Minsud Resources Corp.(TSXV: MSR) has confirmed the commencement of Phase IV drilling programme at the Chinchillones target area, part of the Chita Valley Project, located in the province of San Juan, Argentina.
The programme approved by Minsud and South32 Limited comprises a total of 26,000 m. The initial stage of the programme will consist of 7,800 m, encompassing 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 characterised by coalescing Cu-Au-Ag-Zn-Pb epithermal mineralisation superimposed on a porphyry Cu-Mo-Au.
The spectrum of mineralisation 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 m. These drillholes, with variable depths between 650 and 750 m, have been defined to test the NE and SE extensions of high sulphidation mineralisation 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
- Link Zone target: Initially two 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 mineralisation. 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.
“During the 2020 and 2021 drilling programmrs, 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,” Minsud’s President and CEO, Ramiro Massa, said.
“The drillholes in this sector intercepted ‘roof pendants’ of a Cu-Mo-Au mineralised porphyry. We interpret these to support the continuity of the highly prospective Chinchillones intrusion complex to the NE, E and SE and at depth”.
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 mineralisation hosted by Hydrothermal Phreatic Breccias and associated gold and silver-bearing polymetallic veins of intermediate sulphide 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 recognises 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%.
For further information please visit: https://www.minsud.com/
