Minsud Confirms High-Grade Polymetallic Intervals in NNE Corridor at the Chita Valley Project; Intersects 642m at 0.41% CuEq
TSX-V: MSR
October 13, 2022
Minsud Confirms High-Grade Polymetallic Intervals in NNE
Corridor at the Chita Valley Project;
Intersects 642m at 0.41% CuEq
TORONTO, ONTARIO - Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the “Company”), is
pleased to announce receipt of assay results from the initial eight (8) drillholes completed in the ongoing
Phase IV scout drilling program at Chita Valley Project, San Juan province, Argentina. The Company
commenced Phase IV drill program in May and plans to complete a 26,000 m program by first quarter
of 2023.
Fifteen (15) drillholes were completed to date this year, encompassing a total of 10,000m. Assay results
have been received for the first eight (8) drill holes totaling 5,480m, including drillholes CHDH22-43 to
CHDH22-50. The remaining seven (7) drillholes are still awaiting assay results.
The principal objectives of the current program include further delineation of the mineralized body
discovered during the Phases I to III programs (2020 and 2021), test additional centers of polymetallic
mineralization at the Chinchillones area and to probe the down-dip continuity to the South Chita
Porphyry (PSU) deposit.
The d rillholes completed to-date at the eastern sector of the Chinchillones target confirmed the
presence of a highly prospective NNE -trending corridor of coalescing epithermal and porphyry
mineralization (see Map 1).
Highlights are listed below, along with the accompanying figures.
Chinchillones Target
The drilling phases completed in 2020 and 2021 confirmed a productive advanced argillic alteration
(pyrophyllite-quartz-pyrite) hosting high sul fidation mineralization zone (tennantite-chalcopyrite-
sphalerite-galena-enargite), encroaching down to 300m below surface and occupies almost the entire
eastern edge of the Chinchillones porphyry-epithermal complex. The drillholes in this sector intersected
slivers of the mineralized porphyry amongst advanced argillic-altered dacitic lithologies. It is interpreted
that these porphyry Cu-Mo bodies progress to a much bigger and higher-grade mineralization at depth
or along strike.
Thus, the results to date of the Phase IV drilling at Chinchillones confirmed that continuity to the NE of
the high sulfidation Cu -Au-Ag affiliated to a porphyry mineralization type, previously intersected by
drillholes CHDH21-30 and CHDH21-40 (see press releases dated October 7, 2021 and February 24,
2022).
The drillholes CHDH22-43 and CHDH22 -50, yielded high-grade high sulfidation Cu-Zn-Pb-Ag
mineralized intervals occurring in a broad advanced argillic (pyrophyllite -kaolinite-pyrite-secondary
silica) altered dacitic lithologie s. This important NNE -trending porphyry and epithermal corridor
comprise an area of at least 1 km-long and 350m-wide. Drilling demonstrated that the high sulfidation
mineralization extend down-dip to at least 500m.
- CHDH22-50: This drillhole yielded mineralized dacitic porphyry affected by strong pyrophyllite -
dominated advanced argillic alteration and traversed by highly sulfidic intra-mineral hydrothermal
breccias. This hole, together with CHDH22-47, confirmed a mineralized dioritic Cu-Mo porphyry at
depth. The best intervals are from 77 to 719m, 642m at 0.41% CuEq (0.27% Cu) which include
high sulfidation structures of about 20m thick at 1.51% Cu, 0.20 ppm Au, 31ppm Ag. See Figure 1
- CHDH22-43: Yielded 90m of advanced argillic altered phreatic hydrothermal breccia.
Mineralization is largely as disseminated Cu sulfides with 112m at 0.42% Cu from 30m to 142m,
emplaced along the contact of a dacite porphyry with the quartzites of Aguas Negras Permian Fm.
- CHDH22-47: Intersected advanced argillic -altered dacitic porphyry cut by l ate, low er-grade
dacites. The most interesting sections range from 278m to 474m with 196m of 0.22% Cu; and from
574m to 782 m, 208m at 0.20% Cu and 178ppm Mo. This section heralded the commencement of
porphyry-type mineralization towards the end of the drillhole. Although the Cu values are of
moderate grade, a mineralized dioritic porphyry was confirmed.
South Porphyry Target (PSU)
Drillholes CHDH22 -48 and CHDH22 -49 tested the Chita South P orphyry (PSU) at depth. Cu-Mo
mineralization was confirmed below 120m, at least up to 250 m depth. The low-level As-Sb and Zn-Pb-
Ag-Au values are thought to indicate deeper erosional level compared to the emplacement level at
Chinchillones, where high sulfidation veins and replacement are more pervasive.
Drillhole CHDH22-48 intersected 212m from 32m to 244m at 0.37% CuEq (0.25% Cu, 200 ppm Mo). It
cuts the NE-trending 10m to 15m veins and vein network (interpreted to be intermediate sulfidation type
veins) hosting Zn-Pb-Ag-Au. This drillhole ended at 578 m due to drilling difficulties and could not reach
the programmed depth.
Drillhole CHDH22-49 ends at 750.3 m. A moderate to strong potassic alteration is confirmed until the
end of the drilling.
General outlook and exploration implications
The current results of Phase IV, together with previous drilling phases, confirmed the continuity of a
Cu-Mo porphyry system to the northeast, the porphyry footprint to the NE of the central Chinchillones
area is now thought to encompass 1 km x 800m, demonstrably open to depth, and a superposed broad
zone of polymetallic Au-Zn-Pb-Ag mineralization related to hydrothermal breccia bodies and epithermal
high sulfidation and intermediate sulfidation structural vein systems. These spectrum of mineralization
styles are thought to support a highly telescoped system.
The presence of pervasive quartz-pyrophyllite hosting ubiquitous sulfidic veins, breccia in -fill, pods,
lenses implies that the Chinchillone system represents the basal parts of an advanced argillic lithocap
where the vertical porphyry-affiliated advanced argillic column has largely been lost by erosion during
both tectonic uplift and Chita Valley incision. The erosion must have commenced syn -hydrothermally
to account for at least 700m of telescoping of the quartz-pyrophyllite over a core of potassic alteration.
The Chita Valley porphyry system and related epithermal mineralization represent a large magmatic -
hydrothermal system, along approximately 4 km strike spanning the EW-trending Chita Valley corridor.
Ramiro Massa, Minsud’s President & CEO, said: “The drill results reported continue to demonstrate the
strong potential to expand the Chita Valley Project well beyond its current resource at the South
Porphyry. The la st 11 metres of hole CHDH22 -50 averaged 0.53% copper, and the hole ends in
mineralization. These results together with the completed Phases I, II and III over the last 2 years have
transformed the Chita Valley Project and we are looking forward to receivin g full results from the
remaining drillholes”.
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.
PHASE IV: Diamond Drilling Program – Summary of Analytical Results %
Hole ID From To Length Au Ag Cu Mo Pb Zn Zn Eq
(**)
Cu Eq
(***) (mt) (mt) (mts) (*) g/t g/t % ppm ppm ppm
CHDH22-43 30.00 142.00 112.00 0.10 9.80 0.42% 24 461 854 1.31% 0.52%
378.00 390.00 12.00 0.05 5.12 0.22% 5 40 229 0.64% 0.25%
408.00 414.00 6.00 0.32 18.32 0.28% 14 2636 11644 2.50% 0.99%
CHDH22-44 90.00 135.00 45.00 0.06 1.61 0.09% 67 47 228 0.39% 0.16%
586.00 751.90 165.90 0.02 2.34 0.06% 210 95 314 0.45% 0.18%
CHDH22-45 170.00 242.00 72.00 0.18 53.56 0.18% 10 1043 3150 1.98% 0.78%
Inc 222.00 242.00 20.00 0.49 163.59 0.37% 25 754 3346 4.92% 1.95%
464.00 512.00 48.00 0.13 1.52 0.28% 25 15 408 0.86% 0.34%
CHDH22-46 360.00 423.65 63.65 0.36 6.35 0.41% 14 97 604 1.57% 0.62%
Inc 403.00 418.00 15.00 1.10 10.96 0.57% 17 38 159 3.13% 1.24%
598.00 610.00 12.00 0.53 6.28 0.72% 2 33 305 2.43% 0.96%
CHDH22-47 34.00 68.00 34.00 0.12 13.84 0.08% 6 1542 6546 1.23% 0.49%
278.00 474.00 196.00 0.06 4.78 0.22% 3 100 538 0.68% 0.27%
574.00 782.00 208.00 0.05 1.70 0.20% 178 15 300 0.73% 0.29%
CHDH22-48 32.00 244.00 212.00 0.10 3.09 0.25% 200 27 224 0.94% 0.37%
367.00 381.00 14.00 0.24 54.11 0.16% 68 18674 39562 5.90% 2.33%
CHDH22-49 8.00 344.00 336.00 0.03 1.39 0.14% 216 14 241 0.60% 0.24%
CHDH22-50 76.80 719.20 642.40 0.06 7.44 0.27% 32 746 2340 1.04% 0.41%
Inc 85.00 92.00 7.00 0.14 84.77 0.35% 35 32050 106557 12.71% 5.03%
Inc 190.00 238.00 48.00 0.06 18.01 0.20% 169 2193 6936 1.68% 0.66%
Inc 262.00 284.00 22.00 0.20 31.06 1.51% 2 419 1144 4.06% 1.61%
Inc 450.00 518.00 68.00 0.05 2.43 0.44% 46 165 53 1.07% 0.42%
References:
(*) Intervals reported in the above table are not true thicknesses
(**) ZnEq% formula is defined as: Zn(%)+[Cu(%)*Cu price (lb)/Zn price (lb)]+[Ag(%)*Ag price (lb)/Zn price (lb)]+[Au(%)*Au pri ce
(lb)/Zn price (lb)]+[Pb(%)*Pb price (lb)/Zn price (lb)]+[Mo(%)*Mo price (lb)/Zn price (lb)]
(***) CuEq% formula is defined as: Cu(%)+[Zn(%)*Zn price (lb)/Cu price (lb)]+[Ag(%)*Ag price (lb)/Cu price (lb)]+[Au(%)*Au
price (lb)/Cu price (lb)]+[Pb(%)*Pb price (lb)/Cu price (lb)]+[Mo(%)*Mo price (lb)/Cu price (lb)]
Copper equivalent (CuEq) and Zinc equivalent (ZnEq) grades are for comparative purposes only.
Calculations are based on US$ 3.53/lb Cu, US$ 1.39/lb Zn, US$ 18.37/lb Mo, US$ 1,712/oz Au and US$ 20.44/oz Ag, with
80% metallurgical recoveries assumed for all metals.
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 P hreatic 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 realise t he 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.
Map 1: Phase IV drillholes location
FOR FURTHER INFORMATION PLEASE CONTACT
Ramiro Massa
President and Chief Executive Officer
www.minsud.com
+1 416-479-4466
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