Argelia - OutCrop Gold

ARGELIA

The Argelia project are mining applications that provide a target for multiple intermediate sulfidation epithermal veins within a structural corridor that extends at least 2.5km and has a width of 0.25 km. At least three distinct veins are inferred but workings suggest more veins remain to be identified. The veins typically range from 0.25 to 2m in width. Reconnaissance samples range from 0.51 g Au/t to 40 g Au/t. Silver to gold ratio is approximately 5 to 1 or higher.

Public records show that a private British mining company mined and produced gold on the project prior to 1950. The workings presumed to represent this activity have two levels spaced approximately 100m apart in elevation.

Location and means of access to the property:

The Argelia project is readily accessible by a combination of paved and all-weather gravel roads. It is located approximately 75 kilometers southeast of Medellín, by car 111km to Sonsón on paved National Route 56 and then 33km on unpaved roads to the town of Argelia, and then 3.5km on gravel roads to the project.

The three applications (KHP-08044 X, KHP-08045 X and KK6-08012 X) together cover an area of 4355 hectares.

INTIAL PROSPECTING AND EXPLORATION MODEL:

Adit sampling from Bullet Group 2013 report.

An area of workings illustrated that commonly show values >12 g Au/t, with a high value of 89 g Au/t.

Gold in the veins occur with Ag-Pb-Zn-As-Bi-Mo metal suite and an As-Ag-Sb-Hg trace element suite. The veins and alteration occur within faults of the greater Palestina Fault System.

A private British company mined gold in the area prior to 1950; this information is corroborated by local inhabitants, who report an old mine comprising at least two levels and several adits.

Between 2010 and 2013, Bullet Group performed exploration activities in all three applications, leading to the identification of a series of adits and outcrops. Miranda performed reconnaissance work during the last quarter of 2013, visiting six (6) tunnels, namely the Diamond, Molino, Alirio, Santa Ines, Tesoro and Salon mines. This allowed for confirmation of the area’s potential. In 2018, prospective work was restarted, leading to the identification of new outcrops and abandoned adits.

The veins are interpreted as intermediate sulfidation epithermal. The veins strike at an oblique angle to a shear zone and may be emplaced in dilational structures, secondary to the main shear. The shear is up to4km long and 2km wide. Within the shear is a fault zone of at least 2.5km strike and 0.25km width structural and containing at least three sub parallel veins or fault-veins with an azimuth between 225° and 245°, Veins widths range from 0.25 to 2m.

Vein character and associated metals suggest an intermediate sulfidation (IS) epithermal system in the Argelia project area. This system contains veins that are several kilometers long, composed of crystalline and prismatic quartz with sulfides including pyrite, galena, sphalerite, and chalcopyrite. Alteration is of moderate intensity, restricted to major and minor structures, with presence of clay, sericite, pyrite, crushed quartz, and associated base metals and sulfosalts.

GEOLOGY AND MINERILIZATION:

The project is within an altitude between 1600 and 2000masl. In general, the area contains Cajamarca-complex metamorphic rocks, composed by a group of quartz-sericite and graphite schist, biotitic quartzite, quartzitic gneiss and amphibolites. These rocks are intruded with quartz diorite and diorite bodies originating in the magmatic evolution of the plutonic complex of the Sonsón batholith (Gonzales 2001 in Valencia 2017).

Project fractures and faults are associated with the Palestina Fault System. Plutonic bodies intrude this fault system. The Palestina system presents dextral faulting, with strong tectonic influence in the evolution of the Sonsón batholith and associated project fault systems. Within the La Mina rural district (Vereda, in Spanish), certain structures are observed and classified into three large groups, as detailed below.

• Major structures, faults and veins: 60-65/85N.

• Minor structures, dikes and millimetric, mineralized veinlets: 150-155/85S

• Secondary structures, faulting zones with sulfide formation, pyrite in particular: 70/55S

NATURE OF INTEREST AND TERMS OF ACQUISITION

In June 2017 Miranda signed a definitive agreement to acquire the Argelia Project from Bullet Holding Group (“Bullet”) for payments and retained interests. The Agreement pertains to applications KHP-08044X, KHP-08045X, and KK6-08012X which together cover an area of 4355 hectares.

The terms of this agreement require that Miranda make the following series of payments and a share issuance – all based on the occurrence of the events at right.

A residual net profits interest (“NPI”) of 4% – or – a residual net smelter royalty (“NSR”) of 1.5% – whichever is greater – will be payable to the vendor, until US$6.0m has been paid – at which time an NSR of 1.5% will be payable for the life of the mine. There are no minimum work commitments on Argelia, and there is no area of influence restrictions for Miranda the acquisition of any adjacent property.

Event Issuance of
Mirada shares
Payment amount
US$
By June 22, 2017

100,000

As soon as practicable (following TSXV
approval) the issuance of US$100,000
equivalent in Miranda common shares

1,624,270 shares at $0.08178

Upon conversion of the applications to titles

100,000

Upon receipt of approval for forestry
subtraction – or – Miranda making drill
applications for any of the titles

100,000

Upon receipt of drill permits

100,000

Upon announcement of an NI 43-101
resource of >500,000 oz/au total in
all categories (M+I+I)

250,000

One year from the announcement of an
NI 43-101 resource of >500,000 oz/au

250,000

FUTURE PLANS

Miranda Gold believes the findings to date point to an epithermal deposit commonly with values above 12 g Au/t. A high veins density is inferred; some are well-defined probably others are yet to be discovered.

Exploration activities will be carried out in order to gather further information regarding deposit type, as well as to define areas of interest within applications –including extensions to structural corridors–, the number of veins present in each, their features, structural controls, ore shoot characteristics, geochemistry, alterations, and related data. The collected data will be used to define better drilling targets.

To this end, superficial reconnaissance work is proposed; this would include soil sampling, cartography, and taking advantage of tunnels already dug in the area. Alongside this work, we will work with local communities and authorities to promote awareness on the project and involve stakeholders, fostering collaborative work that will generate mutual benefits between Miranda and the communities.

Miranda is seeking a joint venture partner agreement on Argelia.