Minsud Resources Corp.

TSX VENTURE : MSR


Minsud Resources Corp.

November 15, 2012 17:01 ET

Exploration Updates Chinchillones Sector, Chita Valley Cu-Mo-Ag-Au Project, San Juan, Argentina

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2012) - Minsud Resources Corp. ("Minsud" or the "Company") (TSX VENTURE:MSR) is pleased to announce exploration results from Porphyry A, Chinchillones Breccia and South Chinchillones areas of the Chita Valley diatreme volcanic vent/porphyry complex.

The following is an update on recent exploration work conducted on the Chinchillones sector of the Chita Valley Project (the "Project") located in San Juan Province, Argentina. The Project is a large exploration stage diatreme volcanic vent/porphyry complex with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated gold and silver-bearing polymetallic veins.

The Chinchillones Prospects is located on the Brechas Vacas Property and covers an area of approximately 2 square kilometres. In most respects the prospect is markedly similar to the Chita South Porphyry. The prospect comprises three successive mineralization stages as follows:

  • an early stage of epizonal porphyritic intermediate to felsic intrusions and associated satellite veins, intruded into the sediments of the Agua Negra Formation,
  • diatreme breccias as a result of contact of magma with a water table, associated with volcanic and volcaniclastic eruptions, and
  • a late shallow epithermal stage.

The area is structurally controlled by the Chita Valley (NW striking valley associated with a regional transfer fault), at a turning point or break in orientation.

ALTERATION

There is very little information on alteration inside the Porphyry A due to a lack of bedrock exposure. The southern edge of the Chinchillones Hill has exposures along the contact between Porphyry A and the Agua Negra Formation. Argillic alteration as well as copper oxide staining is noted in this area. Drill hole MSA-08-A intersected 274 m of strongly argillic and phyllic altered porphyry.

MINERALIZATION AND GEOCHEMISTRY

Several mineralization showings or exploration targets have been detected at present by different exploration methods, namely:

  • Porphyry A Target: first detected by drilling by Minera Sud Argentina (2011/04/28 Chita Valley Technical Review) is, except for a small exposure, located beneath Recent alluvial deposits of the Chita Valley. The mineralization comprises low to moderate grade disseminations, stockwork and veinlets with widespread Mo + Cu mineralization along with localized Au + Ag values.
  • Chinchillones Breccias Target: is a complex breccia hosted in diatreme system, with a superimposed epithermal system.
  • Breccias Ridge Target: located in the northern segment of the Chita Valley, and like Chinchillones Breccias, is a diatreme breccia complex.
  • South Chinchillones Targets: are NE trending structurally controlled Au+Ag bearing polymetallic veins hosted by Agua Negra Formation quartzite. Vein systems develop in at least three corridors which have been preliminarily tested with drilling by Minsud Resources. (news 2011/09/14).

RECENT EXPLORTATION RESULTS

The 2012 exploration campaign included detailed geological mapping and systematic alteration studies accompanied by routine ground magnetic survey as an aid to the investigations. The following is a summary of 2012 surface hand trenching/sawn channel sampling program results and a revised geological/mineralization model to guide future exploration activities.

The channel sampling results are primarily from the South Chinchillones polymetallic vein corridors and the upper stratigraphic and marginal areas of the Chinchillones breccias areas. The sampling results are summarized in the following table. The veins contain widespread concentrations of gold and silver including some that may be economically significant either alone or probably more importantly when superimposed upon earlier porphyry/diatreme breccia complex mineralization. The exposed marginal parts of the diatreme breccia complex also contain localized Au and Ag.

The most important result of the 2012 field work is the formulation of a coherent conceptual geological/mineralization model that will allow coordination of future exploration in the general Chinchillones sector and throughout the Chita Valley Project.

The El Indio - Veladero - Pascua-Lama belt, of Argentina and Chile is home to a world class collection precious and/or base metal deposits mostly within a broad classification of hydrothermal deposits related to diatreme volcanic vent/porphyry complexes. Deposits are hosted by a variety of plutonic, volcanic and sedimentary lithologies. In fact many known deposits show characteristics of multiple settings throughout time and are termed, enigmatic gold/base metal deposits.

Although the historical exploration programs identified most aspects of the current diatreme volcanic vent/porphyry model in various parts of the current Chita Properties none were systematic and thorough enough (at least in the available records) to define the conceptual model adequately. Minsud's recent work for the first time has systematically evaluated the Chinchillones/Porphyry A prospects to map the lithology, structure and alteration patterns within the enigmatic deposits context and supported by magnetic data to extend and trace features beneath surface cover.

The Chinchillones Sector contains mineralized features that are indicative of a progression from early porphyry-type mineralization, through diatreme volcanic vent type hydrothermal breccias in porphyry and sediments and finally epithermal veins. The geological/mineralization model is shown in the attached diagram.

All samples were submitted to the Alex Stewart (Assayers) Argentina S. A. laboratory in Mendoza, Argentina for preparation and analysis. The laboratory is certified to ISO-9001 international standards. All geochemical grab and channel rock samples were analyzed for Au by fire assay/ AA finish, 50 g, (Au4-50) plus a 39-element ICP scan (AR-39).

Summary of 2012 Trenching Results
Trench
from

to

Width
Au
g/t
Ag
g/t
Cu
ppm
Pb
ppm
Zn
ppm
TCHS-2012-01 0.00 59.00 59.00 0.09 12.1 44 270 20
incl. 8.00 11.00 3.00 0.33 114.6 65 210 16
and 53.00 54.00 1.00 0.82 95.1 301 3214 79
TCHS-2012-02 0.00 31.00 31.00 0.11 18.2 63 461 32
incl. 7.00 9.00 2.00 0.16 47.2 50 643 15
and 11.00 13.00 2.00 0.32 61.3 74 1433 25
and 28.00 29.00 1.00 0.42 66.2 94 1197 16
TCHS-2012-03 0.00 13.00 13.00 0.20 57.1 65 1784 18
incl. 1.00 4.00 3.00 0.54 204.0 170 5753 35
and 8.00 9.00 1.00 0.25 47.7 25 695 9
TCHS-2012-04 0.00 12.00 12.00 0.12 9.2 25 627 22
incl. 1.00 2.00 1.00 0.32 30.4 50 1227 32
TCHS-2012-05 0.00 11.00 11.00 0.12 12.8 32 430 20
incl. 0.00 1.00 1.00 0.23 49.7 45 279 37
and 7.00 8.00 1.00 0.41 40.1 78 3256 92
TCHS-2012-06 0.00 10.00 10.00 0.17 22.8 40 543 17
incl. 0.00 1.00 1.00 0.99 117.8 69 3087 61
and 5.00 6.00 1.00 0.31 67.0 45 932 27
TCHS-2012-07 0.00 4.00 4.00 0.07 13.3 40 264 6
TCHS-2012-08 0.00 7.00 7.00 0.18 34.5 96 1442 16
incl. 0.00 1.00 1.00 0.85 189.4 291 5955 58
TCHS-2012-09 0.00 3.00 3.00 0.12 27.9 87 615 19
TCHS-2012-10 0.00 5.00 5.00 0.11 115.7 139 3646 30
incl. 1.00 3.00 2.00 0.11 102.6 225 7173 38
and 4.00 5.00 1.00 0.27 347.8 147 2418 56
TCHS-2012-11 0.00 24.00 24.00 0.48 6.8 63 210 23
incl. 17.00 19.00 2.00 3.71 5.0 87 102 17
and 20.00 22.00 2.00 0.57 13.1 87 245 24
TCHS-2012-12 0.00 2.00 2.00 0.17 11.1 64 901 25
TCHS-2012-13 0.00 4.00 4.00 0.06 11.9 106 1090 21
TCHS-2012-14 0.00 7.00 7.00 0.12 36.9 110 1696 56
incl. 2.00 4.00 2.00 0.12 90.1 185 1430 63
TCHS-2012-15 0.00 1.00 1.00 3.54 684.9 870 10000 48
TCHS-2012-15b 0.00 15.00 15.00 0.61 39.5 256 558 50
incl. 10.00 13.00 3.00 2.88 167.7 1005 1778 179
TCHS-2012-16 0.00 8.00 8.00 0.67 108.9 160 1341 19
incl. 4.00 5.00 1.00 0.13 30.7 88 46 4
and 6.00 8.00 2.00 2.51 400.5 483 5071 57
TCHS-2012-17 0.00 1.00 1.00 0.43 167.7 605 9249 59
TCHS-2012-18 0.00 0.30 0.30 8.76 1032.8 481 10000 107
TCHS-2012-19 0.00 1.00 1.00 1.58 347.9 226 8094 53
TCHN-2012-01 0.00 13.00 13.00 0.04 1.2 793 435 86
TCHN-2012-02 0.00 8.00 8.00 0.05 0.8 113 408 23
TCHN-2012-03 0.00 3.00 3.00 0.34 60.9 79 667 16
incl. 1.00 3.00 2.00 0.49 87.8 89 974 19
TCHN-2012-04 0.00 139.00 139.00 0.07 5.4 889 312 156
incl. 0.00 1.00 1.00 0.16 40.1 210 1915 73
and 5.00 6.00 1.00 0.25 35.6 68 225 94
and 19.00 20.00 1.00 0.51 45.0 1232 247 110
and 24.00 25.00 1.00 0.24 31.2 483 164 136
and 36.00 37.00 1.00 0.10 31.9 2679 168 916
TCHN-2012-05 0.00 8.00 8.00 0.24 3.2 50 218 6
incl. 3.00 5.00 2.00 0.69 3.0 41 61 4
TCHN-2012-06 0.00 15.00 15.00 0.10 6.5 67 228 16
TCHN-2012-07 0.00 12.00 12.00 0.14 18.7 109 876 17
incl. 10.00 12.00 2.00 0.35 54.5 148 1896 17

CHINCHILLONES CONCEPTUAL DEPOSIT MODEL

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/Minsudfigure1.pdf.

ONGOING WORK RECOMMENDATIONS

The combination of mapping, geophysics, surface sampling and previous drilling has clearly defined diatreme volcanic vent/porphyry and epithermal vein target areas. The next proposed steps are:

  1. Continue the detailed geological mapping, alteration study and rock and/or soil geochemistry to the Brechas Ridge area on the north side of the valley.
  2. Infill magnetometer survey lines in selected key areas to fine tune the details of the geological/mineralization model.
  3. Evaluate the potential of advanced geophysical methods such as 'state of the art' IP/resistivity and/or CSAMT test surveys.
  4. Design drilling program to test high quality exploration targets.

Mr. Howard Coates, Professional Geoscientist, Director of the Company and a geological consultant, is a qualified person as defined by Canadian National Instrument 43-101. Mr. Coates visited the property and has read and approved the contents of this release. Mr. Coates states; "The detailed mapping, sampling and geophysical investigations are the penultimate step to the development of high quality drilling targets to test the economic potential of this highly promising target area."

Carlos Massa Minsud´s President & CEO, states: "After consolidating Chita, Brechas Vacas and Minas de Pinto properties, our technical team is conducting a systematic exploration that tend to demonstrate the potential of the area for a large discovery."

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, as well as advancing its La Rosita gold and silver project at the Deseado Massif - Santa Cruz Province, República Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, approximately 60,000 hectares distributed within the Provinces of Santa Cruz, Chubut and Rio Negro, República 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 A. Massa
    President and Chief Executive Officer
    (+54) 11 4328-4067
    cmassa@minsud.com

    Minsud Resources Corp.
    Mike Johnston
    (+1) 416-479-4466
    mike@minsud.com