Minsud Resources Corp.
TSX VENTURE : MSR

July 22, 2011 12:50 ET

Minsud Resources Corp. Announces Phase I: 2,351.6 m. Drilled at Chita Valley Project, San Juan Province, Argentina

TORONTO, ONTARIO--(Marketwire - July 22, 2011) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") is pleased to announce the completion of 2,351.6 m out of the 3,500.0 m Phase I drilling program, before the onset of the winter, at the Chita Valley Project in Argentina strategically located in the world-class El Indio mining district of Chile and Argentina where the Pascua-Lama and Veladero mines (Barrick) and the Del Carmen project (Malbex Resources) are located.

The program consisted of 12 diamond drill holes totaling 2,351.6 meters distributed as follows (see attached map):

  • 1. Target Chinchillones: 915.0 m (five drill holes: ChS1101, ChS1102, ChS1103, ChS1104, ChS1105)
  • 2. Target Romina: 1,044.6 m (five drill holes: RoW1101, RoW1102, RoW1103, Ro1104, Ro1105)
  • 3. Target Muñoz-Dora: 81.0 m (one drill hole: DoM1101)
  • 4. Target Porphyry Chita: 311.0 m (one drill hole: PSu1101)

Target Chinchillones:

Five holes totaling 915.0 meters were drilled to test approximately 250 meters of strike length of the mineralized corridor. The holes successfully tested the structure along with previously unknown stringer zones at a vertical depth of 200 meters. Structure controlling mineralization remains open along strike and at depth. Mineralization appears to be associated with a 250 meters wide structural zone that hosts veins, disseminated, and patchy sulphides associated to gold and silver. Previously drilled holes intercepted at depth the same mineralization style sampled on trenches. Historical drill hole MSA-08-C and trenches T-ChS-04b, T-ChS-02 and T-ChS-06 intercepted the following values at surface and depth:

-MSA-08-C: 93.0 m (from 104.0 to 197.0) with 0.12 g/t Au and 50.9 g/t Ag
Including 15.0 m (from 157.0 to 172.0) with 0.27 g/t Au and 120.0 g/t Ag
-T-ChS-04b: 1.0 m with 3.13 g/t Au and 1,961.0 g/t Ag
-T-ChS-02: 1.0 m with 1.61 g/t Au and 663.0 g/t Ag
-T-ChS-06: 1.0 m with 0,47 g/t Au and 198.0 g/t Ag

Target Romina:

Romina corridor was tested by five holes totaling 1,044.6 meters. The holes tested approximately 1,000.0 meters of strike length out of the 1,500.0 meters long Romina structure. Romina corridor is at least a 150.0 meters wide vein system with sulphides associated to gold and silver. Holes intercept at depth the same mineralization style sampled on trenches.

Historical trenches T Pj-01, T Pj-03 and T Ro-10 returned the subsequent results on surface:

T Pj-01: 1.0 m with 10.46 g/t Au and 69.61 g/t Ag
T Pj-03: 12.0 m with 0.61 g/t Au and 8.84 g/t Ag
Including 2.0 m with 1.89 g/t Au and 20.30 g/t Ag
T Ro-10: 1.0 m with 8.2 g/t Au and 16.0 g/t Ag

Target Muñoz Dora:

At least three vein systems are present related to regional structures. Dora Vein controlled by a NS structure and Muñoz North and South veins by an EW one.

One drill hole (81.0 m) was aimed to intercept Dora and Muñoz North veins but this target was partially tested. After intercepting one mineralized structure and due to poor ground conditions the drill hole was early finished.

Historical chip samples returned values up to 5.56 g/t Au and 66.8 g/t Ag.

Target Porphyry Chita:

One deep hole (311.0 m) successfully tested a set of typical epithermal veins cutting the south stock of the Chita porphyry. The individual vein systems are continuous for more than 300 m, with vein widths of 10-20 cm and the system up to 15 m wide with multi staged banded-veins. Veins are made up by quartz and to a lesser degree calcite with an epithermal character and containing Au, Ag, Cu, Pb, and Zn mineralization.

Historical trench sampling returned up to 1.0 meter with 10.14g/t Au and 1,146.0 g/t Ag.

A total 2,593 samples (including blanks and standards) have been sent to the lab for multi-element analysis. No assays have been received to date. The first batch is expected imminently and results will be reported when received and interpreted. All samples have been shipped to the Alex Stewart laboratory in Mendoza, Argentina.

Roberto Milanese, Minera Sud Argentina S.A. Exploration Vice-President, considers that Phase I of the Chita Valley Project drilling program has complied with the objective of testing at depth the mineralization in each of the targets that were selected for this stage of the exploration.

Mr. Carlos Massa, President and CEO said, "Our management team has demonstrated operational skills, completing an aggressive program in the Andes by drilling 2,350 m in only 35 days before the onset of the winter. This is part of our commitment to the investors who believed in our business proposal."

Mr. C. Gustavo Fernandez, Professional Geoscientist in the Province of Ontario, is the Qualified Person as defined by NI 43-101. Mr. Fernandez has read and approved the contents of this release.

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, Argentina.

Additionally, the Company holds a portfolio of approximately 75,000 ha of 100% owned exploration properties in Patagonia. Most of the key properties held by the Company are located in mining friendly provinces like San Juan and Santa Cruz, 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 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 the map associated with this release, please visit the following link: http://media3.marketwire.com/docs/MSR-FIGURE1-MAP.pdf.

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