Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

September 17, 2013 17:07 ET

Minsud Resources Corp.: Exploration Update Western Minas De Pinto Sector, Chita Valley Cu-Mo-Ag-Au Project, San Juan, Argentina

TORONTO, ONTARIO--(Marketwired - Sept. 17, 2013) - Minsud Resources Corp. ("Minsud" or the "Company") (TSX VENTURE:MSR) announces exploration results from the western Minas de Pinto Sector of the Chita Valley diatreme volcanic vent/porphyry complex.

The following is an update on recent exploration work conducted on the western Minas de Pinto sector of the Chita Valley Project (the "Project") located in San Juan Province, Argentina. The Project is a large exploration stage Tertiary diatreme volcanic vent/porphyry complex with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated gold and silver-bearing polymetallic veins. The western Minas de Pinto sector (dark blue) is show relative to other previously reported detailed work areas in Figure 1.

To view "Figure 1: General Target Areas Chita Valley Project", please visit the following link: http://media3.marketwire.com/docs/917msr_picture.jpg.

The Minas de Pinto sector (Map 1) is essentially an easterly trending swarm of discontinuous quartz veins containing variable concentrations of polymetallic sulphides and widespread localized Au-Ag mineralization that has been traced for 4.0 kilometers along strike. This is part of the 12 km strike length Chita Valley Complex trend. The vein swarm cuts various lithologies including Devonian-Carboniferous sediments (Agua Negra Formation), Carboniferous-Permian granodiorite (Colanguil Batholith), and Mid to Upper Tertiary volcaniclastics and andesitic porphyry (Chita Valley Complex). Several corridors comprising multiple veins and stockworks are present. In the western sector, from north to south, these are termed; the Barba, Amparo, Fatima, Fatima Sur, Branca, Maria, Carmen and Carmen Sur vein assemblages. Other vein corridors located in the eastern and southern parts of the Minas de Pinto sector (Candela, Johanna, Esperanza, Josephina, Argentina, Glenda and others) will be the subject of planned future investigations.

The Minas de Pinto corridor contains various artisanal diggings of unknown age and an early 20th Century exploration adit. Silex Argentina S A, an unrelated company, optioned the Minas de Pinto Property in the mid-2000's, completing extensive geological mapping and surface grab and channel sampling for a total of 1,631 samples by 2007. In 2008 the company drilled 22 diamond drill holes totaling 2,631.25 metres. The full data set pertaining to the latter work including analytical certificates and remaining drill core was turned over to the property owner upon termination of the option agreement. In 2011 Minsud completed two diamond drill holes totaling 435.5 metres to test the earlier results, with one (CHT11-24) being a twin of previous hole CHT-004 (see Press Release date February 9, 2012). The current program conducted in the western part of the Pinto Property includes detailed geological and alteration mapping together with selective surface channel sampling.

Exploration Work First Half 2013

Minsud's current strategy for the Chita Valley Project is the continuation of systematic detailed geological mapping and alteration studies with selective surface sampling. These maps are available on the Company's website www.minsud.com .

The Agua Negra Formation exposures in the western Minas de Pinto sector are predominantly shallow marine black shales and siltstones with subordinate sandstone/quartzite layers. The Agua Negra Formation is intruded by the Carboniferous-Permian granodiorite (Colanguil Batholith) in parts of the study area or juxtaposed by late faults in others. The Tertiary Chita Valley Complex in the western Minas de Pinto area comprises three main lithological units including mafic volcaniclastic rocks, andesitic porphyry and porphyritic andesite dykes that cut both units.

Mid to Upper Tertiary mafic to intermediate volcaniclastics and andesitic porphyry of the Chita Valley Complex are exposed in the western half of the map area. Three lithological units have been mapped; andesite porphyry, mafic volcaniclastics and late andesitic porphyry dykes that cut both previous units.

The distribution of alteration features is summarized as follows:

  • Agua Negra Formation units are characterized by weak silicification with areas of moderate to strong argillic alteration in the vicinity of epithermal vein systems.
  • Colanguil Batholith granodiorite is exposed in two areas. The southern exposure is characterized by moderate argillic alteration while the northern area is weakly to strongly silicified with an area of moderate argillic alteration near the northern property boundary.
  • The Chita Valley Complex andesite porphyry units are moderate to strongly silicified with localized argillic alteration bordering vein systems. The mafic volcaniclastics in the north-western corner of the map area are typified by moderate propylitic alteration.

Structurally the Chita Valley area is part of the Andean Frontal Cordillera and is typified by upright concentric folding and thrust faulting. The Chita Valley complex is exposed along an ENE trending corridor of epizonal intrusions, hydrothermal alteration, breccias and mineralized vein systems. The system is interrupted by a set of NNW oriented set of sinestral faults or shears. Finally a late sinestral fault system runs NW to E-W along the Chita Valley.

To view "Map 1: Geology Map Minas de Pinto Property", please visit the following link: http://media3.marketwire.com/docs/917msr_map.jpg.

The 2013 geochemical sampling program consisted of 19 sawn channel sample sections for a cumulative total of 310 samples. Sampling highlights including all sections averaging > 1 g/t Au or >30 g/t Ag are shown in Table 1. Maps showing the various sample locations and the distribution of gold and silver values are available on the company's website.

Table 1: Minas de Pinto 2013 Channel Sampling Highlights (>1 g/t Au, >30 g/t Ag)

Vein Trench From To Interval Au Ag As Cu Pb Zn
ID M M m g/t g/t % % % %
Amparo Vein AMP-13-16 1 4 3 3.71 69.4 0.041 0.008 0.204 0.116
Barba Vein BAR-13-17 0 1 1 1.61 34.9 0.126 0.031 0.211 0.005
Branca Vein BRA-13-06 8 10 2 0.79 131.8 0.049 0.035 0.162 0.006
Branca Vein BRA-13-07 6 9 3 3.08 25.9 0.058 0.013 0.056 0.007
Carmen Vein CAR-13-02 1 4 3 11.69 23.4 0.275 0.005 0.081 0.013
Carmen Vein CAR-13-03 2 4 2 7.01 21.3 0.548 0.011 0.186 0.02
Carmen Sur Vein CARS-13-01 27 28 1 1.06 20.2 0.039 0.006 0.157 0.007
Carmen Sur Vein CARS-13-01 42 43 1 1.44 15.6 0.053 0.003 0.058 0.016
Fátima Vein FAT-13-11 16.4 17.4 1 1.99 20 0.041 0.003 0.011 0.002
Fátima Vein FAT-13-14 0 2 2 1.44 82.8 0.016 0.029 0.202 0.055
María Vein MARY-13-10 10 12 2 1.74 79 0.044 0.019 0.06 0.003

All surface rock samples were submitted to the Alex Stewart (Assayers) Argentina S. A. laboratory in Mendoza, Argentina for preparation and analysis. The laboratory is certified to ISO-9001 international standards. All geochemical grab and channel rock samples were analyzed for Au by fire assay/ AA finish, 50 g, (Au4-50) plus a 39-element ICP scan (AR-39).

Conclusions and Recommendations

Recent Minsud mapping and sampling in the Carmen Vein area has identified one of the most promising intercepts obtained to date in the Pinto sector, channel sample section CAR-13-02 that encountered 3.0 metres averaging 11.69 g/t Au and 23.4 g/t Ag in strongly argillic altered, sheared and brecciated Agua Negra Formation sandstone with extensive veining. Tracing the sub-vertical Carmen vein structure along strike the mineralization becomes substantially weaker in outcropping Agua Negra Formation shales and siltstones. This leads to the theory that the relatively competent and brittle sandstone stratigraphic horizons are more conducive to hosting mineralized veins and breccias than the more plastic finer grained shales and siltstones. Thus it is postulated that the intersections between the various sub-vertical vein structures and the shallow to moderately dipping sandstone units might be favourable locations for economically significant Au-Ag concentrations.

The recommended ongoing work program in the Pinto area is twofold:

  1. Further develop the Carmen Vein target area to the outline drilling stage. This will require more accurate survey control than is currently available utilizing DGPS methodology, detailed geological mapping at 1:500 scale, mechanical trenching for mapping and sampling purposes, careful geological and structural analysis to develop drilling targets, and finally the implementation of a drilling program.
  2. Continue the systematic mapping and sampling program into the remainder of the property.

Mr. Howard Coates, Professional Geoscientist, Director and Vice President Exploration 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 excited with this new theory to explore for gold in the Minas de Pinto area while increasing our understanding of the geology and alteration in the Chita Valley Project."

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.

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.

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