Minsud Announces Completion of Phase I Drilling at Chita Valley Project, San Juan Province, Argentina
TSX-V: MSR
November 25, 2011
Minsud Announces Completion of Phase I Drilling at Chita Valley Project, San Juan Province, Argentina
TORONTO, ONTARIO – Minsud Resources Corp. (TSX VENTURE: MSR) (“Minsud” or the “Company”) is pleased to announce the completion of its Phase I drilling program (total of 3,360.1 meters drilled), at the Chita Valley Project in Argentina strategically located in the world-class El Indio mining district of Chile and Argentina where the Pascua-Lama and Veladero mines (Barrick) and the Del Carmen project (Malbex Resources) are located.
This second drilling consisted of 4 diamond drill holes totaling 1,008.5 meters distributed as follows (see attached map):
1. Target Porphyry Chita: 573.0 m (two drill holes: PSU-11-02 and PSU-11-03)
2. Target Minas de Pinto: 435.5 m (two drill hole: CHT-11-023 and CHT-11-024)
Target Porphyry Chita:
Collered 100 m back step south of previous hole PSu1101, PSu1102 intercepted new mineralized breccias, veins and veinlets and also intercepted at a deeper level the mineralization that had already been intercepted at shallow level by hole PSu1101. Because of the encouraging interceptions of hole PSu1102 the company decided to drill hole PSu1103, (100 m back step of hole PSu1102) that also intercepted mineralization. PSu1101, PSu1102 and PSu1103 control an approx. 400 m width and 200 m depth NS section. The three holes intercept argilic, potasic and phyllic (quartz+sericite) alteration. The mineralization includes quartz+py+cpy veinlets, breccias and sulphide matrix breccias that include rounded fragments of massive sulphides.
Target Minas de Pinto: (low sulphidation target)
The target, named Fatima vein system, consists of parallel veins hosted in the contact between a granodiorite intrusive body and andesitic porphyry. Drill hole CHT-11-023 was collared 270.0 m NE of CHT11-024, both holes intersected Fatima vein system and a set of parallel veins (sheeted vein) ending on a granodiorite with propillitic alteration.
CHT-11-024 was drilled as a twin hole of historical hole CHT-04 drilled by SILEX in 2008. The mentioned hole intersected Fatima vein returned 3.45 m with 8.54 g/t Au, 44.6 g/t Ag, 0.10 % Cu, 0.10 % PB and 1.95% Zn.
A total of total 1120 samples (including blanks and standards) have been sent to the lab for multi-element analysis. No assays have been received to date. The first batch is expected imminently and results will be reported when received and interpreted. All samples have been shipped to the Alex Stewart laboratory in Mendoza, Argentina.
Roberto Milanese, Minera Sud Argentina S.A. Exploration Vice-President, considers that this second drilling on the Chita Valley Project efficiently tested the Fatima veins system at Target Minas de Pinto and the breccias and veins intersected in Porphyry Chita increase the expectations of the encouraging results of initial phase I drilling program.
Mr. Carlos Massa, President and CEO said, “Through the completion of Phase I drilling program MSA added great value to each specific tested target, as well as better knowledge on its regional geological model. Additionally, broader accesses to the already identified targets will facilitate new field works in near future. The project is well on its way.”
Mr. C. Gustavo Fernandez, Professional Geoscientist in the Province of Ontario, is the Qualified Person as defined by NI 43-101. Mr. Fernandez has read and approved the contents of this release.
Exhibit I: Drilling Program Targets Phase I
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, Argentina.
Additionally, the Company holds a portfolio of approximately 75,000 ha of 100% owned exploration properties in Patagonia. Most of the key properties held by the Company are located in mining friendly provinces like San Juan and Santa Cruz, Argentina.
FOR FURTHER INFORMATION PLEASE CONTACT
Ramiro Massa
President and Chief Executive Officer
info@minsud.com
+1 416-479-4466
Mike Johnston
416-479-4466
mike@minsud.com
Quality Assurance/Quality Control:
Drill core samples were submitted to Alex Stewart (Assayers), Argentina S.A. an ISO 9000- 2000 accredited laboratories located in Mendoza, Argentina. Gold and silver results were determined using standard fire assay techniques on a 50 gram sample with a gravimetric finish for gold and silver. MINSUD’s QA/QC program includes the insertion of blanks, standards and duplicates into the sample stream for Chita drill holes.
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.
