Diversified miner South32 has exercised its earn-in right to acquire a 50.1% ownership interest in Minera Sud Argentina (MSA), Minsud’s indirect subsidiary that holds and operates the Chita Valley project.
South32 had to advance C$14-million over four years to MSA to fund exploration programmes. The company completed its capital contribution over a three-year period.
"During these past three years, Minsud has been challenged to meet the high operating and exploration standards of a global mining company. This challenge came together with our biggest opportunity to explore our Chita Valley project, and, fortunately, we have been able to deliver high-quality exploration results, with a significant new discovery at the Chinchillones target, while taking care of the environment and our community.
“We are very proud and excited to advance this partnership with South32. I want to congratulate our team, our board, and our investors who have always believed in us and in the potential of the Chita Valley project,” said president and CEO Ramiro Massa.
Chita Valley is a large exploration stage porphyry system with classic alteration features, widespread porphyry-style copper/molybdenum/gold and polymetallic silver/lead/zinc mineralisation hosted by hydrothermal phreatic breccias and associated gold- and silver-bearing polymetallic veins of intermediate sulphide composition that conformed an outcropping porphyry system at Chita and a lithocap of a porphyry system at Chinchillones.