Location and means of access to the property:
The Mallama Gold Project is located in an area shared by the municipalities of Mallama and Guachaves, in the Nariño department. The area is 56 km from San Juan de Pasto in a straight line from capital of the department, or a 126-km drive on a paved road. It is northeast of the Azufral volcano, a major landmark atop the western Andes of Colombia.
La Bombona is reached overland by the Pasto - Tuquerres - Tumaco National Route, then via 31 km on a tertiary road connecting Tuquerres and Santa Cruz (Guachaves), and finally 21 km on a southwest-bound unpaved road.
Mallama consists of two titles (IKE-10371X and IKE-10391X) that together total 9036 hectares and are valid for 29 years before extension.
Initial Exploration work and Model:
The Mallama project covers a large portion of the Piedrancha District, a large Miocene/Eocene district that contains more than thirty-five mapped and projected intermediate sulfidation epithermal veins with strike lengths of over 4km.
In 1984, the Japanese International Cooperation Agency (JICA) mapped, sampled, and drilled a portion of the larger vein system - the Mallama project covers approximately half of the JICA study area.
The private El Diamante Mine is just north of Miranda's Mallama project, and has been in active production for 30 years or more. The Piedrancha-Mallama District is located 70km northeast of Solgold's Cascabel Discovery (Eocene, Cu-Au Porphyry), 130 km northeast Llurimagua Cu Porphyry deposit, and 50 Km southwest of the Royal Road's La Golondrina Project of. Mallama probably reflects an extension of a well endowed mineral belt extending from Cascabel in Ecuador into southern Colombia. The Department of Nariño where Mallama is located has received very little modern exploration.
Miranda's work and historic work suggests the Mallama District has potential for numerous sub-parallel high-angle veins on both the mine and district scale, with a prevalence of high-grade gold and silver values that show good continuity in continuous veins and related competent shear zones. The JICA data shows that the known veins can be traced well with soil sampling, and JICA soil anomalies indicate that numerous veins may be unexposed near existing workings. Otherwise, exposures are poor. Vein packages occur over or within an area of at least 30 square kilometers on the Miranda titles, indicating an exceptionally large intermediate sulfidation IS epithermal gold system occurs. Miranda to date, has concentrated its work in the Bombona Zone where historic workings are extensive and in operation by artisanal miners currently. In the Olmedo Pastas Mine within the Bombona Zone, a northwest-southeast, sub-vertical vein and related adjacent mineralized shear extends with notable consistency for the entire 400 meters of the main level of the mine. The vein and shear appear nearly coeval and it is believed this relationship reflects a ductile shear zone progressing to open-space dilational deformation hosting open-space vein filling over time. The vein, the shear, and granitic wall rock lack significant post mineral deformation and are competent.
The shear zone is consistently mineralized and can carry grades up to 0.35 meters at 50.2g Au/t, or similar to the vein - but the shear commonly shows lower values. The vein and shear share a common margin and together are typically from 0.6 meters to 1.7 meters wide.
In the Bombona Zone, fourteen known sub-parallel and or anastomosing veins and mineralized shear zones extend northwest to southeast over a distance of over four kilometers.
Veins, structures and operating artisanal mines in the Bombona Zone within Mallama License
In the mine, eight close-spaced sub-levels developed from raises and winzes, without stoping, occur in a small area above and below the midpoint of the main haulage level. These levels are currently in small scale production, and extend 40 meters horizontally and 30 meters vertically.
In order to confirm historic reconnaissance samples provided by the owner - and make a gross estimate of in- situ
gold and silver grades in this production area - fifteen channel samples of vein and shear on levels below the main level were taken. These samples show a weighted average grade of 23.2g Au/t over an average width of 0.69 meters - with a range from 2.44 to 76.9g Au/t -- and a mean value for the fifteen samples of 22.0g Au/t. The gold to silver ratio is seven-to-one, and the weighted average for silver values is 182.3g Ag/t.
Sampling shows 0.78 meters at 29.34g Au/t, and 0.95 meters at 36.77g Au/t where the vein continues beyond the limit of level development to the southwest and northwest, respectively. High-grade mineralization extends beyond the limit of workings in all directions in the Olmedo Pastas Mine. The vein and adjacent shear in the Olmedo Pastas Mine are continuous, with very little structural disruption - and high gold and silver assay values show a consistent distribution. More workings are developed on this vein/shear or parallel vein/shears over a distance of 3 kilometers.
Miranda's recent sampling of the Olmedo Pastas Mine preliminary confirms historic sampling from Miranda's titles. This ampling from the previous title owner indicates six other open artisanal mines providing reconnaissance channel samples ranging from 11.8g Au/t to 73g Au/t and 47g Au/t to 1114g Ag/t. These samples are reported to reflect artisanal mine production faces at the time of visit and sample widths were not recorded, but probably do not exceed, the average 0.69 meter width seen in the Olmedo Pastas Mine.
Further systematic sampling by Miranda will be needed to verify the accuracy of, and determine if these reconnaissance samples have significant geologic context -- however - the historic samples are similar to the Miranda confirmation sampling done in the Olmedo Pastas Mine. Ingeominas ("Colombia Geologic Survey") also reports two reconnaissance samples taken of 75g Au/t (1,400g Ag/t) and 130g Au/t (120g Ag/t), east and west respectively of the Olmedo Pastas Mine, but within the Bombona zone. The Ingeominas sample widths are also not recorded.
Miranda has taken forty-seven channel samples in the course of its work in the Olmedo Pastas Mine and two other Bombona Zone workings -- one-third of all samples taken exceed 15g Au/t. These forty-seven samples include those taken for characterization of unmineralized wall rock, otherwise the average value would be significantly higher.
The veins contain sphalerite and galena, commonly in a banded habit, in quartz and with minor carbonate gangue. Arsenopyrite is locally abundant, but there is no correlation between gold and arsenic - while there is a correlation between silver and arsenic. The adjacent and parallel mineralized shear shows competent sigmoidal shear fabric of quartz lenses and multi-stage healed breccia. The wall rock is competent granite with local sericite alteration halos to the vein.
Commonly, subsidiary narrow low angle veins dip away from the hanging wall of the main vein, extending into the wall rock - and are interpreted as possible "ladder" tension veins linked to parallel high angle veins northeast of the Olmedo Pastas main adit. This interpretation is supported by reports of multiple close spaced veins occurring in cross cuts in other workings in the district. For example, mapping in the Carlos Eli Mine, also in the Bombona Zone, shows a "package" of ten narrow veins and shears over an interval of eight meters and mapping in the William Cuastumal Mine shows anastomosing shear zones combined with internal segments of vein. The array of close-spaced parallel veins could support high production tonnages in future mine development.
Twenty active or sporadically active artisanal mines are recorded in the Bombona Zone. Similar vein packages parallel to the Bombona Zone, occur 1.5 kilometers to the northeast and 3 kilometers to the southwest; they are informally named La Cruz and La Fortuna respectively. La Cruz has more historic mining activity and has more veins of greater strike length recorded than the Bombona. Miranda work will focus on the La Cruz area next. Little is known about La Fortuna because it is remote and it is the most recently discovered vein in the Mallama District.
Geology and mineralization:
The regional geology of the Mallama Gold Project consists of volcanic and sedimentary rocks, of the Diabase Group and Dagua Groups respectively. Both lithologic units have been assigned are Cretaceous in age. The Piedrancha granodiorite is Paleocene, and intrudes both Diabase Group and Dagua Group.
Regional cartography reports hypabyssal plutons of andesitic and dacitic compositions, which are linked to Piedrancha granodiorite. Sulfide bearing gold mineralization in Bombona and El Diamante are attributed to the above plutonic bodies. Aforementioned geological units are covered at the local level with ignimbritic, laharic and pyroclastic deposits. Lastly, quaternary deposits partially cover the area, comprising consolidated to partially consolidated deposits that generally are limited to rivers and terraces elevated above the current drainage.
At the regional level, two contemporaneous preferential fracturing directions are observed. A northeast-southwest fracture system, part of the Cauca - Patia system, would have direct influence over drainages that are tributaries to La Bombona and El Porvenir streams. A second fracture system with northwest --southwest orientation hosts the major veins.
Nature of interest and terms of acquisition:
On August 31, 2017, by purchasing the Colombian simplified share company: Minera Mallama SAS Miranda signed a final agreement completing the acquisition of the Mallama project. The formal transfer of the share certificates will occur upon review by the Chamber of Commerce in Colombia. Miranda has paid $298,216 in outstanding license fees (2014 to 2017) on the two titles - and upon receipt of suitable drill permits - Miranda will be required to make an additional payment of US$200,000 to the former shareholders. A residual net proceeds royalty of 4% (as defined in the Rocky Mountain Form 5) will be payable to the former shareholders, with a minimum of US$1.0M payable within three years of the commencement of commercial production, but capped at US$4.0m over the life of the mine. Otherwise, there are no additional annual payments or minimum work commitments on Mallama, and no area of influence binding Miranda.
In order to progress to drilling at a faster pace and proactively address the concerns of affected community stakeholders, Miranda is initially focusing on a 1,200-hectare portion of the 9300 hectare titles. By focusing on a smaller area initially, Miranda intends to accelerate subtracting the titles from a Second Law 1959 Forestry Reserve, complete a Consulta Previa, and provide a framework of legalization and accommodation for informal miners.
Miranda is conducting meetings with indigenous and civil community leaders and other stakeholders including informal miners. Miranda is optimistic that drill permits can be received in 2019. Miranda may, at that time, perform its own scout drilling as part project advancement designed to attract a joint venture partner.