Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

November 01, 2016 14:46 ET

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

TORONTO, ONTARIO--(Marketwired - Nov. 1, 2016) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") recently completed a 12 hole, 1,700 meter HQ diamond drilling program in the Chita South Porphyry sector of the Chita Valley Project. The main objective was to continue outlining Cu-Au-Ag-Mo mineralization and Inferred Resources at relatively shallow depth beneath the zone of surface weathering and oxidation (See NI 43-101 Technical Report dated February 1, 2016 under the Company's profile at www.sedar.com). Some of the drill holes were designed as a preliminary test of a suite of epithermal Au-Ag veins within or adjacent to the Inferred Resources area.

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. Better Cu values are typically associated with the zone of supergene enrichment and the transition to primary mineralization at depth. Epithermal quartz veins that typically post date the porphyry mineralization are known throughout the Chita Valley Project area. This vast under-explored target concept has widespread moderate to high grade Au-Ag values from drill holes and surface samples that remain untested.

Eleven of the twelve holes intersected substantial core lengths of mineralization at relatively shallow depth beneath the zone of surficial weathering and oxidation. The remaining drill hole (PSU16-50) was designed as a test of outcropping epithermal veins in post Cu mineralization host rocks. Highlights are broad sections including 132 meters (approximately 114.5 meters vertical thickness) averaging 0.44% Cu, 1.1 g/t Ag, 0.017% Mo and 0.07 g/t Au and 95 meters (82.5 m vertical) averaging 0.49% Cu, 1.0 g/t Ag, 0.009% Mo and 0.08 g/t Au. See following table for a summary analytical results.

Hole ID From To Interval Thickness Au Ag Cu Mo
m m M vertical m g/t g/t % %
PSU16-48 78.25 80.00 1.75 0.9 0.49 31.1 0.017 0.032
PSU16-48 84.00 114.00 30.00 23.2 0.04 2.9 0.317 0.022
PSU16-48 136.00 146.70 10.70 8.2 0.05 3.4 0.264 0.023
PSU16-49 17.85 18.45 0.60 0.3 1.34 210.0 0.022 0.025
PSU16-49 26.00 124.00 98.00 76.0 0.05 2.2 0.287 0.029
PSU16-50 4.00 14.00 10.00 5.0 0.27 13.3 0.018 0.008
PSU16-51 26.00 158.00 132.00 114.5 0.07 1.1 0.439 0.017
PSU16-52 22.00 138.00 116.00 101.0 0.06 4.1 0.308 0.020
Incl. 112.00 114.00 2.00 1.0 0.28 134.9 0.436 0.018
PSU16-53A 32.00 42.00 10.00 8.6 0.08 0.90 0.343 0.019
PSU16-53A 60.00 135.00 75.00 65.2 0.09 1.50 0.462 0.013
PSU16-54 38.00 102.00 64.00 55.5 0.05 4.30 0.347 0.026
PSU16-55 28.00 34.00 6.00 5.2 0.05 2.00 0.344 0.005
PSU16-55 44.00 62.00 18.00 15.6 0.04 0.80 0.576 0.010
PSU16-55 74.00 78.90 4.90 2.45 0.15 6.80 0.354 0.005
PSU16-55 115.70 118.00 2.30 1.15 0.44 41.30 1.022 0.025
PSU16-56 20.00 115.00 95.00 82.5 0.08 1.00 0.492 0.009
PSU16-56 138.00 148.00 10.00 8.6 0.08 1.10 0.599 0.016
PSU16-57 10.00 68.00 58.00 50.5 0.08 2.00 0.502 0.029
PSU16-57 86.00 99.00 13.00 11.2 0.05 1.40 0.540 0.087
PSU16-58 32.00 100.00 68.00 58.5 0.14 1.70 0.376 0.010
PSU16-59 60.00 88.00 28.00 24.2 0.06 1.20 0.408 0.028

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). Drill hole locations are shown on the following map. Historical drill hole locations are also shown (See NI 43-101 Technical Report dated February 1, 2016 for highlights).

To view the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/msr1101map.pdf.

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 33-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 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. Furthermore, the current drilling program has some of the broadest Cu intersections seen to date in terms of both core length and vertical thickness, with Cu grades comparable to earlier program results. It is expected that this will have a positive impact on future Inferred Resources.

Preliminary indications show a highly favorable mineralization/waste ratio for possible mining scenarios. After completion of the February 2016 Technical Report, the Company commissioned a detailed topographic survey/digital terrain model to enable much more accurate Inferred Resource and Conceptual Pit models.

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.

For the coming months Minsud has planned bench-scale process testwork to investigate the commercial possibilities for processing and recovering the key metals.

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 was a modest but highly effective drilling program. Management is now undertaking a careful review of this information to plan the next steps in project advancement as well as to determine potential sources of financing."

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 18,000 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