Minsud intersects 276m at 0.65% CuEq and 53m at 1.31% CuEq at the Chita Valley Project
TSX-V: MSR
October 7, 2021
Minsud intersects 276m at 0.65% CuEq and
53m at 1.31% CuEq at the Chita Valley Project
TORONTO, ONTARIO – Minsud Resources Corp. (TSX-V: MSR) (“Minsud” or the “Company”), is
pleased to announce receipt of assay results from the additional seven (7) drill holes completed in the
ongoing Phase 3 program over the Chinchillones area , located at the Chita Valley Project, San Juan
province, Argentina. Encouraged by the results received, the Company and its partner, a subsidiary of
South32 Limited (“South32”), have decided to extend this drilling program, with the aim of continuing
exploring this recently discovered area, expecting to complete a total of 12,000 metres by the end of
the year.
Nineteen (19) dr ill holes were completed to date this year encompassing a total of 8,600 metres,
including three (3) new drill holes in other areas of the Chita Valley Project. Highlights are listed below,
along with accompanying figures.
• CHDH21-30 intersected 276m at 0.65% copper equivalent ( “CuEq”), from 182m to 458m.
(0.44% Cu, 0.11 g/t Au, 8.65 g/t Ag, 329 ppm Pb, 0.11% Zn). Thi s drill hole is located 820m
east of CHDH21 -28, heading NNE, dipping 65° and drilled to 650m depth. This drill hole
intersected mineralized cupriferous faults between 4m to 8m -wide, with grades up to 2.73%
Cu. The main mineralization occurs as disseminatio ns, and in thin quartz type “B” and “A”
veinlets of pyrite -chalcopyrite and chalcopyrite -bornite, respectively. This drill hole probably
confirms the presence of another Cu-Mo porphyry centre and is interpreted here to be open in
several directions.
The s ubstantial porphyry Cu mineralization at CHDH21 -30 confirms the potential of
Chinchillones to host clusters of intrusion-hydrothermal phreatic breccias and centred porphyry
mineralization.
• CHDH21-28 intersected 53m at 1.31% CuEq from 584m (1.04% Cu, 0.18 g/t Au, 3.18 g/t Ag,
227 ppm Mo) including a higher-grade section of 29m at 2.07% CuEq from 608m ( 1.69% Cu,
0.30 g/t Au, 4.69 g/t Ag, 250 ppm Mo). This drill hole is located 150m south to the recently
reported CHDH21-23, with SSE azimuth, dipping 65° and drilled to 687.7m depth. This drill
hole intersected altered phreato -magmatic breccias down to 80m. Thence it went through
intercalated Permian sediments and dacite bodies, both affected by intense ar gillic (illite –
kaolin) alteration. The last 150m of this drill hole comprised a diorite porphyry hosting intense
quartz-sericite alteration, cut by phreato hydrothermal breccias hosting high -grade IS
(Intermediate sulphidation) Pb -Zn-Cu. The higher -grade mineralization occurs in a zone
characterized by well-developed sulphide cemented phreato hydrothermal breccias and veins
of sphalerite–chalcopyrite-galena, superimposed on a porphyry system.
The diorite-hosted porphyry mineralization intersected at depth is thought to be same porphyry
body found in drill hole CHDH21 -23 (see Press Release dated August 26, 2021 ). These two
drill holes, in conjunction with CHDH20 -04 drilled in 2020, confirmed the presence of at least
400m-long, deep porphyry Cu-Mo system at Chinchillones.
• CHDH21-26 intersected 106m at 0.74% CuEq from 192m to 2 98m (0.14% Cu, 0.11 g/t Au ,
17.81 g/t Ag , 0.25% Pb , 0.91% Zn). It confirms the presence of high grade hydrothermal
breccias at depth.
• CHDH21-29 intersected 403m from 66m to 468m (end of hole), of anomalous Cu mineralization
averaging 0.13% throughout the drill hole. The principal mineralization occurs as
disseminations and in thin “A” type quartz veinlets hosted in dacitic rocks and in the phreatic
hydrothermal breccia.
The drill hole results reported above confirm the presence of highly significant Zn-Pb-Ag mineralization
that overprints at least two (2) porphyry centres.
Ramiro Massa, Minsud’s President & CEO, said: “The potential for a large-scale copper-moly porphyry
system in the Chinchillones area remains open to the south and at depth. These results have created
a great deal of excitement and expectation within the team, and we are currently reviewing the next
steps with our partner South32 . We believe that we have a unique opportunity at the Chita Valley
Project.”
PHASE III: Chinchillones 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
CHDH21-24 15 46 31 0.07 11.42 0.27% 30 799 910 1.43% 0.48%
224 262 38 0.12 17.18 0.12% 52 1527 3947 1.63% 0.54%
incl. 226 238 12 0.18 30.58 0.19% 65 3074 8283 2.88% 0.95%
CHDH21-26 192 298 106 0.11 17.81 0.14% 20 2475 9150 2.24% 0.74%
incl. 272 298 26 0.17 34.48 0.20% 4 2924 16933 3.76% 1.25%
CHDH21-27 64 206 142 0.11 8.38 0.07% 175 795 2573 1.25% 0.41%
incl. 64 100 36 0.18 8.12 0.06% 589 785 3325 2.05% 0.68%
incl. 190 206 16 0.08 15.99 0.10% 47 3365 8260 2.03% 0.67%
CHDH21-28 234 352 118 0.07 11.72 0.09% 33 996 2480 1.08% 0.36%
394 476 82 0.05 4.63 0.23% 103 144 675 1.15% 0.38%
584 637 53 0.18 3.18 1.04% 227 66 95 3.95% 1.31%
incl. 608 637 29 0.30 4.69 1.69% 250 83 51 6.24% 2.07%
CHDH21-29 66 468 403 0.08 4.94 0.13% 52 251 684 0.85% 0.28%
Incl. 296 347 51 0.12 7.96 0.14% 51 403 992 1.08% 0.36%
CHDH21-30 66 158 92 0.14 16.21 0.21% 2 645 2983 1.70% 0.56%
182 458 276 0.11 8.65 0.44% 23 329 1142 1.96% 0.65%
incl. 302 436 134 0.11 13.30 0.68% 2 545 1591 2.83% 0.94%
478 512 34 0.06 2.75 0.30% 4 179 83 1.14% 0.38%
(*) 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
price (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 uncut
and recovery is assumed to be 100% as no metallurgical data is available.
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 Cana dian National Instrument 43 -101. Mr. Alfaro visited the property and has read and
approved the contents of this release.
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 outcr opping 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.
The earn-in agreement grants to South32 the right 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.
Under the earn-in agreement, South32 will provide further funding to MSA over the next 3 years such
that its aggregate funding is (i) not less than C$7 million by December 31, 2021; (ii) not less than C$10.5
million by December 31, 2022; and (iii) not less than C$14 million by December 31, 2023. South32 has
the right to withdraw at the end of each year.
If South32 exercises its earn-in right it may elect to fund 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 Limited
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 the potential of their resources. South32
produces bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at
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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