TSX-V: MSR
TORONTO, May 6, 2022
/CNW/ - Minsud Resources Corp. (TSXV:
MSR) ("Minsud" or the "Company"), is pleased to announce the
commencement of Phase IV drilling program at the Chinchillones
target area, part of the Chita Valley Project, located in the
province of San Juan, Argentina. The program approved by Minsud and
South32 Limited ("South32") comprises a total of 26,000 m. The initial stage of the program
will consist of 7,800 m, encompassing
twelve (12) drill holes, each between 650 to 800 m depth. The principal objective is to
continue testing the apparent NNE-trending epithermal and porphyry
corridors delineated from the 2021-2022 drilling and mapping
exploratory activities.
The results of the 21,345 m
drilled between 2020 and 2021, together with the historical
results, have unequivocally confirmed the presence of a substantial
Zn-Pb-Cu-(Au-Ag) system characterized by coalescing Cu-Au-Ag-Zn-Pb
epithermal mineralization superimposed on a porphyry Cu-Mo-Au.
The spectrum of mineralization styles are generally affiliated
with a Miocene intrusion complex (Chinchillones Intrusion Complex;
"CIC") encompassing diorite porphyry through to dacites emplaced
into Permo-Carboniferous sediments. This intrusion complex is
largely concealed below a late laccolith body and characterized by
the emplacement of multi-stage phreatic and phreatomagmatic
breccias.
- Chinchillones target: Phase IV drilling program at
Chinchillones target will commence with 6,500 meters (see Map 1).
These drillholes, with variable depths between 650 and 750 m, have been defined to test the NE and SE
extensions of high sulphidation mineralization hosted within a
pervasive advanced argillic alteration zone interpreted to be
related to the CIC. These were intersected by drillholes CHDH21-30
and CHDH21-40 (see press releases dated October 7, 2021 and February 24, 2022, respectively).
- Link Zone target: Initially two (2) drillholes will
be drilled in this zone, with a total of 1,300 m. This area is considered to be
potentially another NE-trending corridor of porphyry-high
sulphidation mineralization. It is an area that is largely
untested, but it presents compelling similarities to the Cu-Au high
sulphidation-porphyry characteristics of the principal
Chinchillones system.
Ramiro Massa, Minsud's President
& CEO, said: "During the 2020 and 2021 drilling programs, an
important sector of advanced argillic alteration, hosting
higher-grade Cu-Au high sulphidation, was clearly identified, with
thicknesses of over 300 m, disposed
along the eastern fringes of the Chinchillones intrusion complex.
The drillholes in this sector intercepted "roof pendants" of a
Cu-Mo-Au mineralized porphyry. We interpret these to support the
continuity of the highly prospective Chinchillones intrusion
complex to the NE, E and SE and at depth".
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
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, 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 (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 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.
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,
future 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:
fluctuations 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 (including
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 mining, 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 title 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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Minsud Resources Corp.
