Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

June 30, 2014 17:01 ET

Minsud Announces Diamond Drilling Results at the Chita Valley Project, San Juan, Argentina

TORONTO, ONTARIO--(Marketwired - June 30, 2014) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") recently completed a 6 hole, 1,122 meter diamond drilling program in the Chita South Porphyry sector of the Chita Valley Project. The program tested targets identified during the systematic multidisciplinary exploration program conducted in the sector in 2013 and more detailed work conducted in the first quarter of 2014. The drill holes tested a substantial zone of Cu-Ag-Mo-Au mineralized multi-stage vein systems and hydrothermal breccias in the southeastern border zone of the sector.

All 6 holes intersected substantial core lengths of mineralization at relatively shallow depth beneath the zone of surficial weathering and oxidation. See following table. Better Cu values are typically associated with the zone of supergene enrichment and the transition to primary mineralization at depth.

Drill Hole From
m
To
m
Interval
m (*)
Au
ppm
Ag
ppm
Cu
%
Mo
%
PSU14-04 16.00 92.00 76.00 0.06 6.8 0.41 0.022
incl. 36.00 52.00 16.00 0.00 21.7 0.59 0.020
PSU14-05 24.00 96.00 72.00 0.05 1.0 0.36 0.021
incl. 58.00 68.00 10.00 0.05 1.4 0.59 0.028
PSU14-06 28.00 54.00 26.00 0.04 2.1 0.34 0.016
PSU14-07 24.00 122.00 98.00 0.04 1.0 0.25 0.014
PSU14-08 40.00 96.00 56.00 0.09 3.0 0.40 0.013
incl. 54.00 68.00 14.00 0.13 5.8 0.46 0.016
incl. 88.00 96.00 8.00 0.11 3.8 0.54 0.014
PSU14-09 8.00 16.00 8.00 0.13 7.5 0.06 0.019
And 26.00 60.00 34.00 0.06 3.9 0.33 0.019

(*) Intervals reported in the above table are not true thicknesses

All core samples were submitted to the ALS Laboratories laboratory in Mendoza, Argentina for preparation and analysis. ALS is certified to ISO-9001 international standards. All samples were analyzed for Au by fire assay/ AA finish, 50 g, plus a 39-element ICP scan. Minsud includes field duplicates, standards and blanks with all sample shipments. Sequential Cu analyses from ALS are pending for all higher grade Cu sections and a selection of pulps will be submitted to a certified referee laboratory for analysis.

The mineralized sections include disseminated sulphides as well as A, B and D-type veins hosted by multiple stages of epizonal intrusions and hydrothermal breccias. Lithological units (Map 1), alteration patterns (Map 2) and magnetic anomalies (Map 3) are shown in the following diagrams. Historical, current and proposed drill hole locations are also shown on the maps.

To view Map 1: Lithological & Structural Map, Map 2: Alteration & Structural Map, and Map 3: Ground Magnetic Survey, Reduced to Pole Residual 1, please visit the following link: http://media3.marketwire.com/docs/Minsud1.pdf.

Also shown below for information purposes are previously reported Minsud drilling results (PSU11-series) from the Chita South area along with historical drilling data (SD and FM- series).

Drill Hole From
m
To
m
Interval
M (*)
Au
ppm
Ag
ppm
Cu
%
Mo
%
PSU11-01 3.00 19.00 16.00 2.23 15.6 0.04 0.028
Incl 8.00 10.00 2.00 16.93 27.8 0.03 0.010
And 48.00 71.00 23.00 0.03 4.5 0.35 0.031
And 114.00 126.00 12.00 0.69 35.7 0.21 0.034
PSU11-02 41.00 72.00 31.00 0.02 3.1 0.41 0.045
SD-01 28.50 58.50 30.00 0.01 no data 0.43 0.020
SD-02 15.00 51.00 36.00 no data no data 0.35 0.027
And 84.00 130.50 46.50 no data no data 0.34 0.027
SD-A 28.50 51.00 22.50 no data no data 0.49 0.022
FM-02 48.00 67.50 19.50 no data no data 0.21 0.048
FM-03 34.50 57.00 22.50 no data no data 0.24 0.007
FM-04 16.50 31.50 15.00 no data no data 0.54 0.009

(*) Intervals reported in the above table are not true thicknesses

Minsud is encouraged by the generally consistent elevated concentrations of Cu, Ag and Mo as well as the more localized anomalous Au values. Preliminary indications from the cross sections below (Cross Sections A-B and C-D) show a highly favorable mineralization/waste ratio for possible mining scenarios. With maximum elevation in the sector below 3,100 m ASL (Metres above mean sea level) field conditions are benign on a year round basis and no active alpine glacial conditions are possible below approximately 4,100 m ASL.

Minsud plans to investigate the commercial possibilities for processing and recovering the key metals beginning with mineralogical, petrological and ore characterization tests on representative samples followed by bench-scale process testwork as warranted. At the same time an outline drilling plan is recommended to delimit the deposit and evaluate the grade distribution of the mineralization as a precursor to a first stage resource estimate. Approximately 2000 to 3000 metres of core drilling will be required.

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.

Carlos Massa, Minsud's President & CEO, states: "This modest but highly efficient drilling program has given Minsud the basic framework to take the Chita porphyry target towards its first NI 43-101 compliant initial resource estimation. The way forward includes completion of the QA/QC regimen, initial mineral processing groundwork and additional outline drilling. Management is now committed to find the appropriate financing for this challenging business opportunity."

To view Cross Section A-B and Cross Section C-D, please visit the following link: http://media3.marketwire.com/docs/Minsud2.pdf.

About the Chita Valley Project, San Juan Province:

The Chita Valley Project (the "Project") is a large exploration stage porphyry situation with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated gold and silver-bearing polymetallic veins. San Juan Province has a robust mining sector and recognizes the important economic benefits of responsible development of its substantial mineral resource endowment.

About Minsud Resources Corp.:

Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Cu-Mo-Au-Ag Project, in the Province of San Juan, Argentine Republic. The Company also holds a 100% owned portfolio of selected early stage prospects, including 28,000 has in Santa Cruz Province, Argentine Republic.

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" as available on www.sedar.com. 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
    +54-11-4328-4067
    cmassa@minsud.com

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