Minsud reports final results of the 2021 Phase III drilling program; confirms 26,000m drilling program 2022 - Phase IV at the Chita Valley Project, San Juan Argentina
TSX-V: MSR
February 24, 2022
Minsud reports final results of the 2021 Phase III drilling program;
confirms 26,000m drilling program 2022 - Phase IV at the Chita
Valley Project, San Juan Argentina
TORONTO, ONTARIO - Minsud Resources Corp. (TSX -V: MSR) (“Minsud” or the “Company”), is
pleased to announce results from the last four (4) drillholes completed in the Phase III program over
the Chinchillones area, located at the Chita Valley Project, San Juan province, Argentina. The Company
completed the largest annual drilling program over the Chita project encompassing 11,970 meters
distributed in twenty-four (24) drill holes.
Highlights are listed below, along with the accompanying figures.
• CHDH 21-39 intercepted 296m from 282m to 576m with 0.45% Cu, 0.09 g/t Au and 3.76 g/t Ag,
and a higher -grade zone of 85m from 287m at 0.72% Cu, 0.13 g/t Au and 6.08 g/t Ag. Between
282m and 578m mineralization and geological parameters are coincident with those encountered
at the CHDH21 -30 (see press release dated October 7, 2021 ). Mineralized intercepts at the
CHDH21-30 and CHDH21-39 confirm a Cu-Mo deep zone of porphyry mineralization type open to
the Northeast.
• CHDH21-40 intercepted several mineralized intervals, with 27m from 33m to 60m with up to 1.15%
Cu ( pyrite-chalcopyrite-covellite-chalcocite-enargite) occurring as a distinctive NNE structural
control. From 178m from 356m to 534m at 0.22% Cu, 0.16g/t Au, 3.81g/t Ag. Those veins cut early
porphyry and related breccia bodies.
• CHDH21-41 intersected 14m at 0.19% Cu, 0.1 g/t Au , 9.58% Ag, 0.11 % Pb , 0.26% Zn before
being abandoned at a depth of 356m due to drilling difficulties and could not reach the programmed
depth. Mineralization is hosted in Phreatic Hydrothermal breccias, apical part of the porphyry
system.
• CHDH21-42 intercepted 208m from 398m at 0.21% Cu, 2.61g/t Ag, 0.1%Zn. The objective of this
drillhole was to verify the continuity of the mineralized dioritic porphyry, below the quartzites of Agua
Negra Fm outcrops. The mineralized zone intercepted is very irregular and is cut by quartz veins
type with chalcopyrite-bornite mineralization, indicative of deeper presence of a porphyry system.
During this recently completed Phase III drilling program, several drillholes confirmed the extension of
a Cu-Mo porphyry system to the northeast of at least 800m x 800m and open 850m in depth. This
drilling program also confirm ed a broad zone of polymetallic Zn-Pb-Ag mineralization superimposed
over a porphyry Cu -Mo-system. The Chita Valley porphyry system and related epithermal
mineralization represent a single, large magmatic-hydrothermal system, along 4 km th rough the EW-
trending Chita Valley corridor.
Ramiro Massa, Minsud’s President & CEO, said: “Due to the encouraging results at the Chinchillones
area obtained during Phase III drilling program, MSA and South32 have approved an increased budget
for Phase IV that comprises a drilling program of approximately 26,000 meters to pursue two main
objectives: 1) infill deep drillholes at the Chinchillones polymetallic-porphyry system; 2) Continue scout
drilling program testing additional porphyry targets”.
PHASE III: Chinchillones Diamond Drilling Program – Summary of Analytical Results
Hole ID
From To Length Au Ag Cu Mo Pb Zn
(mt) (mt) (mts) (*) g/t g/t % ppm ppm ppm
CHDH21-39 214 250 36 0.09 10.34 0.31% 5 87 439
and 282 578 296 0.09 3.76 0.45% 6 286 323
Incl 287 372 85 0.13 6.08 0.72% 4 573 954
CHDH21-40 32 116 84 0.24 15.03 0.59% 17 230 209
incl. 33 60 27 0.27 28.66 1.15% 7 430 384
and 188 220 32 0.13 5.22 0.26% 5 851 2526
and 356 534 178 0.16 3.81 0.22% 32 122 725
CHDH21-41 284 298 14 0.10 9.58 0.19% 12 1139 2598
CHDH21-42 210 284 74 0.30 4.09 0.30% 54 54 841
and 398 606 208 0.04 2.61 0.21% 73 188 1032
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 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 outcropping porphyry system at Chita and a
lithocap of a porphyry system at Chinchillones. San Juan Pr ovince 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 subsidi ary 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, and having given the Company notice of its intention to continue funding
Chita Valley Project, South32 will provide further funding to MSA such that its aggregate funding is (i )
not less than C$10.5 million by February 28, 2023; and (ii) 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 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
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, metallurgical coal, manganese, nickel,
silver, lead, zinc and copper 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
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain information that may constitute forward-looking information under
applicable Canadian securities laws. Forward -looking information includes, but is not limited to,
statements about strategic plans, spending commitments, f uture operations, results of exploration,
anticipated financial results, future work programs, capital expenditures and objectives. Forward -
looking information is necessarily based upon a number of estimates and assumptions that, while
considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which
may cause the actual results and future events to differ materially from those expressed or implied by
such forward-looking information including, but not limited to: fluctua tions in the currency markets
(such as the Canadian dollar, Argentina peso, and the U.S. dollar); changes in national and local
government, legislation, taxation, controls, regulations and political or economic developments in
Canada and Argentina or other countries in which the Corporation may carry on business in the future;
operating or technical difficulties in connection with exploration and development activities; risks and
hazards associated with the business of mineral exploration and development (i ncluding
environmental hazards or industrial accidents); risks relating to the credit worthiness or financial
condition of suppliers and other parties with whom the Company does business; presence of laws and
regulations that may impose restrictions on min ing, including those currently enacted in Argentina;
employee relations; relationships with and claims by local communities; availability and increasing
costs associated with operational inputs and labour; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses, permits and approvals from
government authorities; business opportunities that may be presented to, or pursued by, the
Company; challenges to, or difficulty in maintaining, the Company’s tit le to properties; risks relating
to the Company’s ability to raise funds; and the factors identified under “Risk Factors” in the Company's
Filing Statement dated April 27, 2011. There can be no assurance that such information will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such
information. 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 management as at the
date hereof. The Company disclaims any intention or obligation to update or revise any forward -
looking information, whether as a result of new information, future events or otherwise, except as
required by law.
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