Minsud Resources Unveils Maiden Mineral Resource Estimate for Chinchillones Complex
TORONTO, Jan. 17, 2025 /CNW/ – Minsud Resources Corp. MSR has announced a major breakthrough with its inaugural Mineral Resource Estimate for the Chinchillones Complex deposit, part of the Chita Valley Project situated in San Juan Province, Argentina. This achievement signifies a pivotal step in the development of the Chita Valley Project.
Joint Venture Progressing Exploration – Minera Sud Argentina S.A. (“MSA”), a collaboration between Minsud Resources (49.9%) and South32 Limited (“South32”) (50.1%), has spearheaded exploration at Chinchillones from 2019 to 2024, executing a thorough drilling program that established the foundation for this resource estimate. The joint venture aims for further exploration and expansion of this resource.
Key Resource Highlights:
- Indicated Resources: 188Mt at 0.41% CuEq, 0.25% Cu, 0.11 g/t Au, 10.6 g/t Ag, 36 ppm Mo, and 0.16% Zn, which equates to 776Kt of copper equivalent, 466Kt of copper, 674koz of gold, 63.5Moz of silver, 6.8Kt of molybdenum, and 291Kt of zinc.
- Inferred Resources: 573Mt at 0.36% CuEq, 0.22% Cu, 0.09 g/t Au, 9.0 g/t Ag, 93 ppm Mo, and 0.11% Zn, totaling 2,049Kt of copper equivalent, 1,244Kt of copper, 1,650koz of gold, 165.6Moz of silver, 53.2Kt of molybdenum, and 616Kt of zinc.
- The identified resources are deemed suitable for open-pit mining and flotation processes, according to Net Smelter Return cutoffs, with copper equivalent calculated post-estimation.
- Copper, silver, and gold are the primary components of the Mineral Resource Estimate, with molybdenum and zinc contributing as secondary elements.
- Mineralization is still open at depth, with potential for further molybdenum occurrences in untested areas.
The Chinchillones Complex shows reasonable prospects for eventual economic extraction (“RPEEE”). This assessment leverages drilling data from MSA from 2020 to 2024, along with initial drill insights. It is backed by early metallurgical studies, mining costs, processing estimates, and metal recoveries to define the Net Smelter Return (“NSR”).
The Mineral Resource Estimate was created by Mr. Mike Job, Principal Geology and Geostatistics at Cube Consulting Pty Ltd, in partnership with GeoEstima SpA. As a Qualified Person under NI 43-101 standards, he directed all phases of the estimation process.
According to Mr. Ramiro Massa, Director of Minsud, This first resource estimate marks a crucial advancement for the Chinchillones Complex and the Chita Valley Project. The findings underscore the deposit’s strong potential for development and provide a solid foundation for our exploration strategy. Unlike traditional high-Andean mining projects, Chita Valley’s lower altitude at 3,000 meters and favorable climate offer distinct advantages, such as year-round accessibility and excellent infrastructure, which could result in lower capital expenditures and competitive operational costs. This positions our project as a promising investment opportunity.
The Chinchillones Complex offers substantial opportunities for future development, highlighting potential exploration upside and untapped economic value. The deposit is likely economically viable through open-pit mining and flotation, supported by evidence of mineralization continuity, NSR application, and metallurgical performance based on testwork outcomes. The primary potential economic contributors include copper, silver, and gold, with secondary inputs from molybdenum and zinc.
Metallurgical testing consisted of three phases, focusing on the hardness, flotation efficiency, and quality of concentration from samples of the Chinchillones Complex. Tests were performed on composite samples from four mineralization domains:
- Domain 1: high-grade silver and gold-rich polymetallic intermediate sulfidation (IS).
- Domain 2: high-grade copper and zinc-rich polymetallic IS.
- Domain 3: porphyry-style high-grade copper with or without molybdenum.
- Domain 4: a blend of porphyry and IS.
ALS Metallurgy Kamloops conducted metallurgical assessments in 2022 and 2024. The studies identified chalcopyrite and tennantite/enargite as the principal copper minerals. Results indicated challenges due to arsenic (As) levels in concentrates, averaging 7%, along with elevated zinc levels in certain domains. Distinct behaviors were noted in high zinc geological domains compared to lower zinc geological domains, where the former exhibited lower copper recoveries and higher zinc concentrate contents.
Chinchillones Reports Strong Flotation Performance and Positive Recovery Estimates
The low zinc geological domain showed better flotation performance, yielding higher copper recoveries.
Flotation Testing Yields Promising Results
Flotation tests indicated impressive copper recoveries of over 80%. Furthermore, pilot plant testing confirmed concentrate grades of approximately 28% Cu. However, arsenic and zinc levels exceeded smelter penalty thresholds. Hydrometallurgical studies offer a hopeful approach for managing these unwanted elements while still achieving high metal recoveries.
Mineral Resources Estimated on a Net Smelter Return Basis
The Mineral Resources are reported using a Net Smelter Return (NSR) basis, with three concentrates produced: Cu, Mo, and Zn. Due to the complex mineralogy at Chinchillones, standard NSR calculations with fixed elemental recovery rates did not accurately reflect the actual concentrate grades. Instead, mineralogy-based calculations were used to assess hybrid mineral compositions, improving the estimation process. A constant Mo grade was included for the Mo concentrate. Specific metallurgical recoveries show 87% for Cu, 40% for Au, 65% for Ag, and 50% for Mo in the low zinc domain, while the high zinc domain has recoveries of 60% Cu, 40% Au, 70% Ag, and 55% Zn. These are estimated recovery rates indicative of potentially economic elements. Additional recovery details, including those for unwanted elements, will be elaborated in the forthcoming technical report.
Current Metal Prices Impacting Mineral Resource Estimates
The metal prices applied are detailed as follows: copper at US$4.30/lb, gold at US$1,985/oz, silver at US$24/oz, molybdenum at US$15/lb, and zinc at US$1.30/lb.
Mineral Resource Reporting and Classification
The Mineral Resource in the low zinc geological domain is reported for values above an NSR of US$10/t, which includes US$9/t milling costs and US$1/t for general and administrative expenses. The high zinc domain is reported above a NSR of US$11.65/t, with US$10.65/t in milling costs and US$1/t for G&A. The optimized pit shell method helped define the mineral resource, considering a US$1.90/t mining cost and a 45-degree pit wall slope while integrating commodity prices, metallurgical recoveries for both economic and harmful elements, and treatment and refining charges.
Classification and Regulatory Compliance
In line with the CIM Definition Standards (CIM, 2014), the Mineral Resource Estimate has been categorized to include both Indicated and Inferred Mineral Resources, as outlined in Table 1 and Table 2. The classification considers data quality, drill hole spacing, and geological understanding of the deposit. Reporting adheres to the guidelines set by the Canadian Securities Administrators’ National Instrument 43-101 (NI 43-101).
Table 1: Chinchillones Mineral Resource Estimate as at 15 January 2025 (Economic Grades)
|
Domain |
Classification |
M Tonnes |
CuEq (%) |
Cu (%) |
Au g/t |
Ag g/t |
Mo (ppm) |
Zn (%) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Low Zinc |
Indicated |
147 |
|
0.36 |
0.27 |
0.11 |
8.7 |
46 |
– |
|||
|
Inferred |
494 |
0.31 |
0.22 |
0.09 |
7.8 |
108 |
– |
|
|
High Zinc |
Indicated |
41 |
0.61 |
0.18 |
0.13 |
17.6 |
– |
0.72 |
|
Inferred |
79 |
0.63 |
0.21 |
0.1 |
16.5 |
– |
0.78 |
|
|
Total |
Indicated |
|
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The financial data presented includes statistics on indicated and inferred reserves, allowing for insight into the company’s asset potential. Recent trends reflect an optimistic outlook on revenue generation in the mineral sector, particularly due to the increasing demand for zinc. This report serves as a pivotal snapshot amidst evolving market conditions.
Chinchillones Mineral Resource Update Reveals Promising Estimates
As of January 15, 2025, the Chinchillones project showcases significant mineral resources.
|
Domain |
Classification |
M Tonnes |
CuEq Metal kt |
Cu Metal kt |
Au k Oz |
Ag M Oz |
Mo Metal kt |
Zn Metal kt |
|
Low Zinc |
188 |
0.41 |
0.25 |
0.11 |
10.6 |
36 |
0.16 |
|
|
573 |
0.36 |
0.22 |
0.09 |
9.0 |
93 |
0.11 |
Table 2: Chinchillones Mineral Resource Estimate as at 15 January 2025 (Economic Metal)
Historical context shows that this project has been under exploration for several years, reflecting a commitment to sustainable resource management. With these latest estimates, the Chinchillones project indicates a robust potential for both copper and silver—a promising sign in today’s resource market.
Zinc Reserves and Resources: An In-depth Look
The data on zinc reserves and resources provides essential insight into the industry. This report details the indicated and inferred resources for various levels of classification.
| Classification | Indicated | Inferred |
|---|---|---|
| Standard Zinc | 147 | 494 |
| 532 | 1,548 | |
| 392 | 1,074 | |
| 512 | 1,395 | |
| 40.8 | 123.5 | |
| 6.8 | 53.2 |
| High Zinc | Indicated | Inferred |
|---|---|---|
| Indicated | 41 | 79 |
| 244 | 501 | |
| 74 | 170 | |
| 162 | 255 | |
| 22.7 | 42.1 | |
| 616 |
| Total | Indicated | Inferred | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Resource Category | Tons (in thousands) | Copper (Cu %) | Gold (Au g/t) | Silver (Ag g/t) | Molybdenum (Mo %) | Zinc (Zn %) | Inferred Resources |
| Measured | 188 | 776 | 466 | 674 | 63.5 | 6.8 | 291 |
| Inferred | 573 | 2,049 | 1,244 | 1,650 | 165.6 | 53.2 | 616 |
| Notes: |
| (1) Mineral Resources that are not classified as Mineral Reserves lack demonstrated economic viability. Factors such as environmental, legal, and socio-political issues may significantly affect estimates, though no specific issues have been identified at this point. |
| (2) The Inferred Mineral Resource carries lower confidence than an Indicated Mineral Resource and cannot be converted into a Mineral Reserve. |
| (3) Resource estimates adhere to the guidelines set by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). |
| (4) The resource is calculated above Net Smelter Return (NSR) cut-offs at US$10/t for low zinc domains and US$11.65/t for high zinc domains. An optimized pit shell was used to confine reporting, with various operational costs factored in. |
| (5) Metal prices in US$ for NSR calculations are $4.30/lb Cu, $1,985/oz Au, $24/oz Ag, $15/lb Mo, and $1.30/lb Zn, with metallurgical recoveries defined for various metals. |
| (6) The copper equivalent (CuEq) grades are calculated using metal prices and recoveries applied in the NSR assessment, detailing recoveries for both low and high zinc domains. |
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This revised article clearly presents the recent mineral resource estimates while providing necessary context and notes regarding the data. The structure enhances readability and comprehension for a younger audience while maintaining factual accuracy.“`html
Chita Valley Mineral Resource Estimate Reveals Strong Potential for Multiple Metals
Assessing the Composition and Quality Control Efforts
For both low and high zinc domains, the Copper Equivalent percentages can be computed using specific formulas. In the low zinc domain, the calculation is: CuEq_% = Cu_% + (Au_ppm x 0.4488) + (Ag_ppm x 0.0095) + (Mo_ppm x 0.0061) + (Mo_ppm x 0.0002). Conversely, in the high zinc domain, the formula is: CuEq_% = Cu_% + (Au_ppm x 0.4488) + (Ag_ppm x 0.0095) + (Zn_% x 0.277). It’s important to note that zinc is not recovered in the low zinc domain, while molybdenum is not recovered in the high zinc domain.
Value Contributions by Metal: The Net Smelter Return (NSR) calculation shows that the project’s value comes from various metals: copper (67%), silver (16%), gold (7%), molybdenum (5%), and zinc (5%).
The project’s financial figures might not add up precisely due to rounding.
Geological Data Overview
The Chinchillones Mineral Resource Estimate was finalized on October 14, 2024 and includes 134 diamond drill holes, amounting to 82,104 meters in total length. Notably, only eight holes (1,762 meters) were drilled before 2020, while the remaining 126 holes (totalling 80,342 meters) were completed by MSA after 2020.
Drill holes to the northwest of the central post-mineralization Dacite are typically oriented southeast and dip between 70° to 80°. In contrast, holes to the southeast of the diatreme are drilled northwest, also at similar angles. The well-drilled areas are spaced approximately 80 meters apart, extending to over 150 meters at the deposit’s edges.
3D models of lithology and alteration do not significantly dictate copper mineralization, as grades fluctuate widely across these domains, complicating estimations. To improve accuracy, a copper-arsenic-silver high-sulfidation envelope was established, based on a proxy using copper, arsenic, antimony, sulfur, and iron, thereby enabling the identification of high-sulfidation characteristics in both drill and block models. In addition, envelopes for molybdenum and zinc-lead grades were developed, resulting in final estimation domains that merge high-sulfidation and molybdenum/zinc-lead grade shells, defined by statistical similarities and domain boundary analysis.
Quality Assurance and Quality Control Measures
All core samples were sent by MSA to ALS Global Laboratories in Mendoza, Argentina, for preparation and analysis. The testing included a fire assay for gold, alongside a thorough four-acid digest examining 48 elements through ICP-MS and ICP-AES methodologies. MSA adhered to standard industry practices while implementing a solid Quality Assurance/Quality Control (QA/QC) program. Each sample shipment contained field duplicates, standards, and blank samples. Minsud reported no significant QA/QC issues during their data review.
Qualified Persons and Technical Information
Mr. Esteban Manrique, a Senior Geologist at Mining Plus Peru SAC and a member of MAusIMM, conducted a site visit and reviewed geological elements such as sampling, drill core, logging, assay laboratory procedures, and independent check samples. He qualifies as an independent Qualified Person under National Instrument 43-101.
Mr. Adam Johnston, also a Qualified Person and a full-time employee of Transmin Metallurgical Consultants, reviewed the project’s metallurgical studies in collaboration with Mining Plus.
The Mineral Resource Estimate was prepared by Mr. Mike Job, a Principal Geologist and Geostatistician at Cube Consulting, who holds the status of Qualified Person as defined by National Instrument 43-101.
Ms. Maria Munoz, a Qualified Person with MAusIMM and VP of Exploration at the company, has visited the site and approved this release’s contents.
The technical report has undergone review by Qualified Persons responsible for its various chapters and hails from Mining Plus, ensuring compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101”). This detailed report will be submitted on SEDAR+ (www.sedarplus.ca) under the company’s profile within 45 days following this announcement, with the Mineral Resource Estimate being effective as of January 15, 2025.
About the Chita Valley Project, San Juan Province
The Chita Valley Project is situated in a significant exploration stage, hosting a porphyry system characterized by common alteration features and extensive copper-molybdenum-gold and polymetallic silver-lead-zinc mineralization. This project features hydrothermal breccias and associated gold/silver-bearing polymetallic veins, forming what is known as the lithocap of the Chinchillones porphyry system. In Argentina’s San Juan Province, a strong mining sector acknowledges the essential economic advantages tied to responsible mineral resource development. MSA manages the Chita Valley Project, with Minsud holding a 49.9% interest. Meanwhile, South32 indirectly owns the remaining 50.1% interest. The two entities have entered into a shareholders’ agreement for the management and exploration of MSA, which will encompass further exploratory activities.
About Minsud Resources Corp.
Minsud is focused on exploring its key Chita Valley Cu-Mo-Au-Ag-Pb-Zn Project located in San Juan Province, Argentina. The company’s shares are traded on both the TSX-V under the symbol “MSR” and on the OTCQX under “MDSQF.”
About South32 Limited
South32 Limited operates as a globally diversified mining and metals company. Their mission revolves around responsible resource development that significantly benefits people today and into the future. Recognized for their reliability by owners and partners, the company actively works to unlock the potential of their resources. With operations spread across the Americas, Australia, and Southern Africa, South32 is focused on producing vital minerals and metals for the world’s energy transition while responsibly developing the next generation of mines. The company aims to leave a lasting positive legacy and foster meaningful partnerships.
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Financial Outlook: Minsud Resources Corp. Sets Path for Future Growth
Expecting Changes Ahead
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release contains information that may be considered forward-looking according to Canadian securities laws. Such forward-looking information might include statements concerning strategic plans, spending commitments, expected operations, exploration outcomes, anticipated financial results, future work programs, capital expenditures, and corporate objectives. This information relies on various estimates and assumptions deemed reasonable, yet it remains vulnerable to known and unknown risks, uncertainties, and other factors that could result in actual outcomes differing significantly from those projected. These factors may include currency fluctuations (like the Canadian dollar, Argentine peso, and U.S. dollar), changes in government policies, economic conditions, exploration difficulties, environmental risks, community relations, and the speculative nature of mineral exploration and development. The risks listed also encompass challenges in obtaining necessary permits, maintaining property titles, and the Company’s capacity to secure funds, alongside details noted under “Risk Factors” in the Company’s Filing Statement dated April 27, 2011. Readers should refrain from placing undue confidence in forward-looking information. All such content presented in this news release is accurate as of the current date and is based on management’s opinions and information available at that time. The Company does not intend or commit to updating any forward-looking information unless legally obligated to do so.
The TSX Venture Exchange and its Regulation Services Provider (as defined in TSX Venture Exchange policies) do not take responsibility for the adequacy or accuracy of this release.
SOURCE Minsud Resources Corp.
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