NGEx Minerals Reports Q1 2022 Results

VANCOUVER, BC, May 19, 2022 /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, 2022. View PDF.

Q1 2022 HIGHLIGHTS

• Drilling at Los Helados (Region III, Chile) confirms continuity of high-grade mineralization within gaps in the previous drill pattern and confirms extension of high-grade core; and

• Initial 8-hole drill campaign at Valle Ancho (Catamarca Province, Argentina) discovers a new copper-gold porphyry system and expands near-surface oxide gold zone.

Commenting on the results Wojtek Wodzicki, President and CEO stated, “The initial results from the ongoing brownfield drill program at Los Helados have confirmed continuity of the high-grade core of the deposit and extension of this high-grade material in multiple areas. Infilling the high-grade zone and testing areas for potential extension are critical first steps for unlocking value at Los Helados as the Company moves towards refining its geological model and ultimately evaluating alternate development and mine planning strategies.

We also completed our first greenfield drill campaign at the Valle Ancho copper-gold project in Catamarca Province, Argentina during the first quarter. The resulting discovery of a near-surface copper-gold porphyry system and expansion of a separate oxide gold zone have demonstrated the prospectivity that exists at this large and underexplored land package. It has been an exciting start to the year, and we look forward to building on these successes.”

2022 Los Helados Drill Program Delivers Continuity and Extension of High-grade Mineralization

The 2022 drill program at Los Helados copper-gold project is currently ongoing with three rigs and is anticipated to continue until mid-June, coinciding with the onset of winter weather in South America. The program is designed to further define and potentially extend the high-grade core of the Los Helados deposit, which is defined by a 0.7% copper equivalent (“CuEq”) grade shell within the current Mineral Resource model. The program also includes holes to test targets where geological and geophysical modelling suggests potential for satellite high-grade zones.

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To date seven holes have been completed, with an additional three currently underway. The Company has received and released assay results for its first three completed holes of the 2022 campaign, the highlights of which are summarized as follows:

• LHDH073 infilling a 180m gap between previously completed holes and confirming continuity of the strong mineralization within the deposit’s high-grade core (see News Release dated April 26, 2022);

• LHDH074 infilling an area where spacing between previous holes was between 170m and 270m and adding high-grade mineralization above and below the 0.7% CuEq grade shell (see News Release dated May 16, 2022); and

• LHDH075 extending the high-grade zone to the south (see News Release dated May 16, 2022).

Intersections of the high-grade zone by these holes are respectively represented by the 696m interval commencing at 216m for LHDH073, the 754m interval commencing at 136m for LHDH074, and the 380m interval starting at 222m for LHDH075.

The results from the first three holes of the 2022 program continue to validate the Company’s improved understanding of the deposit’s geology, and provide valuable information for the Company to further refine its understanding of the controls on the higher grades at Los Helados and highlight areas for potential further extension thereof.

The following is a summary of the other completed holes for which assays are pending, and the holes currently in progress:

The data generated from the current drill program at Los Helados will form the basis for a revised geological model and will enable evaluation of alternate development scenarios for Los Helados, exploring optionality in scale of operations and mine plan strategies, which may illustrate alternative strategies for realization of value on this asset. In addition, the drill program will provide samples for additional detailed metallurgical testwork, which will allow for optimization of process flowsheets and a better understanding of variability within the orebody.

Summary of 2021/2022 Valle Ancho Drill Program

In March 2022, the Company concluded its first drill program at the Valle Ancho copper-gold project in Catamarca Province, Argentina. The Company focused its maiden drill program on three high priority targets and completed 3,060m of diamond drilling in 8 holes, which resulted in the discovery of a new copper-gold porphyry system at the La Quebrada target and expansion of the near-surface, oxide gold zone at the Nordin target.

While both targets require additional drilling to enable a full assessment of the size, scale and significance of the identified mineralization, the results from the Company’s 2021/2022 drill program at Valle Ancho have validated the Company’s earlier reconnaissance and target generation work, and also confirm the prospectivity of the large and underexplored Valle Ancho land package, which is located on the Argentinian side of the Maricunga Gold Belt.

The assays results from the 8-hole drill campaign are summarized as follows:

Nordin Target – Near Surface, Oxide Gold Discovery

La Quebrada Target – Copper-gold Porphyry Discovery

Anomalia 4 Target

The Company is now analyzing the assays from the 2021/2022 drill campaign alongside the results of regional prospecting and target development work and planning the next phase of work at La Quebrada and Nordin. Ongoing data compilation and analysis will also seek to evaluate other areas of interest for future exploration and drill programs at Valle Ancho.

The completion of the 2021/2022 field and drill campaign at Valle Ancho has substantially addressed the Company’s US$8 million expenditure requirement to earn-into the Valle Ancho project, which must be met by the end of 2022. As of the date of this News Release, the Company anticipates making the remaining earn-in expenditures prior by the required deadline with additional expenses related, but not limited, to ongoing technical consultation with respect to, and analysis of, the results of the Company’s first drill campaign at Valle Ancho, which may include developing preliminary geological models and interpretations.

FINANCIAL RESULTS

SELECTED FINANCIAL INFORMATION

The Company incurred a net loss of $8.7 million during the three months ended March 31, 2022, comprised primarily of $8.6 million in exploration and project investigation costs and $0.7 million in G&A costs, which have been partially offset by a gain of approximately $0.5 million resulting from the use of…