Minsud announces results of the s cout-drilling program at the Chinchillones Porphyry in the Ch ita Valley Project, San Juan, Argentina
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TSX-V: MSR
June 23, 2020
Minsud announces results of the s cout-drilling program at the
Chinchillones Porphyry in the Ch ita Valley Project, San Juan,
Argentina
TORONTO, ONTARIO – Minsud Resources Corp. (TSX-V: MSR) (“Minsud ” or the “Company”)
is pleased to announce the results of the 6 hole, 3,559 meters scout drilling program completed at the
Chinchillones Porphyry and Epithermal Complex, part of the Chit a Valley Project. The exploration
survey was based on the results of the geophysics carried out d uring December 2019, where a
porphyry and epithermal anomalies were identified.
The objective was to determine the possible presence, as the ge ophysical and conceptual models
indicated, of a porphyry-type system below the Chita Valley and of an epithermal target hosted in the
lithocap cover.
The results of this exploration scout program and the revision of historical drill results performed in the
Chinchillones area, have provided some intercepts that support the presence at shallow and at down
depth level of a Zn-Pb-Cu-(Ag-Au) polymetallic epithermal system.
Figure 1: Chinchillones Porphyry & Epithermal target view to the south
Table 1 below highlights the main mineralized intersections nea r the surface and in depth with highly
anomalous Au-Ag-Cu-Mo-Pb-Zn. Two intrusive phases have been recognized, a quartz-diorite, cut by
an inter mineral dacite porphyry, both affected by an intensely, widespread, quartz sericite alte ration.
B and D porphyry style quartz veins forming strong stockwork, are present in both lithologies.
Drill hole CHDH20-04 intercepts continuous 739.70 m of a diorite porphyry. The diorite porphyry is cut
by polymetallic epithermal veins and hydrothermal phreatic brec cias mineralized with pyrite,
chalcopyrite, sphalerite, galena and tenantite.
Evidences of secondary enrichment is represented by covelite-di genite in a partial replacement of
chalcopyrite. This mineralized style represents a telescopic se quence of alteration-mineralization
zones, from shallow argillic and underlying quartz-sericite to deeper chlorite-sericite and minor
remnant potassic of a classic porphyry system type.
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Table 1: Chinchillones Diamond Drilling Program – Summary of Analytical Results
Hole ID From To Length Au Ag Cu Mo Pb Zn
(m) (m) (m) (*) g/t g/t % ppm ppm ppm
CHDH20-01 34.00 94.00 60.00 0.04 1.05 0.16% 67 62 21
CHDH20-02 16.00 45.00 29.00 0.16 15.15 0.19% 46 242 604
Incl. 44.00 45.00 1.00 0.27 66 0.93% 46 2030 4910
86.00 112.70 26.70 0.37 64.23 0.45% 69 1055 2847
Incl. 98.00 100.00 2.00 1.07 262 2.16% 34 2978 14050
44.00 220.00 176.00 0.12 16.18 0.17% 109 506 1711
Incl. 52.00 160.00 108.00 0.15 21.37 0.20% 82 599 2034
87.00 100.00 13.00 0.42 84.28 0.64% 44 1659 4300
CHDH20-03 Intercepts hydrothermal pyrite halo
CHDH20-04 16.00 44.00 28.00 0.64 73.35 0.02% 22 1068 130
Incl. 32.00 40.00 8.00 0.61 154.25 0.02% 34 2061 149
54.00 581.50 527.50 0.09 8.49 0.09% 37 1177 3243
Incl. 96.00 126.00 30.00 0.23 10.79 0.14% 54 723 3081
260.00 406.00 146.00 0.12 12.03 0.09% 40 1969 5044
634.00 738.00 104.00 0.02 8.77 0.29% 202 1111 3365
CHDH20-05 154.00 174.00 20.00 0.13 9.43 0.22% 48 93 1534
169.70 191.00 21.30 0.21 18 0.33% 37 95 1325
Incl. 169.70 174.00 4.30 0.29 35.2 0.63% 20 236 4721
178.00 191.00 13.00 0.22 17.58 0.32% 40 68 540
360.00 364.00 4.00 0.48 4.03 0.03% 28 71 558
581.35 582.00 0.65 0.21 9.1 2.60% 318 11 347
CHDH20-06 96.00 97.00 1.00 0.96 56.80 1.32% 6 1345 4780
168.00 170.00 2.00 0.18 12.40 0.12% 6 939 3520
(*) Intervals reported in the above table are not true thicknesses
Historical drilling data in the Chinchillones area is shown in Table 2 below and it highlights the most
significant intersections of Polymetallic Au-Ag-Cu-Mo-Pb-Zn grades values.
These results support and are indicative of the high potential of the polymetallic epithermal Au-Ag-Cu-
Pb-Zn trend in the Chinchillones target and its continuity to the East and Northeast.
Table 2: Chinchillones historical drilling data
Hole ID From To Length Au Ag Cu Mo Pb Zn
(m) (m) (m) (*) g/t g/t % ppm ppm ppm
CHS-11-01
70.00 74.00 4.00 0.13 12.9 0.18% 4 50 218
119.00 142.00 23.00 0.02 10.12 0.20% 8 671 2505
151.00 168.00 17.00 0.02 19.17 0.07% 7 1444 7283
CHS-11-03
12.00 15.00 3.00 0 3.51 0.04% 5 1291 3188
21.00 24.00 3.00 0 4.06 0.01% 10 642 1458
38.00 45.00 7.00 0.11 14.13 0.02% 6 5193 13143
98.00 101.00 3.00 0.18 37.47 0.06% 3 6479 8590
CHS-11-04
15.00 21.00 6.00 0.02 16.31 0.17% 5 258 340
35.00 45.00 10.00 0.02 5.62 0.04% 6 504 1967
57.00 72.00 15.00 0.07 30.12 0.11% 7 886 4159
125.00 130.00 5.00 0.26 52.55 0.33% 3 327 807
135.00 168.00 33.00 0.05 13.33 0.05% 3 605 2021
CHS-11-05 81.00 104.00 23.00 0.07 8.51 0.01% 3 546 5604
Incl. 100.00 102.00 2.00 0.35 41.04 0.01% 3 1135 43658
108.00 115.00 7.00 0.07 13.53 0.01% 4 1351 4478
135.00 146.00 11.00 0.13 34.5 0.02% 3 4422 15187
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Table 2: Chinchillones historical drilling data
Hole ID From To Length Au Ag Cu Mo Pb Zn
(m) (m) (m) (*) g/t g/t % ppm ppm ppm
MSA08-A
98.00 129.00 31.00 0.01 0.41 0.11% 146 14 112
136.00 149.00 13.00 0 0.06 0.09% 158 10 131
167.00 180.00 13.00 0.03 1.66 0.09% 110 32 208
222.00 239.00 17.00 0.08 0.53 0.19% 101 39 396
264.00 276.00 12.00 0.01 0.07 0.04% 184 10 118
MSA08-C
21.00 28.00 7.00 0.01 3.24 0.76% 4 365 307
31.00 80.00 49.00 0.07 13.82 0.05% 16 1884 6960
87.00 91.00 4.00 0.04 5.48 0.01% 6 230 1210
104.00 108.00 4.00 0.16 94.08 0.24% 6 4204 5225
127.00 133.00 6.00 0.18 90.01 0.27% 5 1126 2017
141.00 215.00 74.00 0.11 43.83 0.13% 8 2565 10286
240.00 279.00 39.00 0.02 5.74 0.02% 6 1289 4116
C-96-01
14.00 22.00 8.00 0.1 5.75 0.00% No data 1784 61
66.00 78.00 12.00 0.11 9.52 0.35% No data 1292 2557
126.00 142.00 16.00 0.09 11.36 0.08% No data 1465 7763
C-96-02 56.00 74.00 18.00 0.07 4.07 0.03% No data 882 2547
Incl. 56.00 60.00 4.00 0.2 12.7 0.10% No data 3113 7230
108.00 120.00 12.00 0.09 4.52 0.02% No data 635 2503
C-96-03 110.00 120.00 10.00 0.21 6.24 0.65% No data 146 250
C-96-04 32.00 94.00 62.00 0.05 4.39 0.01% No data 907 2354
144.00 170.00 26.00 0.21 13.38 0.10% No data 1707 6656
Incl. 160.00 164.00 4.00 0.75 49.8 0.53% No data 5808 15056
(*) Intervals reported in the above table are not true thicknesses
Conceptual Geological Model at Chinchillones
The Map 1 below, displays the extension of the polymetallic vei ns system (in red lines) open to the
East and Northeast configuring a namely “Linked Area” between C hinchillones and Chita porphyry
target that highlights untested porphyry systems and epithermal polymetallic veins associated.
This recent fieldwork also highlights the potential for a porph yry and epithermal system at
shallow depths and suggests the presence of a long-lived minera lization system open to the
East and linked with the Chita Porphyry, located 2 km to the East.
As cooling of the intrusive complex progressed at Chinchillones, the structural and chemical character
of the mineralizing environment changed largely in response to the inflow of meteoric water,
represented by near vertical presence of type D veins and phreatic breccia.
With continued cooling, upper and peripheral zones of late alte ration process and mineralization
progressively collapsed inward and downward over zones of early mineralization, penetrating deeper
along continuous vein structures (East-West structural system) as it is seen at the north and south
border of the Chita valley.
In the last stages, an acid hot-spring system was established i n the upper portions of the deposit
(Phreatic Breccia at Chinchillones). Finally, a relatively minor intrusion of late dacite dikes into this hot-
spring system caused brecciation and mineralization. This seque nce can be observed in drill hole
CHDH20-02, where banded quartz veins with anomalous values of Au-Ag have been identified.
Map 2 shows the relationship, along the East-West Chita Valley, of West Chinchillones Project, Central
link area project and the outcropping Chita Porphyry to the East.
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Quality Assurance/Quality Control
Diamond drill core was sampled as half core at two meters inter vals and check samples were
submitted to the ALS Minerals Laboratory in Mendoza, Argentina for preparation and analysis. ALS is
certified to ISO-9001 international standards. All samples were analyzed for Au by fire assay/ AA finish,
50 plus a 33-element ICP scan. Minsud has followed all industry standard procedures for the work with
a quality assurance/quality control (QA/QC) program including t he systematic utilization of certified
reference materials, blanks, field duplicates and check assays. Field duplicates, standards and blanks
were included with all sample shipments to the principal laboratory.
Minsud’s VP-Exploration, Dr. Mario Alfaro, conducted site visit s and detected no significant QA/QC
issues during review of the data. Mr. Mario Alfaro, Professiona l Geoscientist and a geological
consultant, 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 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. On March 26, 2018, Minsud filed a National Instrument
43-101 (“NI 43-101”) Technical Report and updated Mineral Resou rce Estimate on the Chita South
Porphyry Deposit. The Mineral Resource Estimate considers copper as a primary consideration along
with molybdenum, gold and silver mineralization. The latest estimate includes Indicated Resources of
33.02 million tonnes at a grade of 0.43% Cu, 0.07 g/t Au. 2.28 g/t Ag and 0.018% Mo and Inferred
Resources of 8.59 million tonnes at a grade of 0.40% Cu, 0.07 g/t Au. 1.73 g/t Ag and 0.016% Mo.
The Company also holds a 100% owned portfolio of selected early stage prospects, including 6,000
ha in Santa Cruz Province, Argentina.
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Map 1: Chinchillones Complex – Lithology and Structural Map
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Map 2: Chita Valley Project – Lithology and Structural Map
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FOR FURTHER INFORMATION PLEASE CONTACT
Alberto F. Orcoyen
President and Chief Executive Officer
Ramiro Massa
Controller and Corporate Secretary
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