Chita South Porphyry (PSU) Resource Definition

The first significant exploration by Minsud was carried out on the property in 2008, with a 3-hole diamond drilling program. The encouraging results from this program led to a series of further drilling, surface sampling, and geophysical surveys, until Minsud produced its maiden resource estimate on the Chita Porphyry in 2015. More aggressive drilling over the following years resulted in further expansions to the Chita South Porphyry resource.

In 2018, Minsud filed a National Instrument 43-101 Technical Report and Updated Mineral Resource Estimate on the Chita South Deposit:

Current Chita South Porphyry Resource

2019 to 2023: South32 Partnership & Chinchillones Discovery

In 2019, Minsud signed an Earn-In Agreement with South32 to explore the Chita Valley Project. Minsud continued epithermal vein-sampling, magnetic intensity measurement and spectrometry on historical cores, completed a geophysical IP survey at Brechas Vacas property, a UAV drone-based topography/imagery survey on the Brechas Vacas and Minas de Pinto properties and prepared an exploratory diamond drilling program for 2020.

In 2020, the Company completed 9,377 metres of diamond drilling, in 18 holes of depths up to 650 metres. In the first half of 2020, the company drilled six holes 3,559 metres in Phase I scout drilling at the Chinchillones Porphyry and Epithermal Complex with the objective of determining the possible presence, as the geophysical and conceptual models indicated, of a porphyry-type system below the Chita Valley and of an epithermal target hosted in the lithocap cover. The results of this exploration scout program and the revision of historical drill results performed in the Chinchillones area provided intercepts that supported the presence of a Zn-Pb-Cu-(Ag-Au) polymetallic epithermal system continuing from near surface to depth. During the second half of 2020, the Company completed the Phase II diamond drilling program totalizing 5,818 metres, with variable depths between 350-650 metres and distributed in 12 drillholes at Chinchillones target (2,884m) and 6 drillholes at PSU and PNO targets (2,934 m).

In 2021, the Company completed 11,970 metres distributed in 24 diamond drillholes in the Phase III program, with the goal of testing and, with success achieved by mid-year, expanding the Au-Ag-bearing oxidation zone at Chinchillones area through a systematic grid shallow drilling and scout drilling targeting anomalous areas at the Chita polymetallic and porphyry complex.

In May 2022, the Company commenced the Phase IV drill program and by year-end completed 28 drillholes over 19,058m.

The principal objectives of the program included further delineation of the mineralized body discovered during the Phases I to III programs (2020 and 2021), test additional centres of polymetallic mineralization at the Chinchillones area and to probe the down-dip continuity to the South Chita Porphyry (PSU) deposit.

Drilling at the Chinchillones Target confirmed the presence of mineralized intrusive bodies hosting porphyry-style Cu-Au-Mo-Ag at depth, beneath the high sulphidation mineralization intersected near the surface. Drillholes CHDH22-62 and CHDH22-57 confirmed the presence of a second tonalitic porphyry, which is associated with intra-mineral dacitic bodies.

The central porphyry at Chinchillones is believed to be an earlier phase, occurring as roof pendants and angular clasts to the tonalite porphyry-associated dacitic volcanic unit. This indicates a temporal separation between the two productive porphyries, further supporting the interpretation of distinct mineralizing events.

Drillholes CHDH22-48 and CHDH22-49 tested the Chita South Porphyry (PSU) at depth. Cu-Mo mineralization was confirmed below 120 m, at least up to 250 m depth. The low-level As-Sb and Zn-Pb-Ag-Au values are thought to indicate deeper erosional level compared to the emplacement level at Chinchillones, where high sulfidation veins and replacement are more pervasive.

2023 and Onward: Chinchillones Expansion and New Targets

The Phase IV drilling program continued, as planned, into 2023. The current results of the Phase IV exploratory activities, together with previous drilling phases, have confirmed an expanded Chinchillones porphyry-epithermal system, now estimated to cover a minimum area of 2 km x 2 km. The zone is open to more than 850m depth, which was the limit of previous drilling equipment utilized on the project. Significant results are shown below.

Chinchillones Target

Hole CHDH23-69 was drilled to test the continuity of the polymetallic trend in the Chinchillones West Area. It was drilled with an orientation of 135°/-80° and reached a depth of 1,242. The hole intersected a 456-metre interval of continuous high-grade polymetallic (Zn-Pb-Cu-Ag-Au-Mo) breccia. Significant polymetallic (ZnPb-Au-Cu-Mo) mineralization intervals for drillhole CHDH23-69 included 786.0m @ 0.43% Cu, 368 ppm Mo, 0.23 g/t Au and 15.78 g/t Ag.

New Target to the NE of Chinchillones

Hole CHDH23-70 was drilled to a depth of 618.2 metres. Intersected 8.0m @ 0.49% Cu, 0.19 g/t Au and 10.45 g/t Ag from 372.0 to 380.0m, as well as 16.0m @ 0.40% Cu, 1.14 g/t Au, and 4.56 g/t Ag, from 564.0 to 580.0m. The hole intersected narrow, high-sulphidation structures measuring 8 and 16 metres containing chalcopyrite, pyrite and sphalerite.

Link Zone Target

The Link Zone target is located between the South Porphyry (aka PSU) and Chinchillones targets. Scout drilling in this area has confirmed the presence of high-grade mineralized structures hosted in the sedimentary Aguas Negras Formation and Tertiary-aged domes.

CHDH23-72 is located on the eastern edge of the Link Zone. It was drilled with an orientation of 135°/-65° to a depth of 762 metres. Intersected 166.0m @ 0.11% Cu, 180 ppm Mo, 515 ppm Zn, from 132.0 to 298.0m and 34.0m @ 0.12% Cu, 8.39 g/t Ag, 0.15% Zn, from 684.0 to 718.0m. From 246m to 509m intercalated early dioritic and andesitic porphyries were intersected, which could correspond to the West extension of the Chita primary porphyry (PSU).

MINSUD’s current focus is on the exciting Chinchillones target, which currently covers an area of at least 2km x 2km, and remains open at depths beyond 850 metres.

The Company also remains committed to continue exploring the Porphyry Chita South (PSU) deposit towards a possible pre-feasibility stage while testing through systematic exploration highly prospective targets including the resource area at depth and its extensions, as well as Chinchillones and other exciting prospects within the Chita Valley project in order to increase the existing resources and find new Cu-Mo-Au-Ag polymetallic deposits.

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