TSX-V: MSR
TORONTO, Feb. 3, 2023
/CNW/ - Minsud Resources Corp. (TSXV: MSR) ("Minsud"
or the "Company") is pleased to announce that a wholly-owned
subsidiary of South32 Limited ("South32") has given notice,
in terms of the earn in agreement executed in November 2019 (the "Earn-in Agreement"),
of its intention to fund the C$9.1
million Year 4 exploration budget and program to advance the
Chita Valley Project in San Juan Province, Argentina.
Highlights of the Year 4 Approved Program and Budget
- Investment of approximately C$9.1
million fully funded by South32.
- Two drill rigs to deliver a diamond drilling program of up to
21,700 meters.
- Geophysical magnetotellurics (MT) survey.
- Metallurgical studies.
- Advanced hyperspectral core scanning and special studies
including petrographic analysis, age dating, mineralogical
characterization, etc.
- Increased technical and operational capacity (enhancing safety
protocols and process standardization).
- Environmental baseline studies.
- Investment on CAPEX.
The drill program meters will be divided between delineating an
initial resource at Chinchillones, including testing of deeper
targets open at depth, and progressing scout drilling of other
targets of interest. Additionally, the Company is planning to carry
out a comprehensive geophysical program to assist in targeting
higher grade mineralization including an MT survey.
Minsud is actively completing the Year 3 exploration program at
the Chita Valley Project which is also being funded by South32. The
Year 3 program is largely focused on drilling the Chinchillones
area, where drill hole results have confirmed the presence of
highly significant Zn-Pb-Cu-Au-Ag mineralization that overprinted
at least two porphyry centers. Partial results of this year's
exploration program were released by Minsud on December 23, 2022, and October 13, 2022.
The results of the Year 3 exploration drilling, together with
previous drilling phases, have further expanded the Chinchillones
porphyry-epithermal system, which is now thought to encompass at
least a 2 km x 2 km footprint, and open at more than 850m depth.
Ramiro Massa, Minsud's President
& CEO, said: "2022 was a productive year full of challenges
and accomplishments for Minsud. We are excited for what 2023
will bring given that our annual drilling program is now fully
funded. We look forward to working with South32 during the fourth
and final year of the Earn-in Agreement as we both look to advance
the Chita Valley Project".
Mr. Mario Alfaro, Professional
Geoscientist, VP-Exploration of the Company, is a qualified person
as defined by Canadian National Instrument 43-101. Mr. Alfaro
visited the property and has read and approved the contents of this
release.
About the Chita Valley Project, San Juan Province:
The Chita Valley Project is a large exploration stage porphyry
system with classic alteration features, widespread porphyry style
Cu-Mo-Au and polymetallic Ag-Pb-Zn mineralization hosted by
Hydrothermal Phreatic Breccias and associated gold and
silver-bearing polymetallic veins of intermediate sulfide
composition that conformed an outcropping porphyry system at Chita
and a lithocap of a porphyry system at Chinchillones. San Juan
Province of Argentina has a robust mining sector and recognizes the
important economic benefits of responsible development of its
substantial Mineral Resource endowment.
Current exploration activities on the Chita Valley Project are
being funded by a subsidiary of South32 in accordance with the
earn-in agreement between the parties entered into on November 1, 2019.
If South32 exercises its earn-in right it may elect to acquire a
50.1% direct interest in the Company's Argentinean operating
subsidiary Minera Sud Argentina S.A.
("MSA") at the end of the earn-in period by paying an additional
C$14 million to Minsud, or by funding
a pre-feasibility study, with a minimum spend of C$41 million, which would entitle it to elect to
increase its 50.1% direct interest in MSA to 70%.
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on exploring its
flagship Chita Valley Cu-Mo- Au-Ag-Pb-Zn Project, in the Province
of San Juan, Argentina. The Company also holds a 100% owned
portfolio of selected early-stage prospects, including 6,000 ha in
Santa Cruz Province,
Argentina.
About South32
South32 is a globally diversified mining and metals company. The
company's purpose is to make a difference by developing natural
resources, improving people's lives now and for generations to
come. South32 is trusted by its owners and partners to realise the
potential of their resources. South32 produces commodities
including bauxite, alumina, aluminium, copper, silver, lead, zinc,
nickel, metallurgical coal and manganese from its operations in
Australia, Southern Africa and South America. With a focus on growing its
base metals exposure, South32 also has two development options in
North America and several
partnerships with junior explorers around the world.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION:
This news release includes certain information that may
constitute forward-looking information under applicable Canadian
securities laws. Forward-looking information includes, but is not
limited to, statements about strategic plans, spending commitments,
future operations, results of exploration, anticipated financial
results, future work programs, capital expenditures and objectives.
Forward-looking information is necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information including, but not limited to:
fluctuations in the currency markets (such as the Canadian dollar,
Argentina peso, and the U.S. dollar); changes in national and local
government, legislation, taxation, controls, regulations and
political or economic developments in Canada and Argentina or other countries in
which the Company may carry on business in the future; operating or
technical difficulties in connection with exploration and
development activities; risks and hazards associated with the
business of mineral exploration and development (including
environmental hazards or industrial accidents); risks relating to
the credit worthiness or financial condition of suppliers and other
parties with whom the Company does business; presence of laws and
regulations that may impose restrictions on mining, including those
currently enacted in Argentina;
employee relations; relationships with and claims by local
communities; availability and increasing costs associated with
operational inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining
necessary licenses, permits and approvals from government
authorities; business opportunities that may be presented to, or
pursued by, the Company; challenges to, or difficulty in
maintaining, the Company's title to properties; risks relating to
the Company's ability to raise funds; and the factors identified
under "Risk Factors" in the Company's Filing Statement dated
April 27, 2011. There can be no
assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on forward-looking information. All
forward-looking-information contained in this news release is given
as of the date hereof and is based upon the opinions and estimates
of management and information available to management as at the
date hereof. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Minsud Resources Corp.