TORONTO – Minsud Resources Corp. [MSR-TSXV; MDSQF-OTC] reported assay results from the additional seven drill holes completed in the ongoing Phase 3 program over the Chinchillones area, located at the Chita Valley Project, San Juan province, Argentina. Encouraged by the results received, Minsud and its partner, a subsidiary of South32 Limited [SHTLF-OTC; SOUHY-ASX, LSE, Jo’burg] are extending the drilling program, with the aim of continuing exploring this recently discovered area, expecting to complete a total of 12,000 metres by year end.
Nineteen drill holes were completed to date this year totalling 8,600 metres, including three new drill holes in other areas of the Chita Valley Project. Highlights include drill hole CHDH21-30 that intersected 276 metres at 0.65% copper equivalent (CuEq), from 182 to 458 metres. (0.44% Cu, 0.11 g/t Au, 8.65 g/t Ag, 329 ppm Pb, 0.11% Zn). This drill hole is located 820 metres east of CHDH21-28, heading NNE, dipping 65 degrees and drilled to 650 metres depth. This drill hole probably confirms the presence of another Cu-Mo porphyry centre and is interpreted here to be open in several directions.
CHDH21-28 intersected 53 metres at 1.31% CuEq from 584 metres (1.04% Cu, 0.18 g/t Au, 3.18 g/t Ag, 227 ppm Mo), including a higher-grade section of 29 metres at 2.07% CuEq from 608 metres (1.69% Cu, 0.30 g/t Au, 4.69 g/t Ag, 250 ppm Mo). This drill hole is located 150 metres south to the recently reported CHDH21-23, with SSE azimuth, dipping 65 degrees and drilled to 687.7 metres depth. These two drill holes, in conjunction with CHDH20-04 drilled in 2020, confirmed the presence of at least a 400-metre-long, deep porphyry Cu-Mo system at Chinchillones;
CHDH21-26 intersected 106 metres at 0.74% CuEq from 192 to 298 metres (0.14% Cu, 0.11 g/t Au, 17.81 g/t Ag, 0.25% Pb, 0.91% Zn). It confirms the presence of high-grade hydrothermal breccias at depth. CHDH21-29 intersected 403 metres from 66 to 468 metres (end of hole), of anomalous Cu mineralization averaging 0.13% throughout the drill hole.
The drill results reported above confirm the presence of highly significant Zn-Pb-Ag mineralization that overprints at least two porphyry centres.
Ramiro Massa, Minsud’s President and CEO, said: “The potential for a large-scale copper-moly porphyry system in the Chinchillones area remains open to the south and at depth. These results have created a great deal of excitement and expectation within the team, and we are currently reviewing the next steps with our partner South32. We believe that we have a unique opportunity at the Chita Valley Project.”
South32 can earn a 50.1% direct interest in the Minsud’s Argentinean operating subsidiary, Minera Sud Argentina S.A., at the end of the earn-in period. Under the earn-in agreement, South32 will provide funding to MSA over the next 3 years totalling not less than C$7 million by December 31, 2021; not less than C$10.5 million by December 31, 2022; and not less than C$14 million by December 31, 2023. South32 can withdraw at the end of each year.
If South32 exercises its earn-in right it may elect to fund a pre-feasibility study, with a minimum spend of C$41 million, which would entitle it to elect to increase its 50.1% direct interest in MSA to 70%.