Minsud Announces South32 to fund Year 4 exploration program at the Chita Valley Project
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TSX-V: MSR
February 3, 2023
Minsud Announces South32 to fund Year 4 exploration
program at the Chita Valley Project
TORONTO, ONTARIO – Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the
“Company”) is pleased to announce that a wholly -owned subsidiary of South32 Limited
(“South32”) has given notice, in terms of the earn in agreement executed in November 2019
(the “Earn-in Agreement”), of its intention to fund the C$9.1 million Year 4 exploration budget
and program to advance the Chita Valley Project in San Juan Province, Argentina.
Highlights of the Year 4 Approved Program and Budget
Investment of approximately C$9.1 million fully funded by South32.
Two drill rigs to deliver a diamond drilling program of up to 21,700 meters.
Geophysical magnetotellurics (MT) survey.
Metallurgical studies.
Advanced hyperspectral core scanning and special studies including petrographic
analysis, age dating, mineralogical characterization, etc.
Increased technical and operational capacity (enhancing safety protocols and process
standardization).
Environmental baseline studies.
Investment on CAPEX.
The drill program meters will be divided between delineating an initial resource at
Chinchillones, including testing of deeper targets open at depth, and progressing scout drilling
of other targets of interest. Additionally, the Company is planning to carry out a comprehensive
geophysical program to assist in targeting higher grade mineralization including an MT survey.
Minsud is actively completing the Year 3 exploration program at the Chita Valley Project which
is also being funded by South32. Th e Year 3 program is largely focused on drilling the
Chinchillones area, where drill hole results have confirmed the presence of highly significant
Zn-Pb-Cu-Au-Ag mineralization that overprinted at least two porphyry centers. Partial results
of this year’s explorat ion program were released by Minsud on December 23, 2022, and
October 13, 2022.
The results of the Year 3 exploration drilling , together with previous drilling phases, have
further expanded the Chinchillones porphyry -epithermal system , which is now thought to
encompass at least a 2 km x 2 km footprint, and open at more than 850m depth.
Ramiro Massa, Minsud’s President & CEO, said: “2022 was a productive year full of challenges
and accomplishments for Minsud. We are excited for what 2023 will bring given that our
annual drilling program is now fully funded. We look forward to working with South32 during
the fourth and final year of the Earn-in Agreement as we both look to advance the Chita Valley
Project”.
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.
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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 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.
If South32 exercises its earn -in right it may elect to acquire a 50.1% direct i nterest 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 minimum 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 di fference 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 commodities including bauxite, alumina, aluminiu m,
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 sev eral
partnerships with junior explorers around the world.
FOR FURTHER INFORMATION PLEASE CONTACT
Ramiro Massa
President and Chief Executive Officer
+1 416-479-4466
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 tha t, 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 forward -looking information including, but
not limited to: fluctuations in the currency markets (such as the Canadian dollar, Argentina
peso, and the U.S. dollar); changes in national and local government, legislation, taxation,
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controls, regulations and political or economic developments in Canada and Argentina or other
countries in which the Company may carry on business in the future; operating or technical
difficulties in connection with exploration and development activities; risks and hazards
associated with the business of mineral exploration and development (including environmental
hazards or industrial accidents); risks relating to the credit worthiness or financial condition of
suppliers and other parties with whom the Company does business; presence of laws and
regulations that may i mpose 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 maint aining, 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 date hereof. The Company disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result of new information, future
events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) acc epts responsibility for the adequacy
or accuracy of this release.