Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

November 04, 2014 15:11 ET

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

TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") recently completed a 19 hole, 2,190.1 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 6 hole, 1,122 meter HQ drilling program conducted in the first half of 2014. The drill holes tested a substantial zone of Cu-Ag- Mo-Au mineralized multi-stage vein systems and hydrothermal breccias in the southwestern border zone of the sector. Highlights are broad sections including 60 meters (approximately 51 meters vertical thickness) averaging 0.59% Cu, 6.90 g/t Ag, 0.035% Mo and 0.07 g/t Au and 54 meters (approximately 46 meters vertical thickness) averaging 0.66% Cu, 0.90 g/t Ag, 0.005% Mo and 0.10 g/t Au. Another exciting intersection is 10 meters core length (approximately 5 meters true thickness) averaging 2.72% Cu, 128.9 g/t Ag, 0.84 g/t Au. One drill hole, completed as an initial stratigraphic test of the Chita North Porphyry sector, also returned interesting Cu, Ag and Au values. Significant intersections from all 19 holes are tabulated below.

Hole ID From To Interval Thickness Au Ag Cu Mo
(m) (m) (m) (vertical m) g/t g/t % %
PSU14-10 86 141 55 47.0 0.03 1.1 0.34 0.016
PSU14-11 50 132 82 70.1 0.05 1.6 0.37 0.022
PSU14-12 84 106 22 18.8 0.10 1.0 0.31 0.006
PSU14-13 62 76 14 12.0 0.08 1.2 0.31 0.006
PSU14-14 68 82 14 12.0 0.02 0.7 0.37 0.020
PSU14-15 22 62 40 34.2 0.04 0.8 0.38 0.030
PSU14-16 34 82 48 41.0 0.06 1.7 0.47 0.020
incl. 34 60 26 22.2 0.08 1.9 0.66 0.020
PSU14-17 76 84 8 6.8 0.06 1.5 0.32 0.032
PSU14-18 20 80 60 51.3 0.07 6.9 0.59 0.035
incl. 32 58 26 22.2 0.06 1.7 0.69 0.040
PSU14-19 12 16 4 3.4 0.80 43.9 0.01 0.036
PSU14-19 76 78 2 1.7 3.59 139.0 0.21 0.029
PSU14-19 66 100 34 29.1 0.23 8.6 0.33 0.043
PSU14-20 54 62 8 6.8 0.03 1.4 0.45 0.004
PSU14-21 22 76 54 46.1 0.10 0.9 0.66 0.005
incl. 30 46 16 13.7 0.23 2.0 1.33 0.008
PSU14-22 30 54 24 20.5 0.08 2.5 0.48 0.015
incl. 46 54 8 6.8 0.10 1.8 0.69 0.019
PSU14-23 33 36 3 2.6 0.82 1.2 0.04 0.021
PSU14-23 54 84 30 20.5 0.06 2.7 0.36 0.018
PSU14-24 80 90 10 5.0 0.84 128.9 2.72 0.004
PSU14-25 44 126.1 82.1 70.2 0.04 2.9 0.27 0.022
PSU14-26 26 120 94 80.3 0.09 2.7 0.35 0.023
PSU14-27 42 62 20 17.1 0.07 1.3 0.34 0.026
PNO14-01 20 28 8 6.8 0.11 3.2 0.48 0.004
PNO14-01 167.9 192 24.1 20.6 0.09 18.0 0.32 0.010

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. One exception to this thickness determination procedure is drill hole PSU14-24 where core angle measurements are utilized to determine an approximate true thickness. 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 well beyond the current drilling pattern in all directions. Historical drill hole locations are also shown on the maps (see June 30, 2014 press release for highlights).

All core samples were submitted to the ALS Laboratories 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, 30 g, plus a 33-element ICP scan. Minsud followed industry standard procedures for the work with a quality assurance/quality control (QA/QC) program. Field duplicates, standards and blanks were included with all sample shipments to the principal laboratory. Minsud detected no significant QA/QC issues during review of the data. 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.

Minsud is encouraged by the generally consistent elevated concentrations of Cu, Ag and Mo as well as the more localized anomalous Au values. The current round of drilling has encountered the most promising mineralization seen to date in the Chita Valley Project. Furthermore some of the better intersections (Holes PSU14-21, 22 and 24) are at the outer limits of the current outline drilling pattern that is still open in all directions. 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 glaciers 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 (in progress) on representative samples followed by bench-scale process testwork as warranted. At the same time an outline drilling plan will be recommended to further delimit the deposit and evaluate the grade distribution of the mineralization. Also in the coming months the Company plans to commission a NI 43-101 Technical Report that will include a first stage resource estimate.

The single stratigraphic drill hole at Chita North has confirmed that Cu-Ag-Au mineralization similar to that in the Chita South Porphyry area is also present in the north. This opens up a very large highly prospective area. Minsud is also encouraged by generally higher Au and Ag background levels in this drill hole.

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: "We are pleased to announce these encouraging drilling results that will guide Minsud to a significant milestone, its initial resource estimation at the Chita Porphyry. This target is among many already identified within the Chita Valley Project. In the way forward Minsud is committed to systematically moving the project towards the economic feasibility stage, a task that will again challenge management's ability to raise sufficient financing."

To view the maps associated with this press release, please visit the following link: http://media3.marketwire.com/docs/MinsudMaps.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, Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, including 28,000 has in Santa Cruz Province, Argentina.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain information that may constitute forward-looking information under applicable Canadian securities laws. 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, but not limited to: fluctuations in the currency markets (such as the Canadian dollar, Argentina peso, and the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada and Argentina or other countries in which the Corporation may carry on business in the future; operating or technical difficulties in connection with exploration and development activities; risks and hazards associated with the business of mineral exploration and development (including environmental hazards or industrial accidents); risks relating to the credit worthiness or financial condition of suppliers and other parties with whom the Company does business; presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Argentina; employee relations; relationships with and claims by local communities; availability and increasing costs associated with operational inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; business opportunities that may be presented to, or pursued by, the Company; challenges to, or difficulty in maintaining, the Company's title to properties; risks relating to the Company's ability to raise funds; and the factors identified under "Risk Factors" in the Company's Filing Statement dated April 27, 2011. 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 news 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