NGEx Resources Inc.

TSX : NGQ


NGEx Resources Inc.

April 30, 2014 17:30 ET

NGEx Drills 7.59% Copper Over 10 Metres and 314.5 g/t Silver Over 12 Metres at Filo del Sol Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 30, 2014) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce results from the final nine holes drilled during the 2014 drill program at the Filo del Sol copper-gold-silver project located in San Juan Province, Argentina. The drill holes announced today include infill holes which confirm the continuity of high-grade copper and silver mineralization and one step-out hole which extends the zone 300 metres to the north. Highlights include:

  • VRC71 which intersected 20 metres (from 360m) of 1.07% copper and 0.63 g/t gold, extending the high grade manto zone approximately 300 metres to the north of previous drilling (VRC28). This hole appears to have stopped above the silver zone;
  • VRC74 which intersected 44 metres (from 162m) of 0.80% copper and 1.09 g/t gold just above an 18 metre interval (from 236m) of 236.6 g/t silver. There are no holes drilled to the east of this hole;
  • VRC76 which intersected 14 metres (from 104m) of 1.29% copper and 2.41 g/t gold;
  • VRC79 which intersected 6 metres (from 146m) of 4.16 g/t gold above an 8 metre interval (from 206m) of 394.8 g/t silver;
  • FSDH13 which was unfortunately lost in strong mineralization at the bottom of a 26.3 metre interval (from 204m) of 3.87% copper, including the upper 10 metres which returned 7.59% copper;
  • Most drill holes terminated in porphyry mineralization as the primary goal of this program was to define the shallower, high-grade manto zone.

Filo del Sol is a high sulphidation epithermal copper-gold-silver system that overlies a porphyry copper-gold system. Overlapping mineralizing events combined with weathering effects have created several different styles of mineralization, including from top to bottom: high-grade supergene enriched copper; manto-style high-grade silver (+/- copper and gold); structurally-controlled gold; and copper-gold porphyry mineralization.

The focus of this season's drill program was to expand and infill both the copper-gold porphyry mineralization and the high-grade manto zone which occurs as a sub-horizontal sheet of variable thickness within the volcanic rocks which overlie the porphyry system. The Filo del Sol mineralization remains open in all directions.

The nine holes released here span a north-south distance of 880 metres, with VRC75 at the southern edge of the drill pattern and VRC71 at the north. Drill hole collar locations are shown on the plan map which accompanies this news release.

The results from the drill holes released today are presented below:

HOLE-ID From
(m)
To
(m)
Length 2
(m)
Au
g/t
Cu
%
Ag
g/t
CuEq1
VRC64 146.0 492.0 346.0 0.39 0.36 14.5 0.78
incl 146.0 154.0 8.0 2.80 0.17 1.3 2.09
and incl 258.0 294.0 36.0 1.01 0.77 126.9 2.85
incl 266.0 278.0 12.0 0.90 0.92 314.5 4.99
VRC71 318.0 406.0 88.0 0.41 0.49 1.0 0.77
incl 360.0 380.0 20.0 0.63 1.07 1.1 1.51
VRC74 4.0 264.0 260.0 0.42 0.41 19.9 0.92
incl 4.0 22.0 18.0 0.05 0.75 1.1 0.80
and incl 26.0 48.0 22.0 0.78 0.13 0.9 0.67
and incl 162.0 264.0 102.0 0.83 0.58 49.3 1.69
incl 162.0 206.0 44.0 1.09 0.80 4.2 1.59
incl 194.0 210.0 16.0 1.04 1.36 8.9 2.17
incl 236.0 254.0 18.0 0.67 0.28 236.6 3.34
VRC75 138.0 350.0 212.0 0.24 0.29 2.4 0.48
incl 138.0 188.0 50.0 0.22 0.44 3.6 0.63
and incl 314.0 346.0 32.0 0.41 0.27 2.1 0.57
VRC76 50.0 368.0 318.0 0.40 0.43 7.8 0.79
incl 104.0 118.0 14.0 2.41 1.29 0.6 2.93
and incl 216.0 248.0 32.0 0.87 1.25 41.7 2.30
incl 240.0 248.0 8.0 1.78 2.37 94.3 4.62
VRC77 10.0 20.0 10.0 0.89 0.01 3.2 0.65
plus 88.0 500.0 412.0 0.30 0.46 8.3 0.75
incl 88.0 120.0 32.0 0.21 2.70 2.8 2.87
and incl 330.0 344.0 14.0 0.69 0.20 110.4 1.89
VRC79 2.0 8.0 6.03 1.38 0.00 0.5 0.95
plus 56.0 60.0 4.03 1.50 0.05 0.5 1.07
plus 110.0 246.0 136.0 0.42 0.36 29.8 0.97
incl 166.0 186.0 20.0 1.45 0.85 13.7 1.99
incl 174.0 180.0 6.0 4.16 0.90 12.3 3.87
and incl 206.0 214.0 8.0 0.22 0.19 394.8 4.68
FSDH12 60.0 118.0 58.0 0.43 0.02 1.6 0.33
incl 98.0 114.0 16.0 0.74 0.02 1.7 0.54
FSDH13 204.0 230.3 26.3 0.24 3.87 2.3 4.05
incl 204.0 214.0 10.0 0.24 7.59 3.6 7.80
1 - CuEq - Copper Equivalent is calculated using US$3.00/lb copper, US$ 1,400/oz gold and US$23/oz Ag, with no provision for metallurgical recoveries. The formula used is CuEq% = Cu% + 0.6806*Au (g/t) + 0.011*Ag (g/t).
2 - Drilled lengths are interpreted to be representative of the true width of the mineralized zone, based on geological interpretation using data from previous reverse circulation and diamond drill holes, unless otherwise indicated.
3 - True width unknown.

Drillholes VRC64 and FSDH12 were drilled from the same platform. FSDH12 was abandoned due to poor ground conditions at a depth of 135.8 metres, well above the target depth. Hole VRC64 was completed to a depth of 492 metres in order to test the zone at the intended location of FSDH12. Sampling in VRC64 was initiated at a depth of 130 metres, so that the combined results from these two holes in effect comprise the results of a single hole drilled at this location. VRC64 ended in porphyry mineralization with the last sample at 0.28% copper and 0.26 g/t gold.

The mineralization in VRC64 between 258 and 294 metres appears to correlate well with the section between 166 and 186 metres in Hole VRC79, although the high-grade silver interval in the latter hole lies just below the copper-gold zone. These intersections lie along the main zone of manto-style mineralization which strikes approximately east-west and dips at about 15 degrees to the north.

This manto zone is interpreted to represent a relatively porous and permeable volcanic unit which was preferentially mineralized within the epithermal system due to increased fluid flow within it. It forms a continuous tabular zone of copper-gold-silver mineralization which stretches a minimum of 1200 metres north-northeast from VRC65 in the south to VRC63 in the north, and 530 metres northwest from VRC72 in the east to VRC66 in the west. This zone remains open in all directions.

High-grade silver mineralization is restricted to this zone, while the high-grade copper and gold zones occur within and above the manto. Drill intercepts below the manto zone generally consist of more homogeneous, disseminated and stockwork porphyry copper-gold style mineralization.

Drillhole VRC71 was a large step-out to the north which failed to reach the projection of the silver zone in this area, however, it did intersect a zone of good grade copper-gold mineralization which indicates that the mineralizing system is still strong in this area and the silver zone should lie below the bottom of this hole. The intersection in VRC71 is 300 metres north of VRC28, which intersected similar high-grade copper-gold mineralization but was also stopped short of the projection of the silver zone. Previously-released Hole VRC57 was stopped short of this copper-gold zone.

Drillhole VRC74 intersected the silver zone from 236 to 254 metres, with several copper-gold zones cut above it. The hole ended in strong porphyry-style mineralization at 0.25% copper and 0.44 g/t gold. This hole lies 70 metres southwest of Hole VRC63 (48 metres at 196 g/t silver including 12 metres at 666.6 g/t silver - previously released) which defines the northeastern corner of the silver zone. The zone remains open to the north and east of these holes.

Drillhole VRC75 intersected the projection of the manto zone at 260 metres, although this hole did not intersect silver mineralization at this depth. This hole is located 78 metres to the south of the silver zone intersection in VRC62 (previously released - 16 metres at 189.3 g/t silver) and additional drilling is required to determine if the zone is present to the west of VRC75.

Drillhole VRC76 was an infill hole which intersected the silver zone between 216 and 268 metres where it was characterized by a wider zone of lower-grade silver mineralization with good copper and gold (32 metres at 41.7 g/t silver, 1.25 % copper and 0.87 g/t gold). VRC76 ended in porphyry mineralization with the last sample at 0.51% copper and 0.19 g/t gold.

Drillhole VRC77 intersected the northern edge of the silver zone with 14 metres of 110.4 g/t silver. Other holes to the north of this one (VRC57, VRC71, VRC28) were stopped above the zone, which remains open to the north of VRC77. A shallower high-grade copper zone (32m at 2.70% copper) forms part of the supergene blanket intersected in several adjacent holes in this area. VRC77 ended in porphyry mineralization with the last sample at 0.33% copper and 0.15 g/t gold.

Core hole FSDH13 intersected the same supergene blanket 200 metres to the southwest of VRC77, with 26.3 metres at 3.87% copper, including 10 metres at 7.59% copper. This hole was abandoned due to drilling difficulties within this high-grade zone, and the last sample in the hole returned 0.96% copper. This hole deepened previous RC hole VRC56 which ended at a depth of 198 metres.

A total of 8,039 metres of reverse circulation (RC) drilling was completed in 24 holes between December 10th, 2013 and March 5th, 2014. An additional 169 metres of diamond drilling in 2 holes was also completed. Holes in the "VRC" series are reverse circulation while the "FSDH" series are diamond drill holes. Assays for seven holes were released on March 17, a further ten holes were released on April 10th and results for the final nine holes are included here. The drill program was designed to collect sufficient data to allow for the planned completion of an initial mineral resource estimate for Filo del Sol later this year.

Collar coordinates and drill hole orientations for the holes in this news release are shown below:

HOLE-ID East
(m)
North
(m)
Elev
(m)
Length
(m)
Azimuth Dip
VRC64 435100 6848500 5216.5 492.0 0.0 -90.0
VRC71 435193 6849205 5303.5 406.0 0.0 -90.0
VRC74 435269 6848738 5146.7 264.0 0.0 -90.0
VRC75 435084 6848321 5201.0 350.0 270.0 -80.0
VRC76 435194 6848618 5166.8 368.0 0.0 -90.0
VRC77 435111 6848773 5233.0 500.0 0.0 -90.0
VRC79 435211 6848505 5161.5 246.0 0.0 -90.0
FSDH12 435097 6848500 5216.5 135.8 0.0 -90.0
FSDH13 434999 6848598 5248.1 230.3 0.0 -90.0

Commenting on today's news release, Wojtek Wodzicki, President and CEO of NGEx stated, "We are very pleased with the results of this year's exploration program at Filo del Sol which is emerging as the third major discovery made by our exploration team in the last 5 years. We are particularly excited about the high copper, silver, and gold grades in the manto zone and by the potential for a large scale porphyry copper-gold deposit beneath the manto zone. Hole VRC71 is a particularly important hole which hit strong mineralization 300 metres to the north of other drilling. The Filo del Sol alteration zone is one of the largest in this part of the Andes and drilling to date has tested only a small portion of it. Mineralization is open in all directions and at depth and we believe that there is excellent potential to further extend it through additional drilling.

The drilling this year yielded some of the best copper, gold, and silver intercepts ever drilled on our projects. Our success at Filo del Sol this year follows the very successful programs which defined major copper-gold resources at Los Helados and Josemaria. We are extremely proud of our exploration team who this year added to what is already one of the most successful discovery records in the business."

To view the maps accompanying this press release, click on the following link: http://media3.marketwire.com/docs/942796m.pdf

About NGEx

NGEx is a Canadian mineral exploration company with exploration projects in Chile, Argentina, and Canada. The Company's shares are listed on the Toronto Stock Exchange under the symbol "NGQ". The Company's focus is on advancing several large copper-gold systems including the Josemaria, Los Helados, and Filo del Sol projects, located on the land package that the Company holds in Chile's Region III and adjacent San Juan Province, Argentina. Los Helados and Filo del Sol are 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%. In addition to Los Helados, Josemaria, and Filo del Sol, the Company holds an extensive portfolio of 100% owned early stage exploration projects located in Chile and Argentina. It also owns a 100% interest in the GJ copper and gold project located in British Columbia Canada. The GJ project is optioned to Teck Resources who are earning up to a 75% interest.

On behalf of the board

Wojtek Wodzicki, President and CEO

Qualified Persons

Mr. Bob Carmichael, B.A.Sc, P.Eng., is the Qualified Person as defined by National Instrument 43-101. Mr. Carmichael is Vice President, Exploration for the Company and has reviewed and approved the technical information contained in this news release. The Quality Control/Quality Assurance (QA/QC) program is under the management of Diego Charchaflie MSc., P.Geo (BC), a Qualified Person pursuant to NI 43-101.

Samples were collected at the drill site by Company personnel with initial splitting carried out at a facility near the drill sites and final splitting completed at the Company's core processing facility located in Copiapό, Chile. Individual samples represent final splits from 2 metre intervals down the hole. All samples from the 2014 program are from reverse circulation drill holes. Samples were delivered to Acme Analytical Laboratories S.A. sample preparation facility in Copiapό and shipped on to the Acme lab in Santiago, Chile. Samples were crushed, split and 500g was pulverized to 85% passing 200 mesh. Gold analyses were by fire assay fusion with AAS finish on a 30g sample. Silver was analyzed both as part of the 36 element ICP package and also by 4-acid digestion with AAS finish (AAS results shown in table). Copper was analyzed by AAS after a 4-acid digestion(shown in table) and also in three steps of a representative 1 gram from the sub-sample: 1) with a 10% sulphuric acid cold solution, 2) a 10% sodium cyanide digestion of the residue of step 1, and 3) a 3-acid digestion of the residue of step 2. Solutions from each step were analyzed by atomic absorption. Samples were also analyzed for a suite of 36 elements with ICP-ES. Copper and gold standards as well as blanks and duplicates (field, preparation and analysis) were randomly inserted into the sampling sequence for Quality Control. On average, 9% of the submitted samples correspond to Quality Control samples.

Cautionary Note Regarding Forward-Looking Statements and Information

This news release contains "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 includes, but is not limited to, statements with respect to the estimation of commodity prices, mineral resources, statements with respect to the expectation that current drilling will be sufficient to permit the calculation of an initial resource for Filo del Sol, timelines for the calculation of the initial resource at Filo del Sol costs, the success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining activities, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. Generally, this 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.

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, 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 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.

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 should not place undue reliance on 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 other to get a better understanding of the Company's operating environment. These factors are not, and should not be construed as being, exhaustive. 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. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. The Company expressly disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

Contact Information