The drilling programme is aimed at testing the targets generated from the recent pole-dipole IP survey, detailed surface mapping and review the historical surveys
Canadian mineral exploration firm Minsud Resources has started a diamond drilling programme at the Chinchillones porphyry complex, part of the Chita Valley project, in San Juan Province, Argentina.
The drilling programme, comprised of four holes for 2,000m, is aimed at testing the targets generated from the recent pole-dipole IP survey, detailed surface mapping and review of the results of the historical geochemical, geophysical and geological surveys.
The Chita Valley project is a large exploration stage porphyry system with classic alteration features, widespread porphyry style Cu-Mo-Ag-Au mineralisation.
In addition, the prospect is said to comprise gold and silver-bearing polymetallic veins of intermediate sulfide composition, demonstrating an outcropping porphyry system at Chita and a lithocap of a porphyry system at Chinchillones.
The principal target area of the drilling programme is Breccia Ridge
The principal target area of the drilling programme is Breccia Ridge, which is a 3km long and 1km wide prospective zone of strong silicification, created by the porphyry-related B, D and A-type intermediate sulphidation veins.
The scout drill testing programme includes two drill holes to test porphyry targets with coincident IP anomalies below the lithocap environment.
In addition, the program includes one drill hole to test porphyry bodies related to the Chinchillones breccias, and one drill hole to test an IP anomaly affiliated with the mapped intermediate sulphidation epithermal base metal sulphides-quartz veins.
Minsud said that it has signed an agreement with South32, to obtain full funding for the current drilling programme. The agreement provides South32 with an option to earn a 70% interest in the Chita Valley property upon a contribution of exploration funds and a PFS.
In addition, South32 is required to contribute minimum exploration funding of CAD$14m ($10.53m), for 4 years of option period with minimum exploration expenditures of CAD$3.5m ($2.6m)per annum, to maintain the option.
During the option period, Minsud will be the operator.