Minsud Resources Corp. (TSX-V: MSR) is pleased to announce the receipt of assay results from nine additional drillholes, which were completed as part of the ongoing Phase IV drilling program at the Chita Valley Project, San Juan Province, Argentina.
Fifty-two drillholes have been completed to date in the Phase IV program, encompassing a total of 38,991 metres. Assay results have been received from drillholes CHDH23-82 through CHDH23-90, which total 8,186 metres. Four additional drillholes, CHDH23-91 through CHDH23-94, are currently awaiting assay. Key highlights and associated figures are provided below.
Chinchillones HSE Target NNE: High-grade body with mineralization extending between 800 to 1,000m depth
Continued drilling in Phase IV was mainly concentrated in the SW-NE corridor at the eastern end of the Chinchillones target. Drilling tested the lateral and depth continuity of the previously reported drillholes CHDH23-73 and CHDH23-62, the High-Grade sector of the main mineralized bodies.
Drilling intersected porphyritic dacite bodies with disseminated and early mineralization hosted in veinlets, with marked advanced argillic alteration, superimposed on quartz-sericitic alteration of the early bodies at depth. These dacites are cross-cut by high-grade hydrothermal-intrusive breccias. Cu-Au mineralization occurs disseminated in the porphyritic dacite and largely within the breccia matrix. The geometry and extent of this zone has not yet been fully established, but this confirms the high-grade mineralization found at depth in previously reported holes.
CHDH23-82 was drilled with an orientation of 315°/-75° to a depth of 921 metres:
CHDH23-87 was drilled with an orientation of 315°/-75° to a depth of 850 metres:
CHDH23-88 was drilled with an orientation of 315°/-75° to a depth of 801 metres:
Table 1: PHASE IV Diamond Drilling Program – Summary of Results
|* intervals reported in the above table are not true thicknesses|
Chinchillones Target: MSA begins to outline in-fill drilling in its High-grade body with mineralization extending up to 800m depth
MSA has begun to prepare an in-fill drilling program covering an area 1,550 m long by 1,200 m wide, for the purpose of generating a mineral resource estimate on the Property. This area represents the primary NNE-trending zone of mineralization within the Chinchillones Target, as delineated through drilling. See Map 2.
Grid interval/hole spacing is currently set at approximately 150 m, and at least 70% of holes completed at Chinchillones are anticipated to be included in the model. Drilling results so far have indicated continuity of all metallic domains. The average depth of the planned drilling is approximately 685 m.
The initial program includes 25,000 metres of diamond drilling, distributed in 30 drillholes. This phase of drilling is expected to be completed by mid-2024.
CHDH23-82 to CHDH23-85 correspond to the “scouting” phase, while CHDH23-86 to CHDH23-90 correspond to the “in-fill” phase in the Chinchillones target.
During the months of September and October, a survey of new areas on the south and west edges of the Chita Valley property began. The objective is to develop new areas to drill by mid-2024. The survey included surface geological mapping, sample collection for ASD Spectrometry, and a total of 300 rock chip samples. The Company is currently awaiting laboratory results.
Ramiro Massa, Minsud’s President & CEO, said: “Drilling at the Chinchillones Target on our Chita Valley Project has yielded results beyond our initial expectations, demonstrating the Project’s scale and potential as significantly greater than previously anticipated. These findings have prompted us to commence an updated mineral resource estimate on the project, which will now include the Chinchillones Target. The updated mineral resource estimate will allow us to implement this zone as part of the project’s future development and overall value. As always, the Minsud team is focused on advancing the Chita Valley Project to its full potential.”
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 1,000m depth.
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.
Qualified Person Statement
Case Lewis, P.Geo., VP Exploration of the Company, is a Qualified Person (QP) 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 Limited 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. at the earlier of: (i) the completion of the Year 4 annual exploration program; and (ii) February 14, 2024. At the time of Completion, Minsud Argentina Inc. 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 the early stage La Rosita project comprising of 6,000 ha in Santa Cruz Province, Argentina.
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.
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