VANCOUVER, BC, May 15, 2023
/CNW/ - NGEx Minerals Ltd. (TSXV: NGEX) ("NGEx Minerals"
"NGEx" or the "Company") is pleased to report its results for
the three months ended March 31,
2023. PDF version
Wojtek Wodzicki, President and
CEO commented, "NGEx has continued its strong performance to
start 2023, with exceptional exploration results reported from both
the maiden drill campaign undertaken at the Potro Cliffs target, as
well as the expansion drill program conducted at its cornerstone
Los Helados project.
The Company's second ever hole drilled at the prospective
Potro Cliffs target returned some of the highest copper grades ever
drilled in the Vicuña District, and the grade, thickness and style
of mineralization encountered is suggestive of significant
potential for a major porphyry copper-gold system in the area. At
Los Helados, our 2022-2023 drill program has been successful at
expanding and defining the recently discovered high-grade satellite
Fenix and Alicanto Zones. Of particular note, holes completed in
the Fenix Zone this season have returned some of the highest copper
equivalent and molybdenum grades ever encountered at Los Helados,
and demonstrate the potential of these satellite discoveries to
significantly add to the Los Helados resource.
Both programs are now winding down with the onset of
winter in the Andes, and our team will take this time to analyze
the results from this season's programs and plan for the upcoming
2023-2024 field season. With continued strength in the long-term
outlook for copper, the recent consolidation of projects in and
around the Vicuña District, and the growing significance of the
Company's assets within the emerging metals district, NGEx sees
clear opportunity to build on this season's exceptional results and
to continue to create value for shareholders."
Q1 2023 HIGHLIGHTS AND OUTLOOK
- DPDH002, the second hole of the maiden Potro Cliffs program,
hit high-grade mineralization, highlighted by 60.0m at 7.52% copper equivalent ("CuEq") and
10.0m at 7.08% CuEq, including some
of the highest grades intersected to date in the Vicuña
District.
- 2022-2023 program at Los Helados extended both the Fenix and
Alicanto Zones. The holes completed in the Fenix Zone returned some
of the highest grades ever encountered at the deposit,
demonstrating the remarkable potential value of the satellite zones
discovered in 2022.
Inaugural Potro Cliffs Campaign Results in Potential
Discovery of Fourth Major Vicuña District Deposit
The Company initiated its maiden drill program in January 2023 at the Potro Cliff exploration
target, located in San Juan Province, Argentina ("Potro Cliffs"). The highly
prospective land package is located in the middle of the Vicuña
District, where it sits along the major north-northeast structural
trend that controls the Filo del Sol deposit located approximately
7 km to the south and the Company's Los Helados project located
approximately 9 km to the north.
The Company drilled two initial reconnaissance holes, one
collared on the plateau at the top of the cliffs, and the second
collared in the valley approximately 700m below. The latter, DPDH002, intersected some
of the highest copper grades ever drilled in the Vicuña District,
characterized by multiple zones of massive to semi-massive sulphide
veins and breccias (see News Release dated April 4, 2023). Select high-grade intersections
of DPDH002 include:
- 4.0m at 8.44% CuEq from
150.0m;
- 60.0m at 7.52% CuEq from
212.0m;
-
- Including 10.0m at 18.00% CuEq
and 6.0m at 14.00% CuEq; and
- 10.0m at 7.08% CuEq from
574.0m.
These initial results from DPDH002 are currently interpreted as
the first intercepts into the edges of a significant new
copper-gold system, which would be the fourth major deposit
discovered in the Vicuña District by the Company or its predecessor
entities. The style of mineralization intersected typically occurs
above, or lateral to, porphyry copper-gold systems and the grades
and thickness of the mineralization observed in DPDH002 are
positive indicators of the strength and potential of the system
that is the source of these high-grade structures.
Assay results from hole DPDH002 at Potro Cliffs are summarized
as follows:
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq1
(%)
|
DPDH002
|
150.0
|
154.0
|
4.0
|
5.81
|
2.62
|
81.5
|
8.44
|
plus
|
212.0
|
272.0
|
60.0
|
5.65
|
2.04
|
44.0
|
7.52
|
incl.
|
226.0
|
236.0
|
10.0
|
14.19
|
4.07
|
94.0
|
18.00
|
incl.
|
244.0
|
250.0
|
6.0
|
10.57
|
3.73
|
80.0
|
14.00
|
plus
|
308.0
|
312.0
|
4.0
|
3.99
|
0.26
|
44.5
|
4.57
|
plus
|
340.0
|
342.0
|
2.0
|
2.77
|
1.41
|
25.0
|
4.02
|
plus
|
434.0
|
436.0
|
2.0
|
1.68
|
1.03
|
15.0
|
2.56
|
plus
|
520.0
|
524.0
|
4.0
|
2.53
|
0.52
|
112.0
|
3.89
|
plus
|
564.0
|
566.0
|
2.0
|
3.01
|
1.02
|
36.0
|
4.07
|
plus
|
574.0
|
584.0
|
10.0
|
3.70
|
1.51
|
259.4
|
7.08
|
incl.
|
580.0
|
582.0
|
2.0
|
11.81
|
4.70
|
1,165.0
|
25.49
|
plus
|
598.0
|
600.0
|
2.0
|
1.65
|
2.36
|
31.0
|
3.64
|
plus
|
644.0
|
648.0
|
4.0
|
3.90
|
4.37
|
61.0
|
7.62
|
plus
|
650.0
|
652.0
|
2.0
|
1.04
|
0.19
|
3.0
|
1.21
|
plus
|
672.0
|
674.0
|
2.0
|
1.25
|
0.56
|
7.0
|
1.72
|
plus
|
676.0
|
678.0
|
2.0
|
1.36
|
0.24
|
6.0
|
1.59
|
1 CuEq for
drill intersections is calculated based on US$ 3.00/lb Cu, US$
1,500/oz Au and US$ 18/oz Ag, with 80% metallurgical recoveries
assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 *
Au g/t) + (0.0088 * Ag g/t).
|
2 Lengths
reported are drilled lengths, additional drilling is required in
order to establish geometry and true widths of the mineralized
zones.
|
Following the discovery in hole DPDH002, the program was
immediately expanded and to date six holes totalling 3,969 metres
have now been completed, with an additional two holes in progress.
A summary of the technical objectives and status of each of these
holes is provided below:
Hole-ID
|
Description and
Status
|
DPDH001
|
Collared at top of
cliffs; Testing surface geochemical anomalies; AZ 270/-70;
Completed to 929m; Assays pending
|
DPDH003
|
Collared at top of
cliffs; Testing surface geochemical anomalies; AZ 110/ -70;
Suspended at 350m; Rig repositioned to follow up DPDH002; Assays
pending
|
DPDH004
|
Same platform as
DPDH002; Testing up dip extent of high-grade mineralization; AZ
270/-50; Completed to 599m; Assays Pending
|
DPDH005
|
Collared at bottom of
cliffs; Step-out 100m to south of DPDH002; AZ 270/-70;
Completed to 992m; Assays Pending
|
DPDH006
|
Same platform as
DPDH002; Testing orientation and extent of high-grade
mineralization; AZ 270/-80; Completed to 380m; Assays
Pending
|
DPDH007
|
Collared 100 metres
east of DPDH002; Testing extension of high-grade mineralization;
AZ 270/-55; In progress,
|
DPDH008
|
Same platform as
DPDH005; AZ 270/-55; In progress
|
With the onset of winter at Potro Cliffs, the Company is now
concluding its final two holes of the highly successful drill
campaign. Over the winter months in South
America, the Company will review this season's drill
results, along with geophysical survey data gathered during the
campaign, to develop a follow-up program at Potro Cliffs
commencing in late 2023.
Assay results from the remaining holes of the 2023 Potro Cliffs
drill program will be released as they are received, analyzed and
confirmed by the Company.
2022-2023 Los Helados Program Successfully Extends
High-grade Zones
During the first quarter of 2023, the Company continued its
2022-2023 drill campaign at Los Helados, located in Region III,
Chile. The program, which
commenced in November 2022, has
focused primarily on defining the geometry and size of the Fenix
and Alicanto Zones, additional high-grade centres that were
identified at Los Helados in early 2022. These zones are distinct
from, and in addition to, the Condor Zone, the high-grade breccia
phase at the core of the deposit, around which the Los Helados
Mineral Resource estimate is centered.
To date, the Company has received and released assay results
from eight holes completed during the 2022-2023 campaign (see News
Releases dated January 26, 2023, and
April 13, 2023). These results have
successfully confirmed continuity and extension of all three zones,
and with respect to the Fenix and Alicanto Zones in particular, the
step-outs begin to demonstrate the significant potential of these
high-grade zones to meaningfully add to the Los Helados
resource.
Assay results from holes testing the Fenix Zone have returned
some of the highest grades ever seen at Los Helados, including
molybdenum (Mo) grades which are significantly higher than any
intersected previously. While more drill testing will be required
to fully analyze and understand the Fenix Zone, findings to date
confirm the potential to develop into a significant new centre of
mineralization for the project.
Assay results released to date by the Company in relation to the
2022-2023 Los Helados program are summarized as follows:
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
Cu
(%)
|
Au
(g/t)
|
Ag
(g/t)
|
CuEq1
(%)
|
Mo
(ppm)
|
Zones
Intersected
|
LHDH079
|
148.0
|
1,363.2
|
1,215.2
|
0.32
|
0.18
|
1.5
|
0.43
|
28
|
Condor Zone
|
incl.
|
676.0
|
932.9
|
256.9
|
0.54
|
0.16
|
2.6
|
0.65
|
26
|
and incl.
|
985.8
|
1,086.0
|
100.2
|
0.53
|
0.17
|
1.4
|
0.64
|
21
|
LHDH081
|
436.0
|
1,604.8
|
1,168.8
|
0.37
|
0.08
|
1.8
|
0.43
|
32
|
Fenix Zone
|
incl.
|
1,144.0
|
1,364.0
|
220.0
|
0.63
|
0.12
|
2.6
|
0.72
|
66
|
LHDH081-2
|
770.7
|
1,549.8
|
779.1
|
0.54
|
0.10
|
2.0
|
0.61
|
121
|
Fenix Zone
|
incl.
|
1,206.0
|
1,549.8
|
343.8
|
0.81
|
0.12
|
2.5
|
0.90
|
204
|
incl.
|
1,486.0
|
1,549.8
|
63.8
|
1.14
|
0.14
|
3.6
|
1.25
|
741
|
LHDH081-3
|
814.0
|
1,266.0
|
452.0
|
0.54
|
0.15
|
1.3
|
0.64
|
57
|
Fenix Zone
|
incl.
|
1,032.0
|
1,266.0
|
234.0
|
0.76
|
0.22
|
1.7
|
0.90
|
69
|
incl.
|
1,032.0
|
1,186.0
|
154.01
|
0.85
|
0.25
|
1.8
|
1.02
|
80
|
incl.
|
1,238.0
|
1,266.0
|
28.0
|
1.25
|
0.36
|
2.6
|
1.49
|
91
|
LHDH082
|
152.0
|
1,133.3
|
981.3
|
0.38
|
0.15
|
1.7
|
0.48
|
28
|
Condor Zone
|
incl.
|
550.0
|
1,039.7
|
489.7
|
0.46
|
0.20
|
1.9
|
0.60
|
30
|
incl.
|
826.0
|
968.0
|
142.0
|
0.55
|
0.26
|
2.3
|
0.73
|
23
|
LHDH083
|
514.0
|
1,140.0
|
626.0
|
0.46
|
0.20
|
1.9
|
0.59
|
74
|
Alicanto
Zone
|
incl.
|
678.0
|
724.0
|
46.0
|
0.28
|
0.96
|
1.2
|
0.87
|
30
|
and incl.
|
884.0
|
1,006.1
|
122.1
|
0.94
|
0.14
|
2.7
|
1.05
|
190
|
LHDH084
|
728.0
|
1,500.0
|
772.0
|
0.67
|
0.11
|
1.7
|
0.74
|
119
|
Fenix Zone
|
incl.
|
1,1110
|
1,500.0
|
390.0
|
1.02
|
0.15
|
2.4
|
1.13
|
187
|
LHDH086
|
938.0
|
1,042.0
|
104.0
|
0.60
|
0.14
|
2.2
|
0.69
|
48
|
Alicanto
Zone
|
incl.
|
998.0
|
1,042.0
|
44.0
|
0.75
|
0.22
|
2.7
|
0.90
|
50
|
1 CuEq for
drill intersections is calculated based on US$ 3.50/lb Cu, US$
1,700/oz Au and US$ 20/oz Ag, with metallurgical recoveries of 88%
for copper, 76% for gold and 60% for silver based on a
comprehensive program of metallurgical testwork. The formula is:
CuEq % = Cu % + (0.6117 * Au g/t) + (0.0057 * Ag g/t). Molybdenum
grades are not included in the CuEq calculation.
|
2 Los
Helados hosts large-scale porphyry and associated breccia
mineralization and drilled lengths are interpreted to be
approximate true widths.
|
To date, several additional holes have been completed with assays
underway, and the final hole of the campaign, LHDH087, is nearing
completion. A summary of the status and drilling direction of each
of these holes is provided below:
Hole
|
Zones
|
Status
|
Drilling
Direction
|
LHDH085
|
Fenix
|
Completed to target
depth; Assays pending
|
North to South to
intersect 140m east of LHDH076
|
LHDH086-1
|
Alicanto
|
Completed to target
depth; Assays pending
|
100m step-out to the
east of LHDH078
|
LHDH086-2
|
Alicanto
|
Completed to target
depth; Assays pending
|
100m step-out to the
south of LHDH078
|
LHDH087
|
Fenix
|
In Progress
|
West of LHDH081-2 and
LHDH084
|
LHDH088
|
Fenix
|
Hole lost;
Assays
pending
|
North to South between
LHDH076 and LHDH084
|
Assay results will be released as they are received, analyzed and
confirmed by the Company.
FINANCIAL RESULTS
(In thousands of
Canadian dollars, except per share amounts)
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
|
|
|
|
2023
|
2022
|
Exploration and project
investigation
|
|
|
|
15,122
|
8,582
|
General and
administration ("G&A")
|
|
|
|
1,361
|
714
|
Net loss
|
|
|
|
15,167
|
8,676
|
Basic and diluted loss
per share
|
|
|
|
0.09
|
0.06
|
The financial
information in this table was selected from the Company's condensed
interim consolidated financial statements for the three months
ended March 31, 2023 (the "Financial Statements"), which are
available on SEDAR at www.sedar.com and the Company's
website www.NGExMinerals.com.
|
SELECTED FINANCIAL INFORMATION
(In thousands of
Canadian dollars)
|
|
March
31,
|
December
31,
|
|
|
2023
|
|
2022
|
Cash
|
|
11,014
|
|
23,249
|
Working
capital
|
|
5,383
|
|
20,222
|
Mineral
properties
|
|
4,337
|
|
3,903
|
Total assets
|
|
24,289
|
|
32,312
|
The financial
information in this table was selected from the Financial
Statements, which are available on SEDAR at www.sedar.com
and the Company's website
www.NGExMinerals.com.
|
The Company incurred a net loss of $15.2
million during the three months ended March 31, 2023, comprised primarily of
$15.1 million in exploration and
project investigation costs and $1.4
million in G&A costs, which have been partially offset
by a gain of approximately $1.2
million resulting from the use of marketable securities for
the purposes of facilitating intragroup funding transfers. For the
comparative 2022 period, the Company reported a net loss of
$8.7 million, consisting primarily of
$8.6 million in exploration and
project investigation costs and $0.7
million in G&A costs, which were partially offset by a
gain of approximately $0.5 million
resulting from the use of marketable securities for the purposes of
facilitating intragroup funding transfers.
LIQUIDITY AND CAPITAL RESOURCES
As at March 31, 2023, the Company
had cash of $11.0 million and net
working capital $5.4 million,
compared to cash of $23.2 million and
net working capital of $20.2 million
as at December 31, 2022. The
Company's cash decreased during the three months ended March 31, 2023, due to funds used in operations,
including mineral property and surface access rights payments, and
for general corporate purposes. The cash outflows for operations
during the three months ended March 31,
2023, were partially offset by gross receipts of
$27,200 resulting from the exercise
of stock options.
ABOUT NGEX MINERALS
NGEx Minerals is a copper and gold exploration company based in
Canada with projects in
Chile and Argentina. NGEx Minerals holds the large-scale
Los Helados copper-gold deposit, located in Chile's Region III, as well as the Potro
Cliffs and Valle Ancho Projects located in Argentina. Los Helados and Potro Cliffs are
located within the Vicuña District, which includes the Josemaria
and Filo del Sol deposits. Los Helados and Potro Cliffs lie along
the same major north-northeast trending structure that controls the
Filo del Sol deposit.
NGEx Minerals is the majority partner and operator for the Los
Helados Project, subject to a Joint Exploration Agreement with
Nippon Caserones Resources Co., Ltd. which operates the Caserones
open pit copper mine located approximately 15km north of Los
Helados through a subsidiary that is subject to a recently
announced purchase agreement whereby Lundin Mining Corporation will
acquire a controlling stake.
NGEx Minerals' near-term focus is on expanding the multiple
high-grade centres of Los Helados and drilling the Potro Cliffs
target to follow up on the high-grade intersections of hole
DPDH002.
The Company is listed on the TSXV under the trading symbol
"NGEX". NGEx Minerals is part of the Lundin Group of Companies.
QUALIFIED PERSONS AND TECHNICAL NOTES
The scientific and technical disclosure for the Los Helados
Project included in this news release have been reviewed and
approved by Bob Carmichael, B.A.Sc.,
P.Eng. who is the Qualified Person as defined by NI 43-101.
Mr. Carmichael is Vice President, Exploration for the Company.
Additional details on the drill results disclosed above can
be found in the Company's press releases dated January 26, 2023, April 4,
2023 and April 13, 2023.
On behalf of NGEx Minerals,
Wojtek Wodzicki,
President and CEO
For further information:
Additional information relating to NGEx Minerals Ltd. may be
obtained or viewed on the SEDAR website at www.sedar.com or
on the Company's website at www.ngexminerals.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the
news release constitutes "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities legislation (collectively, "forward-looking
information"). All statements other than statements of historical
facts included in this document constitute forward-looking
information, including but not limited to, statements regarding:
exploration and development plans and expenditures, including the
size, scope, nature, timing and foci of the Company's future
exploration programs, particularly at Los Helados and Potro Cliffs;
whether current interpretation of the exploration and/or drill
results to date at Los Helados or Potro Cliffs will be confirmed by
future work, including statements regarding prospectivity of
exploration properties, the accuracy of a geological model, the
ability to extend and define of the Fenix, Alicanto and Condor
Zones at Los Helados, or the scale, grade, or significance of the
system that is the source of the high-grade mineralization
intersected by DPDH002 completed at Potro Cliffs, or the Company's
ability to locate it; the expected results or success of
exploration activities at Potro Cliffs, including but not limited
to, drill results from the current program underway; the expected
timing of assay results generated by the Company's drill programs
at Los Helados or Potro Cliffs; the future uses of the Company's
cash and working capital; the success of future exploration
activities; potential for the discovery of new mineral deposits or
expansion of existing mineral deposits; ability to build
shareholder value; expectations with regard to adding to
Mineral Resources through exploration; expectations with respect to
the conversion of Inferred Resources to an Indicated Resource
classification, or the conversion of Indicated Resources to a
Measured Resource classification; and the ability to execute the
planned work programs. Words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events, conditions or results "will", "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotations thereof and similar
expressions identify forward-looking information.
Forward-looking information is necessarily based upon various
estimates and assumptions including, without limitation, the
expectations and beliefs of management as outlined above. Although
the Company believes that these factors and expectations are
reasonable as at the date of this document in light of management's
experience and perception of current conditions and expected
developments, these statements are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Known and unknown risks, uncertainties and other
factors may cause actual results or events to differ materially
from those anticipated in such forward-looking statements and undue
reliance should not be placed on such statements and information.
Such factors include, without limitation: the ongoing COVID 19
pandemic and the risk that an intensification of the pandemic or an
outbreak at the project could impact the company's ability to carry
out the program and could cause the program to be shut down,
estimations of costs, and permitting time lines; ability to obtain
environmental permits, surface rights and property interests in a
timely manner; currency exchange rate fluctuations; requirements
for additional capital; changes in the Company's share price;
changes to government regulation of mining activities;
environmental risks; unanticipated reclamation or remediation
expenses; title disputes or claims; limitations on insurance
coverage; assumptions that the Company will receive the permits
required to drill at Valle Ancho in a timely manner, fluctuations
in the current price of and demand for commodities; material
adverse changes in general business and economic conditions in
Chile; the availability of
financing if and when needed on reasonable terms; risks related to
material labour disputes, accidents, or failure of plant or
equipment; and other risks, uncertainties and other factors
identified in the Company's periodic filings with Canadian
securities regulators which are available on SEDAR at www.sedar.com
under the Company's profile.
The forward-looking information contained in this news release
is based on information available to the Company as at the date of
this news release. Except as required under applicable securities
legislation, the Company does not undertake any obligation to
publicly update and/or revise any of the included forward-looking
information, whether as a result of additional information, future
events and/or otherwise. Forward-looking information is provided
for the purpose of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of the Company's operating environment.
Although the Company has attempted to identify important factors
that would cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. There can be no assurance that such statements will prove
to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. All the
forward-looking information contained in this document is qualified
by these cautionary statements. Readers are cautioned not to place
undue reliance on forward-looking information due to the inherent
uncertainty thereof.
Cautionary Note to U.S. Readers
Information concerning the mineral properties of the Company
contained in this news release has been prepared in accordance with
the requirements of Canadian securities laws, which differ in
material respects from the requirements of securities laws of
the United States applicable to
U.S. companies subject to the reporting and disclosure requirements
of the United States Securities and Exchange Commission.
SOURCE NGEx Minerals Ltd.