VANCOUVER, BRITISH COLUMBIA–(Marketwired – Oct. 13, 2015) – NGEx Resources Inc. (TSX:NGQ)(OMX:NGQ) (“NGEx” or the “Company”) is pleased to provide an update on progress towards the completion of a Preliminary Economic Assessment (“PEA”) of an integrated Los Helados – Josemaria operation (the “Integrated Study”) as well as on the results of a comprehensive review of the exploration potential of the Company’s approximately 60,000 Ha land package.
The Los Helados PEA(1), completed in October 2014, contemplated the standalone development of Los Helados and was the first step in the Company’s longer term plan to evaluate the potential to develop a district-scale integrated operation. The Integrated Study will consider a scenario in which production from the Los Helados and Josemaria deposits feeds a central processing facility with the goal of optimizing overall project economics. The Josemaria deposit is located approximately 12 kilometers from Los Helados (see attached map). Engineering work undertaken during 2015 focused on the key drivers of project economics as highlighted by the Los Helados PEA and on acquiring the data needed to complete the Integrated Study. The Company expects to complete a PEA of the Integrated Study in early 2016.
Commenting on the Company’s progress to date Wojtek Wodzicki, President and CEO said “The Integrated Study will be an important milestone for the Company. It is an important step toward our long term objective of demonstrating the potential to develop our discoveries as a regionally integrated operation. Teck and Goldcorp’s recently announced Corridor Project provides a possible template for the future development of mining projects in the high Andes that we believe has similarities to the NGEx projects.
“Our current study is focused on trying to significantly reduce pre-production timelines by staging development of Josemaria and Los Helados to enable early delivery of the highest grade and most easily accessible material to a central processing facility. This approach, combined with the potential to reduce capital costs and spread them over a larger resource base, has the potential to create a very exciting project. The tremendous exploration upside we continue to see on our land package adds a further dimension to this emerging district and, has the potential to yield additional discoveries over time.”
The 2015 engineering work program includes:
- Development of an optimized mine plan which combines the Los Helados and Josemaria deposits. The objectives of this work are to evaluate opportunities to:
- bring forward production from the higher grade portion of the deposits which contains a combined Indicated mineral resource of 740 million tonnes(1) of 0.50% copper; 0.26 grams/tonne gold, 1.58 grams/tonne silver for a copper equivalent grade of 0.69% CuEq(2) at a cut off grade of 0.6% CuEq;
- reduce the upfront development costs;
- reduce the time needed to ramp up to full production; and
- extend the mine life by using a declining cut-off grade strategy later in the mine plan.
- Additional metallurgical testwork on both deposits to continue to improve metal recoveries and concentrate grades and better understand how these will vary over the life of the proposed mine;
- Geotechnical studies at Los Helados to better define the block cave mining characteristics of the deposit;
- An evaluation of the optimum site for a centralized processing plant including an assessment of options to reduce the infrastructure, water, and power costs used in the Los Helados PEA;
- Environmental baseline studies.
The above information will be used in the PEA of the Integrated Study expected to be completed in early 2016.
In addition to the ongoing engineering studies at Los Helados and Josemaria, the Company has recently completed a comprehensive review of the exploration potential on the approximately 60,000 Ha land package which encompasses Los Helados, Josemaria, and Filo del Sol. Several high-quality exploration targets were developed during the early exploration programs that led to the discovery of the Los Helados and Josemaria deposits, but were not fully explored due to the shift of focus towards deposit definition once the discovery holes were drilled. These targets include geochemical anomalies similar in size and tenor to those related to the known deposits, with coincident geophysical targets and mapped alteration features consistent with porphyry-style mineralization. The highest-priority targets occur along two parallel north-south oriented trends interpreted to represent large-scale structural breaks. The western trend includes the Los Helados deposit, while the eastern trend links the Josemaria deposit in the south with the Caserones deposit in the north.
Geological mapping and a review of historical exploration data completed earlier this year at the 100% owned Filo del Sol project, resulted in a much improved understanding of this complex system and has generated a number of new exploration targets outside the current resource envelope. New exploration targets include the potential feeder zone to the current resource and a porphyry copper-gold target, including a supergene enriched copper zone, to the south of the current resource (see attached map for details). The Company expects to complete an updated mineral resource estimate for Filo del Sol during the fourth quarter of 2015.
A comprehensive surface exploration program has been developed for the upcoming field season which runs from January through to April, 2016. Work will be focused on geological mapping, geophysics, and geochemical sampling to follow up on numerous areas of porphyry-style alteration. The upcoming work program is expected to lead to the definition of multiple drill targets which will be tested at a later date.
(1)Los Helados Technical Report dated November 24, 2014 and titled “Los Helados Cu-Au Deposit Atacama Region III Chile NI 43-101 Technical Report on Preliminary Economic Assessment”. The Los Helados resource estimate has an effective date of September 19, 2014 and the Josemaria Technical Report dated November 13, 2013 and amended March 24, 2014 and titled “Second updated mineral resource estimate for the Josemaria Property San Juan Province Argentina” has an effective date of September 27, 2013. Both of these reports are available under the Company’s profile on SEDAR (www.sedar.com).
(2) CuEq = Cu % + (0.6806 * Au g/t) + (0.011 * Ag g/t)
The field programs and selection of the metallurgical samples was carried out under the supervision of Mr. 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 and has reviewed and approved the technical information contained in this news release.
NGEx is a Canadian mineral exploration company with exploration projects in Chile and Argentina. The Company’s shares are listed on the Toronto Stock Exchange and on NASDAQ Stockholm under the symbol “NGQ”. The Company’s focus is on three advanced exploration stage copper-gold systems located on a contiguous land package that the Company holds in Chile’s Region III and adjacent San Juan Province, Argentina. Los Helados is part of a joint venture in which the Company holds 60% and Pan Pacific Copper Co., Ltd. holds 40%. Josemaria is part of a joint venture in which the Company holds 60% and Japan Oil, Gas, and Metals National Corporation (JOGMEC) owns 40%. NGEx holds a 100% interest in the Filo del Sol Project. In addition to the these more advanced projects the Company holds a portfolio of 100% owned early stage exploration projects located in Chile and Argentina.
The information in this release is subject to the disclosure requirements of NGEx Resources under the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. This information was publicly communicated on Tuesday, October 13, at 2:00am Eastern Time.
On behalf of the board
Wojtek Wodzicki, President and CEO
Cautionary Note Regarding Forward-Looking Statements
This news release contains “forward looking statements” and “forward-looking information” (collectively, “forward looking information”) within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of NGEx Resources Inc. Forward-looking information in this news release includes, but is not limited to, statements regarding the Company’s expectations and estimates with respect to the timing for the completion of the Integrated Study and the PEA and for the completion of an updated resource estimate for Filo del Sol, the nature of any potential development scenarios specifically including those being considered by the Integrated Study, opportunities to reduce costs, development and ramp up timelines, and other factors that may impact project economics, the success of future exploration activities, and expectations with regard to adding to mineral resources through exploration. Statements relating to “mineral resources” are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future. Generally, forward-looking information can be identified by the use of forward-looking terminology 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 state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative connotations thereof. All such forward-looking information is based on the opinions and estimates of the relevant management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond the Company’s ability to control or predict.
All statements other than statements of historical fact may be forward-looking statements. Forward-looking information is necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks and uncertainties relating to, among other things, the inherent uncertainties regarding cost estimates, changes in commodity prices, currency fluctuation, financing, unanticipated resource grades, infrastructure, results of exploration activities, cost overruns, availability of materials and equipment, timeliness of government approvals, taxation, political risk and related economic risk and unanticipated environmental impact on operations as well as other risks and uncertainties more fully described under “Risks Factors” in the Company’s Annual Information Form available under the Company’s profile at www.sedar.com and the Company’s website.
The forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. 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. Forward-looking information is based on certain assumptions that the Company believes are reasonable, including that the current price of and demand for commodities will be sustained or will improve, the supply of commodities will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive. 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 of 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.
To view the map “Filo del Sol Target Types and Areas,” please visit the following link: http://media3.marketwire.com/docs/ngq1013map1.pdf.
To view the map “Los Helados and Josemaria Deposit Locations,” please visit the following link: http://media3.marketwire.com/docs/ngq1013map2.pdf.