Minsud Resources Corp. [MSR-TSXV] reported assay results from the additional nine drillholes completed in the ongoing Phase IV scout drilling program at Chita Valley Project, San Juan province, Argentina.
Twenty-three drillholes were completed to date this year, encompassing a total of 15,836 metres. Assay results have been received for additional nine drill holes totaling 6,250 metres, which included drillholes CHDH22-51 through to CHDH22-59. There are six drillholes still awaiting assay results.
The principal objectives of the current program include further down-dip and along strike delineation of the mineralized porphyries and affiliated host rocks discovered during the Phases I to III programs (2020 and 2021) and to test additional targets at Chinchillones and the nearby Link Zone area.
Highlights for Chinchillones Second Porphyry Cu-Mo-Ag-Au: The recent drilling results further confirmed the presence of a second porphyry Cu-Mo-Au-Ag centre located around 450 metres east of the Chinchillones central porphyry and expressed on surface as prominent confluence of NS- and EW-trending ridges occupied by silicified and brecciated Permo-Carb Agua Negra Fm quartzose sandstone. This blind Cu-Mo-Ag-Au diorite porphyry is interpreted to be NE-elongated, at least 700 metres-long and 350 metres-wide.
Significant porphyry Cu-Mo mineralization intervals for drillhole CHDH22-57 returned 354 metres at 0.29% copper, 322 ppm molybdenum, 0.1 g/t gold and 5.59 g/t silver from 484 metres (open at depth), including 50 metres at 0.25% copper, 0.11 g/t gold, 2.02 g/t silver, 1,117 ppm molybdenum and 0.23 ppm rhenium from 770 metres highlighting higher-grade molybdenum and coincident rhenium mineralization.
These sulfidic zones are highlighted in drillhole CHDH22-59 that returned 144 metres at 0.37% Cu, 0.14 g/t Au and 7.98 g/t Ag from 28 metres, and 16 metres at 0.98% Cu, 0.38 g/t Au and 17.59 g/t Ag from 260 metres.
Importantly, CHDH22-59 has effectively established the strike and down-dip continuity of the near-surface Cu-Au-Ag bodies encountered at CHDH21-40 and CHDH22-43. CHDH21-40 returned 84 metres at 0.59% Cu, 0.24 g/t Au, 15.03 g/t Ag. CHDH22-43 returned 112m at 0.42% Cu, 0.1 g/t Au, and 9.80 g/t Ag).
The Link Zone target is the area located between South Porphyry PSU and Chinchillones. The scout drilling in this area confirms the presence of high-grade mineralized structures hosted in the sedimentary Agua Negra Fm and intrusive Tertiary domes. Drillholes CHDH22-52 and 53 show anomalous high sulfidation (HS) mineralization of Cu-Zn-Ag controlled by a trending NNE fault, cutting andesitic porphyry at depth.
Drillhole CHDH22-51 has been drilled to the limit of the area between the Chinchillones target and Link Zone. This drillhole intersected numerous HS structures and hydrothermal breccias of up to 5m-thick with high grade Cu-Zn-Ag+/-Au.
The drillholes completed at the Link zone confirmed a NNE-trending mineralized corridor which is sympathetic to the delineated mineralization corridors at Chinchillones. The company plans to continue drilling this target area.
The current results of Phase IV exploratory activities, together with previous drilling phases, confirmed the expanded Chinchillones porphyry-epithermal system, is now thought to encompass at least 2km x 2 km, and is demonstrably open to more than 850 metres depth.
Ramiro Massa, President & CEO, said: “This ongoing Phase IV drill program at Chita Valley Project, together with previously completed phases have successfully demonstrated the presence of at least two porphyry centers at the Chinchillones porphyry and epithermal system, and furthermore extended its mineralization in all directions encompassing at least 2 km x 2 km, remaining open at depth. We also identified the presence of Rhenium associated with high-grade Molybdenum. Congratulations to our team that has been drilling safely throughout the year including during the winter season.”
Current exploration activities on the Chita Valley Project are being funded by a subsidiary of South32 Ltd. [SHTLF-OTC; SOUHY-ASX, LSE, Jo’burg] in accordance with the earn-in agreement entered into November 1, 2019.
Under the earn-in agreement and having given the company notice to continue funding the Chita Valley Project, South32 will provide further funding to MSA such that aggregate funding is not less than C$14 million by February 28, 2024. South32 may withdraw at the end of each year.
If South32 exercises its earn-in right, it may acquire a 50.1% direct interest in the company’s Argentinean operating subsidiary Minera Sud Argentina S.A. (MSA) at the end of the earn-in period by paying an additional C$14 million to Minsud, or by funding 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%.
Minsud also holds a 100%-owned portfolio of selected early-stage prospects, including 6,000 hectares in Santa Cruz Province, Argentina.