Minsud drills 0.41% CuEq over 642 metres at Chita Valley, Argentina

Minsud Resources Corp. [MSR-TSXV] reported assay results from the initial eight drill holes completed in the continuing phase 4 scout drilling program at Chita Valley project, San Juan province, Argentina. The company commenced phase 4 drill program in May and plans to complete a 26,000-metre program by first quarter of 2023.

Fifteen drill holes were completed to date this year, encompassing a total of 10,000 metres. Assay results have been received for the first eight drill holes totalling 5,480 metres, including drill holes CHDH22-43 to CHDH22-50. The remaining seven drill holes are still awaiting assay results.

The principal objectives of the current program include further delineation of the mineralized body discovered during the phase 1 to 3 programs (2020 and 2021), the testing of additional centres of polymetallic mineralization at the Chinchillones area and probing of the downdip continuity to the South Chita porphyry (PSU) deposit.

The drill holes completed to date at the eastern sector of the Chinchillones target confirmed the presence of a highly prospective north-northeast-trending corridor of coalescing epithermal and porphyry mineralization.

Results to date of the phase 4 drilling at Chinchillones confirmed the continuity to the northeast of the high-sulphidation copper-gold-silver affiliated to a porphyry mineralization type, previously intersected by drill holes CHDH21-30 and CHDH21-40.

The drill holes CHDH22-43 and CHDH22-50 yielded high-grade high-sulphidation copper-zinc-lead-silver mineralized intervals occurring in broad advanced argillic (pyrophyllite-kaolinite-pyrite-secondary silica) altered dacitic lithologies. This important north-northeast-trending porphyry and epithermal corridor comprises an area of at least 1 km long and 350 metres wide. Drilling demonstrated that the high-sulphidation mineralization extends downdip to at least 500 metres.

CHDH22-50: This hole, together with CHDH22-47, confirmed a mineralized dioritic copper-molybdenum porphyry at depth. The best intervals are from 77 to 719 metres, 642 metres at 0.41% CuEq (copper equivalent) (0.27%), which includes high-sulphidation structures of about 20 metres thick at 1.51% copper, 0.20 part per million gold and 31 ppm silver.

CHDH22-43: Mineralization is largely as disseminated Cu sulphides with 112 metres at 0.42% Cu from 30 metres to 142 metres.

CHDH22-47: The most interesting sections range from 278 metres to 474 metres with 196 metres of 0.22% Cu; and from 574 metres to 782 metres, 208 metres at 0.20% Cu and 178 ppm Mo. This section heralded the commencement of porphyry-type mineralization toward the end of the drill hole.

Drill holes CHDH22-48 and CHDH22-49 tested the Chita South porphyry (PSU) at depth. Cu-Mo mineralization was confirmed below 120 metres, at least up to a 250-metre depth.

Drill hole CHDH22-48 intersected 212 metres from 32 metres to 244 metes at 0.37% CuEq (0.25% Cu and 200 ppm Mo). This drill hole ended at 578 metres due to drilling difficulties and could not reach the programmed depth.

Drill hole CHDH22-49 ended at 750.3 metres. A moderate to strong potassic alteration is confirmed until the end of the drilling.

The current results of phase 4, together with previous drilling phases, confirmed the continuity of a Cu-Mo porphyry system to the northeast. The porphyry footprint to the northeast of the central Chinchillones area is now thought to encompass 1 km by 800 metres, demonstrably open to depth.

Ramiro Massa, president and CEO, said: “The drill results reported continue to demonstrate the strong potential to expand the Chita Valley project well beyond its current resource at the South porphyry. The last 11 metres of hole CHDH22-50 averaged 0.53% copper, and the hole ends in mineralization. These results, together with the completed phases 1, 2 and 3 over the last two years, have transformed the Chita Valley project, and we are looking forward to receiving full results from the remaining drill holes.”

Current exploration activities on the Chita Valley project are being financed by a subsidiary of South32  in accordance with the earn-in agreement between the parties entered into on Novvember 1, 2019.

Under the earn-in agreement, South32 Ltd. [SOUHY-ASX, LSE, Jo’burg; SHTLF-OTC] will provide further financing to MSA such that its aggregate financing is not less than $14-million by February 28, 2024. South32 has the right to withdraw at the end of each year.

If South32 exercises its earn-in right, it may elect to acquire a 50.1% direct interest in the company’s Argentine operating subsidiary Minera Sud Argentina SA (MSA) at the end of the earn-in period by paying an additional $14-million to Minsud or by financing a prefeasibility study, with a minimum spend of $41-million, which would entitle it to elect to increase its 50.1% direct interest in MSA to 70%.

The company also holds a 100%-owned portfolio of selected early-stage prospects, including 6,000 hectares in Santa Cruz province, Argentina.