Minsud Resources Corp. [MSR-TSXV] reported results from the last four drill holes completed in the phase III program over the Chinchillones area, located at the Chita Valley project, San Juan province, Argentina. The company completed the largest annual drilling program over the Chita project encompassing 11,970 metres distributed in 24 drill holes.
Highlights include drill hole CHDH 21-39 that intercepted 296 metres from 282 to 576 metres with 0.45% copper, 0.09 g/t gold and 3.76 g/t silver, and a higher-grade zone of 85 metres from 287 metres at 0.72% copper, 0.13 g/t gold and 6.08 g/t silver. Between 282 and 578 metres mineralization and geological parameters are coincident with those encountered at the CHDH21-30. Mineralized intercepts at the CHDH21-30 and CHDH21-39 confirm a copper-molybdenum deep zone of porphyry mineralization type open to the northeast.
Hole CHDH21-40 intercepted several mineralized intervals, with 27 metres from 33 to 60 metres with up to 1.15% copper (pyrite-chalcopyrite-covellite-chalcocite-enargite) occurring as a distinctive north-northeast structural control. From 178 metres from 356 to 534 metres at 0.22% copper, 0.16 g/t gold, 3.81 g/t silver. Those veins cut early porphyry and related breccia bodies.
Hole CHDH21-41 intersected 14 metres at 0.19% copper, 0.1 g/t gold, 9.58% silver, 0.11% lead, 0.26% zinc before being abandoned at a depth of 356 metrres due to drilling difficulties and could not reach the programmed depth. Mineralization is hosted in phreatic hydrothermal breccias, apical part of the porphyry system.
Hole CHDH21-42 intercepted 208 metres from 398 metres at 0.21% copper, 2.61 g/t silver, 0.1% zinc. The objective of this drill hole was to verify the continuity of the mineralized dioritic porphyry, below the quartzites of Agua Negra Fm outcrops. The mineralized zone intercepted is very irregular and is cut by quartz veins type with chalcopyrite-bornite mineralization, indicative of deeper presence of a porphyry system.
During this recently completed phase III drilling program, several drill holes confirmed the extension of a Cu-Mo porphyry system to the northeast of at least 800-metre-by-800-metre and open 850 metres in depth. This drilling program also confirmed a broad zone of polymetallic Zn-Pb-Ag mineralization superimposed over a porphyry Cu-Mo system.
Ramiro Massa, president andCEO, said: “Due to the encouraging results at the Chinchillones area obtained during phase III drilling program, MSA and South32 have approved an increased budget for phase IV that comprises a drilling program of approximately 26,000 metres to pursue two main objectives: infill deep drill holes at the Chinchillones polymetallic-porphyry system and continue scout drilling program testing additional porphyry targets.”
Current exploration activities on the Chita Valley project are being financed by a subsidiary of South32 Limited [SHTLF-OTC; SOUHY- ASX, LSE, Jo’burg] in accordance with the earn-in agreement between the parties entered into on Nov. 1, 2019.
South32 can acquire a 50.1% direct interest in the company’s Argentinean operating subsidiary Minera Sud Argentina SA (MSA) at the end of the earn-in period. South32 will provide further financing to MSA such that its aggregate financing is not less than $10.5-million by February 28, 2023 and 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 finance 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%.
Minsud also holds a 100%-owned portfolio of early-stage prospects, including 6,000 hectares in Santa Cruz province, Argentina.