estancia Trends also returned a
number of anomalous Au and Ag intercepts and improved the understanding of the local geological
settings, so assisting in vectoring towards higher-grade zones at depth and within a more permissive
stratigraphic horizon in potential follow-up drill programs (news release August 9, 2021).
At the Estancia Trend, six holes (1,011m) were completed. Three of these holes located in the
southern part of the prospect (Estancia Sur) returned anomalous Au results. This drilling
demonstrated that Estancia Sur is located in the lower part of the Matilda formation or upper part of
the Chon Aike formation, neither of which are good, competent host rocks for productive fissure
veins. Instead of concentrating mineralization, their physical characteristics allow for wider
intersections of lower grade and dispersed mineralization as illustrated by the results from drill hole
EST-DDH-003 (8.7m at 0.32 g/t Au). However, with focused deeper drilling, it is considered likely
that stronger mineralization could be encountered in the more permissive rock type (mid to lower
Chon Aike formation).
At the Igloo Trend, limited initial drilling intercepted mineralization very similar to that of Estancia Sur,
related to narrow veinlets, zones of pseudo-stockwork and fluidized channels hosting brecciation,
with Au grades up to 0.57 g/t. This mineralization is associated with a pronounced and widespread
“cloud” of pathfinder elements characterised by As, Sb, Hg and Ba. Such zones of anomalous
pathfinder elements typically reside above productive systems in several low sulfidation Au-Ag
7 Newmont Corporation - 2/23/2023 Press Release
18
epithermal mines and deposits in Santa Cruz and provide a strong vector to depth for stronger
mineralization.
At the Pellegrini Trend, four diamond drill holes were completed within the main target area to test a
structurally controlled IP resistivity anomaly, with an additional two scout holes competed outboard
of the main target area that were collared to drill test two other major northwest-trending fault
structures to the west and north, for a combined total of 1,431m.
Holes PEL-DDH-001, PEL-DDH-002 and PEL-DDH-005 at the Pellegini main target area all
encountered, within their upper levels, restricted zones of anomalous mineralization associated with
hydrothermal brecciation. Hole PEL-DDH-005, which was drilled deeper below PEL-DDH-002,
exhibits the best mineralized intersection to date. A wide zone of peripheral crackle brecciation starts
at 170m vertically below surface and continues into an inner core of hydrothermal polymictic
brecciation for a total intercepted width of brecciation >25 m. This inner zone returned an intersection
of 20.4m at 0.24 g/t Au and 39 g/t Ag (58 g/t AgEq8) from 242.5m, including 10.5m at 0.28 g/t Au and
66 g/t Ag (87 g/t AgEq) from 249m. High Zn and Pb base metal results are also associated with this
brecciated body with 0.82% Pb and 0.7% Zn over the broader 20.4m interval, including 1.3m with
3.19% Pb and 2.56% Zn.
In late 2021 Mirasol drilled hole PEL-DDH-007 behind and under PEL-DDH-005 to test the depth
and lateral extent of the breccia body previously intercepted. No significant Au or Ag mineralization
was encountered apart from isolated values of 0.4 g/t Au and 140 g/t Ag from narrow veinlet zones.
These veinlets are generally sub-parallel to the core axis and potentially have an antithetic structural
configuration. However, broad Pb and Zn mineralization was intercepted returning:
33.9m at 1.3% Pb and 0.5% Zn from 298.6m (250 ppm Pb cut-off)
o
o
including 15.85m at 2.1% Pb and 0.8% Zn from 285.15m (1,000 ppm Pb cut-off)
Including a higher-grade section of 7.2m at 4.1% Pb and 1.4% Zn from 289m (1% Pb cut-off)
Evaluation of the three holes drilled at Pellegrini in the breccia zone (PEL-DDH-002, 005 and 007)
suggests that the mineralized zone may have a west-dipping orientation. A scissor drill hole oriented
from west to east is recommended to better test the potential of the target. Furthermore, it appears
that the three holes have not adequately tested the coincident chargeability/resistivity anomaly
defined from the recent deep penetrating IP geophysics located to the west of holes PEL-DDH-005
and 007 and directly at depth below PEL-DDH-002. The mineralization also appears to decrease in
intensity, most notably in Au/Ag, further to the east, outboard and distal to this remaining untested
central target.
Homenaje Gold-Silver Project, Santa Cruz
On October 3, 2023, Mirasol announced that the option agreement on the Homenaje Gold-Silver
Project in Argentina (“Homenaje”) with Patagonia Gold Corp. (“Patagonia”) had been terminated.
Patagonia failed to complete the contractual minimum exploration obligations during the given term
of the option agreement (news release dated April 19, 2021).
Exploration activities remain suspended following the termination of the Option/Joint Venture
Agreement with Patagonia Gold’s exit from. Mirasol has since re-established contact with the
relevant provincial authorities and has presented the information previously requested to determine
the potential areas of sensitivity surrounding the archaeological finds and outline the protective
measures that must be taken prior to resuming exploration.
8 Silver equivalent (“AgEq”) is calculated using metal prices of US$ 1800/oz for Au and US$ 24/oz for Ag. Recoveries
are assumed to be 100% as no metallurgical test data is available. The equation used is: AgEq g/t = Ag g/t + (Au g/t x
75)
19
Exploration Results
Exploration to date has been limited to outcropping erosional windows, as more than 90% of the
project area is covered by thin post-mineral rocks, including Tertiary plateau basalt and gravels. In
these erosional windows, Middle to Upper Jurassic tuffs assigned to La Matilde Formation are
exposed and host localized and commonly mineralized hydrothermal breccias, veinlets and
stockworks of chalcedonic quartz.
Analysis and interpretation of outcropping alteration and mineralization, together with the structural
setting, magnetics and chargeability/resistivity gradient array responses over areas of cover and
outcrop have defined four northwest trending prospective structural trends, with similar geologic
characteristics to those of the adjacent to Pan American Silver’s COSE and Patagonia Gold’s Cap
Oeste Au/Ag deposits.
Initial rock chip sampling of mineralized structures that discontinuously outcrop in a northwest
trending corridor, identified in an area of 1,500m x 800m with anomalous Au, Ag, As, Sb, Mo, Cu
and Pb. Geochemically anomalous samples comprise altered tuff with thin chalcedony veinlets
(news release December 30, 2020).
Other Properties
Mirasol holds several additional drill-ready and early-stage exploration properties prospective for Au,
Ag and Cu mineralization in southern Argentina and northern Chile. The Company has also
completed initial field programs to advance a number of early-stage porphyry prospects in the
Argentinian Cordillera. In addition, Mirasol has signed confidentiality agreements, distributed data
sets and conducted field reviews with selected companies with the objective of securing potential
new partnerships for these properties.
In September 2021, Mirasol introduced and reported initial exploration results from its 100% owned
Osiris Copper project (“Osiris”) located within the fertile Miocene belt of Chile which hosts several
high-profile advanced projects such as Altar, Los Azules, El Pachon and the Pelambres Mine. Osiris
was staked by Mirasol and comprises approximately 8,000 ha of exploration claims. Mirasol’s
detailed surface exploration, which included geological mapping, geochemical sampling and
alteration analysis, has defined two drill-ready concealed porphyry Cu-Mo-(Au) targets (Filo Gordito
and Northern Osiris). Mirasol has initiated a search for an exploration partner to advance and drill
test Osiris (news release September 29, 2021).
20
HIGHLIGHTS FOR THE YEARS ENDED JUNE 30, 2023 AND 2022
FINANCIAL CONDITION
The Company’s cash and cash equivalents was $8,123,682 and working capital $7,705,657 as of
June 30, 2023.
During the year ended June 30, 2023, the financial statements show a total operations expenditure
of $9,685,442. The Company incurred total company-wide net cash expenditures of $8,645,818 and
non-cash items such as share-based payments and depreciation totalled $1,023,642.
For the year ended June 30, 2023, the total net cash expenditure was distributed between head
office corporate spending of $1,593,070, inclusive of officer’s salaries, board fees, business
development, corporate administration, investor relations and regulatory compliance; and a total net
exploration expenditure of $7,052,748 (table 1).
The annual level of spending by the Company is determined by its ability to secure financing through
the sale of its securities, sales of assets and concluding exploration agreements with its industry
partners.
EXPLORATION FINANCIAL SUMMARY
The Company’s total exploration costs include exploration, property retention costs, costs associated
with preparing projects for joint venture, in-country operations and management, and local value
added taxes (“VAT”). For the year ended June 30, 2023, Mirasol invested $5,659,837 on exploration
in Chile and $1,392,911 in Argentina (table 1).
The Company received $71,205 in cost recoveries during the year ended June 30, 2023, including
claims fees, salaries of Mirasol employees seconded to the partner-funded programs and other
operating costs that are covered by the partners under the terms of agreements.
CORPORATE MATTERS
On December 20, 2022, the Company announced the closing of the previously announced non-
brokered private placement. The Company issued 5,076,667 common shares at a price of $0.60 per
common share for aggregate gross proceeds of $3,046,000.
On December 30, 2022, the Company also announced the grant of a total of 1,495,000 incentive
stock options to directors, management, consultants, and contractors. The options are for a five-year
term at an exercise price of $0.68 per option share and subject to certain vesting conditions. The
Company also granted of 205,000 restricted share units (“RSUs”) to employees, officers and
consultants of the Company subject to certain vesting requirements. Each vested RSU entitles the
holder to receive one common share of the Company.
On June 7, 2023, the Company announced the closing of the previously announced non-brokered
private placement financing. The Company issued 5,909,600 Units at a price of $1.25 per Unit for
aggregate gross proceeds of $7,387,000. Each Unit comprised of one common share and one-half
non-transferable common share purchase warrant, with each whole warrant entitling the holder to
purchase one additional common share at a price of $1.70 for a period of twelve months from closing
of the Offering.
21
RESULTS OF OPERATIONS
FOR THE YEARS ENDED JUNE 30, 2023 AND 2022
The Company’s net loss for the year ended June 30, 2023 (“2023”) was $9,796,827 or $0.17 per
share compared to a net loss of $5,081,013 or $0.09 per share for the year ended June 30, 2022
(“2022”), an increase of $4,715,814.
The increase in net loss during 2023 is due to a combination of an increase in exploration
expenditures, administration costs, overhead costs related to the exploration activities, interest
income, share-base payments, and a decrease in investment loss and foreign exchange gain.
The Company’s total loss before other items was $9,669,460 and $5,089,895 for the years ended
June 30, 2023 and 2022, respectively.
The Company recorded interest income of $628,872 from its investments during the year ended
June 30, 2023, compared to $523,497 during the same period in 2022. The Company also recorded
an unrealized loss on its marketable securities of $570,787 compared to $739,691 during the same
period in 2022.
The Company recorded a gain of $287,250 on foreign exchange from conversion of funds during the
year ended June 30, 2023, compared to $249,022 during the year ended June 30, 2022.
A provision for doubtful account for $495,369 has been recorded during the year ended June 30,
2023 (2022 - $Nil) resulting from the termination of the Virginia project Join Venture agreement.
Share-based payments increased to $954,593 in 2023 from $578,477 in 2022. Depreciation expense
decreased to $69,049 in 2023 from $96,752 in 2022. Both are non-cash items.
Net exploration expenditures increased to $7,068,730 in 2023 from $3,738,706 in 2022; option
income and management fees were $Nil and $15,982 in 2023 compared to $343,397 and $153,300
respectively, in 2022 (table 1).
Other notable variances include an increase in business development, marketing and investor
relations expenses to $374,796 in 2023 from $233,053 in 2022; an increase of management and
directors’ fees to $655,021 in 2023 as compared to $537,047 in 2022; an increase in office
administration, filing fees, and travel expenses to $369,410 in 2023 compared to $253,311 in 2022;
and an increase in professional fees to $193,843 in 2023 compared to $149,246 in 2022 from various
consultants.
Please refer to the Company’s audited consolidated financial statements for a breakdown of the
Company’s general and administration expenses for the years ended June 30, 2023 and 2022.
22
The following table provides changes in exploration expenditures and cost recoveries for the years
ended June 30, 2023, and 2022:
Table 1: Summary of exploration expenditures for the years ended June 30, 2023 and 2022.
Table 1 - Exploration summary
Twelve months Jun 30,
Exploration costs
Exploration costs recovery
Corporate operation costs
Total exploration costs
Option income
Management fees
Net Exploration expenses
Total Chile
Total Argentina
Total Mirasol
2023
4,514,738
(75,199)
1,220,298
5,659,837
-
-
5,659,837
(2)
2022
1,979,167
(560,681)
806,008
2,224,494
(343,397)
-
1,881,097
(1)
2023
652,020
(158,483)
915,356
1,408,893
-
(15,982)
1,392,911
2022
3,086,516
(2,596,126)
1,023,822
1,514,212
-
(153,300)
1,360,912
2023
5,166,758
(233,682)
2,135,654
7,068,730
-
(15,982)
7,052,748
2022
5,065,683
(3,156,807)
1,829,830
3,738,706
(343,397)
(153,300)
3,242,009
(1) During the year ended June 30, 2023, the Company received $nil (2022 - USD$1,433,869) from Silver
Sands Resources Corp. (“SS”) as part of the option agreement. Funds were received in Canada and
transferred to the Company’s subsidiary in Argentina. Once the funds were received in Argentina, the
Company used a mechanism whereby the US funds are used to buy and then sell government bonds
denominated in pesos. The buy and sell of the bond create an implied exchange rate, which diverges
significantly above Argentina’s official fixed exchange rate. Accordingly, a recovery of $158,483 has
been recorded under Virginia project in Argentina in 2023 (2022 - $2,596,126), (note #1 in the
breakdown by projects for Argentina’s exploration and evaluation expenses table).
(2) On February 15, 2023, Silver Sands issued a notice of termination of the option agreement, effective
March 17, 2023. On February 21, 2023, Mirasol announced the termination of the option agreement
with SS to purchase for the Virginia Silver Deposit. As at June 30, 2023 Silver Sands is indebted to
the Company in the amount of $495,369 for which the Company is pursuing collection. As the amount
is disputed for financial reporting purposes a provision has been made for the full balance owing.
FOURTH QUARTER ANALYSIS
The Company’s net loss for the three months ended June 30, 2023 (“2023”) was $3,798,068 or $0.06
per share compared to a net loss of $1,435,174 or $0.03 per share for the three months ended June
30, 2022 (“2022”), an increase of $2,362,894.
The increase in net loss during 2023 is due to a combination of an increase in exploration
expenditures, administration costs, overhead costs related to the exploration activities, and share-
based payments, interest income, and a decrease in investment loss, and foreign exchange gain.
The Company’s total loss before other items was $3,574,159 and $1,343,887 for the three months
ended June 30, 2023 and 2022, respectively.
The Company recorded interest income of $204,394 from its investments during the three months
ended June 30, 2023, compared to $81,583 during the same period in 2022. The Company also
recorded an unrealized loss on its marketable securities of $51,890 compared to $281,157 during
the same period in 2022.
23
The Company recorded a gain of $96,970 on foreign exchange from conversion of funds during the
period ended June 30, 2023, compared to a gain of $94,723 during the period ended June 30, 2022.
A provision for doubtful account for $495,369 has been recorded during the three months ended
June 30, 2023 (2022 - $Nil) resulting from the termination of the Virginia project Join Venture
agreement.
Share-based payments increased to $154,491 in 2023 from $123,771 in 2022. Depreciation expense
decreased to $17,782 in 2023 from $19,195 in 2022. Both are non-cash items.
Net exploration expenditures increased to $2,986,902 in 2023 from $927,083 in 2022; option income
and management fees income were $Nil and $15,982 in 2023 compared to $Nil and $50,382
respectively, in 2022 (table 2).
Other notable variances include an increase in business development, marketing and investor
relations expenses to $125,272 in 2023 from $84,718 in 2022; a decrease of management and
directors’ fees to $116,957 in 2023 as compared to $129,600 in 2022; an increase in office
administration, filing fees, and travel expenses to $120,295 in 2023 compared to $76,649 in 2022;
and an increase in professional fees to $68,442 in 2023 compared to $33,253 in 2022 from various
consultants.
The following table provides changes in exploration expenditures and cost recoveries for the three
months ended June 30, 2023, and 2022:
Table 2: Summary of exploration expenditures for the three months ended June 30, 2023 and 2022.
Table 2 - Exploration summary
Three months Jun 30,
Exploration costs
Exploration costs recovery
Corporate operation costs
Total exploration costs
Option income
Management fees
Net Exploration expenses
Total Chile
Total Argentina
Total Mirasol
2023
2,238,117
(3,994)
441,498
2,675,621
-
-
2,675,621
2022
308,290
(93,229)
297,780
512,841
-
-
512,841
2023
188,084
(158,483)
281,680
311,281
-
(15,982)
295,299
2022
852,645
(781,148)
342,745
414,242
-
(50,382)
363,860
2023
2,426,201
(162,477)
723,178
2,986,902
-
(15,982)
2,970,920
2022
1,160,935
(874,377)
640,525
927,083
-
(50,382)
876,701
A breakdown by country and group of projects of the Company’s exploration and evaluation
expenses for the twelve and three months ended June 30, 2023, and 2022:
24
CHILE
Altazor
Camp and general
Contractors and consultants
Exploration costs recovered
Environmental
Mining rights and fees
Resource Studies
Travel & accommodation
Gorbea Package
Camp and general
Contractors and consultants
Exploration costs recovered
Mining rights and fees
Travel & accommodation
Coronation
Camp and general
Contractors and consultants
Option income
Mining rights and fees
Travel & accommodation
Rubi
Assays and sampling
Camp and general
Contractors and consultants
Exploration costs recovered
Drilling
Environmental
Geophysics
Mining rights and fees
Travel & accommodation
Nord
Assays and sampling
Contractors and consultants
Exploration costs recovered
Mining rights and fees
Option income
For the Twelve Months
Ended Jun 30,
2023
2022
For the Three Months
Ended Jun 30,
2023
2022
4,441
15,268
-
32,216
188,679
27,126
2,605
270,335
4,023
43,796
(75,199)
160,988
98
133,706
-
5,139
-
26,638
-
31,777
-
-
10,492
-
-
-
225,700
85,548
5,109
326,849
94
18,490
-
22,209
-
40,793
11,162
54,318
(91,532)
4,088
83,586
-
10,656
72,278
-
20,635
(221,626)
296,477
-
95,486
2,411
12,333
(93,615)
31,989
1,801
(45,081)
20,546
18,434
168,187
(181,530)
115,080
8,332
-
69,409
17,936
236,394
-
5,571
(65,993)
50,556
(249,782)
(259,648)
4,400
9,733
-
32,216
99,890
27,126
2,272
175,637
4,023
14,524
(3,994)
149,543
-
164,096
-
1,837
-
4,195
-
6,032
-
-
2,709
-
-
-
225,700
84,169
5,109
317,687
94
1,196
-
20,815
-
22,105
-
2,893
-
-
63,041
-
-
65,934
-
3,755
(221,626)
8,945
-
(208,926)
1,027
4,588
-
4,465
482
10,562
-
-
957
194,390
-
-
-
-
47
195,394
-
2,076
(65,993)
4,168
-
(59,749)
Total - Properties joint ventured to other
companies
803,460
99,429
685,557
3,215
Chile Pipeline Projects
Assays and sampling
Camp and general
Contractors and consultants
Drilling support
Geophysics
Mining rights and fees
Professional fees
Travel & accommodation
23,187
62,605
252,112
9,046
290,475
101,066
1,400
18,680
758,571
7,348
51
23,266
(1,444)
-
26,779
-
2,301
58,301
25
-
4
5,367
-
-
18,080
-
-
23,451
15,905
4,598
45,418
9,046
-
19,845
1,400
2,304
98,516
CHILE (Cont'd…)
Zobek
Assays and sampling
Camp and general
Contractors and consultants
Drilling
Drilling support
Geophysics
Mining rights and fees
Resource Studies
Travel & accommodation
Zeus
Contractors and consultants
Mining rights and fees
For the Twelve Months
Ended Jun 30,
2023
2022
For the Three Months
Ended Jun 30,
2023
2022
89,467
230,067
358,457
800,699
273,818
410,571
56,122
488,043
82,874
2,790,118
242
38,040
38,282
-
-
-
-
-
-
-
-
-
-
315
3,504
3,819
58,304
70,703
101,713
669,443
144,675
74,815
38,166
-
28,900
1,186,719
-
12,250
12,250
-
-
-
-
-
-
-
-
-
-
(2,800)
3,504
704
Total - 100% owned properties
2,886,701
762,390
1,222,420
99,220
Inca
Assays and sampling
Camp and general
Contractors and consultants
Drilling preparation
Geophysics
Mining rights and fees
Resource studies
Travel & accommodation
54,701
40,223
186,378
-
295,815
98,934
51,465
21,636
749,152
2,454
20,789
31,442
1,290
102,857
51,248
-
-
210,080
30,880
25,671
54,622
-
190,162
13,795
-
10,790
325,920
-
12,494
3,125
1,290
77,794
16,085
-
-
110,788
Total - Earn-in joint venture on third party
projects
749,152
210,080
325,920
110,788
Project Generation
Corporate Operation & Management - Chile
226
1,220,298
3,190
806,008
226
441,498
1,837
297,781
Total Chile
5,659,837
1,881,097
2,675,621
512,841
ARGENTINA
Virginia - Joint Venture
Assays and sampling
Camp and general
Contractors and consultants
Drilling
Drilling preparation
Exploration costs recovered (1)
Geophysics
Mining rights and fees
Travel & accommodation
46,183
72,487
154,523
-
42,223
(158,483)
738
39,712
4,859
202,242
215,017
770,519
527,057
926,674
11,524
(2,596,126)
770
48,520
39,400
(56,645)
42,661
20,705
59,067
-
13,209
(158,483)
-
8,453
2,242
(12,146)
71,008
233,916
141,200
312,442
500
(781,147)
-
16,572
9,723
4,214
Total - Properties joint ventured to other
companies
202,242
(56,645)
(12,146)
4,214
26
ARGENTINA (Cont'd…)
Argentina Pipeline Projects
Assays and sampling
Camp and general
Contractors and consultants
Environmental
Mining rights and fees
Claudia
Assays and sampling
Camp and general
Contractors and consultants
Environmental
Mining rights and fees
Travel & accommodation
La Curva
Assays and sampling
Camp and general
Contractors and consultants
Environmental
Mining rights and fees
Travel & accommodation
Sasha
Contractors and consultants
Mining rights and fees
For the Twelve Months
Ended Jun 30,
2023
2022
For the Three Months
Ended Jun 30,
2023
2022
-
4,334
40,860
1,071
19,666
65,931
565
674
6,496
-
137,064
2,721
147,520
471
60
5,931
4,709
32,847
-
44,018
8,278
14,888
23,166
5,725
93,333
43,576
2,103
12,209
156,946
-
-
8,868
13,388
119,496
-
141,752
-
8,270
15,396
6,619
22,247
1,376
53,908
709
8,969
9,678
-
-
1,477
-
2,616
4,093
565
674
2,462
-
16,501
2,721
22,923
471
-
156
-
8,015
-
8,642
156
3,497
3,653
2,700
178
5,483
-
5,216
13,577
-
-
3,815
-
34,534
-
38,349
-
1,303
664
-
5,287
-
7,254
-
2,226
2,226
Total - 100% owned properties
280,635
362,284
39,311
61,406
Marcelina - Joint Venture
Assays and sampling
Camp and general
Contractors and consultants
Drilling
Environmental
Mining rights and fees
Travel & accommodation
932
-
6,072
-
-
3,656
-
10,660
30,414
13,739
62,892
63,341
4,580
8,842
943
184,751
Total - Earn-in joint venture on third party
projects
10,660
184,751
932
-
265
-
-
1,239
-
2,436
2,436
-
-
4,504
-
-
1,373
-
5,877
5,877
Management Fee Income
(15,982)
(153,300)
(15,982)
(50,382)
Corporate Operation & Management -
Argentina
915,356
1,023,822
281,680
342,745
Total Argentina
1,392,911
1,360,912
295,299
363,860
Total Exploration and Evaluation Costs
7,052,748
3,242,009
2,970,920
876,701
27
SELECTED ANNUAL INFORMATION
Sales
Loss for the year
Loss per share – basic and diluted
Total assets
Total long-term liabilities
2023
$
-
(9,796,827)
(0.17)
10,191,452
(53,115)
2022
$
-
(5,081,013)
(0.09)
8,474,274
(115,048)
2021
$
-
(5,962,584)
(0.11)
13,475,668
(163,642)
Dividends declared
-
-
-
SUMMARY OF QUARTERLY RESULTS
The following table sets out selected unaudited quarterly financial information of the Company and
is derived from unaudited quarterly consolidated financial statements prepared by management in
accordance with IAS 34 and accounting policies consistent with IFRS.
Income (Loss)
from Continued
Operations
$
(3,798,068)
(2,242,486)
(2,680,276)
(1,075,997)
(1,435,174)
(1,856,893)
(955,790)
(833,156)
Basic Income
(Loss) per Share
from Continued
Operations
$
(0.06)
(0.04)
(0.05)
(0.02)
(0.03)
(0.03)
(0.02)
(0.02)
Diluted Income
(Loss) per Share
from Continued
Operations
$
(0.06)
(0.04)
(0.05)
(0.02)
(0.03)
(0.03)
(0.02)
(0.02)
Revenues
$
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Period
4th Quarter 2023
3rd Quarter 2023
2nd Quarter 2023
1st Quarter 2023
4th Quarter 2022
3rd Quarter 2022
2nd Quarter 2022
1st Quarter 2022
The Company’s quarterly results will vary depending on exploration and business development
activities. The Company also grants incentive stock options to its directors, management, employees
and consultants, which cause a variation in the Company’s results.
The movement in the value of the US dollar relative to the Canadian dollar can also have an impact
on the Company’s results from one period to the next as the Company holds its working capital
primarily in US dollars.
INVESTING ACTIVITIES
The Company continued to invest Canadian and US dollars in interest-bearing financial instruments
maturing up to one year. The total amount invested in the year ended June 30, 2023 was $7,046,000
compared to $4,543,650 in the same period in 2022. Excluding the interest income from the bond
premium in Argentina, the Company received interest income of $88,031 during the year ended June
30, 2023, compared to $10,959 for the year ended June 30, 2022.
28
CAPITAL RESOURCES AND LIQUIDITY
In order to finance the Company’s exploration programs and to cover administrative and overhead
expenses, the Company primarily raises money through equity sales and from the exercise of
convertible securities (share purchase options and warrants). Many factors influence the Company’s
ability to raise funds, including the health of the resource market, the climate for mineral exploration
investment, the Company’s track record and the experience and calibre of its management.
The Company has no operations that generate cash flow and its long-term financial success is
dependent on management’s ability to discover economically viable mineral deposits. The Company
applies the project generator model where it seeks and presents partners with an option to joint venture
the Company’s projects, in order to have those partners fund the exploration to earn an interest. In
some agreements, the Company receives cash option payments or common stock of the joint venture
partner, as a portion of the partner’s cost to earn an interest. If any of its exploration programs are
successful and the partners complete their earn-ins, the Company would have to provide its share of
ongoing exploration and development costs in order to maintain its interests; and, if not, reduce its
equity interest through a monetization transaction or dilution of its ownership interest or conversion to
a royalty interest. The Company does not anticipate mining revenues from sale of mineral production
in the foreseeable future.
With working capital of approximately $7.7 million on June 30, 2023, the Company has sufficient funds
to conduct its administrative, business development, and discretionary exploration activities over the
next twelve months. Actual funding requirements may vary from those planned due to several factors,
including the Company’s joint venture partners encountering difficulty in financing exploration programs
on optioned properties. The Company further believes it has the ability to raise equity capital to meet
its foreseeable longer-term working capital needs but recognizes that the ability to raise capital in the
future involves risks beyond its control.
OFF-BALANCE SHEET ARRANGEMENTS
The Company has no significant off-balance sheet arrangements.
PROPOSED TRANSACTIONS
The Company has no proposed transactions.
TRANSACTIONS WITH RELATED PARTIES
Details of the transactions between the Company’s related parties are disclosed below.
a)
Compensation of key management personnel
Key management personnel include persons having the authority and responsibility for planning,
directing, and controlling the activities of the Company as a whole.
29
The remuneration of management and independent directors was as follows:
Management compensation (i)
Share-based payments (ii)
Director’s fees (iii)
Year Ended June 30,
2023
765,104
639,429
100,800
1,505,333
$
$
2022
525,580
392,329
95,550
1,013,459
$
$
i. Management compensation is included in management fees (2023 - $641,651; 2022 - $384,443) and
in exploration expenditures (2023 – $123,453; 2022 - $141,137) in the Company’s consolidated
statements of loss and comprehensive loss.
ii.
Share-based payments are included in the share-based payments expense in the Company’s
consolidated statements of loss for the years ended June 30, 2023, and 2022.
iii.
The independent directors of the Company are paid $2,100 per month (2022 - $2,100 per month).
b)
Transactions with other related parties
Certain of the Company’s officers and directors render services to the Company as sole proprietors
or through companies in which they are an officer, director, or partner.
The following companies are related parties through association of the Company’s directors and
officers:
Max Pinsky Personal Law Corporation
Chase Management Ltd., a Company owned by Nick DeMare
Manning Lee Management Ltd., a Company owned by Mathew Lee
Nature of transactions
Legal fees
Professional fees
CFO services
The Company incurred the following fees and expenses with related parties as follows:
Legal fees (i)
CFO services (ii)
Years Ended June 30,
2023
42,561
-
42,561
$
$
2022
80,986
15,000
95,986
$
$
i.
Legal fees are included in professional fees (2023 - $29,048; 2022 - $39,286) and in business
development (2023 – $13,513; 2022 - $41,700) in the Company’s consolidated statements of loss and
comprehensive loss.
ii. CFO services are included in management fees in the Company’s consolidated statements of loss for
the years ended June 30, 2023, and 2022.
Included in accounts payable and accrued liabilities at June 30, 2023, is an amount of $53,958
(2022 - $46,819) owing to directors and officers of the Company and to companies where the
directors and officers are principals.
30
SIGNIFICANT ACCOUNTING POLICIES
The details of the Company’s accounting policies are presented in Note 3 of the Company’s audited
consolidated financial statements for the year ended June 30, 2023. The following policies are
considered by management to be essential to the understanding of the processes and reasoning
that go into the preparation of the Company’s financial statements and the uncertainties that could
have a bearing on its financial results.
RECENT ACCOUNTING ADOPTION
New accounting standards issued but not yet in effect
Classification of liabilities as current or non-current (Amendments to IAS 1)
The IASB has published Classification of Liabilities as Current or Non-Current (Amendments to IAS
1) which clarified the guidance on whether a liability should be classified as either current or non-
current. The amendments:
(i) Clarify that the classification of liabilities as current or non-current should only be based
on rights that are in place “at the end of the reporting period”;
(ii) Clarify that classification is unaffected by expectations about whether an entity will
exercise its right to defer settlement of a liability; and
(iii) Make clear that settlement includes transfers to the counterparty of cash, equity
instruments, other assets or services that result in extinguishment of the liability.
This amendment is effective for annual periods beginning on or after January 1, 2023. Earlier
application is permitted. The Company does not anticipate the adoption of this standard will have a
material impact on the consolidated financial statements.
Definition of Accounting Estimates (Amendments to IAS 8)
The IASB proposed clarifying the definitions of "accounting policies" and "accounting estimates" in
(Amendments to IAS 8), by making those two definitions more distinct and concise. The IASB also
proposed clarifying, through additional guidance and examples, how accounting policies and
accounting estimates relate to each other and how companies decide whether a change in valuation
technique or a change in estimation technique is a change in an accounting estimate.
This amendment is effective for annual periods beginning on or after January 1, 2023. Earlier
application is permitted. The Company does not anticipate the adoption of this standard will have a
material impact on the consolidated financial statements.
Insurance contracts IFRS 17
IFRS 17 requires insurance liabilities to be measured at a current fulfillment value and provides a
more uniform measurement and presentation approach for all insurance contracts. These
requirements are designed to achieve the goal of a consistent, principle-based accounting for
insurance contracts.
IFRS 17 supersedes IFRS 4 and applies to annual reporting periods beginning on or after 1 January
2023. The Company does not anticipate the adoption of this standard will have a material impact on
the consolidated financial statements.
31
SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires management to make judgments, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities,
profit and expenses. The estimates and associated assumptions are based on historical experience
and various other factors that are believed to be reasonable under the circumstances, the results of
which form the basis of making the judgments about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period or in the period of the revision and further periods if the review affects both
current and future periods.
FINANCIAL INSTRUMENTS
The Company’s financial instruments as at June 30, 2023, consist of cash and cash equivalents,
receivables and advances, marketable securities, accounts payable and accrued liabilities and
advances from joint venture partners. The fair value of all these instruments approximates their
carrying value. There are no off-balance sheet financial instruments.
The Company’s financial instruments are exposed to certain financial risks. The risk exposures and
the impact on the Company's financial instruments are summarized below.
The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates.
The Company operates in Canada, Argentina and Chile and a portion of its expenses are incurred
in United States dollars, and in Argentine and Chilean Pesos. A significant change in the currency
exchange rates of the US dollar relative to the Canadian dollar and the Argentine and Chilean Peso
to the Canadian dollar could have an effect on the Company’s results of operations, financial position
or cash flows. The Company has not hedged its exposure to currency fluctuations.
The Company appointed a special treasury committee comprising of three board members to
consider management’s recommendations to mitigate the exposure to foreign currency risk. The
committee and management maintain a ratio of 80:20 for US$:CAD$ of the treasury whenever
practical.
MANAGEMENT OF CAPITAL RISK
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue
as a going concern, to pursue the development of its exploration and evaluation assets and to
maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. In the
management of capital, the Company includes the components of equity.
The Company manages the capital structure and adjusts it considering changes in economic
conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital
structure, the Company may attempt to issue new shares, acquire, or dispose of assets, enter into
joint ventures or obtain debt financing. To facilitate the management of its capital requirements, the
Company prepares annual and quarterly expenditure budgets that are updated as necessary
depending on various factors, including successful capital deployment and general industry
conditions.
32
To maximize ongoing development efforts, the Company does not pay dividends.
The Company’s investment policy is to invest its cash in highly liquid short-term interest-bearing
investments with maturities of twelve months or less from the original date of acquisition, selected
with regards to the expected timing of expenditures from continuing operations.
The Company does not invest in commercial paper. The Company is not subject to externally
imposed capital requirements.
ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE
Additional disclosure concerning the Company’s operating expenses is provided above, and in the
Company’s consolidated statements of loss and comprehensive loss of the audited consolidated
financial statements for the year ended June 30, 2023 that is available on the Company’s website at
www.mirasolresources.com or on its SEDAR company page accessed through www.sedar.com.
OUTSTANDING SHARE DATA
As of the date of this MD&A, the Company had 65,650,060 issued and outstanding common shares.
In addition, the Company has 4,446,250 options outstanding that expire through December 30, 2027.
At the date of this MD&A, 205,000 RSU’s were outstanding.
Details of issued share capital are included in Note 14 of the Company’s audited consolidated
financial statements for the year ended June 30, 2023.
APPROVAL
The Audit Committee of the Company has approved the disclosure contained in this MD&A.
ADDITIONAL INFORMATION
Additional information relating to the Company is available on SEDAR at www.sedar.com and on the
Company’s website at www.mirasolresources.com.
33