Minsud Confirms high-grade Cu-Au zone at second porphyry with 86m at 0.94% Cu, 0.38g/t Au, 5.56 g/t Ag within 518m at 0.34% Cu, 0.13 g/t Au, 4.40 g/t Ag, and 33ppm Mo from 330m (open at depth)
TSX-V: MSR
March 21, 2023
Minsud Confirms high-grade Cu-Au zone at second porphyry with 86m at
0.94% Cu, 0.38g/t Au, 5.56 g/t Ag within 518m at 0.34% Cu, 0.13 g/t Au, 4.40 g/t
Ag, and 33ppm Mo from 330m (open at depth)
TORONTO, ONTARIO - Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the “Company”), is
pleased to announce the receipt of assay results from the ongoing Phase IV scout drilling program at
the Chita Valley Project, San Juan province, Argentina.
To date, the Phase IV program has completed 28 drillholes for 19,058m . Assay results have been
recently received from an additional nine drillholes totaling 6,179m, specifically from drillholes CHDH22-
60 through to CHDH22-65, and CHDH23-66 to CHDH23-68 (see Table 1 below). The drilling campaign
is ongoing, with two drillholes currently being drilled and two more awaiting assay results. To support
the continued progress of the program, two drill rigs are currently in operation .
Highlights are listed below, along with the accompanying figures.
Chinchillones Second Porphyry Cu-Au-Ag-Mo
The drilling results of these additional nine drillholes completes the program which commenced in 2022
and includes the first three drillholes of the 2023 program. These newly drilled holes have confirmed
the presence of mineralized intrusive bodies hosting porphyry-style Cu-Au-Mo-Ag at depth, beneath
the high sulfidation mineralization intersected near surface.
The results from CHDH22-62 are highly significant as they reveal the presence of a Cu-Au-rich intrusive
body with tonalitic composition that differs both compositionally and texturally from the principal dioritic
porphyry Cu-Mo body at Chinchillones . This auriferous porphyry traverse s a larger mineralized
porphyry Cu-Mo body at depth , and importantly, the mineralized porphyry column , which consistently
exhibits high Cu grades, is open to at least 850m. Near the surface , an affiliated alteration -
mineralization footprint is present, characterized by an extensive zone of advanced argillic alteration
(pyrophyllite-kaolinite-silica-alunite) that trends broadly NNE, with a strike length of at least 700m and
450m width.
Drillholes CHDH22-62 and CHDH22 -57 now validate the unequivocal presence of a second tonalitic
porphyry, which is associated with intra-mineral dacitic bodies. The central porphyry at Chinchillones is
believed to be an earlier phase, occurring as roof pendants and angular clasts to the tonalite porphyry-
associated dacitic volcanic unit. This provides unequivocal temporal separation between the two
productive porphyries, further supporting the interpretation of distinct mineralizing events .
Significant porphyry Cu-Mo-Au mineralization intervals for drillhole CHDH22-62:
• 518m at 0. 34% Cu, 0.13 g/t Au , 4.40 g/t Ag , and 33ppm Mo, from 330m (open at depth)
including 86m at 0.94% Cu, 0.38 g/t Au, 5.56 g/t Ag, from 746m highlighting higher-grade gold
and coincident copper mineralization.
In 2023, a second, more powerful drill rig was mobilized to the project to complete deeper drillholes
(>1,000m) in order to test and extend the porphyry mineralization of several drillholes that ended in
mineralization.
Near the surface, a high sulfidation system is present, which is characterized by pervasive sulfidic
replacement of host rocks, massive sulfidic pods/lenses, pervasive sulfidic disseminations, and sulfides
in-filling hydrothermal breccia matrix. The sulfides comprise of varying amounts of pyrite, chalcopyrite,
covellite, tennantite, enargite, chalcocite, digenite, bornite, sphalerite, galena, calaverite, and hessite.
The drillhole CHDH22-64 has further expanded the extent of Cu-Mo mineralization encountered by the
previously reported drillholes (see press releases dated December 23, 2022, and October 13, 2022):
• 311m at 0.19% Cu, 0.02 g/t Au , 2.36 g/t Ag and 513ppm Mo from 560m (open at depth)
including 75m at 0.15% Cu, 1,095 ppm Mo and 0.19 ppm Re from 796m highlighting higher-
grade molybdenum and coincident rhenium mineralization.
This drillhole terminated in an intra-mineral hydrothermal breccia, which notably contains fragments of
angular to sub -rounded clasts of both t onalite and diorite porphyries. In the last 200 meters, there is
remnant potassic alteration with moderate intensity phyllic overprint. Notable features include the
presence of stockworked quartz-molybdenite-pyrite-chalcopyrite veinlets , porphyry-related B and A
veins, and K-feldspar veinlets.
Link Zone Target
The Link Zone target is the area located between South Porphyry (syn PSU) and Chinchillones. Scout
drilling has confirmed the presence of high -grade mineralized structures hosted i n the sedimentary
Agua Negra Fm and Tertiary domes.
Drilling has identified a NNE-trending mineralized corridor that is similar to the delineated mineralization
corridors at Chinchillones. The Company plans to continue with exploration and drilling in this target
area to confirm the presence of mineralized intrusive bodies at depth. For 2023, the company has
approved approximately 2,000 meters of drilling, which will consist of 3 to 4 drillholes.
New Target to the NE of Chinchillones
In late 2022, the Company identifie d a new target area measuring 1 km x 1 km located NNE of the
principal Chinchillones system. Two scout drillholes, CHDH22-65 and CHDH23-67, were completed in
the area. The target area is characterized by a 1.3 km-long coherent conductive anomaly that is at least
400 m wide and covered by the Agua Negra sedimentary sequence, comprising quartzites and shale,
and traversed by small andesitic/dacitic bodies hosting porphyry -related B - and A -veinlets. The
drillholes intersected shallow andesitic porphyr y hosting abundant A-B veins containing chalcopyrite-
molybdenite. The results are highly encouraging and interpreted to indicate the presence of sill-like
mineralized intrusions, possibly emanating from a larger body to the SW.
General outlook and exploration implications
The results from Phase IV exploratory activities, together with previous drilling phases, have expanded
the Chinchillones porphyry-epithermal system, now thought to encompass at least 2 km x 2 km footprint,
and open at depth exceeding 850m (limit of previous drilling). Drilling has demonstrated superimposed
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. These breccia bodies
are believed to be fed from at least two separate porphyry centers.
The continuity, and geometry of high -grade Cu-Au mineralisation intersected in CHDH22-62 will be
further tested with >1,000 m drillholes. Additionally, the transition zone between the near-surface high-
sulfidation mineralization and the Cu-Au porphyry will be further evaluated.
Ramiro Massa, Minsud’s President & CEO, said: “ The progress of the drilling programs, together with
the outstanding results achieved, has exceeded our expectations of the Chita Valley project. With the
results of 2022’s drilling season, the true size of the mineral system at the Chita Valley project is
becoming apparent. We now have a more powerful drill rig to complete deeper drillholes (>1,000m) to
probe down -dip mineralization of several drillholes which ended in mineralized rock. We have an
approved drilling program of 21,700m for 2023 to complete scouting drilling in several areas of interest
while continuing to delineate the mineralization at Chinchillones, which is now thought to encompass
at least 2 km x 2 km area and open to more than 850m depth . We are excited to embark on the next
phase of exploration to further advance the porphyry discoveries at the Chita Valley Project, and we
believe this will lead to an important project in Argentina”.
Table 1 - Summary of Analytical Results
Hole ID From To Length Cu Au Ag Mo Pb Zn Re
(mt) (mt) (mts) (*) % g/t g/t ppm ppm ppm ppm
CHDH22-60 270 312 42 0.02% 0.11 6.01 2 58 319
CHDH22-61 38 72 34 0.01% 0.08 18.61 1 333 1153
CHDH22-62 206 254 48 0.20% 0.23 5.58 20 67 636
272 290 18 1.42% 0.22 12.71 4 182 781
330 848 518 0.34% 0.13 4.43 33 44 568
Incl. 746 832 86 0.94% 0.38 5.56 2 18 117
CHDH22-63 10 78 68 0.15% 0.04 2.69 170 32 66
100 266 166 0.09% 0.04 6.25 241 276 465
CHDH22-64 82 140 58 0.14% 0.11 17.07 12 1129 4781
216 300 84 0.07% 0.11 9.84 47 860 2285
560 871 311 0.19% 0.02 2.36 513 67 526
Incl. 796 871 75 0.15% 0.03 1.99 1095 27 477 0.19
CHDH22-65 26 56 30 0.06% 0.11 1.89 23 59 231
CHDH23-66 19 220 201 0.10% 0.06 1.51 63 70 254
621 630 9 0.63% 0.26 183.46 268 357 3246
822 830 8 0.82% 0.21 36.20 118 55 1136
CHDH23-67 28 214 186 0.15% 0.03 1.50 331 22 93
262 372 110 0.11% 0.03 2.51 426 55 203
CHDH23-68 62 70 8 0.14% 0.23 2.69 4 26 74
References:
(*) Intervals reported in the above table are not true thicknesses
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 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 Instrume nt 43 -101. Mr. Alfaro visited the property and has read and
approved the contents of this release.
Map 1: Phase IV drillholes location
Map 2: New Target NE location & drillholes
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.
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 elect 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 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
difference by developing natural resources, improving people’s lives now and for generations to come.
South32 is trusted by its owners and partners to realize the potential of their resources. South32
produces commodities 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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