Minsud announces results of Phase 2 drilling program at Chita Valley Project, San Juan, Argentina
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TSX-V: MSR
February 5, 2021
Minsud announces results of Phase 2 drilling program at Chita
Valley Project, San Juan, Argentina
TORONTO, ONTARIO – Minsud Resources Corp. (TSX-V: MSR) (“Minsud” or the “Company” ),
is pleased to announce the completion of Phase 2 diamond drilling program, comprised of 12 holes,
5,818 meters, with variable depths between 350-650 meters, completed at the Chita and Chinchillones
porphyry targets, part of the Chita Valley Project . Together with Phase 1, the Company completed a
total of 9,377 meters during 2020, as shown in Map 1.
The program tested targets identified during the systematic multidisciplinary exploration program
conducted in the sector during Phase 1 drilling program completed during first half of 2020, and the
results from the pole -dipole geophysical survey covering 68 kilometers over 13 Induced Polarization
(IP) lines completed on July 2020.
Map 1: Chinchillones and Chita Polymetallic and Porphyry Complex
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Target Chinchillones: Scouting drill holes CHDH20-04 and CHDH20-05 (Phase 1) together with drill
hole CHDH20-17 (Phase 2) confirm the presence of a deep porphyry system and linked shallow
polymetallic Cu-Au-Pb-Zn mineralizations hosted in breccias and veins at the North West edge
of the Chita Valley. Early Chalcopyrite -molybdenum veins crosscut by hydroth ermal late veins
suggests a telescoping hydrothermal event overimpossed to the porphyry system, potassium alteration
(Magnetite-Biotite) appear s as a re lict in the widespread Quartz-sericite alteration. At the southern
edge of the Chinchillones area , the porphyry system appear s to be intrude d by a late phreato
magmatic breccia (Diatreme) and a Dacite Dome. Intermediate sulphidation (IS) Pb-Zn-Mn-Au-Ag
mineralization types, appear to be relate d with these magmatic hydrothermal breccias aligned in the
North North East direction. Anomalous values of Cu-Au-Ag-Pb-Zn detected in drillhole CHDH20-08
are a typical dome-related mineralization.
The Cu-Mo and Pb-Zn +/- Au Ag mineralization identified at the Chinchillones area confirms that this
area constitutes a high priority target with significant potential of exploration.
Phase 2: Chinchillones area - Summary of Analytical Results
Hole ID From To Length Au Ag Cu Mo Pb Zn
(mt) (mt) (mts) (*) g/t g/t % ppm ppm ppm
CHDH20-07 66 82 16 0.07 13.63 0.46 81 728 2,276
including 66 68 2 0.11 25.30 2.68 99 1,950 8,610
120 186 66 0.11 14.35 0.14 65 1,321 3,061
264 393 129 0.02 9.69 0.05 99 1,047 4,926
CHDH20-08 42 68 26 0.12 4.80 0.07 2 756 1,629
114.5 115.3 0.8 0.99 307.00 7.45 7 3,000 18,850
303 309 6 0.34 54.22 0.27 32 498 3,579
354 450 96 0.07 15.16 0.03 3 2,140 5,467
CHDH20-09 122 128 6 0.19 24.26 0.11 6 737 1,553
450 456 6 0.07 76.64 0.17 5 1,728 4,973
CHDH20-10 12 22 10 0.36 75.79 2.66 4 22,489 7,079
including 16 18.3 2.3 0.60 163.78 8.43 6 49,170 23,052
65 69 4 0.10 14.40 0.10 47 541 3,763
132 136 4 0.11 10.65 0.03 2 5,493 20,810
235 241 6 0.13 35.87 0.19 2 2,153 16,743
CHDH20-17 100 178 78 0.16 6.47 0.21 87 144 3,531
240 347 107 0.20 24.07 0.11 16 2,046 5,942
464 524 60 0.02 1.49 0.24 137 59 740
CHDH20-18 104 238 134 0.07 3.38 0.19 76 68 190
including 107 108 1 0.32 102.00 3.52 15 430 2,850
285 292 7 0.35 5.00 0.28 39 60 167
388 398 10 0.06 11.71 0.25 57 76 408
(*) Intervals reported in the above table are not true thicknesses
Target Chita North porphyry (PNO): This target was tested through drill holes CHDH20-11,
CHDH20-12, CHDH20-14, CHDH20-15 and CHDH20-16. The main rock type intercepted corresponds
to an Andesite porphyry. The dominant hydrothermal alteration correspond s to a marginal propylitic
Py halo (3%-5%). Drill hole CHDH20 -12, approximately at 412 meters deep, intercepted a porphyry
with Potassium alteration type , conformed by Biotite -Magnetite +/ - Potassium Feldspar. The
mineralization is scarce , associated to N orth North East structures with Chalcopyrite -Sphalerite
(intermediate sulphidation system ) and relict of primary Molybdenite mineralization. The continuity to
the north of the potassiu m alteration detected at the southern margin of the Chita Valley is still not
clear and should be confirmed through future geological mapping and drillings.
Target Chita South porphyry (PSU): It was only tested through drill hole CHDH20-13. Mineralization
of 0.3% to 0.4% Cu, up to 100 - 120 meters. The best grades are associated with Chalcocite (product
of a secondary enrichment process) coating on Pyrite and Chalcopyrite, together with copper oxide
fillings (mix Cu Ox –Sulphur zone).
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Phase 2: Chita PSU and PNO - Summary of Analytical Results
Hole ID From To Length Au Ag Cu Mo Pb Zn
(mt) (mt) (mts) (*) g/t g/t % ppm ppm ppm
CHDH20-11 424 480 56 0.02 0.64 0.09 271 7 29
CHDH20-12 32 48 16 0.08 4.74 0.39 40 155 492
including 39.5 40 0.5 0.88 64.20 3.47 351 118 780
332 342 10 0.05 2.76 0.17 35 72 263
CHDH20-13 24 126 102 0.08 2.06 0.33 253 39 104
152 192 40 0.04 0.87 0.11 189 18 181
CHDH20-14 120 124 4 0.06 2.37 0.06 22 96 5,765
174 182 8 0.08 2.81 0.04 6 610 3,303
CHDH20-15 288 292 4 0.21 9.30 0.16 5 110 300
CHDH20-16 Intercepts hydrothermal pyrite halo
(*) Intervals reported in the above table are not true thicknesses
The results of this Phase 2 scout drilling exploration program confirm very interesting intercepts that
support effectively the presence at shallow and at down depth level of a Zn-Pb-Cu-(Ag-Au) polymetallic
epithermal system and deeper parental porphyry Cu -Mo-Au open to the North North East at
Chinchillones area.
The geological team is currently working on detailed re-logging of the Phase 2 drill core and mapping,
together with the review of all the available structural and geochemical data in order to assist on
targeting for the next Phase 3 drill program that is being designed and scheduled to commence during
the first half of 2021.
Conceptual Geological Model
Different magmatic -hydrothermal breccias observed at Chita and Chinchillones reflect a complex
sequence of multiple events that can be linked to explosive events developing in the upper parts of the
porphyry system during their emplacement, uplift and unroofing. In fact, at Chita and Chinchillones, a
large part of the evolution of this porphyry system would have developed in a tectonic framework
characterized by the occurrence of high rates of regional tectonic uplift and erosion, which would have
favored the generation of telescoping processes related to mineralization process and the formation
of the diatreme complex.
Quality Assurance/Quality Control
All core samples were submitted to the ALS 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.
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 expl oration stage porphyry system with classic alteration features,
widespread porphyry s tyle Cu -Mo-Ag-Au mineralization and associated gold and s ilver-bearing
polymetallic veins of intermediate sulfide composition that conformed an outcropping porphyry system
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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.
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Cu-Mo- Au-Ag
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.
FOR FURTHER INFORMATION PLEASE CONTACT
Ramiro Massa
President and Chief Executive Officer
+1 416-479-4466
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