TSX-V: MSR January 9, 2023 Minsud Grants Stock Options TORONTO, ONTARIO – Minsud Resources Corp. (“Minsud” or the “Company”) is pleased to announce that it has granted an aggregate of 2,450,000 incentive stock options under the Company’s stock option plan to certain directors, officers and
Exploration activities at the Chita Valley Project began in 1968, starting with geological mapping, geophysical surveys, and initial drilling focused on Cu-Mo porphyry mineralization in Chita South. Over the years, exploration efforts expanded to include detailed surface mapping, geochemical sampling of soil and rock, petrographic studies, and geophysical surveys (IP, resistivity, and magnetometry). Since 1969, a total of 257 drill holes has been completed, covering 112,857 meters, primarily using diamond drilling, with some reverse circulation drilling.
Between 2014 and 2017, systematic diamond drilling at Chita South identified Cu-Mo porphyry mineralization, characterized by copper oxides at the surface, a supergene enrichment zone with chalcocite/digenite at depth, transitioning to primary chalcopyrite-dominant (+ substantial molybdenite) copper sulfides. Drilling efforts targeted the supergene-enriched zone, while the deeper primary sulfide zone remains largely underexplored with the few deeper drillholes (750m) intersected coherent >200 ppm Mo zones.
Under the Minsud and South32 Earn-In Agreement (2019–2025), exploration expanded, with a total of 154 drillholes, encompassing 102, 219m conducted under this agreement. Exploration has been hugely successful with the discovery of the largely blind Chinchillones polymetallic (Cu-Zn-Mo-Ag-Au-Pb) porphyry-epithermal deposit. The discovery was borne from: i) the recognition of porphyry-related veins (i.e., B-, D- type porphyry veinlets) traversing the silicified and brecciated sandstone country rocks occupying prominent EW-and NE-trending ridges; ii) interpretation that the late-mineral dome complex was not vertical in geometry but thought to assume a flat-moderate geometry (vented farther to the SE) and underlain by high-grade, polymetallic IS (intermediate sulfidation)-style, breccia-hosted mineralisation; and iii) the core review of the fourth scout drillhole (CHDH20-04) identified that the bottom 15m indicated under-recognised but compelling chalcopyrite-bornite-molybdenite mineralisation hosted in secondary quartz-white mica (phengitic with chalcopyrite>>pyrite ratios) flooding which was interpreted as precursor characteristics to more productive porphyry centre at depth; re-entry to this drillhole to machine capacity of 740m proved this hypothesis correct with 104m@ 0.70% CuEq from 634m to EOH.
Chinchillones has been the most intensively drilled area. Drill spacing ranged from 150 m x 150 m to 80–100 m in denser zones, with an average drill depth of 640 m and a maximum depth of 1,380 m. These efforts contributed to the maiden Mineral Resource estimate filed in February 2025 and an updated Mineral Resource filed in early April 2026. The April 2026 Mineral Resource Estimate reported 1.3 Mt (Indicated) and 3.33 Mt (Inferred) contained copper equivalent resource base.
Additional exploratory activities included: i) detailed mapping (in conjunction with surface geochemistry) over the principal prospects; ii) geophysical IP and magnetics surveys over Brechas Vacas, Link Zone, Placetas prospects; iii) UAV drone-based topographic survey at Brechas Vacas and Minas de Pinto properties; iv) hyperspectral analyses of high-resolution Worldview imageries of the tenement areas; and iv) and detailed soil grid surveys over the Placetas prospects.
The Chinchillones polymetallic deposit is characterised as a substantial Cu-Mo (Au) porphyry system with overlapping polymetallic mineralization. The upper polymetallic zone, found between 200 m and 850 m depth, contains significant lead and zinc (>1%), along with notable gold and silver grades (above 0.1 g/t Au and 10 g/t Ag) up to 1,050 m vertical interval, primarily associated with hydrothermal breccias. The porphyry zone hosts continuous copper mineralization (>0.1% Cu) from 125 m to over 1,200 m, with the highest copper grades (>1% Cu) concentrated between 250 m and 1,000 m. Molybdenum grades exceed 500 ppm at depths beyond 750 m, indicating further potential at depth. Both copper and molybdenum mineralization remain open for expansion at deeper levels, supported by convincing coherent IP conductivity anomalies and alteration-mineralization zonation established from drilling.
Future exploration efforts will focus on assessing: i) high-grade hydrothermal breccias at Chinchillones, increasing its grade profile; ii) investigate the open deeper extensions of the porphyry Cu-Mo system at Chinchillones and Chita South Porphyry (PSU), leading to an effective deep drilling program; and iii) more detailed systematic work, leading to a scout drilling program over the identified prospective targets.
Thus, exploration at the Chita Valley prospect area has been successful, increasing the historical resource base at less than 0.2 Mt to 4.3 Mt contained copper equivalent, making it one of the largest new discoveries in the Andes during the last decade.
The Chita Valley Project porphyry copper-molybdenum-silver and affiliated polymetallic (Zn-Pb-Cu-Ag-Au) epithermal deposits are situated in Argentina’s highly prospective Andes region, specifically in a transitional zone between the Frontal Cordillera and the Pre-Cordillera. It lies well within the onset of the Chilean-Pampean flat-slab subduction segment of the central Andes. This flat subduction zone with its accompanying orogen-transverse structural architecture provided fluid/magma pathways and effective emplacement framework for the most important porphyry copper systems in the region.
The project area features a thick-skinned thrust system that exposes Paleozoic and Triassic rocks, overlain by Mesozoic and Cenozoic volcanic and sedimentary successions. Mineralization within the project area includes Cu-Mo (Au) porphyry and Cu-Au-Ag-Zn-Pb epithermal systems and multiple exploration targets associated with multi-staged and multi-phased late Miocene intrusions and associated breccias. The calc-alkaline intrusions are dioritic to dacitic in composition. The progenitor intrusions were emplaced into a thick pile of metamorphosed sedimentary rocks belonging to the Permo-Carboniferous Agua Negra Formation and Permian granitic, granodioritic, and tonalitic bodies of the Colanguil Batholith.
The Chita Valley deposits and prospects occur in clusters defined mostly by NE- and WNW-trending structural corridors. The variable exhumation and preservation levels documented indicated varying erosional removal along this Frontal Cordillera segment as the stress regime shifts from extension/strike slip to compression.
The late Miocene Chinchillones deposit hosts complex interplay of porphyry Cu-Mo with superposed Zn-rich polymetallic intermediate sulfidation and Cu-Au-Ag linear veins and veined breccias of high sulfidation mineralization styles occurring in an area 2.7 km-long along a NE-SW trend, 1.7km-wide with vertical depths extending to 1.3 kms. Chinchillones is a complex magmatic-hydrothermal system formed from several magmatic and hydrothermal pulses during the late Miocene. New U-Pb and Re-Os geochronology from the porphyries indicate at least four discrete intrusion events over a magmatic lifetime of ca. 1.5 million years. This comprises of, from oldest to youngest: i) 8.5 ± 0.2 Ma quartz diorite porphyry; ii) 7.8 ± 0.1 Ma diorite porphyry, dacite porphyry and intrusion breccias; iii) 7.6-7.5 Ma molybdenite pulse; and iv) 7.3 ± 0.1 Ma dacite porphyry dome and diatreme breccias complex. Substantial uplift (>2kms) is interpreted to occur immediately after the first and second magmatic events.
The supergene-enriched Chita South porphyry (Cu-Mo-Au) is underlain by secondary biotite-magnetite-chalcopyrite-molybdenite assemblage in a potassic core with the advanced argillic and white mica-secondary silica zones associated with superposed epithermal mineralization largely removed. The supergene-enriched zone extends 1.5kms x 1.3 kms in surface area with the thickness varying from 10m to 150m before transitioning to primary alteration and mineralization zones.
The salient features of the supergene-enriched zone include: i) largely immature supergene enrichment; ii)ubiquitous presence of chalcocite-digenite and covellite replacing copper sulphides; iii) pyrite in quartz-sulphide veins/veinlets and occurring as multitudes of minute disseminations; and iv) hosts copper oxides, copper silicates, hydrous copper phyllosilicates and copper hydrous sulphates (e.g., chrysocolla, chalcanthite, azurite and turquoise).
The geological, geophysical and geochemical synthesis conducted has identified two highly prospective mineralized corridors hosting prospective intrusion-centred clusters:
In 2019 Minsud signed an Earn-in Agreement (EIA) with South32 to explore the Chita Valley Project.
The EIA 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.
To maintain the option in good standing South32 had to contribute minimum exploration funding of CAD$14 million over a 4-year option period which was completed in 3 years.
In 2023 South32 exercised its earn-in right under the EIA to acquire a 50.1% ownership interest in MSA.
Minsud and South32 entered into a shareholders’ agreement to govern the management and operation of MSA which will include further exploration and, if economically feasible, the development and exploitation of the Chita Valley Project.
In 2024 South32 exercised it´s call right and finalized the acquisition of their 50.1% ownership. They will continue to solely fund the exploration until April 2026.
As of Q1 2026 South32 contributed CAD$58 million.
Access to the project is very good. The total road distance to the property from San Juan city is approximately 195 km, of which only about 25 km is unpaved. A 132 KV electrical power transmission line is located approximately 20 km east of the Project and a major solar power project is currently under construction in the nearby area. The Chita stream runs within the mining property, with water available all year.
With elevations between 3,000 and 3,700 metres above sea level, year-round field exploration operations are possible and much easier than those in the high Andes, with good climate throughout the year.
The northwestern region of San Juan province and neighbouring Chile is home to a world-class collection of precious and base metal deposits, mostly within a broad classification of hydrothermal deposits related to Tertiary diatreme volcanic vent/porphyry complexes. The region hosts a variety of important former (El Indio, Tambo, Casposo) and current Au+/-Ag mining operations (Veladero, Gualcamayo) along with the major binational project Pascua-Lama as well as a number of world-class copper deposits which are currently in advanced exploration or pre-feasibility stage in San Juan, namely Pachon, Los Azules, Josemaría, Filo del Sol and Altar. The Chita porphyry cluster has many similarities with other world wide porphyry systems.
