NGEx Resources Inc.

NGEx Resources Inc.

July 09, 2010 18:40 ET

NGEx Announces Two New Grass-Roots Porphyry Copper Discoveries in Central Chile

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2010) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to report on recent work completed by the Company at the 100%-owned Colmillos and Andrea projects in north-central Chile, where mapping and sampling programs have defined targets with porphyry copper-style mineralization in poorly explored regions of the productive Miocene-Pliocene and Eocene-Oligocene Belts.

Colmillos and Andrea projects are new grass roots discoveries made by NGEx geologists while exploring alteration and structural targets identified through a combination of in-house satellite image processing and compilation of regional geology. Initial surface work in both projects includes talus and rock-chip sampling as well as 1:10,000-scale mapping. Results to date are encouraging and will be followed up with geophysical surveying and drilling later this year.

Colmillos Project, Chile

The Colmillos Project is located in the Andes of central Chile in the gap between the El Indio epithermal gold belt to the north and and the Miocene-Pliocene porphyry copper belt to the south. The project consists of 100% owned exploration licenses covering 3,400 hectares. The licenses were acquired by staking.

Mineralization in the Colmillos area is associated with Tertiary-(Miocene-Pliocene?) porphyry stocks which intrude a late Paleozoic basement. In the southern part of the Colmillos property, these rocks host tourmaline cemented hydrothermal breccias. Both the breccia and stock emplacement is controlled by NNE trending regional faults. Mapping to date shows that the breccias outcrop along a 4.3 kilometre by 0.7 kilometre trend which follows the regional structural trend. The breccias are cemented with quartz and tourmaline and show occasional copper oxide staining. The breccias are surrounded by a 12 square kilometre area of hydrothermal alteration which is zoned from central phyllic alteration outward to argillic and advanced argillic assemblages. 

To date, 258 samples of talus fines, 76 rock chip samples and 6 float samples have been collected on the Colmillos project. In the southern part of the property, an east-west, 1.2-km long line of talus samples taken over strongly oxidized and leached intrusives and breccias returned an average 292 ppm copper and 45 ppm molybdenum (see map). The 41 rock samples collected from this area returned an average of 232 ppm copper and 35 ppm molybdenum with maximums of 3936 ppm copper and 388 ppm molybdenum. All samples are from strongly oxidized and leached rock and therefore these values are considered strongly anomalous. The copper and molybdenum values as well as the observed surface alteration features are typical of the leached caps of porphyry copper systems and suggest that a potential enrichment zone could be present at depth. Similar examples in the area are Pelambres (1,502 Mt @ 0.64% Cu and 0.018% Mo) located 97 km to the South and the Los Azules project (922 Mt @ 0.55% Cu) located 24 km to the SSE in Argentina.

Andrea Project, Chile

The Andrea Project is located in the Andes of Region IV of Chile and lies within the late Eocene – early Oligocene Copper Belt. This is one of the most important copper belts in the world and includes such giant porphyry copper deposits as Chuquicamata and Escondida. The project area lies approximately 75 kilometres east of the city of Illapel in central Chile.

The Andrea Project consists of 100% owned exploration licenses covering 1,300 hectares. Mineralization is associated with Eocene (?) porphyritic intrusives of intermediate composition that cut Late Cretaceous volcanic and sedimentary rocks which form the regional basement. The Eocene intrusives crop-out in a 2.5 by 4.5 kilometre area and are generally located along north-trending regional faults that also control the location of hydrothermal alteration and mineralization. The alteration zone associated with the intrusives extends over an area of 3 by 2 kilometres and grades outward from a 600m long central core of potassic alteration along Banzai Ridge, with disseminated secondary biotite and stockwork pyrite, magnetite and chalcopyrite, to a large area of sericitic alteration with abundant iron oxides (goethite > jarosite > hematite) (see attached map).

Exploration work to date consists of 149 talus fines and 80 rock samples, and 1:10,000-scale outcrop mapping. In detail, 31 talus samples that cover a 1.1 by 0.75 kilometre area along Banzai ridge average 1770 ppm copper and 45 ppm molybdenum (and 36 ppb gold); rock samples from this area average 1746 ppm copper and 31 ppm molybdenum and assayed up to a maximum of 6016 ppm copper and 253 ppm molybdenum with a nucleus of 600 meters by 200 meters that averaged 2,400 ppm copper. Talus fines results over the phyllic zone average 185 ppm copper and rock samples reach maximum of 100 ppm copper and 88 ppm molybdenum. These results are considered to be very encouraging for this early stage of exploration.

The results of geochemical sampling and alteration mapping to date indicate that a significant copper-molybdenum porphyry system has been identified at Andrea. The best results to date correspond to the zone of potassic alteration, however, the phyllic-altered zone is also a highly prospective area where significant copper and molybdenum mineralization could be present at depth.

Commenting on the results Wojtek Wodzicki, President and CEO of NGEX, stated, "We are very excited by the results from Colmillos and Andrea. These projects are part of the strong pipeline of drill ready projects that NGEX has in the Andes and have the potential to quickly advance and add to our existing resource base in the region. We hope that these projects are a further step towards our objective of building the best portfolio of undeveloped copper projects in the region."

Sample Preparation, Analysis and Qualified Person

Samples were shipped from the Project to ACME's Santigo, Chile facilities for crushing and grinding. The sample pulps were analyzed by standard industry assay methods in ACME's Santiago, Chile Laboratories. For quality control purposes, internal lab, standards and blanks have been considered at this stage of the exploration. No inconsistencies were detected. The Quality Control/ Quality Assurance (QA/QC) program on the Andrea and Colmillos Projects is under the management of Diego Charchaflie MSc., P.Geo (BC), a qualified person pursuant to NI 43-101. Dr. Wojtek Wodzicki Ph.D, P.Geo (BC), a Qualified Person as defined by National Instrument 43-101 and President and CEO of NGEX has reviewed and verified the technical exploration information contained herein.

On behalf of the Board,

Dr. Wojtek Wodzicki, President and CEO

To view the maps accompanying this release please click on the following link:

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