Minsud Announces Updated Mineral Resource Estimate at the Chita Valley Cu-Au-Ag-Mo Project, San Juan, Argentina Large portion of Cu Mineral Resource upgraded to Indicated Category.
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TSX-V: MSR
February 7, 2018
Minsud Announces Updated Mineral Resource Estimate at the Chita Valley
Cu-Au-Ag-Mo Project, San Juan, Argentina
Large portion of Cu Mineral Resource upgraded to Indicated Category.
TORONTO, ONTARIO – Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the
“Company”) completed 67 HQ diamond drill holes totaling 10,565 metres (“m”) in 2011, 2014,
2015, 2016 and 2017 in the southern Chita Porphyry sector of the Chita Valley Project (see
earlier press releases dated September 6, 2011, January 26, 2012, June 30, 2014, November
4. 2014, December 10, 2015, November 1, 2016 and January 2, 2018). Four historical holes
completed in 1969, three holes from 1976 and one RC hole from 1996, most of which have
been re-sampled and re-analyzed by Minsud, are added to the drilling database. The total
database utilized for the updated Mineral Resource Estimate includes 74 core holes and 1
reverse circulation hole totaling 1 1,613 m and 150 m, respectively for a combined total of
11,763 m (see Table 1 below). The drill holes tested a substantial zone of Cu -Au-Ag-Mo
mineralized multi-stage vein systems and hydrothermal breccias.
Table 1: Drill Hole Database Summary
Drilling Type # Drill
Holes
Metres of
Drilling
# Cu
Assays
# Au
Assays
# Ag
Assays
# Mo
Assays
Historical Drill Holes 8 1,198 775 75 75 699
2011 Minsud Drill Holes 3 880 877 877 877 877
2014 Minsud Drill Holes 24 3,111 1,530 1,530 1,530 1,530
2015 Minsud Drill Holes 20 3,419 1,669 1,669 1,669 1,669
2016 Minsud Drill Holes 12 1,700 962 962 962 962
2017 Minsud Drill Holes 8 1,036 481 481 481 481
Pre-2017 Holes Extended (7) 419 208 208 208 208
Total 75 11,763 6,502 5,802 5,802 6,426
In March 2015, Minsud retained P&E Mining Consultants Inc. (“P&E”) of Brampton, Ontario to
review project data and prepare a Technical Report that complied with Canadian National
Instrument 43 -101 standards. The report included an initial Mineral Resource Estimate
(conceptual open pit constrained) at a 0.3% Cu cut -off of 18.3 million tonnes averaging
0.44% Cu, 0.07 g/t Au, 2.4 g/t Ag and 0.019% Mo estimated under the CIM definition
standards. In October 2015, Minsud again retained P&E to review more recentl y obtained
project data and prepare an updated Technical Report and updated Mineral Resource
Estimate. The second report included an in-pit Mineral Resource Estimate at a 0.3% Cu cut-
off of 31.5 million tonnes averaging 0.45% Cu, 0.07 g/t Au, 2.2 g/t Ag an d 0.017% Mo
estimated under the CIM definition standards. All Mineral Resources were classified as
Inferred category. In December 2016, Minsud again retained P&E to review additional
project data prepare a third pit constrained Inferred Mineral Resource e stimate to CIM
definition standards. At a 0.3% Cu cut-off the updated resources totaled 37.0 million tonnes
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averaging 0.44% Cu, 0.07 g/t Au, 2.2 g/t Ag and 0.018% Mo. The Technical Reports dated
June 19, 2015 and February 1, 2016 and the updated Mineral Re source estimate dated
December 31, 2016 are publicly filed under the Company’s profile at www.sedar.com .
A Bioleach process test work on Chita samples was completed at CodelcoTech Spa laboratory
in Santiago, Chile. Bioleaching followed by SX-EW processes results in the production of high
quality LME grade copper metal at typically a low capital and operating cost. In January 2017,
the Company submitted six representative drill core samples to CodelcoTech whose testwork
was completed in the third quarter of 2017 (see the Company’s Q3 MD&A at www.sedar.com.
1. All six samples were evaluated for bioleaching potential by diagnostic through
Selective Copper Extraction Tests (“S. E. T.”) which reported values ranging
between 80% and 95% of the total contained copper. Samples Met1, Met2 and Met4
S.E.T, test values were 82%, 80% and 83%, respectively.
2. Three of the six samples (Met1, Met2 & Met4) were then evaluated by bioleaching
tests in columns of 60 cm height and 4 kg capacity to verify the copper recovery
potential delivered by the S.E.T. tests, primarily to determine the dissolution kinetics
of copper. The column tests results for samples Met1, Met2 and Met4 test values
were closely similar to those of the S.E.T. tests, reaching to 80%, 79% and 80%,
respectively.
In the opinion of CodelcoTech the introduction of a wash stage at the end of a primary
bioleaching cycle can increase the copper extraction value by 3 to 4% mainly by rec overing
the residual impregnated solution.
In November 2017, Minsud again retained P&E Mining Consultants Inc. to prepare an updated
Technical Report and Mineral Resource Estimate. In P&E's opinion, the drilling, assaying and
exploration work of the Chit a Porphyry supporting this Mineral Resource Estimate are
sufficient to indicate a reasonable potential for economic extraction. All Mineral Resources at
a 0.25% Cu cut-off were classified as Indicated or Inferred category based on the geological
interpretation, semi-variogram performance and drill hole spacing. An important milestone is
that the Company has a large proportion of Indicated Resources, approximately 80% of the
total Mineral Resources. The Mineral Resource Estimate is shown in Table 2 below. T he
Technical Report is expected to be filed in early to mid-March 2018.
Table 2: Chita Pit Constrained Mineral Resource Estimate Statement(1-4)
All Mineral Resource at 0.25% Cu Cut-off
Tonnes (M)
Mt
Cu % Contained Cu M lb Au g/t Ag g/t Mo %
Indicated 33.02 0.43 310.8 0.07 2.28 0.018
Inferred 8.59 0.40 75.4 0.07 1.73 0.016
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate
of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio -
political, marketing, or other relevant issues. It is noted that no specific issues have been identified as yet
(2) The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied t o an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority
of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued
exploration.
(3) The Mineral Reso urces in this report were estimated using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by
the CIM Standing Committee on Reserve Definitions and adopte d by the CIM Council.
(4) The 0.25% Cu Mineral Resource Estimate cut -off grade was derived from the Nov 30/17 two year trailing
average Cu price of US$2.46/lb, 78% process recovery, US$8/t process cost, and US$2.50/t G&A cost. An
optimized pit shell was utilized for Mineral Resource reporting that utilized a US$2/t mining cost and 45 degree
pit slopes.
Mineral Resources are sensitive to the selection of a reporting Cu cut-off grade. The Chita pit
constrained Mineral Resource Estimate sensitivity of the Cu cut-off grade is demonstrated in
Table 3 and illustrated in Figure 1 below.
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Table 3: Pit Constrained Resource Sensitivity by Category
Indicated
Dec 17/17 Chita Pit Constrained Resource Sensitivity
Cut-Off Tonnes Cu Cu Au Ag Mo
% Cu t % M lb g/t g/t %
0.50 6,313,807 0.65 90.6 0.11 4.13 0.018
0.45 9,822,048 0.59 127.3 0.10 3.50 0.018
0.40 15,296,438 0.53 178.4 0.09 3.03 0.018
0.35 23,128,708 0.48 242.7 0.08 2.64 0.019
0.30 30,005,291 0.44 292.4 0.07 2.39 0.018
0.25 33,015,996 0.43 310.8 0.07 2.28 0.018
0.20 33,707,323 0.42 314.3 0.07 2.26 0.018
0.15 33,847,699 0.42 314.9 0.07 2.26 0.018
0.001 33,872,411 0.42 315.1 0.07 2.26 0.018
Inferred
Dec 17/17 Chita Pit Constrained Resource Sensitivity
Cut-Off Tonnes Cu Cu Au Ag Mo
% Cu t % M lb g/t g/t %
0.45 1,907,959 0.54 22.7 0.10 2.67 0.018
0.40 3,229,746 0.49 35.0 0.09 2.37 0.016
0.35 5,630,506 0.44 54.6 0.08 2.03 0.016
0.30 7,817,677 0.41 70.5 0.07 1.81 0.016
0.25 8,594,576 0.40 75.4 0.07 1.73 0.016
0.20 8,660,961 0.40 75.6 0.07 1.72 0.016
0.15 8,664,491 0.40 75.6 0.07 1.72 0.016
0.001 8,664,491 0.40 75.6 0.07 1.72 0.016
Figure 1: Chita Conceptual Pit Constrained Inferred Resource Diagram (oblique view
looking North).
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Map 1: Chita Porphyry Surface Geology and Drill Hole Locations
The mineralized sections include disseminated sulphides as well as A, B and D -type veins
hosted by multiple stages of epizonal intrusions and hydrothermal breccias. The complex
mineralization styles are not conducive to the classi cal concepts of true thickness
measurement, therefore vertical thickness determinations that would conform to conceptual
pit design parameters are used instead. Lithological units (Map 1), alteration patterns (Map
2) are shown in the following diagrams. A ll pertinent lithological, alteration and magnetic
features extend beyond the current drilling pattern.
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Map 2: Chita Porphyry Surface Alteration and Drill Hole Locations
It is noted that the Mineral Resource outline drilling to date is mainly confined to the
outcropping southern part of the Chita Porphyry system. Prospective areas in the central and
northern sectors of the Chita Porphyry are largely untested, as are similar porphyry areas
located to the west (Chinchillones and Placetas Porphyries).
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All Company drill core samples and check samples of historical drilling were submitted to either
the Alex Stewart Argentina S.A. or the ALS Minerals Laboratories in Mendoza, Argentina for
preparation and analysis. Both are certified to ISO-9001 international standards. All samples
were analyzed for Au by fire assay/ AA finish, 50 or 30 g, plus a 33-element ICP scan. 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. A representative selection of pulps has also been
submitted to ISO-9001 certified referee laboratory, Alex Stewart (Assayers) Argentina SA in
Mendoza for analysis. Minsud’s company QP, Mr. Howard Coates, P. Geo., conducted site
visits and detected no significant QA/QC issues during review of the data. In addition, P&E
geologist and Independent QP, Mr. David Burga, P. Geo., conducted site visits and collected
suites of field duplicate core samples for verification purposes in March and November, 2015
and November 2017. Again, there were no significant issues.
Minsud is encouraged by the generally consistent elevated concentrations of Cu, Ag and Mo
as well as the more localized anomalous Au values. With maximum elevation in the sector
below 3,100 m ASL (meters above mean sea level) field conditions are benign on a year round
basis and no active alpine glaciers are possible below approximately 4,100 m ASL.
Minsud plan s to continue investigating the commercial possibilities for processing and
recovering the key metals while at the same time conducting additional drilling to further delimit
the deposit and evaluate the grade distribution of the mineralization.
Mr. Howa rd Coates, P.Geo., Director of the Company and a geological consultant, is a
Qualified Person as defined by Canadian National Instrument 43 -101. Mr. Eugene Puritch,
P.Eng,, FEC, CET, President of P&E Mining Consultants Inc. and an Independent Qualified
Person along with Mr. Coates have both reviewed and approved the contents of this news
release.
Carlos Massa, Minsud’s President & CEO, states: “With a large portion of pit constrained
Indicated Mineral Resources now established at Chita South, Minsud has r eached a major
milestone for economic analysis. This clearly demonstrates the value of the Company’s cost
efficient systematic exploration approach. Management is also encouraged by the Chita
Valley Project’s widespread exploration potential for addition al porphyry Cu mineralization
(both primary and secondary) as well as low-sulphidation Au/Ag mineralization.”
About the Chita Valley Project, San Juan Province:
The Chita Valley Project is a large exploration stage porphyry situation with classic alteration
features, widespread porphyry style Cu -Mo-Ag-Au mineralization, and associated gold and
silver-bearing polymetallic veins. In addition to the Chita resource area, the project includes a
cluster of largely untested mineralized porphyries including Chinch illones and Placetas
porphyries. 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 18,000 has in Santa Cruz
Province, Argentina.
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FOR FURTHER INFORMATION PLEASE CONTACT
Carlos Massa
President and Chief Executive Officer
Mike Johnston
416-479-4466
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
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of exploration, anticipated financial results, future work programs, capital expenditures and
objectives. Forward-looking information is necessarily based upon a number of estimates and
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and increasing costs associated with operational inputs and labour; the speculative nature of
mineral exploration and development, including the risks of obtaining necessary licenses,
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There can be no assurance that such information will prove to be accurate, as actual results
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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
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