Mineral exploration company Minsud Resources is fully funded to advance its Chita Valley project, in San Juan, Argentina, with South32 electing to fund another year of exploration in terms of a 2019 earn-in agreement.

A subsidiary of South32 will fund the C$9.1-million Year 4 budget and programme at Chita Valley.

The Year 4 drill programme meters will be divided between delineating an initial resource at Chinchillones, including testing of deeper targets open at depth, and progressing scout drilling of other targets of interest.

Further, the company is planning to carry out a comprehensive geophysical programme to assist in targeting higher grade mineralisation including an MT survey.

Minsud is actively completing the Year 3 exploration programme, which is largely focused on drilling the Chinchillones area, where drill hole results have confirmed the presence of highly significant zinc/lead/copper/gold/silver mineralisation that overprinted at least two porphyry centres.

"2022 was a productive year full of challenges and accomplishments for Minsud.  We are excited for what 2023 will bring given that our annual drilling programme is now fully funded.

“We look forward to working with South32 during the fourth and final year of the earn-in agreement as we both look to advance the Chita Valley project,” said president and CEO Ramiro Massa.

Current exploration activities on the Chita Valley project are being funded by a subsidiary of South32 in accordance with the earn-in agreement between the parties entered into on November 1, 2019.  

If South32 exercises its earn-in right it may elect to acquire a 50.1% direct interest in Minera Sud Argentina (MSA) at the end of the earn-in period by paying an additional C$14-million to Minsud, or by funding a prefeasibility study, with a minimum spend of C$41-million, which would entitle it to elect to increase its 50.1% direct interest in MSA to 70%.