Minsud Announces Initial Resource Estimate at the Chita Valley Project, San Juan, Argentina
TORONTO, ONTARIO--(Marketwired - May 29, 2015) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") completed 27 HQ diamond drill holes totaling 3,995 metres ("m") in 2011 and 2014 in the southern Chita Porphyry sector of the Chita Valley Project (see earlier press releases dated September 6, 2011, January 26, 2012, June 30, 2014 and November 4. 2014). Four historical holes completed in 1969, three holes from 1976 and one RC hole from 1996, most of which have been re-sampled and re-analyzed by Minsud, are added to the drilling database. The total database utilized for resource estimation includes 34 core holes and 1 reverse circulation hole totaling 5,193 m and 150 m, respectively for a combined total of 5,343 m (see table below). The drill holes tested a substantial zone of Cu-Au-Ag-Mo mineralized multi-stage vein systems and hydrothermal breccias in the southwestern border zone of the sector. In the 4th Quarter of 2014 and the 1st Quarter of 2015 the Company commissioned petrographic and scanning electron microscopy ("SEM") analysis of mineralized material and scoping level metallurgical testwork, focusing on leachable copper, respectively.
| Drill Hole Database Summary | ||||||
| Drilling Type | # Drill Holes | Metres of Drilling | # Cu Assays | # Au Assays | # Ag Assays | # Mo Assays |
| Historical Drill Holes | 8 | 1,348 | 775 | 75 | 75 | 699 |
| 2011 Minsud Drill Holes | 3 | 884 | 877 | 877 | 877 | 877 |
| 2014 Minsud Drill Holes | 24 | 3,111 | 1,530 | 1,530 | 1,530 | 1,530 |
| Total | 35 | 5,343 | 3,182 | 2,482 | 2,482 | 3,106 |
In March 2015, Minsud retained P&E Mining Consultants Inc. ("P&E") of Brampton, Ontario to review project data and prepare a Technical Report that complies with Canadian National Instrument 43-101 standards. The report includes a Mineral Resource estimated under the CIM definition standards(3). In P&E's opinion, the drilling, assaying and exploration work of the Chita Porphyry supporting this Mineral Resource Estimate are sufficient to indicate a reasonable potential for economic extraction. All mineral resources were classified as Inferred category based on the geological interpretation, semi-variogram performance and drill hole spacing. The Mineral Resource Estimate is tabulated below. P&E considers that the Cu, Au, Ag and Mo mineralization is potentially amenable to Open Pit extraction. The Technical Report will be publically filed under the Company's profile at www.sedar.com within 45 days.
| Chita In Pit Mineral Resource Estimate Statement(1-4) | ||||||||
| All Inferred resources at 0.3% Cu Cut-off | ||||||||
| Tonnes | Cu | Contained Cu | Au | Contained Au | Ag | Contained Ag | Mo | Contained Mo |
| Mt | % | M lb | g/t | K oz | g/t | M oz | % | M lb |
| 18.3 | 0.44 | 176.8 | 0.07 | 38.0 | 2.4 | 1.4 | 0.019 | 7.8 |
| (1) | Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. It is noted that no specific issues have been identified as yet. |
| (2) | The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category. |
| (3) | The mineral resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council. |
| (4) | The 0.30% Cu resource cut-off grade was derived from the Mar 31/15 two year trailing average Cu price of US$3.10/lb, 80% process recovery, 95% smelter payable, US$0.10/lb refining charge, US$12/t process cost, and US$3/t G&A cost. An optimized pit shell was utilized for resource reporting that utilized a US$2/t mining cost and 45 degree pit slopes. |
Mineral resources are sensitive to the selection of a reporting Cu cut-off grade. The sensitivities of the Cu cut-off are demonstrated in the following table for the Chita open pit resource.
| Chita In-pit Resource Sensitivity | |||||||||
| Cut-off | Tonnes | Cu | Cont. Cu | Au | Cont. Au | Ag | Cont. Ag | Mo | Cont. Mo |
| Cu% | Mt | % | Mlb | g/t | Koz | g/t | Moz | % | Mlb |
| 0.50% | 4.0 | 0.64 | 55.4 | 0.11 | 14.0 | 4.7 | 0.6 | 0.018 | 1.5 |
| 0.45% | 5.9 | 0.58 | 75.4 | 0.09 | 17.8 | 4.1 | 0.8 | 0.019 | 2.4 |
| 0.40% | 9.2 | 0.53 | 106.2 | 0.08 | 23.4 | 3.3 | 1.0 | 0.020 | 4.0 |
| 0.35% | 13.8 | 0.47 | 144.1 | 0.07 | 30.5 | 2.7 | 1.2 | 0.020 | 6.0 |
| 0.30% | 18.3 | 0.44 | 176.8 | 0.07 | 38.0 | 2.4 | 1.4 | 0.019 | 7.8 |
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. Lithological units (Map 1), alteration patterns (Map 2) and a typical cross section (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.
All Company core samples and check samples of historical drilling were submitted to either the Alex Stewart Argentina S.A. or the ALS Minerals Laboratories in Mendoza, Argentina for preparation and analysis. Both are certified to ISO-9001 international standards. All samples were analyzed for Au by fire assay/ AA finish, 50 or 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's in-house QP, Mr. Howard Coates, P. Geo., detected no significant QA/QC issues during review of the data. In addition P&E geologist and Independent QP, Mr. David Burga, P. Geo., conducted a site visit and collected a suite of field duplicate core samples for verification purposes. Again there were no significant issues.
To view Map 1, please visit the following link: http://media3.marketwire.com/docs/msr0529map1.pdf.
To view Map 2, please visit the following link: http://media3.marketwire.com/docs/msr0529map2.pdf.
To view Map 3, please visit the following link: http://media3.marketwire.com/docs/msr0529map3.pdf.
A third international laboratory, Bondar Clegg Co. Ltd., merged with ALS Chemex, the predecessor of ALS Minerals, in December, 2001. The 1996 Bondar Clegg analytical data (for the single historical RC drill hole) is believed to be of the highest standards of the time, which predates the implementation of ISO/IEC 17025 standards. A fourth lab, historically operated by DGFM a department of the Government of Argentina, also predates ISO/IEC 17025 standards. This laboratory analyzed the DGFM core drilling from seven holes from 1969 and 1976. A total of 305 pulp samples were acquired by the Company in 2007 and submitted to the Alex Stewart Argentina S.A. This work predates the involvement of the in-house QP in the project. However, the QP has examined the remaining core and the 2007 analytical certificates without noting significant issues. The data is therefore considered to be adequate for current purposes of supporting an Inferred Resource Estimate.
Minsud is encouraged by the generally consistent elevated concentrations of Cu, Ag and Mo as well as the more localized anomalous Au values. 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 continue investigating the commercial possibilities for processing and recovering the key metals while at the same time conducting additional outline and definition drilling plan to further delimit the deposit and evaluate the grade distribution of the mineralization.
Mr. Howard Coates, P.Geo., Director of the Company and a geological consultant, is a Qualified Person as defined by Canadian National Instrument 43-101. Mr. Eugene Puritch, P.Eng, President of P&E Mining Consultants Inc. and an Independent Qualified Person along with Mr. Coates have both reviewed and approved the contents of this news release.
Carlos Massa, Minsud's President & CEO, states: "First of all this initial resource estimation is a significant milestone that places Minsud in a position to continue outlining this mineral deposit in a better Risk - Reward relationship. Minsud is also encouraged by the diversity of targets identified within the Chita Valley Project, particularly the Chinchillones complex, the mostly untested northern Chita Porphyry area, and the Minas de Pinto sector that all together indicate a great potential for new findings. On the other side this means a new challenge for management to continue financing project development on several fronts."
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 18,000 has in Santa Cruz Province, Argentina.
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 and the Company's most recently filed Management's Discussion and Analysis of its Financial Statements, which are available under the Company's profile on www.sedar.com.
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.
Contact
Minsud Resources Corp.
Carlos Massa
President and Chief Executive Officer
+54-11-4328-4067
cmassa@minsud.com
Minsud Resources Corp.
Mike Johnston
416-479-4466
mike@minsud.com