TORONTO, ONTARIO -- (Marketwired) -- 01/30/14 -- Minsud Resources Corp. (TSX VENTURE: MSR) ("Minsud" or the "Company") announces geological mapping and surface channel sampling results from the Minas de Pinto sector of the Chita Valley diatreme volcanic vent/porphyry complex (the "Chita Valley Complex").
The following is an update on recent exploration work conducted in the Minas de Pinto sector of the Chita Valley Project (the "Project") located in San Juan Province, Argentina. The Project is a large exploration stage Tertiary diatreme volcanic vent/porphyry complex with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralization, and associated gold and silver-bearing veins.
The Minas de Pinto sector is essentially an easterly trending swarm of discontinuous quartz veins containing variable concentrations of polymetallic sulphides and widespread localized Au-Ag mineralization that has been traced for 4.0 kilometers along strike. This is part of the 12 km strike length Chita Valley Complex trend. The vein swarm cuts various lithologies including Devonian-Carboniferous sediments (Agua Negra Formation), Carboniferous-Permian granodiorite (Colanguil Batholith), and Mid to Upper Tertiary volcaniclastics and andesitic porphyry (Chita Valley Complex). Several corridors comprising multiple veins and stockworks are present. In the western part of the area, from north to south, these are termed; the Barba, Amparo, Fatima, Fatima Sur, Branca, Maria, Carmen and Carmen Sur vein assemblages. In the east and south parts of the area are additional corridors including the Candela, Johanna, Esperanza, Josephina, Argentina, Pulenta and Glenda vein sets.
The Minas de Pinto corridor contains various artisanal diggings of unknown age and an early 20th Century exploration adit. Silex Argentina S.A., an unrelated company, optioned the Minas de Pinto property in the mid-2000's, completing extensive geological mapping and surface grab and channel sampling for a total of 1,631 samples by 2007. In 2008 the company drilled 22 diamond drill holes totalling 2,631.25 metres. The full data set pertaining to the latter work was turned over to the property owner upon termination of the option agreement. In 2011, Minsud completed two diamond drill holes totalling 435.5 metres to test the earlier results, with one (CHT11-24) being a twin of previous hole CHT-004 (see press release dated February 9, 2012). The current program includes detailed geological and alteration mapping together with selective surface channel sampling.
Exploration Work in 2013
Minsud's current strategy for the Project is primarily geological mapping (Map 1), alteration studies (Map 2) with selective sampling and ground magnetic surveying (Map 3).
The Agua Negra Formation exposures in the Minas de Pinto sector are predominantly shallow marine black shales and siltstones with subordinate sandstone/quartzite layers. The Agua Negra Formation is intruded by the Carboniferous-Permian granodiorite (Colanguil Batholith) in parts of the study area or juxtaposed by late faults in others. The Tertiary Chita Valley Complex in the area comprises three main lithological units including mafic volcaniclastic rocks, andesitic porphyry and porphyritic andesite dykes that cut both units.
To view Maps 1-3, please click the following link: http://media3.marketwire.com/docs/MinMaps1-3.pdf
More detailed maps are available on the Company's website at www.minsud.com.
Mid to Upper Tertiary mafic to intermediate volcaniclastics and andesitic porphyry of the Chita Valley Complex are exposed in the western half of the map area. Three lithological units have been mapped: andesite porphyry, mafic volcaniclastics and late andesitic porphyry dykes that cut both previous units.
The distribution of alteration features is summarized as follows:
-- Agua Negra Formation units are characterized by weak silicification with
areas of moderate to strong argillic alteration in the vicinity of
epithermal vein systems and possible intrusions at depth.
-- Colanguil Batholith granodiorite is exposed in two areas. The southern
exposure is characterized by moderate argillic alteration while the
northern area is weakly to strongly silicified with an area of moderate
argillic alteration near the northern property boundary.
-- The Chita Valley Complex andesite porphyry units are moderate to
strongly silicified with localized argillic alteration bordering vein
systems. The mafic volcaniclastics in the north-western corner of the
map area are typified by moderate propylitic alteration.
Structurally the Chita Valley area is part of the Andean Frontal Cordillera and is typified by upright concentric folding and thrust faulting. The Chita Valley Complex is exposed along an ENE trending corridor of epizonal intrusions, hydrothermal alteration, breccias and mineralized vein systems. The system is interrupted by a set of NNW oriented set of sinestral faults or shears. Finally a late sinestral fault system runs NW to E-W along the Chita Valley.
The 2012 Minsud magnetic survey has covered about half of the Minas de Pinto area (Map 3). Even at relatively wide 200 metre line spacing, the magnetic data clearly illustrates the main structural directions as well as several important lithological/alteration features. The magnetic high feature in western part of the map shows the eastern part of the previously described Chita South and North porphyry sectors. Proceeding eastward a group of additional magnetic highs (indicated by numbers 1 to 4 on the map) are discussed as follows:
1. This feature is coincident with outcropping Tertiary post-mineral
dacitic porphyry near the Fatima Vein.
2. This feature coincides with outcrops of Tertiary andesitic
volcaniclastic rocks intruded by post- mineral andesitic dykes, so it
could indicate a porphyry body at depth.
3. Anomaly 3 likely indicates a hitherto unknown Tertiary or possibly
Permo-Carboniferous intrusive body at depth beneath Agua Negra Formation
cover rocks. This anomaly, like others in the Chita valley, occupies the
core of a prominent cylindrical or concentric-fold feature herein termed
the Pinto Anticline Hill anticline. Further evidence for a buried
intrusion here is localized porphyry dykes and extensive areas of
spotted and banded hornfels in Agua Negra sediments.
4. Sector 4 shows a two fairly large and several localized magnetic high
features that have not yet been investigated.
The main inference to be drawn from the magnetic data is that the Chita Valley Complex continues to be traceable eastward to the limits of current data.
The 2013 geochemical sampling program consisted of 43 sawn channel sample sections for a cumulative total of 526 samples. Sampling highlights including all sections averaging greater than 1 g/t Au or greater than 30 g/t Ag are shown in Table 1. Maps showing the various sample locations and the distribution of gold and silver values are available on the company's website.
To view Table 1, please click the following link: http://media3.marketwire.com/docs/MinTable-1.pdf
All surface rock samples were submitted to the Alex Stewart (Assayers) Argentina S. A. laboratory in Mendoza, Argentina for preparation and analysis. The laboratory is certified to ISO-9001 international standards. All geochemical grab and channel rock samples were analyzed for Au by fire assay/ AA finish, 50 g, (Au4-50) plus a 39-element ICP scan (AR-39).
Conclusions and Recommendations
Two important conclusions may be drawn from the 2013 work on the Minas de Pinto Property:
1. With respect to sediment-hosted vein-type mineralization, the relatively
competent and brittle sandstone stratigraphic horizons within the Agua
Negra Formation are more conducive to hosting mineralized veins and
breccias than the more plastic finer grained shales and siltstones. Thus
it is postulated that the intersections between the various sub-vertical
vein structures and the shallow to moderately dipping sandstone units
might be favourable locations for economically significant Au-Ag
concentrations.
2. With respect to igneous-hosted porphyry and epithermal mineralization,
the recent mapping and 2012 magnetic data combine to indicate unexposed
but relatively near surface potential host rocks for these important
mineral deposit styles.
The recommended ongoing work program in the Minas de Pinto area is threefold:
1. A short to medium term objective to further develop some of the more
promising targets such as the Argentina, Carmen, and Pulenta Vein target
areas to the outline drilling stage if warranted. This will require more
accurate survey control than is currently available utilizing DGPS
methodology, detailed geological mapping at 1:500 scale, mechanical
trenching for mapping and sampling purposes, careful geological and
structural analysis to develop drilling targets, and finally, if
warranted, the implementation of a drilling program.
2. In the short term, to continue the systematic mapping and sampling
program into the remainder of the property.
3. In the medium to long term, to conduct geophysical surveys including
additional magnetic surveying together with IP/Resistivity and/or other
surveys, as warranted, to develop porphyry and epithermal mineralization
targets in both Tertiary and Permo-Carboniferous intrusive bodies.
Mr. Howard Coates, Professional Geoscientist, Director and Vice President Exploration of the Company and a geological consultant, is a qualified person as defined by 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: "Even under very difficult market conditions Minsud was able to develop a systematic exploration approach for the Chita Valley Project, mapping and sampling the main areas of interest during 2012 -2013. We expect increased challenges for 2014 in advancing the exploration of this enigmatic complex of 12 km long and 2 to 4 km wide corridor featuring three outcropping multiphase porphyries, extensive alteration features and literally hundreds of epithermal veins."
About Minsud Resources Corp.
Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Project, primarily for gold, silver and copper in San Juan Province, as well as advancing its La Rosita gold and silver project at the Deseado Massif - Santa Cruz Province, Republica Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, approximately 60,000 hectares distributed within the Provinces of Santa Cruz, Chubut and Rio Negro, Republica 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. 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.
Contacts:
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
