TSX-V: MSR
TORONTO, May 8, 2023
/CNW/ - Minsud Resources Corp. (TSXV: MSR) ("Minsud" or
the "Company"), is pleased to announce the receipt of assay results
from four (4) additional drillholes, which were completed as part
of the ongoing Phase IV scout drilling program at the Chita Valley
Project, San Juan province, Argentina.
Thirty-three (33) drillholes have been completed to date in the
Phase IV program, encompassing a total of 23,420 metres. Assay
results have been received from the additional four drill holes
totaling 3,153 metres, which include drillholes CHDH23-69 through
to CHDH23-72. Key highlights and associated figures are provided
below.
Chinchillones Breccia Target: High-grade breccia body with
mineralization extending below 1,200m
depth
Hole CHDH23-69 was drilled to test the continuity of the
polymetallic trend in the Chinchillones West Area. It was drilled
with an orientation of 135°/-80° and reached a depth of 1,242
metres (see Map 1 and Table 1 below). The results
from this drillhole are highly significant, having intersected a
456-metre interval of continuous high-grade polymetallic
(Zn-Pb-Cu-Ag-Au-Mo) breccia.
The drillhole intersected a high-grade breccia body emplaced
within precursor diorites that host early mineralization A and B
veins. This high-grade mineralization is largely hosted within a
steep-sided magmatic-hydrothermal breccia body, at least 120
metres-wide and remains open along strike. The geometry and extent
of this body are yet to be fully established.
This important breccia body exhibits broad textural and
mineralogical zonation, characterized by zinc-rich, sulphidic,
hydrothermal shingle breccias from along the contact zone with the
country rocks and transitions down-dip to copper-rich mosaic
breccias and then to molybdenite-rich fragment-supported breccias
(see Figure 1 below). This zoning pattern is interpreted
here to reflect the accumulation of over-pressured, volatile gases
which has led to an eruptive column above a porphyry Cu-Mo
intrusion, without breaching the paleosurface.
Significant polymetallic (Zn-Pb-Au-Cu-Mo) mineralization
intervals for drillhole CHDH23-69 includes:
- 786.0m @ 0.43% Cu, 368 ppm Mo,
0.23 g/t Au and 15.78 g/t Ag, from 456 to 1,242m (open at depth)
-
- including 160.0m @
0.35% Cu, 0.34 g/t Au, 45.72 g/t Ag, 3.58% Zn, 1.25% Pb, from
456 to 616m.
- including 166.3m @
1.35% Cu, 0.54 g/t Au, 26.63 g/t Ag, 181 ppm Mo, from 616 to
782.3m.
These hydrothermal breccia characteristics are affiliated with,
and are thought to form part of the mineralized breccias found in
drillholes CHDH21-37, CHDH21-38, CHDH21-23 and CHDH21-26. Thus,
this zone of higher-grade breccias has a drill-demonstrated strike
length of at least 250m and a
vertical column of at least 600m.
Follow up drillholes are testing the breccia's NNE-continuity.
Link Zone Target
The Link Zone target is located between the South Porphyry (aka
PSU) and Chinchillones targets. Scout drilling in this area has
confirmed the presence of high-grade mineralized structures hosted
in the sedimentary Agua Negra Formation and Tertiary-aged
domes.
CHDH23-72 is located on the eastern edge of the Link
zone. It was drilled with an orientation of 135°/-65° to a depth of
762 metres (see Map 1 and Table 1 below).
- Drill intercepts:
-
- 166.0m @ 0.11% Cu, 180 ppm Mo,
515 ppm Zn, from 132.0 to 298.0m.
- 34.0m @ 0.12% Cu, 8.39 g/t Ag,
0.15% Zn, from 684.0 to 718.0m.
- From 246m to 509m intercalated early dioritic and andesitic
porphyries were intersected.
- Strong potassium alteration, Biotite +/- K-feldspar with
moderate superimposed sericite-chlorite alteration.
- It is considered that the porphyry intercepts could correspond
to the West extension of the Chita primary porphyry (PSU).
New Target to the NE of Chinchillones
During late 2022, the Company identified and drilled a new 1 km
x 1 km target area to the NNE of the principal Chinchillones
system.
The new target area is covered by the Agua Negra sedimentary
sequence, with quartzites and shale, traversed by small
andesitic/dacitic bodies hosting porphyry-related B and A veinlets.
Scout drillholes at this location included CHDH23-70 and
CHDH23-71.
Hole CHDH23-70 was drilled to a depth of 618.2 metres
(see Map 1 and Table 1 below). Highlights are outlined below:
- Drill intercepts:
-
- 8.0m @ 0.49% Cu, 0.19 g/t Au and
10.45 g/t Ag from 372.0 to 380.0m.
- 16.0m @ 0.40% Cu, 1.14 g/t Au,
and 4.56 g/t Ag, from 564.0 to 580.0m.
- Intersected narrow, high-sulphidation structures measuring 8
and 16 metres containing chalcopyrite, pyrite and sphalerite.
- The drillhole intersected a sequence of sandstones and
quartzites of the Agua Negra Formation hosting weak illite and
sericite +/- chlorite alteration. A few early andesite dikes cut
through this sequence.
PHASE IV: Diamond
Drilling Program – Summary of Analytical Results
|
Hole
ID
|
From
|
To
|
Length
|
Cu
|
Au
|
Ag
|
Mo
|
Pb
|
Zn
|
(mt)
|
(mt)
|
(mts)
(*)
|
%
|
g/t
|
g/t
|
ppm
|
ppm
|
ppm
|
CHDH23-69
|
456.00
|
1242.00
|
786.00
|
0.43 %
|
0.23
|
15.78
|
368
|
2587
|
7591
|
Incl
|
456.00
|
616.00
|
160.00
|
0.35 %
|
0.34
|
45.72
|
45
|
12485
|
35840
|
|
616.00
|
782.30
|
166.30
|
1.35 %
|
0.54
|
26.63
|
181
|
147
|
959
|
|
782.30
|
1164.00
|
381.70
|
0.13 %
|
0.09
|
1.58
|
645
|
26
|
181
|
CHDH23-70
|
372.00
|
380.00
|
8.00
|
0.49 %
|
0.19
|
10.45
|
136
|
13
|
400
|
|
564.00
|
580.00
|
16.00
|
0.40 %
|
1.14
|
4.56
|
4
|
24
|
139
|
CHDH23-71
|
478.00
|
492.00
|
14.00
|
0.18 %
|
0.12
|
1.73
|
1
|
19
|
694
|
CHDH23-72
|
132.00
|
298.00
|
166.00
|
0.11 %
|
0.03
|
3.88
|
180
|
112
|
515
|
|
684.00
|
718.00
|
34.00
|
0.12 %
|
0.06
|
8.39
|
272
|
312
|
1541
|
References:
|
|
|
|
|
|
|
|
|
|
(*) Intervals reported
in the above table are not true thicknesses
|
|
|
|
|
General outlook and exploration implications
The current results of the Phase IV exploratory activities,
together with previous drilling phases, have confirmed an expanded
Chinchillones porphyry-epithermal system, now estimated to cover a
minimum area of 2 km x 2 km. The zone is open to more than
850m depth, which was the limit of
previous drilling equipment utilized on the project.
Ramiro Massa, Minsud's President
& CEO, said: "Drillhole CHDH-23-69 has delivered our best
drill hole intercept to date and suggests that significant
additional potential could be discovered at the Chita Valley
Project. We are extremely pleased with these new drill results,
which further confirm the presence of extensive mineralization at
the Chinchillones target, as well as presenting a porphyry system
with greater depth and lateral extent to anything else encountered
on the project to date, with a new target zone of 2km by
2km. The scale of this discovery continues to expand and is
highlighted by at least two different mineralized bodies of
significant thickness and length."
Quality Assurance/Quality Control
All core samples were submitted to the ALS Global Laboratories
in Mendoza, Argentina for preparation and analysis. All samples
were analyzed for Au by fire assay/ AA finish 50g, plus a
48-element ultra-trace four acid digest with ICP-MS and ICP-AES
finish. Minsud followed industry standard procedures for the work
with a quality assurance/quality control (QA/QC) program. Field
duplicates, standards and blanks were included with all sample
shipments to the principal laboratory. Minsud detected no
significant QA/QC issues during review of the data.
Case Lewis, P.Geo., VP Exploration of the Company, is a
qualified person as defined by Canadian National Instrument 43-101.
Mr. Lewis has 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 sulphide
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 and amendments.
On April 13, 2023 South32
exercised its earn-in right to acquire a 50.1% direct interest in
the Company's Argentinean operating subsidiary Minera Sud Argentina S.A. ("MSA") at the earlier
of: (i) the completion of the Year 4 annual exploration program;
and (ii) February 14, 2024
("Completion"). At the time of Completion, Minsud Argentina Inc.
("MAI"), a wholly owned subsidiary of the Company, and South32 will
enter into a shareholders' agreement to govern the management and
operation of MSA.
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 realize 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
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operating or technical difficulties in connection with exploration
and development activities; risks and hazards associated with the
business of mineral exploration and development (including
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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
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result of new information, future events or otherwise, except as
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SOURCE Minsud Resources Corp.