Minsud Resources Corp.

TSX VENTURE : MSR


Minsud Resources Corp.

November 20, 2012 15:52 ET

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

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2012) - Minsud Resources Corp. ("Minsud" or the "Company") (TSX VENTURE:MSR) is pleased to announce exploration results from Chita South Porphyry area of the Chita Valley diatreme volcanic vent/porphyry complex.

The following is an update on recent exploration work conducted on the South Chita Porphyry 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 Chita South Prospect is located on the Chita Property and is exposed in area of at least 1.5 square kilometres. The prospect comprises three successive mineralization stages as follows:

  • an early stage of Miocene andesitic to dacitic porphyry intruded into Upper Carboniferous-Permian sediments of the Agua Negra Formation and altered granodiorite of the Permo-Triassic Tocota Pluton, and,
  • an intermediate progressive stage of extensive hydrothermal breccias in the roof zone of the porphyry 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

Alteration is predominantly phyllic (Sericite - Quartz + / - Pyrite) moderate to strong and related to high density stock-work (qtz+iron oxides) zones. There is marginal argillic alteration and in some cases superimposed to the phyllic alteration. In general the argillic alteration is related to a more pervasive event. At the center zone of the stock there is a patch of Chlorite + magnetite moderate alteration.

MINERALIZATION AND GEOCHEMISTRY

Several mineralization showings or exploration targets have been detected at present by different exploration methods. The mineralization of Cu, Mo, Au, Ag occurs mainly in the stockwork. The stockwork has an approximately semicircular distribution toward the edges of the body particularly in the southwestern part of the body. Two types of stockwork veinlets are distinguished:

  • Early porphyry style quartz-sulfide-magnetite veinlets, which appear to host copper and most of the molybdenite, and
  • Later low-sulphidation style quartz-sulphide (Pyrite-Chalcopyrite?) veinlets. There is a LS epithermal system superimposed on the porphyry mineralization system. This quartz veins system is N70 preferred strike, strongly anomalous of Au and Ag (up to 32 g / t Au and 265.8 g / t Ag in 1.0 m in hole intersections).

Early soil sampling by previous property holders shows a wide distribution of strong Cu and Mo values. The Mo, by its lower mobility in the leaching environment area of Chita South, is an important guide in the design of the exploration program. The correlation with significant copper (more leachable under these conditions) is very encouraging sign of the primary rock geochemistry and supergene enrichment potential.

2011 DIAMOND DRILLING PROGRAM

Minsud completed 881.75 m of diamond drilling (HQ) in three holes (dip 45 °). The targets were the gold and silver epithermal structure emplaced in the porphyry. This series of holes highlighted the very persistent lateral and depth continuity of strongly Mo and Cu anomalous values. At the same time the porphyry was found to have significant localized sections of epithermal Au and Ag values including (previously reported) 3.0m averaging 11.33 g/t Au plus 29.03 g/t Ag and 6.0m @ 1.30 g/t Au + 66.66 g/t Ag. MSA was highly encouraged by the multiplicity of mineralization styles.

RECENT EXPLORTATION RESULTS

The 2012 exploration campaign included detailed geological mapping and systematic alteration studies accompanied by a 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 a north-south oriented approximately 550 metre semi-continuous set of samples called the Chita South Channel. The analytical results define the association of Cu and Mo content with areas of higher density of stockwork. The average content of Mo is 0.011%. Due to surface leaching the typical Cu content is likely significantly understated. The sample results are summarized in the table below.

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.

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).

Chita South Porphyry, 2012 Channel Sample Summary

Trench from to total Cu Mo Au Ag
(m) (m) (m) % % g/t g/t
Chita South Porphyry 0.0 549.0 549.0 0.014 0.011
incl. 13.0 203.0 190.0 0.015 0.020
and 78.0 80.0 2.0 0.17 18.60
incl. 203.0 475.0 272.0 0.012 0.002
and 269.0 270.0 1.0 0.35 49.60
and 280.0 281.0 1.0 0.62 40.10
and 461.0 463.0 2.0 0.60 35.70
incl. 475.0 549.0 74.0 0.027 0.026

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 Chita South Porphyry 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 Chita Porphyry 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.

To view the "Chita South Porphyry Conceptual Deposit Model" please visit the following link: http://media3.marketwire.com/docs/msr11204.pdf.

To view the "Chita South Channel" please visit the following link: http://media3.marketwire.com/docs/msr11205.pdf.

ONGOING WORK RECCOMENDATIONS

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 Chita North Porphyry 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: "Minsud has recently acquired the mining rights at Chita property. These encouraging exploration results indicate increased possibilities to find a large deposit among the targets already identified while we continue searching on new targets within the extension of the Chita Valley Project comprising the properties of Chita, Brechas Vacas and Minas de Pinto."

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