Minsud commences Phase IV drilling at Chita Valley Project, San Juan, Argentina
TORONTO, May 6, 2022
TORONTO, May 6, 2022 /CNW/ – ( ) (“Minsud” or the “Company”), is pleased to announce the commencement of Phase IV drilling program at the Chinchillones target area, part of the Chita Valley Project, located in the province of San Juan, Argentina. The program approved by Minsud and South32 Limited (“South32”) comprises a total of 26,000 m. The initial stage of the program will consist of 7,800 m, encompassing twelve (12) drill holes, each between 650 to 800 m depth. The principal objective is to continue testing the apparent NNE-trending epithermal and porphyry corridors delineated from the 2021-2022 drilling and mapping exploratory activities.
The results of the 21,345 m drilled between 2020 and 2021, together with the historical results, have unequivocally confirmed the presence of a substantial Zn-Pb-Cu-(Au-Ag) system characterized by coalescing Cu-Au-Ag-Zn-Pb epithermal mineralization superimposed on a porphyry Cu-Mo-Au.
The spectrum of mineralization styles are generally affiliated with a Miocene intrusion complex (Chinchillones Intrusion Complex; “CIC”) encompassing diorite porphyry through to dacites emplaced into Permo-Carboniferous sediments. This intrusion complex is largely concealed below a late laccolith body and characterized by the emplacement of multi-stage phreatic and phreatomagmatic breccias.
- Chinchillones target: Phase IV drilling program at Chinchillones target will commence with 6,500 meters (see Map 1). These drillholes, with variable depths between 650 and 750 m, have been defined to test the NE and SE extensions of high sulphidation mineralization hosted within a pervasive advanced argillic alteration zone interpreted to be related to the CIC. These were intersected by drillholes CHDH21-30 and CHDH21-40 (see press releases dated October 7, 2021 and February 24, 2022, respectively).
- Link Zone target: Initially two (2) drillholes will be drilled in this zone, with a total of 1,300 m. This area is considered to be potentially another NE-trending corridor of porphyry-high sulphidation mineralization. It is an area that is largely untested, but it presents compelling similarities to the Cu-Au high sulphidation-porphyry characteristics of the principal Chinchillones system.
Ramiro Massa, Minsud’s President & CEO, said: “During the 2020 and 2021 drilling programs, an important sector of advanced argillic alteration, hosting higher-grade Cu-Au high sulphidation, was clearly identified, with thicknesses of over 300 m, disposed along the eastern fringes of the Chinchillones intrusion complex. The drillholes in this sector intercepted “roof pendants” of a Cu-Mo-Au mineralized porphyry. We interpret these to support the continuity of the highly prospective Chinchillones intrusion complex to the NE, E and SE and at depth“.
Mr. Mario Alfaro, Professional Geoscientist, VP-Exploration of the Company, 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 the Chita Valley Project, San Juan Province:
The Chita Valley Project is a large exploration stage porphyry system with classic alteration features, widespread porphyry style Cu-Mo-Au and polymetallic Ag-Pb-Zn mineralization hosted by Hydrothermal Phreatic Breccias and associated gold and silver-bearing polymetallic veins of intermediate sulfide composition that conformed an outcropping porphyry system at Chita and a lithocap of a porphyry system at Chinchillones. San Juan Province of Argentina has a robust mining sector and recognizes the important economic benefits of responsible development of its substantial Mineral Resource endowment.
Current exploration activities on the Chita Valley Project are being funded by a subsidiary of South32 in accordance with the earn-in agreement between the parties entered into on November 1, 2019.
The earn-in agreement grants to South32 the right to 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. Under the earn-in agreement, and having given the Company notice of its intention to continue funding the Chita Valley Project, South32 will provide further funding to MSA such that its aggregate funding is (i) not less than C$10.5 million by February 28, 2023; and (ii) not less than C$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 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%.
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Cu-Mo- Au-Ag-Pb-Zn Project, in the Province of San Juan, Argentina. The Company also holds a 100% owned portfolio of selected early-stage prospects, including 6,000 ha in Santa Cruz Province, Argentina.
South32 is a globally diversified mining and metals company. The company’s purpose is to make a difference by developing natural resources, improving people’s lives now and for generations to come. South32 is trusted by its owners and partners to realise the potential of their resources. South32 produces commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from its operations in Australia, Southern Africa and South America. With a focus on growing its base metals exposure, South32 also has two development options in North America and several partnerships with junior explorers around the world.
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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