Minsud Resources Corp. announces results of the scout-drilling program at the Chinchillones Porphyry in the Chita Valley Project
TORONTO, June 23, 2020 - Minsud Resources Corp. (TSXV: MSR) ("Minsud" or the "Company") is pleased to announce the results of the 6 hole, 3,559 meters scout drilling program completed at the Chinchillones Porphyry and Epithermal Complex, part of the Chita Valley Project. The exploration survey was based on the results of the geophysics carried out during December 2019, where a porphyry and epithermal anomalies were identified. The objective was to determine the possible presence, as the geophysical and conceptual models indicated, of a porphyry-type system below the Chita Valley and of an epithermal target hosted in the lithocap cover.
The results of this exploration scout program and the revision of historical drill results performed in the Chinchillones area, have provided some intercepts that support the presence at shallow and at down depth level of a Zn-Pb-Cu-(Ag-Au) polymetallic epithermal system.
Table 1 below highlights the main mineralized intersections near the surface and in depth with highly anomalous Au-Ag-Cu-Mo-Pb-Zn. Two intrusive phases have been recognized, a quartz-diorite, cut by an inter mineral dacite porphyry, both affected by an intensely, widespread, quartz sericite alteration. B and D porphyry style quartz veins forming strong stockwork, are present in both lithologies.
Drill hole CHDH20-04 intercepts continuous 739.70 m of a diorite porphyry. The diorite porphyry is cut by polymetallic epithermal veins and hydrothermal phreatic breccias mineralized with pyrite, chalcopyrite, sphalerite, galena and tenantite.
Evidences of secondary enrichment is represented by covelite-digenite in a partial replacement of chalcopyrite. This mineralized style represents a telescopic sequence of alteration-mineralization zones, from shallow argillic and underlying quartz-sericite to deeper chlorite-sericite and minor remnant potassic of a classic porphyry system type.
| Table 1: Chinchillones Diamond Drilling Program – Summary of Analytical Results | |||||||||
| Hole ID | From | To | Length | Au | Ag | Cu | Mo | Pb | Zn |
| (m) | (m) | (m) (*) | g/t | g/t | % | ppm | ppm | ppm | |
| CHDH20-01 | 34.00 | 94.00 | 60.00 | 0.04 | 1.05 | 0.16% | 67 | 62 | 21 |
| CHDH20-02 | 16.00 | 45.00 | 29.00 | 0.16 | 15.15 | 0.19% | 46 | 242 | 604 |
| Incl. | 44.00 | 45.00 | 1.00 | 0.27 | 66 | 0.93% | 46 | 2030 | 4910 |
| 86.00 | 112.70 | 26.70 | 0.37 | 64.23 | 0.45% | 69 | 1055 | 2847 | |
| Incl. | 98.00 | 100.00 | 2.00 | 1.07 | 262 | 2.16% | 34 | 2978 | 14050 |
| 44.00 | 220.00 | 176.00 | 0.12 | 16.18 | 0.17% | 109 | 506 | 1711 | |
| Incl. | 52.00 | 160.00 | 108.00 | 0.15 | 21.37 | 0.20% | 82 | 599 | 2034 |
| 87.00 | 100.00 | 13.00 | 0.42 | 84.28 | 0.64% | 44 | 1659 | 4300 | |
| CHDH20-03 | Intercepts hydrothermal pyrite halo | ||||||||
| CHDH20-04 | 16.00 | 44.00 | 28.00 | 0.64 | 73.35 | 0.02% | 22 | 1068 | 130 |
| Incl. | 32.00 | 40.00 | 8.00 | 0.61 | 154.25 | 0.02% | 34 | 2061 | 149 |
| 54.00 | 581.50 | 527.50 | 0.09 | 8.49 | 0.09% | 37 | 1177 | 3243 | |
| Incl. | 96.00 | 126.00 | 30.00 | 0.23 | 10.79 | 0.14% | 54 | 723 | 3081 |
| 260.00 | 406.00 | 146.00 | 0.12 | 12.03 | 0.09% | 40 | 1969 | 5044 | |
| 634.00 | 738.00 | 104.00 | 0.02 | 8.77 | 0.29% | 202 | 1111 | 3365 | |
| CHDH20-05 | 154.00 | 174.00 | 20.00 | 0.13 | 9.43 | 0.22% | 48 | 93 | 1534 |
| 169.70 | 191.00 | 21.30 | 0.21 | 18 | 0.33% | 37 | 95 | 1325 | |
| Incl. | 169.70 | 174.00 | 4.30 | 0.29 | 35.2 | 0.63% | 20 | 236 | 4721 |
| 178.00 | 191.00 | 13.00 | 0.22 | 17.58 | 0.32% | 40 | 68 | 540 | |
| 360.00 | 364.00 | 4.00 | 0.48 | 4.03 | 0.03% | 28 | 71 | 558 | |
| 581.35 | 582.00 | 0.65 | 0.21 | 9.1 | 2.60% | 318 | 11 | 347 | |
| CHDH20-06 | 96.00 | 97.00 | 1.00 | 0.96 | 56.80 | 1.32% | 6 | 1345 | 4780 |
| 168.00 | 170.00 | 2.00 | 0.18 | 12.40 | 0.12% | 6 | 939 | 3520 | |
| (*) Intervals reported in the above table are not true thicknesses | |||||||||
Historical drilling data in the Chinchillones area is shown in Table 2 below and it highlights the most significant intersections of Polymetallic Au-Ag-Cu-Mo-Pb-Zn grades values.
These results support and are indicative of the high potential of the polymetallic epithermal Au-Ag-Cu-Pb-Zn trend in the Chinchillones target and its continuity to the East and Northeast.
| Table 2: Chinchillones historical drilling data | |||||||||
| Hole ID | From | To | Length | Au | Ag | Cu | Mo | Pb | Zn |
| (m) | (m) | (m) (*) | g/t | g/t | % | ppm | ppm | ppm | |
| CHS-11-01 | 70.00 | 74.00 | 4.00 | 0.13 | 12.9 | 0.18% | 4 | 50 | 218 |
| 119.00 | 142.00 | 23.00 | 0.02 | 10.12 | 0.20% | 8 | 671 | 2505 | |
| 151.00 | 168.00 | 17.00 | 0.02 | 19.17 | 0.07% | 7 | 1444 | 7283 | |
| CHS-11-03 | 12.00 | 15.00 | 3.00 | 0 | 3.51 | 0.04% | 5 | 1291 | 3188 |
| 21.00 | 24.00 | 3.00 | 0 | 4.06 | 0.01% | 10 | 642 | 1458 | |
| 38.00 | 45.00 | 7.00 | 0.11 | 14.13 | 0.02% | 6 | 5193 | 13143 | |
| 98.00 | 101.00 | 3.00 | 0.18 | 37.47 | 0.06% | 3 | 6479 | 8590 | |
| CHS-11-04 | 15.00 | 21.00 | 6.00 | 0.02 | 16.31 | 0.17% | 5 | 258 | 340 |
| 35.00 | 45.00 | 10.00 | 0.02 | 5.62 | 0.04% | 6 | 504 | 1967 | |
| 57.00 | 72.00 | 15.00 | 0.07 | 30.12 | 0.11% | 7 | 886 | 4159 | |
| 125.00 | 130.00 | 5.00 | 0.26 | 52.55 | 0.33% | 3 | 327 | 807 | |
| 135.00 | 168.00 | 33.00 | 0.05 | 13.33 | 0.05% | 3 | 605 | 2021 | |
| CHS-11-05 | 81.00 | 104.00 | 23.00 | 0.07 | 8.51 | 0.01% | 3 | 546 | 5604 |
| Incl. | 100.00 | 102.00 | 2.00 | 0.35 | 41.04 | 0.01% | 3 | 1135 | 43658 |
| 108.00 | 115.00 | 7.00 | 0.07 | 13.53 | 0.01% | 4 | 1351 | 4478 | |
| 135.00 | 146.00 | 11.00 | 0.13 | 34.5 | 0.02% | 3 | 4422 | 15187 | |
| MSA08-A | 98.00 | 129.00 | 31.00 | 0.01 | 0.41 | 0.11% | 146 | 14 | 112 |
| 136.00 | 149.00 | 13.00 | 0 | 0.06 | 0.09% | 158 | 10 | 131 | |
| 167.00 | 180.00 | 13.00 | 0.03 | 1.66 | 0.09% | 110 | 32 | 208 | |
| 222.00 | 239.00 | 17.00 | 0.08 | 0.53 | 0.19% | 101 | 39 | 396 | |
| 264.00 | 276.00 | 12.00 | 0.01 | 0.07 | 0.04% | 184 | 10 | 118 | |
| MSA08-C | 21.00 | 28.00 | 7.00 | 0.01 | 3.24 | 0.76% | 4 | 365 | 307 |
| 31.00 | 80.00 | 49.00 | 0.07 | 13.82 | 0.05% | 16 | 1884 | 6960 | |
| 87.00 | 91.00 | 4.00 | 0.04 | 5.48 | 0.01% | 6 | 230 | 1210 | |
| 104.00 | 108.00 | 4.00 | 0.16 | 94.08 | 0.24% | 6 | 4204 | 5225 | |
| 127.00 | 133.00 | 6.00 | 0.18 | 90.01 | 0.27% | 5 | 1126 | 2017 | |
| 141.00 | 215.00 | 74.00 | 0.11 | 43.83 | 0.13% | 8 | 2565 | 10286 | |
| 240.00 | 279.00 | 39.00 | 0.02 | 5.74 | 0.02% | 6 | 1289 | 4116 | |
| C-96-01 | 14.00 | 22.00 | 8.00 | 0.1 | 5.75 | 0.00% | No data | 1784 | 61 |
| 66.00 | 78.00 | 12.00 | 0.11 | 9.52 | 0.35% | No data | 1292 | 2557 | |
| 126.00 | 142.00 | 16.00 | 0.09 | 11.36 | 0.08% | No data | 1465 | 7763 | |
| C-96-02 | 56.00 | 74.00 | 18.00 | 0.07 | 4.07 | 0.03% | No data | 882 | 2547 |
| Incl. | 56.00 | 60.00 | 4.00 | 0.2 | 12.7 | 0.10% | No data | 3113 | 7230 |
| 108.00 | 120.00 | 12.00 | 0.09 | 4.52 | 0.02% | No data | 635 | 2503 | |
| C-96-03 | 110.00 | 120.00 | 10.00 | 0.21 | 6.24 | 0.65% | No data | 146 | 250 |
| C-96-04 | 32.00 | 94.00 | 62.00 | 0.05 | 4.39 | 0.01% | No data | 907 | 2354 |
| 144.00 | 170.00 | 26.00 | 0.21 | 13.38 | 0.10% | No data | 1707 | 6656 | |
| Incl. | 160.00 | 164.00 | 4.00 | 0.75 | 49.8 | 0.53% | No data | 5808 | 15056 |
| (*) Intervals reported in the above table are not true thicknesses | |||||||||
Conceptual Geological Model at Chinchillones
The Map 1 below, displays the extension of the polymetallic veins system (in red lines) open to the East and Northeast configuring a namely "Linked Area" between Chinchillones and Chita porphyry target that highlights untested porphyry systems and epithermal polymetallic veins associated.
This recent fieldwork also highlights the potential for a porphyry and epithermal system at shallow depths and suggests the presence of a long-lived mineralization system open to the East and linked with the Chita Porphyry, located 2 km to the East.
As cooling of the intrusive complex progressed at Chinchillones, the structural and chemical character of the mineralizing environment changed largely in response to the inflow of meteoric water, represented by near vertical presence of type D veins and phreatic breccia.
With continued cooling, upper and peripheral zones of late alteration process and mineralization progressively collapsed inward and downward over zones of early mineralization, penetrating deeper along continuous vein structures (East-West structural system) as it is seen at the north and south border of the Chita valley.
In the last stages, an acid hot-spring system was established in the upper portions of the deposit (Phreatic Breccia at Chinchillones). Finally, a relatively minor intrusion of late dacite dikes into this hot-spring system caused brecciation and mineralization. This sequence can be observed in drill hole CHDH20-02, where banded quartz veins with anomalous values of Au-Ag have been identified.
Map 2 shows the relationship, along the East-West Chita Valley, of West Chinchillones Project, Central link area project and the outcropping Chita Porphyry to the East.
Quality Assurance/Quality Control
Diamond drill core was sampled as half core at two meters intervals and check samples were submitted to the ALS Minerals Laboratory 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, 50 plus a 33-element ICP scan. Minsud has followed all industry standard procedures for the work with a quality assurance/quality control (QA/QC) program including the systematic utilization of certified reference materials, blanks, field duplicates and check assays. Field duplicates, standards and blanks were included with all sample shipments to the principal laboratory.
Minsud's VP-Exploration, Dr. Mario Alfaro, conducted site visits and detected no significant QA/QC issues during review of the data. Mr. Mario Alfaro, Professional Geoscientist and a geological consultant, is a qualified person as defined by Canadian National Instrument 43-101. Mr. Alfaro visited the property and 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 Cu-Mo- Au-Ag Project, in the Province of San Juan, Argentina. On March 26, 2018, Minsud filed a National Instrument 43-101 ("NI 43-101") Technical Report and updated Mineral Resource Estimate on the Chita South Porphyry Deposit. The Mineral Resource Estimate considers copper as a primary consideration along with molybdenum, gold and silver mineralization. The latest estimate includes Indicated Resources of 33.02 million tonnes at a grade of 0.43% Cu, 0.07 g/t Au. 2.28 g/t Ag and 0.018% Mo and Inferred Resources of 8.59 million tonnes at a grade of 0.40% Cu, 0.07 g/t Au. 1.73 g/t Ag and 0.016% Mo.
The Company also holds a 100% owned portfolio of selected early stage prospects, including 6,000 ha 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.
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SOURCE Minsud Resources Corp.
Contact
Alberto F. Orcoyen, President and Chief Executive Officer, info@minsud.com; Ramiro Massa, Controller and Corporate Secretary, rmassa@minsud.com