Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

January 20, 2012 11:23 ET

Exploration Update on La Rosita Ag-Au Property, Deseado Massif, Argentina

Minsud Commences Multidisciplinary Exploration Program at the Los Mogotes Hill Epithermal Ag-Au Prospect, Santa Cruz Province, Argentina

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2012) - Minsud Resources Corp. ("Minsud" or the "Company") (TSX VENTURE:MSR) reports that it has received very encouraging results from initial geological mapping, prospecting and ground magnetometer surveying activities over a part of its 100% owned, La Rosita Epithermal Ag-Au Property ("La Rosita" or the "Property"), located in the Deseado Massif, southeastern Argentina. The recent work in the Los Mogotes Hill sector of the Property has identified the presence of volcanic lithologies and alteration phenomena that are characteristic of typical low-sulphidation epithermal Au-Ag deposit areas. Traditional 'boot and hammer' prospecting has located widespread mineralized outcrops and float that have returned grab sample values up to 3.2 grams of gold, 234 grams of silver and 6.1 % lead per tonne. It is stressed that Los Mogotes Hill is a new prospect that has never before been tested by drilling or even surface trenching.

The 9,971 hectare La Rosita Property is located in the heart of the Deseado Massif precious metals mining district some 70 km northeast of the town of Gobernador Gregores, Santa Cruz Province. The Deseado Massif has four producing mines: Cerro Vanguardia Mine (AngloGold - Fomicruz), San Jose - Huevos Verdes Mine (Hochschild - Minera Andes), Martha Mine (Coeur d'Alene) and Manantial Espejo Mine (Pan American Silver) as well as several additional projects at the advanced exploration to feasibility study stage, most notably Cerro Negro (Goldcorp).

Over the 2011 field season, the Company completed a modest exploration program in the Los Mogotes Hill sector, which included detailed lithological, alteration and structural mapping, bedrock and float sampling (452), and a 320.3 line kilometer ground magnetometer survey. The object was to delineate and prioritize prospective targets on the Property. Instead of reducing the main areas of focus this work actually expanded the areas of potential interest to encompass over 10 square kilometers of prime exploration territory. Additional information can be found in our website www.minsud.com.

The next steps in the systematic multidisciplinary exploration of the Property include:

  • Completion of the first phase reconnaissance program: The main aspect of this is a previously budgeted surface trenching program in the Los Mogotes Hill sector. Additional reconnaissance work will be conducted over the remaining parts of the La Rosita Property as time permits on an ongoing basis.
  • Phase two target definition program: Utilized in conjunction with surface geological, geochemical and basic routine geophysical (magnetic) data, sophisticated induced polarization/resistivity ("IP") surveys have been instrumental in effectively defining drill targets elsewhere in the Deseado Massif. Minsud intends to complement its surface geoscientific data by completing an IP test survey followed by a production survey (if warranted) in the Los Mogotes Hill sector to optimize definition of drill targets. A provisional budget is in place for selective drilling to test high priority targets.

The current proposed program is scheduled to be completed in the first half of 2012.

Mr. Carlos Massa, Minsud's President and CEO, said "Minsud is highly encouraged by the exploration results obtained to date and intends to ramp up its efforts to advance the Los Mogotes Hill prospect." He also stated "La Rosita and the Company's yet to be systematically explored San Antonio Property located in the eastern part of the Deseado Massif are key corporate assets. This ensures that Minsud is strategically placed in this important precious metal mining district".

Mr. Howard Coates, Professional Geoscientist, Director of the Company and a geological consultant, is a qualified person as defined by National Instrument 43-101. Mr. Coates has visited the Property and has read and approved the contents of this release.

About Minsud Resources Corp:

Minsud is a mineral exploration company focused on exploring its flagship Chita Valley project, primarily for gold, silver and copper in San Juan Province, Argentina.

Additionally, the Company holds a portfolio of approximately 75,000 ha of 100% owned exploration properties in Patagonia. Most of the key properties held by the Company are located in mining friendly provinces like San Juan and Santa Cruz, Argentina.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. 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 the risks identified in the Company's TSXV Filing Statement dated April 27, 2011 under the heading "Risk Factors". 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 press 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.

Contact Information

  • Minsud Resources Corp.
    Carlos Massa
    President and Chief Executive Officer
    +541143284067
    cmassa@minsud.com

    Minsud Resources Corp.
    Mike Johnston
    416-479-4466
    mike@minsud.com