Minsud Finalizes Chinchillones Infill Drilling and Expands Exploration with New Scouting Targets at Chita Valley
TSX-V: MSR
October 28, 2024
Minsud Finalizes Chinchillones Infill Drilling and Expands
Exploration with New Scouting Targets at Chita Valley
TORONTO, ONTARIO - Minsud Resources Corp. (TSX-V: MSR) (“Minsud” or the “Company”), is pleased
to announce the successful completion of its Phase IV infill drilling program at the Chinchillones prospect
within the Chita Valley Project, located in San Juan Province, Argentina. A total of 126 drill holes have been
completed at this prospect since 2020. The results from the last ten (10) drill holes have helped to confirm
the boundaries of the mineralized zone, refine the geological model, and enhance our understanding of the
prospect.
The infill drilling program is being carried out by Minera Sud Argentina S.A. (“MSA”), a joint venture between
a wholly owned subsidiary of South32 Limited (“South32”) (50.1%) and a wholly owned subsidiary of Minsud
Resources Corp. (“Minsud”) (49.9%). The program covers approximately 2 square kilometres over the
Chinchillones prospect, for the purpose of generating a potential mineral resource.
Since February 2024, continued drilling in Phase IV has been primarily concentrated in the SW-NE corridor
at the eastern end of the Chinchillones prospect. To date, MSA has completed 17,174.10 m in 28 drillholes,
including up to hole CHDH24-126; with these drillholes, Phase IV has been completed. Assays have been
received for drillholes CHDH24-119 to CHDH24-126, totaling 4,324 m, and are reported below. Drill holes
CHDH24-119 to CHDH24-121 are located on the western side of the Chinchillones breccia, while drill holes
CHDH24-122 to CHDH24 -126 are located in the central and southeastern areas of the Chinchillones
prospect.
Additionally, MSA has commenced a scouting drilling program across three (3) targets at the Chita Valley
Project, known as Link Zone, Dacites North, and Placetas North, with a total of 11,850 m distributed over
19 drillholes. The program is designed to assess the potential of these three zones, which exhibit
geophysical and geochemical anomalies, along with geological features similar to those found at
Chinchillones and extend to the eastern side of the SW-NE corridor at Chinchillones.
Key highlights and associated figures are provided below. Summary of drilling results is shown in Table 1.
Drillhole locations are shown in Map 1.
CHDH24-120 was drilled with an orientation of 135°/-75° to a depth of 551.0 m:
• Significant Drill Intercepts:
▪ 118.00 m @ 0.55% Cu, 0.20 g/t Au, 3.91 g/t Ag, and 44 ppm Mo, from 262 m depth.
▪ Including 21.85 m @ 1.72% Cu, 0.74 g/t Au, 11.70 g/t Ag, and 53 ppm Mo, from 262 m
depth.
▪ 20.00 m @ 1.03% Cu, 0.17 g/t Au, 3.65 g/t Ag, and 77 ppm Mo, from 470 m depth.
• Geology:
o This drill hole, located on the southwest side of the dome, begins with the first 30 m consisting
of a surface layer of mixed rock fragments and iron oxides. From 30.0 to 91.4 m, a dacitic unit
displays moderate argillic alteration with minor pyrite mineralization.
o Between 91.4 m and 543.4 m, quartzite and shale intercalations from the Agua Negra
Formation show a combination of argillic, phyllic, and advanced phyllic alterations. The interval
from 163.0 m to 295.0 m features high-sulfidation (HS) mineralization in cavity-filled fractures
and veins (pyrite, bornite, tennantite -tetrahedrite with chalcopyrite) and HS veins, 10 -30 cm
thick, carrying high -grade copper-arsenic values. Advanced argillic alteration, dominated by
pyrite and high-sulfidation veins, is observed between 340 m and 426 m.
o Finally, from 543.4 m to 551.0 m, the drill hole encounters a medium-grained dioritic porphyry
with moderate phyllic alteration (sericite, muscovite, illite). Veins in this zone include B veins,
pyrite, and quartz veins associated with molybdenum, with 2-3% sulfides, predominantly pyrite,
and molybdenum found in quartz veins and fracture fillings.
CHDH24-122 was drilled with an orientation of 300°/-70° to a depth of 546.0 m:
• Significant Drill Intercepts:
▪ 438.0 m @ 0.13% Cu, 16 g/t Ag, 73 ppm Mo and 0.49% Zn, from 108.0 m depth.
▪ including 22 m @ 0.17% Cu, 0.20 g/t Au, 30.29 g/t Ag, and 1.69% Zn, from 230 m depth.
• Geology:
o This drill hole, located on the northern side of the dome, intersected 68 m of soil and rock
fragments. From 68.3 m to 212 m, the hole intersected a dacitic matrix supported breccia with
polymictic fragments (Dac1, E_D1-E_QD1, Agua Negra), exhibiting moderate to strong phyllic
and argillic alteration and increasing sulphide content (1 -7%), with notable values of Zn, Pb,
and Cu, especially in high-sulphidation (HS) zones.
o Between 212 m and 415 m, various breccia types (mainly hydrothermal breccia) were
encountered, containing 5 -8% sulphides, including sphalerite, galena, tennantite, and
chalcopyrite. A high-grade Zn-Pb-Cu zone was identified from 212 m to 248 m, along with
another zone containing 60-70% massive sulphides between 376 m and 380 m.
o From 415 m to 510 m, a coarse-grained dioritic porphyry (E_QD1) exhibited 3 -5% sulphides,
along with IS veinlets and stockwork zones. Significant mineralization was observed in a
quartz-sulphide vein from 468 m to 483 m, with strong values of pyrite, molybdenite, sphalerite,
tennantite, and galena.
CHDH24-126 was drilled with an orientation of 310°/-65° to a depth of 450.0 m:
• Significant Drill Intercepts:
▪ 130.0 m @ 0.31% Cu, 8.71 g/t Ag, from 256 m depth.
• Geology:
o This drill hole, located on the eastern side of the dome, encountered a cover zone in the first
40 m. Between 40 m and 106 m, massive quartzite with dacitic dykes showed 1-3% sulphides
(mainly pyrite), including 2.0 m of a high -grade Zn -Pb-Cu interval. From 106 m to 115 m,
andesitic porphyry was present with 2-3% sulphides, predominantly pyrite. Between 115 m and
19 0 m, quartzite with moderate argillic alteration contained 2% sulphides and some high-grade
Zn-Pb-Cu zones. From 190 m to 334 m, andesitic porphyry with dacitic dyke intrusions showed
3-4% sulphides with high Zn-Pb-Cu values. Finally, from 334 m to 450 m, quartzite and breccia
with 3-7% sulphides exhibited high values of Cu and As.
Chinchillones Infill Drilling Program Update
MSA has successfully completed the Chinchillones infill drilling program over 2 square kilometres, designed
to support a potential resource estimate for the prospect. Since the start of the Earn-in Agreement, now a
joint venture with South32, a total of one hundred twenty-six (126) drill holes, covering 80,342.2 m, have
been completed up to hole CHDH24-126.
The infill drilling program, initially planned for 27,084 m, has now been successfully completed with a total
of 41 drill holes and a total drilled length of 27,012.1 m. By the end of 2023, 13 drill holes (CHDH23 -86 to
CHDH23-98), totaling 9,838 m, had been finished. The remaining 28 drill holes, covering 17,174.1 m, have
now been completed, marking the conclusion of the infill drilling program in the Chinchillones sector. The
drill grid spacing is set at approximately 100 -150 m, with an average drilling de pth of around 800 m per
hole.
Scouting Drilling Program Update
MSA is advancing its exploration efforts at the Chita Valley Project, focusing on key geophysical and
geological targets. The scouting drilling program, which includes 11,850 m distributed across 19 drill holes,
is designed to test high -priority targets, including geophysical anomalies and mineralized corridors in the
project.
• Link Zone: A total of 7,650 m in 13 drill holes will test the NE Zn -Ag-Cu corridor, where previous
drilling returned 52 m @ 0.35% Zn (CHDH22-55) and 42 m @ 0.74% Zn (CHDH22-51). This
corridor is associated with a high magnetic anomaly related to a Dacitic porphyry body.
• Placetas North: 1,800 m of drilling will target a geophysical anomaly in Placetas North, aiming to
identify an intrusive center at depth and validate the Chinchillones geological model. During
October 2024, geophysical work is being carried out on an IP (Induced Polarization) grid, using the
pole-dipole (PDP) method, with a line spacing of 200 m and covering an approximate total area of
2 km².
• Dacites Nort h: An additional 2,400 m will test dacitic bodies with phyllic alteration, targeting
potential Dacite porphyry systems and stockwork zones associated with high -sulphidation
mineralization.
To date, MSA has completed 3,383 m across 6 drill holes, from CHDH24 -127 to CHDH24 -132, with
analytical results still pending. These drill holes are concentrated in the Link Zone area, which is located
immediately east of the main Chinchillones prospect. There is strong geological and mineralization
evidence suggesting that part of the main SE-NW polymetallic mineralization corridors may extend through
this sector. Scouting drillhole locations are shown in Map 2.
Ongoing 2024 Roadmap Items:
(1) Flotation metallurgical testing at ALS Kamloops is ongoing. These metallurgical tests are a
prerequisite for a resource estimate for the Chinchillones polymetallic deposit discovery.
(2) Continuation of the remaining exploration program, totaling approximately 11,850 m, aimed at
exploring new targets identified during geological mapping studies completed in 2023, with
completion expected by Q4 2024.
(3) The company expects to complete to identify a potential mineral resource in accordance with NI
43-101 reporting standards for the Chinchillones prospect, part of the Chita Valley Project, by the
end of Q1 2025.
Quality Assurance/Quality Control
All core samples were submitted by MSA 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. MSA 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.
Qualified Person (QP) Statement
María del Carmen Muñoz Lizarve, P.Geo., VP Exploration of the Company, is a Qualified Person (QP) as
defined by Canadian National Instrument 43 -101. Ms. Muñoz has visited the property and has read and
approved the contents of this release.
Table 1: Phase IV Diamond Drilling Program – Summary of Results
* intervals reported in the above table are not true thicknesses
From To Length Cu Au Ag Mo Pb Zn
(mt) (mt) (mts) (*) % g/t g/t ppm % %
CHDH24-119 74.00 94.00 20.00 0.33% 0.21 16.88 31 0.05% 0.17%
376.00 379.00 3.00 0.24% 0.35 65.17 226 0.22% 11.22%
404.00 414.00 10.00 0.51% 0.22 60.44 62 0.13% 0.62%
CHDH24-120 106.00 187.70 81.70 0.36% 0.13 6.47 37 0.00% 0.01%
262.00 380.00 118.00 0.55% 0.20 3.91 44 0.01% 0.00%
Inc 262.00 283.85 21.85 1.72% 0.74 11.70 53 0.01% 0.00%
470.00 490.00 20.00 1.03% 0.17 3.65 77 0.00% 0.01%
CHDH24-121 8.00 26.00 18.00 0.43% 0.31 41.02 29 0.07% 0.07%
56.00 92.00 36.00 0.08% 0.08 11.81 88 0.09% 0.31%
CHDH24-122 108.00 546.00 438.00 0.13% 0.09 16.00 73 0.14% 0.49%
Inc 230.00 252.00 22.00 0.17% 0.20 30.29 39 0.74% 1.69%
Inc 376.00 396.00 20.00 0.19% 0.24 25.70 23 0.45% 1.01%
CHDH24-123A 558.00 660.00 102.00 0.16% 0.14 1.76 36.29 0.00% 0.06%
724.00 804.00 80.00 0.19% 0.05 2.39 40.30 0.01% 0.02%
CHDH24-124A 73.00 276.00 203.00 0.13% 0.09 12.80 74 0.05% 0.41%
Inc 134.00 170.00 36.00 0.14% 0.13 19.15 69 0.06% 0.98%
CHDH24-125 274.00 288.00 14.00 0.42% 0.69 8.51 15 0.01% 0.03%
288.00 396.00 108.00 0.03% 0.02 4.73 15 0.09% 0.62%
406.00 418.00 12.00 0.50% 0.32 12.47 16 0.01% 0.02%
CHDH24-126 256.00 386.00 130.00 0.31% 0.08 8.71 8 0.04% 0.06%
Hole ID
PHASE IV: Diamond Drilling Program – Summary of Analytical Results
Map 1: Phase IV Drillhole Locations
Map 2: Scouting drillhole locations
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 sulphide
composition that conformed an outcropping porphyry system 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. The Chita
Valley Project is owned and managed by MSA, of which Minsud indirectly holds a 49.9% interest. The
other 50.1% interest in MSA is indirectly owned by South32. Minsud and South32 entered into a
shareholders' agreement to govern the management and operation of MSA which will include further
exploration.
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's shares are listed on the TSX-V under
the trading symbol “MSR”, and on the OTCQX under the symbol “MDSQF”.
About South32 Limited
South32 Limited 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 Limited is trusted by its owners and partn ers to realise the potential of their resources. South32
Limited produces commodities including bauxite, alumina, aluminium, copper, zinc, lead, silver, nickel and
manganese from its operations in Australia, Southern Africa and South America. The company also has a
portfolio of high -quality development projects and options, and exploration prospects, consistent with its
strategy to reshape our portfolio towards commodities critical for a low-carbon future.
FOR FURTHER INFORMATION PLEASE CONTACT
Agustin Dranovsky
President and Chief Executive Officer
www.minsud.com
+1 416-479-4466
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about strategic plans, spending commitments, future operations, results of exploration, anticipated financial
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necessarily based upon a number of estimates and assumptions that, while considered reasonabl e, are
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