Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

August 15, 2012 12:41 ET

Minsud Announces Exploration Results at La Rosita-Deseado Massif-Santa Cruz Province-Argentina

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2012) - Minsud Resources Corp. ("Minsud" or the "Company") (TSX VENTURE:MSR) is pleased to announce the results of early stage exploration work conducted during Q1 and Q2 2012 on its 100% owned LA ROSITA Project, Santa Cruz Province, Patagonia Argentina. The work is the continuation of systematic multidisciplinary exploration designed to test a substantial (>6 km2) area of complex hydrothermal alteration that shows key attributes of Ag-Au bearing polymetallic vein systems and Ag-Au low-sulfidation systems. The La Rosita Project is located in the prolific Deseado Massif mining district some 25 km north of the Martha Mine and about 30 km northwest of the Manantial Espejo Mine.

An early stage exploration program was performed, including:

  • a ground magnetometer survey covering some 16 km2 (320.3 line km),
  • detailed surface geological mapping and at 1:2000 scale over an area of approximately 6 km2, and
  • 3.5 line km of mechanical trenches (51 trenches) to define geological units, alteration features and as an initial test of potentially mineralized structures.
  • About 22 km of bush road construction was carried out to allow easy access the main target areas.

The combined exploratory methods enabled the mapping of various styles and intensities of the classical alteration types as well as a variety of chalcedonic silica and carbonate veins, vein stockworks and breccias systems. The area exhibits a variety of overlapping styles of alteration, veining and mineralization. These enigmatic features indicate an extended temporal range of magmatic activity and potentially multiple stages of mineralization (Figure 1).

The 2012 trenches did not encounter any mineralization sections that might be considered commercially significant in grade or thickness. However, the trench analytical data has confirmed the existence of widespread areas of geochemically anomalous silver and gold as well as much larger zones of anomalous base metals (Cu, Pb, Zn) as well as the pathfinders mercury and arsenic. Additionally anomalous values of tungsten and antimony were encountered in the system. It is believed that the currently outlined 4,000 m of combined veins still have potential for the discovery of high grade Ag-Au deposits similar to those being mined in the region (Targets: Mogotes Hill, Maria Sol Veins and Breccia Hormiga). Additionally acid domes related to hydrothermal alteration and disseminated sulphides are believed to have potential for discovery of Ag-Au low grade/bulk tonnage mineralization (magnetic anomalies in the Mogotes Hill Target and acid domes related to the sub outcropping Maria Sol Target). Breccia complex systems that contain promising mineralization/alteration features have also been identified (Felices Pascuas Breccia and Eastern Red Breccias Targets) (Figure 2).

The magnetic survey and mapping program has defined a conjugate shear structural system, with maximum extensional effort coincident with the general strike of the outcropping mineralized veins. The magnetic survey also revealed three magnetic high features, possibly linked to mineralized acid domes underlying the Mogotes Hill target (Figure 3).

The combined features of lithology, structure, alteration, precious/base metal geochemistry, pathfinder element geochemistry, and magnetic features all indicate that the outcrops are possibly near or immediately above the boiling zone (Figure 4). The link between the main alteration system, the intrusion of acidic domes and shear stress field, create the right conditions for the formation of Ag-Au mineralization. The minor anomalies observed in precious and base metals (Table 1), as well as the strong distribution of pathfinders conform to the mineralization model, and indicate an optimum erosion level, with potential for a discovery within 300 meters of surface.

Exploration work carried out so far indicates the possible presence, at shallow depth, of an extensive low sulfidation epithermal system, similar to most deposits of the Deseado Massif. Minsud plans to continue with the systematic multidisciplinary approach to target definition. The next phase of target development will be an Induced Polarization/Resistivity survey preparatory to drill target definition.

Mr. Howard Coates, a Professional Geoscientist and a "Qualified Person" as defined by National Instrument 43-101, has visited the property and has read and approved the contents of this release. Mr. Coates, the Vice President (Exploration) and Director of the Company, states: "La Rosita is a very promising early stage exploration situation, although a lot of multidisciplinary work is required to test its mineral potential".

Carlos Massa, President & CEO of the Company, states: "We are continuing to systematically explore a property that is the product of the project generation skills of our in-house technical team. By advancing exploration at La Rosita we are diversifying risk across a broader project base and increasing the Company's chances of significant mineral deposit 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.

To view "Figure 1 - Alteration Map," "Figure 2 - Trenches Location," "Figure 3 - Ground Magnetometry" and "Figure 4 - Geochemical Distribution," please visit the following link: http://media3.marketwire.com/docs/minsud_fig01-04_aug15.pdf

Table 1 - Best intercepts, Trenches program

Target

Sub Target

Trench
Width
m
Ag
ppm
Au
ppm
Pb
ppm
Cu
ppm
Zn
ppm
As
ppm
Sb
ppm
Hg
ppb
Mn
ppm
Mogotes Hill Sabrina LMH-04 2.80 38.0 0.18 1406 55 128 29 17 7219 60
including 1.10 71.0 0.40 2102 63 206 21 0 15353 61
Felices Pascuas Breccia NorthWest FPB-04 0.80 3.0 0.12 2548 36 181 15 0 15654 40
Central Channel 1.50 3.8 0.25 2628 393 732 1054 351 10284 137
Central Channel 0.50 3.6 0.14 4948 96 230 134 158 16009 53
Central Channel 0.50 2.8 0.39 5915 366 1147 2319 1409 8981 199
Central Channel 0.60 11.9 0.69 3775 291 1186 1041 987 >20000 148
Central Channel 0.40 14.6 0.57 4160 281 1261 1291 1606 >20000 120
Central Channel 0.40 52.8 0.42 6434 138 142 1397 676 >20000 97
SouthEast FPB-05 1.00 2.1 0.11 1831 41 160 453 510 3413 65
SouthEast FPB-05 3.00 6.4 0.29 2628 122 374 561 580 14727 89
SouthEast FPB-05 1.00 3.4 0.15 1452 145 110 654 151 >20000 79
Maria Sol Veins System Cerro Bayo MSV-23 0.90 10.0 0.01 628 63 114 106 68 688 68
Channel 1.00 15.2 0.01 7413 508 873 13 0 540 52
La Escarpa MSV-16 0.50 17.2 0.02 2368 56 309 46 96 2317 55
MSV-05 0.50 33.7 0.04 1613 62 208 47 50 3518 150
Bajo Cobre MSV-06 1.00 21.4 0.02 3627 479 245 51 0 2852 51
MSV-14 1.00 7.9 0.10 6743 77 300 213 171 879 130
Encrucijada MSV-07 1.20 1.6 0.16 420 42 343 95 0 350 79
Zorrino MSV-10 1.00 8.4 0.11 181 16 74 82 0 239 41
Channel 1.00 13.9 0.09 2404 30 461 56 55 1543 96
Tramo Norte Channel 3.20 9.9 0.29 691 78 574 171 122 2620 100
Cerro Solo Hormiga Breccia Channel 0.50 10.7 0.09 222 61 97 911 363 2416 228
Channel 1.00 0.0 0.39 19 8 17 37 149 28 114
Channel 0.50 12.9 0.09 172 91 113 942 187 1339 155
Moon Valley Eastern Red Breccias LLV-03 0.80 3.1 0.10 266 89 290 643 191 325 899
Del Sur Vein Del Sur Vein DSV-03 0.50 10.8 0.00 45 16 71 57 0 1510 115

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