Active Chita Valley Phase IV Drilling Further Confirms Second Porphyry
TSX-V: MSR
December 23, 2022
Active Chita Valley Phase IV Drilling Further Confirms Second Porphyry
Center at Chinchillones with 354m @ 0.29% Cu, 322ppm Mo, 0.10 g/t Au and
5.59 g/t Ag Open at Depth; with High-grade Mo-Re Intervals
TORONTO, ONTARIO - Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the “Company”), is
pleased to announce receipt of assay results from the additional nine (9) drillholes completed in the
ongoing Phase IV scout drilling program at Chita Valley Project, San Juan province, Argentina.
Twenty-three (23) drillholes were completed to date this year, encompassing a total of 15,836m. Assay
results have been received for additional nine (9) drill holes totali ng 6,250m, which included drillholes
CHDH22-51 through to CHDH22-59. There are six (6) drillholes still awaiting assay results.
The principal objectives of the current program include further down-dip and along strike delineation of
the mineralized porphyries and affiliated host rocks discovered during the Phases I to III programs
(2020 and 2021) and to test additional targets at Chinchillones and the nearby Link Zone area.
Highlights are listed below, along with the accompanying figures.
Chinchillones Second Porphyry Cu-Mo-Ag-Au
The recent drilling results further confirmed the presence of a second porphyry Cu-Mo-Au-Ag centre
located around 450m east of the Chinchillones central porphyry and expressed on surface as prominent
confluence of NS- and EW- trending ridges (see Figure 1) occupied by silicified and brecciated Permo-
Carb Agua Negra Fm quartzose sandstone. This blind Cu-Mo-Ag-Au diorite porphyry is interpreted to
be NE-elongated, at least 700m-long and 350m-wide. This new intrusion centre is transitional upward
to a pervasive pyrophyllite-dominated advanced argillic alteration zone hosted in dominantly dacitic
volcanics and breccias. The Chinchillones central porphyry occurs as roof pendants and angular clasts
to the dacitic volcanics , providing unequivocal temporal separation between the two productive
porphyries.
Significant porphyry Cu-Mo mineralization intervals for drillhole CHDH22-57:
• 354m at 0.29% Cu, 322ppm Mo, 0.1 g/t Au and 5.59 g/t Ag from 484m (open at depth) including
50m at 0.25% Cu, 0.11 gpt Au, 2 .02 gpt Ag, 1,117 ppm Mo and 0.23 ppm Re from 770m
highlighting higher-grade molybdenum and coincident rhenium mineralization.
Affiliated to the second porphyry are near-surface, high sulfidation mineralized bodies characterized by
pervasive sul fidic replacement of host rocks , massive sul fidic pods/lenses, pervasive sul fidic
disseminations and sulfides in-filling hydrothermal breccia matrix . The sul fides comprise varying
amounts of pyrite-chalcopyrite-covellite-tennantite-enargite-chalcocite-digenite-bornite-sphalerite-
galena-calaverite.
These sulfidic zones are highlighted in in drillhole CHDH22-59:
• 144m at 0.37% Cu, 0.14 g/t Au and 7.98 g/t Ag from 28m, and 16m at 0.98% Cu, 0.38 g/t Au
and 17.59 g/t Ag from 260m.
Importantly, CHDH22-59 has effectively established the strike and down -dip continuity of the near -
surface Cu -Au-Ag bodies encountered at CHDH21-40 and CHDH22 -43 ( see press releases dated
February 24 and October 13, 2022). CHDH21-40: 84m at 0.59% Cu, 0.24 g/t Au, 15.03 g/t Ag; CHDH22-
43: 112m at 0.42%Cu, 0.1 g/t Au, and 9.80 g/t Ag).
Link Zone Target
The Link Zone target is the area located between South Porphyry “PSU” and Chinchillones. The scout
drilling in this area confirms the presence of high -grade mineralized structures hosted in the
sedimentary Agua Negra Fm and intrusive Tertiary domes. Drillholes CHDH22-52 and 53 show
anomalous high sulfidation (“HS”) mineralization of Cu-Zn-Ag controlled by a trending NNE fault, cutting
andesitic porphyry at depth.
Drillhole CHDH22-51 has been drilled to the limit of the area between the Chinchillones target and Link
Zone. This drillhole intersected numerous HS structures and hydrothermal breccias of up to 5m-thick
with high grade Cu-Zn-Ag+/-Au.
The d rillholes completed at the Link zon e confirmed a NNE -trending mineralized corridor which is
sympathetic to the delineated mineralization corridors at Chinchillones. The Company plans to continue
drilling this target area to confirm the presence of these mineralized intrusive bodies at depth.
PHASE IV: Diamond Drilling Program – Summary of Analytical Results
Hole ID From To Length Au Ag Cu Mo Pb Zn Re
(mt) (mt) (mts) (*) g/t g/t % ppm ppm ppm ppm
CHDH22-51 122 186 64 0.14 25.94 0.13% 2 1662 7426
660 680 20 0.05 1.90 0.29% 2 24 391
CHDH22-52 44 86 42 0.10 7.87 0.23% 2 170 97
159 173 14 0.30 86.22 2.49% 6 2353 6985
236 268 32 0.07 5.85 0.17% 3 439 354
616 704 88 0.03 3.09 0.14% 75 114 657
CHDH22-53 36 60 24 0.05 6.85 0.19% 51 402 782
276 280 4 0.19 67.10 1.32% 124 3494 12868
CHDH22-54 78 80 2 0.10 5.08 0.09% 1 500 1835
CHDH22-55 170 222 52 0.07 4.38 0.06% 9 372 3474
428 470 42 0.07 4.50 0.02% 2 1568 7416
CHDH22-56 468 479 11 0.08 5.87 0.24% 11 88 549
546 580 34 0.15 7.10 0.41% 7 93 523
CHDH22-57 484 838
(EOH) 354 0.10 5.59 0.29% 322 74 307
incl. 770 820 50 0.11 2.02 0.25% 1117 11 75 0.23
CHDH22-58 169 198 29 0.09 6.02 0.08% 13 463 1180
CHDH22-59 28 172 144 0.14 7.98 0.37% 13 218 732
260 276 16 0.38 17.59 0.98% 1 64 186
298 308 10 0.18 7.42 0.20% 3 499 2180
496 516 20 0.17 2.02 0.42% 2 52 109
734 848 114 0.14 2.58 0.20% 6 47 531
References:
(*) Intervals reported in the above table are not true thicknesses
General outlook and exploration implications
The current results of Phase IV exploratory activities, together with previous drilling phases, confirmed
the expanded Chinchillones porphyry -epithermal system, is now thought to encompass at least 2kms
x 2 kms, and is demonstrably open to more than 850m depth. Drilling has demonstrated superposed
broad zone s of polymetallic Zn -Pb-Cu-Au-Ag mineralization hosted in linear hydrothermal breccia
bodies of both epithermal high sulfidation and intermediate sulfidation affinities and interpreted to be
fed from at least two (2) porphyry centers.
Ramiro Massa, Minsud’s President & CEO, said: “ This ongoing Phase IV drill program at Chita Valley
Project, together with previously completed phases have successfully demonstrated the presence of at
least two porphyry cent ers at the Chinchillones porphyry and epithermal system , and furthermore
extended its mineralization in all directions encompassing at least 2 kms x 2 kms, remaining open at
depth. We also identified the presence of Rhenium associated with high-grade Mol ybdenum.
Congratulations to our team that has been drilling safely throughout the year including during the winter
season.”
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 laborato ry. Minsud detected no
significant QA/QC issues during review of the data.
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.
Map 1: Phase IV drillholes location
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 P hreatic 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.
Under the earn-in agreement and having given the Company notice of its intention to continue funding
the Chita Valley Project, South32 will provide further funding to MSA such that its aggregate funding is
not less than C$14 million by February 28, 2024. South32 has the right to withdraw at the end of each
year.
If South32 exercises its earn -in right it may el ect 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 minimu m
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 co mmodities 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.
FOR FURTHER INFORMATION PLEASE CONTACT
Ramiro Massa
President and Chief Executive Officer
www.minsud.com
+1 416-479-4466
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