TORONTO, ONTARIO--(Marketwired - Nov. 4, 2014) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") recently completed a 19 hole, 2,190.1 meter HQ diamond drilling program predominantly in the Chita South Porphyry sector of the Chita Valley Project. The program tested targets identified during the systematic multidisciplinary exploration program conducted in the sector in 2013 and more detailed work including a 6 hole, 1,122 meter HQ drilling program conducted in the first half of 2014. The drill holes tested a substantial zone of Cu-Ag- Mo-Au mineralized multi-stage vein systems and hydrothermal breccias in the southwestern border zone of the sector. Highlights are broad sections including 60 meters (approximately 51 meters vertical thickness) averaging 0.59% Cu, 6.90 g/t Ag, 0.035% Mo and 0.07 g/t Au and 54 meters (approximately 46 meters vertical thickness) averaging 0.66% Cu, 0.90 g/t Ag, 0.005% Mo and 0.10 g/t Au. Another exciting intersection is 10 meters core length (approximately 5 meters true thickness) averaging 2.72% Cu, 128.9 g/t Ag, 0.84 g/t Au. One drill hole, completed as an initial stratigraphic test of the Chita North Porphyry sector, also returned interesting Cu, Ag and Au values. Significant intersections from all 19 holes are tabulated below.
Hole ID |
From |
To |
Interval |
Thickness |
Au |
Ag |
Cu |
Mo |
|
(m) |
(m) |
(m) |
(vertical m) |
g/t |
g/t |
% |
% |
PSU14-10 |
86 |
141 |
55 |
47.0 |
0.03 |
1.1 |
0.34 |
0.016 |
PSU14-11 |
50 |
132 |
82 |
70.1 |
0.05 |
1.6 |
0.37 |
0.022 |
PSU14-12 |
84 |
106 |
22 |
18.8 |
0.10 |
1.0 |
0.31 |
0.006 |
PSU14-13 |
62 |
76 |
14 |
12.0 |
0.08 |
1.2 |
0.31 |
0.006 |
PSU14-14 |
68 |
82 |
14 |
12.0 |
0.02 |
0.7 |
0.37 |
0.020 |
PSU14-15 |
22 |
62 |
40 |
34.2 |
0.04 |
0.8 |
0.38 |
0.030 |
PSU14-16 |
34 |
82 |
48 |
41.0 |
0.06 |
1.7 |
0.47 |
0.020 |
incl. |
34 |
60 |
26 |
22.2 |
0.08 |
1.9 |
0.66 |
0.020 |
PSU14-17 |
76 |
84 |
8 |
6.8 |
0.06 |
1.5 |
0.32 |
0.032 |
PSU14-18 |
20 |
80 |
60 |
51.3 |
0.07 |
6.9 |
0.59 |
0.035 |
incl. |
32 |
58 |
26 |
22.2 |
0.06 |
1.7 |
0.69 |
0.040 |
PSU14-19 |
12 |
16 |
4 |
3.4 |
0.80 |
43.9 |
0.01 |
0.036 |
PSU14-19 |
76 |
78 |
2 |
1.7 |
3.59 |
139.0 |
0.21 |
0.029 |
PSU14-19 |
66 |
100 |
34 |
29.1 |
0.23 |
8.6 |
0.33 |
0.043 |
PSU14-20 |
54 |
62 |
8 |
6.8 |
0.03 |
1.4 |
0.45 |
0.004 |
PSU14-21 |
22 |
76 |
54 |
46.1 |
0.10 |
0.9 |
0.66 |
0.005 |
incl. |
30 |
46 |
16 |
13.7 |
0.23 |
2.0 |
1.33 |
0.008 |
PSU14-22 |
30 |
54 |
24 |
20.5 |
0.08 |
2.5 |
0.48 |
0.015 |
incl. |
46 |
54 |
8 |
6.8 |
0.10 |
1.8 |
0.69 |
0.019 |
PSU14-23 |
33 |
36 |
3 |
2.6 |
0.82 |
1.2 |
0.04 |
0.021 |
PSU14-23 |
54 |
84 |
30 |
20.5 |
0.06 |
2.7 |
0.36 |
0.018 |
PSU14-24 |
80 |
90 |
10 |
5.0 |
0.84 |
128.9 |
2.72 |
0.004 |
PSU14-25 |
44 |
126.1 |
82.1 |
70.2 |
0.04 |
2.9 |
0.27 |
0.022 |
PSU14-26 |
26 |
120 |
94 |
80.3 |
0.09 |
2.7 |
0.35 |
0.023 |
PSU14-27 |
42 |
62 |
20 |
17.1 |
0.07 |
1.3 |
0.34 |
0.026 |
PNO14-01 |
20 |
28 |
8 |
6.8 |
0.11 |
3.2 |
0.48 |
0.004 |
PNO14-01 |
167.9 |
192 |
24.1 |
20.6 |
0.09 |
18.0 |
0.32 |
0.010 |
The mineralized sections include disseminated sulphides as well as A, B and D-type veins hosted by multiple stages of epizonal intrusions and hydrothermal breccias. The complex mineralization styles are not conducive to the classical concepts of true thickness measurement, so vertical thickness determinations that would conform to conceptual pit design parameters are used instead. One exception to this thickness determination procedure is drill hole PSU14-24 where core angle measurements are utilized to determine an approximate true thickness. Lithological units (Map 1), alteration patterns (Map 2) and magnetic anomalies (Map 3) are shown in the following diagrams. All pertinent lithological, alteration and magnetic features extend well beyond the current drilling pattern in all directions. Historical drill hole locations are also shown on the maps (see June 30, 2014 press release for highlights).
All core samples were submitted to the ALS Laboratories 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, 30 g, plus a 33-element ICP scan. Minsud followed industry standard procedures for the work with a quality assurance/quality control (QA/QC) program. Field duplicates, standards and blanks were included with all sample shipments to the principal laboratory. Minsud detected no significant QA/QC issues during review of the data. Sequential Cu analyses from ALS are pending for all higher grade Cu sections and a selection of pulps will be submitted to a certified referee laboratory for analysis.
Minsud is encouraged by the generally consistent elevated concentrations of Cu, Ag and Mo as well as the more localized anomalous Au values. The current round of drilling has encountered the most promising mineralization seen to date in the Chita Valley Project. Furthermore some of the better intersections (Holes PSU14-21, 22 and 24) are at the outer limits of the current outline drilling pattern that is still open in all directions. Preliminary indications show a highly favorable mineralization/waste ratio for possible mining scenarios. With maximum elevation in the sector below 3,100 m ASL (meters above mean sea level) field conditions are benign on a year round basis and no active alpine glaciers are possible below approximately 4,100 m ASL.
Minsud plans to investigate the commercial possibilities for processing and recovering the key metals beginning with mineralogical, petrological and ore characterization tests (in progress) on representative samples followed by bench-scale process testwork as warranted. At the same time an outline drilling plan will be recommended to further delimit the deposit and evaluate the grade distribution of the mineralization. Also in the coming months the Company plans to commission a NI 43-101 Technical Report that will include a first stage resource estimate.
The single stratigraphic drill hole at Chita North has confirmed that Cu-Ag-Au mineralization similar to that in the Chita South Porphyry area is also present in the north. This opens up a very large highly prospective area. Minsud is also encouraged by generally higher Au and Ag background levels in this drill hole.
Mr. Howard Coates, Professional Geoscientist, Director of the Company and a geological consultant, is a qualified person as defined by Canadian National Instrument 43-101. Mr. Coates visited the property and has read and approved the contents of this release.
Carlos Massa, Minsud's President & CEO, states: "We are pleased to announce these encouraging drilling results that will guide Minsud to a significant milestone, its initial resource estimation at the Chita Porphyry. This target is among many already identified within the Chita Valley Project. In the way forward Minsud is committed to systematically moving the project towards the economic feasibility stage, a task that will again challenge management's ability to raise sufficient financing."
To view the maps associated with this press release, please visit the following link: https://media3.marketwire.com/docs/MinsudMaps.pdf.
About the Chita Valley Project, San Juan Province:
The Chita Valley Project (the Project") is a large exploration stage porphyry situation with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated gold and silver-bearing polymetallic veins. San Juan Province has a robust mining sector and recognizes the important economic benefits of responsible development of its substantial mineral resource endowment.
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. The Company also holds a 100% owned portfolio of selected early stage prospects, including 28,000 has in Santa Cruz Province, Argentina.