Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

December 10, 2015 17:04 ET

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

TORONTO, ONTARIO--(Marketwired - Dec. 10, 2015) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") recently completed a 22 hole, 4088 meter HQ diamond drilling program predominantly 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 including a 25 hole, 3,312 meter HQ drilling program conducted in two stages in 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. Highlights are broad sections including 86 meters (approximately 73.5 meters vertical thickness) averaging 0.44% Cu, 1.7 g/t Ag, 0.017% Mo and 0.07 g/t Au and 58 meters averaging 0.56% Cu, 0.70 g/t Ag, 0.008% Mo and 0.05 g/t Au. Another notable intersection is 2 meters core length (approximately 1 meter true thickness) averaging 4.66 g/t Au, 578 g/t Ag, 0.14% Cu and 0.039% Mo. Two drill holes, completed in the Chita North Porphyry sector, also returned interesting Au and Ag values. Significant intersections from all 22 holes are tabulated below.

Hole ID From To Length Thickness Au Ag Cu Mo
m m m m g/t g/t % %
PSU15-28 34.00 42.00 10.00 8.6 0.06 4.6 0.45 0.007
PSU15-29 no significant mineralization
PSU15-30 18.00 104.00 86.00 73.5 0.07 1.7 0.44 0.017
PSU15-31 no significant mineralization
PSU15-32 no significant mineralization
PSU15-33 104.00 106.00 2.00 1.0 1.23 28.2 0.08 0.015
PSU15-34 blank
PSU15-35 62.00 74.00 12.00 10.3 0.09 3.9 0.43 0.002
PSU15-36 38.00 72.00 34.00 29.1 0.07 1.7 0.42 0.010
PSU15-36 102.00 106.00 4.00 2.0 0.46 63.3 0.17 0.009
PSU15-36 122.00 124.00 2.00 1.0 0.34 45.9 0.84 0.007
PSU15-37 34.00 44.00 10.00 8.6 0.04 0.4 0.35 0.022
PSU15-37 84.00 86.00 2.00 1.0 4.66 578.0 0.14 0.029
PSU15-38 no significant mineralization
PSU15-39 32.00 72.00 40.00 34.2 0.08 1.4 0.39 0.023
PSU15-40 20.00 46.00 26.00 22.2 0.05 0.5 0.39 0.012
PSU15-40 70.00 90.00 20.00 17.1 0.07 1.3 0.37 0.010
PSU15-41 no significant mineralization
PSU15-42 32.00 36.00 4.00 2.0 0.57 31.8 0.05 0.003
PSU15-43 56.00 86.00 30.00 25.7 0.09 4.5 0.41 0.018
PSU15-44 32.00 64.00 32.00 27.4 0.04 0.5 0.42 0.004
PSU15-45 64.00 100.00 36.00 30.8 0.17 3.4 0.46 0.017
incl. 82.00 86.00 4.00 2.0 0.64 16.1 0.60 0.014
PSU15-46 104.00 108.00 4.00 2.0 0.41 38.7 0.13 0,002
PSU15-46 112.00 116.00 4.00 2.0 0.35 36.6 0.11 0.002
PSU15-47 30.00 88.00 58.00 49.6 0.05 0.7 0.56 0.008
PNO15-02 160.00 162.00 2.00 0.7 1.47 13.7 0.23 0.001
PNO15-02 226.00 228.20 4.20 1.5 0.30 24.1 0.43 0.001
PNO15-03 100.00 104.00 4.00 1.4 0.64 16.9 0.12 0.001

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. The complex mineralization styles are not conducive to the classical concepts of true thickness measurement, so vertical thickness determinations that would conform to conceptual pit design parameters are used instead. Exceptions to this thickness determination procedure are various drill holes containing lesser intervals of anomalous precious metal values where core angle measurements are utilized to determine an approximate true thickness (shown in italics in the above table). Lithological units (Map 1), alteration patterns (Map 2) and magnetic anomalies (Map 3) are shown in the following diagrams. All pertinent lithological, alteration and magnetic features extend beyond the current drilling pattern. Historical drill hole locations are also shown on the maps (see June 30, 2014 and November 4, 2014 press releases for highlights).

In March 2015, Minsud retained P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario to review project data and prepare a Technical Report that complied with Canadian National Instrument 43-101 standards. The report included a Mineral Resource estimated under the CIM definition standards. All mineral resources were classified as Inferred category (See press release dated May 29, 2015 for details). The Technical Report is publically filed under the Company's profile at www.sedar.com.

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 have been submitted to ISO-9001 certified referee laboratory, Alex Stewart (Assayers) Argentina SA in Mendoza for analysis.

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 show a highly favorable mineralization/waste ratio for possible mining scenarios. With maximum elevation in the sector below 3,100 m ASL (meters 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.

In October, 2015, Minsud again retained P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario to review recent project data and to prepare a Technical Report that complies with Canadian National Instrument 43-101 standards. The report will include a Mineral Resource estimated under the CIM definition standards that incorporates the recent drilling data. All mineral resources are again expected to be classified as Inferred category. The updated resources are expected to be published before the end of 2015 with the Technical Report being publically filed within 45 days thereafter under the Company's profile at www.sedar.com.

The drill holes at Chita North have confirmed that Cu-Ag-Au mineralization similar to that in the Chita South Porphyry area is also present in the north. Minsud is also encouraged by generally higher Au and Ag background levels in this sector.

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: "Even though the mining business is strongly affected by the world economy and forced to implement permanent restructuring, we believe that these encouraging results indicate a better future for Minsud. New zones tested now fully justify further drilling at the Chita Porphyry to continue outlining the resource while other significant targets remain untested due to poor market conditions. The venture capital is dormant therefore a key issue to monitor moving forward is the financing availability."

About the Chita Valley Project, San Juan Province, República Argentina:

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, República Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, including 18,000 has in Santa Cruz Province, Argentine Republic.

To view the maps accompanying this press release please click the following link: http://media3.marketwire.com/docs/MinsudMaps1210.pdf

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
    Tel:+54-11-4328-4067
    cmassa@minsud.com

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