VANCOUVER, BC, Sept. 26,
2024 /CNW/ - NGEx Minerals Ltd. ("NGEx",
"NGEx Minerals" or the "Company") (TSX: NGEX) (OTCQX:
NGXXF) is pleased to announce its exploration plan and
strategy for the largest drill program to date at the Lunahuasi
high-grade copper-gold-silver project in San Juan, Argentina. The field team is on site preparing
for mobilization of drill rigs with drilling expected to start in
early October. View PDF
2024 HIGHLIGHTS
The Phase 2 drill program at Lunahuasi completed in the first
half of 2024 delivered some of the highest-grade copper, gold, and
silver intercepts drilled anywhere in the world and confirmed that
Lunahuasi has both unusually high grades and large size potential.
The volume drill tested to date measures 400 meters by 900 meters
by 960 meters and is open in all directions. High-grade holes mark
the outer boundaries of the current drill pattern with the northern
boundary marked by several significant drill holes including
discovery hole DPDH002 that included 60m at 7.52% CuEq (5.65% Cu, 2.04 g/t Au, 44.0
g/t Ag); the southern boundary marked by DPDH021 that included 772
meters at 1.60% CuEq (1.02% Cu, 0.64 g/t Au, 14.2 g/t Ag), and the
westernmost drill holes finishing in high-grade mineralization
including the last 12 meters of DPDH022 grading 4.48% CuEq (3.82%
Cu, 0.59 g/t Au, 25.2 g/t Ag).
These results set NGEx up for a very exciting drill season as
the Company extends exploration into the large areas outside the
current drill pattern that lie beneath very similar surface
alteration.
EXPLORATION OBJECTIVES FOR 2024/2025 – MAXIMUM GROWTH
The upcoming Phase 3 campaign will be the largest program to
date at Lunahuasi. The Company's goal is to grow Lunahuasi into one
of the best, new high-grade copper and gold deposits. The planned
program will use 6 drill rigs and is expected to total up to 20,000
meters which will more than double the meters drilled to date. The
main objective for the program is to grow the deposit through
step-out drilling and to provide enough closer spaced data to
develop an initial Exploration Target as a step toward an eventual
resource estimate. An Exploration Target is an estimate of the
potential quantity and grade, expressed as ranges, of a target for
further exploration and is defined under National Instrument 43-101
(NI 43-101).
A planned magneto-telluric geophysical survey will help the
Company define potential extensions including potentially providing
vectors toward the central part of the Lunahuasi system. Core
scanning and integration of artificial intelligence (AI) into our
core logging and geological interpretation processes is being
implemented to improve work flows for more routine tasks and to
give geologists more time for targeting and
interpretation.
Wojtek Wodzicki, President and
CEO, commented, "The upcoming drill program is focused on
growing the Lunahuasi deposit, which remains open in all
directions, and continuing to advance our understanding of
this unusually high-grade deposit.
Our interpretation, based on almost 18,000m of drilling completed, is that we have
drilled only a small part of the Lunahuasi high-grade deposit, and
that what we have discovered so far is likely to be the peripheral
part of a much larger mineralized system. Exploration over the past
few years in the Vicuña District has demonstrated that this
unique area is capable of forming extremely large and notably
high-grade deposits, and our geological team is confident that
Lunahuasi will continue to surprise to the upside. Phase 1 drilling
resulted in the initial discovery early in 2023, Phase 2 showed
that the Lunahuasi deposit has exceptional grades throughout a
large volume measuring at least 400m
by 900m by 960m, and we expect Phase 3 will further extend
mineralization and confirm Lunahuasi as one of the most significant
discoveries of the last decade."
LUNAHUASI PHASE 3 DRILL PROGRAM DETAILS
The planned program will consist of three targeted ranges of
drill spacing to accomplish different objectives. The Lunahuasi
Phase 3 drill program will consist of up to 20,000m of diamond drilling to follow up on
17,862m drilled since discovery of
the deposit in March 2023. The
program is designed to work towards determining the full extent of
the high-grade mineral system and to provide enough data to develop
an Exploration Target as provided for in NI 43-101. To achieve
these objectives the planned program will test the deposit at three
target scales, as illustrated in the attached map:
- Long-range exploration holes (+300m spacing) are big step-outs that will
test for significant extensions of mineralization to the north,
south, and west and include holes that will explore for the central
part of the Lunahuasi system.
- Mid-range step out holes (50-300m spacing) will explore extensions of the
mineralized zone in all directions.
- Short-range infill holes (30-50m spacing) will test the short-range
variability of mineralized structures and high-grade zones and
confirm the main structural orientations and ultimately contribute
towards developing a future mineral resource estimate for
Lunahuasi.
The Phase 3 program is scheduled to start in early October and
continue until the onset of the Austral winter, typically in May.
Six drill rigs have been contracted, including rigs with capacity
to drill beyond 2,000m to ensure we
can accomplish the program objectives. Holes are planned to be
collared from existing platforms as much as possible, with multiple
holes from each platform, which will reduce the need for drill
moves and increase the program efficiency.
Long-range Step-out Holes
NGEx's current interpretation of the Lunahuasi mineralization
intersected to date is that it is the peripheral part of a much
larger porphyry/high-sulphidation epithermal system, the centre of
which should lie to the southwest in an area that has not yet been
drilled according to our current geological understanding.
Long-range step-out holes are designed to test this area to try to
confirm this concept and begin to establish the full potential of
the deposit. Several of these holes will be extensions of mid-range
step-out holes, which will test for direct along-strike or down-dip
extensions of drill intersections and then continue to the west to
explore this compelling target area.
Mid-range Step-out Holes
To date the Lunahuasi deposit has been drilled over an
along-strike (north-south) distance of over 400m, across an east-west panel thickness of
900m and over a dip length of almost
1,000m. It remains open in all
directions and these holes are designed to step out from existing
intersections at the edges of the deposit to try to determine its
full extent.
To the north, the deposit remains completely open beyond the
discovery hole, DPDH002, which intersected 60m at 7.52% CuEq (5.65% Cu, 2.04 g/t Au, 44.0
g/t Ag) in addition to eight additional high-grade structures (see
news release dated April 4, 2023).
Mid-range drilling will systematically step out to the north of
this hole to determine the extent and continuity
of mineralization in this direction.
One of the most exciting areas targeted in the upcoming program
is the southern part of the deposit, where two very successful
step-out holes at the end of last season's program intersected
strong mineralization along the interpreted extension of the same
structure which hosts the intersection in DPDH002 noted above. Hole
DPDH022 intersected 39m at
10.84% CuEq (2.92% Cu, 10.04 g/t Au, 67.7 g/t Ag) and DPDH021
intersected 20m at 15.05% CuEq (9.18%
Cu, 6.86 g/t Au, 98.5 g/t Ag) almost 300m and 400m south
of DPDH002 respectively (see news release dated June 19, 2024). Both holes intersected multiple
additional high- to bonanza-grade structures over 1km of hole
length. Mid-range holes will step out in all directions around
these intersections to explore for extensions to these mineralized
structures.
Several of the short-range holes to be drilled from west to east
across the known mineralization will continue as mid-range
step-outs and allow the Company to effectively test the area to the
east of the current drill pattern, expanding it to well over 1km if
successful.
Short-range Infill Holes
Lunahuasi drilling has intersected numerous high- to
bonanza-grade massive sulphide +/- massive silica structures with
estimated true widths up to 100 meters. The large number of these
features combined with relatively large spacing
between drillholes results in ambiguities in correlations of
intersections between holes.
In general, the structures appear to strike approximately 20
degrees east of north – parallel to the main Filo del Sol to Los Helados structural corridor
– and dip sub-vertically, however analogy with similar
structurally-controlled mineral deposits indicates that there is
likely to be more than one main direction and individual structures
will pinch and swell along strike and up and down dip. Zones of
higher grade or increased thickness may also be related to flexures
in, or intersections between, the main structures. Understanding
the details of the geometry of these structures is important for an
eventual resource estimate.
Short-range holes will be drilled as 30 to 50m step-outs in all directions around one of the
high-grade intersections in hole DPDH014 (71.9m at 9.63% CuEq (5.79% Cu, 4.70 g/t Au, 46.9
g/t Ag)) (see news release dated February
21, 2024) in order to confirm the orientation of this zone
and the variability of the mineralization over these distances.
Several of these holes will drill from west to east, in the
opposite direction of most of the current holes, in order to help
confirm the dip direction of the structures.
Information from the short-range holes will be used to refine
the interpretation and correlation of mineralized structures from
hole-to-hole throughout the rest of the deposit and allow for more
efficient targeting of mid-range step-out holes.
LUNAHUASI AND LOS HELADOS GEOPHYSICAL SURVEYS
Two geophysical surveys are planned for the upcoming season – a
helicopter supported ZTEM (airborne electromagnetic) survey over
the Los Helados claim block and a ground-based SPARTAN MT
(magnetotelluric) survey over the Lunahuasi project area.
The ZTEM survey is expected to start before the end of
September, and the MT survey during early October.
SPARTAN MT is a frequency domain electromagnetic (EM)
geophysical method that infers the Earth's subsurface electrical
properties from measurements of natural electric and magnetic
variation at the Earth's surface. A large survey was completed in
2023, jointly with Filo Corp. and Lundin Mining Corporation,
across the entire Filo del Sol to
Lunahuasi trend. This survey was successful in imaging
the Filo del Sol deposit as a linear, low-resistivity feature
that trended along the deposit length and continued towards the
Lunahuasi project. At Lunahuasi, the survey was restricted to
the plateau area to the west of the current drilling, due to
difficulties accessing the steep topography over the now-known
deposit. The 2024/25 program will improve survey coverage over the
deposit area, making use of new access roads that were not
available during the 2023 survey. This survey will tie into the
earlier dataset and is anticipated to allow for imaging of the
porphyry / high sulphidation epithermal target area to assist with
drillhole targeting and interpretation.
Ground MT completed a number of years ago was very successful in
outlining conductivity anomalies over the Condor, Fenix, and
Alicanto high-grade zones at Los Helados. The ZTEM survey
being undertaken over Los Helados is a passive, natural field
electromagnetic method that excels at mapping conductivity
anomalies that may be related to porphyry mineralization under
cover and at depth. It is the preferred airborne EM system in
rugged, mountainous terrain where safety considerations preclude
the low-level drape flying required by active EM systems. This
survey will cover the entire Los Helados claim block,
including most of the deposit area. Survey logistics will be shared
with the adjacent Caserones mine which is co-owned by Lundin
Mining and a subsidiary of JX Advanced Metals Corporation. The
survey results are expected to improve our understanding of the
size and extent of the Los Helados deposit and provide data
coverage over approximately 18,000ha of the Los Helados property
which have never been explored, to search for exploration targets
with similar geophysical signatures as the Los Helados deposit.
ESG INITIATIVES
As part of its continued commitment to sustainable practices,
NGEx has engaged the Lundin Foundation to progress its community
relations activities, health and safety programs, environmental
stewardship and governance framework (collectively "ESG") in
alignment with its exploration programs. In its efforts to improve
its ESG practices, the Company has also submitted an application to
join the United Nations Global Compact (UNGC), a voluntary
initiative that encourages businesses and organizations globally to
adopt sustainable and socially responsible policies and
practices.
The Company's Sustainability Summary is available on its website
at www.ngexminerals.com.
QUALIFIED PERSONS AND TECHNICAL NOTES
The scientific and technical disclosure 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.
Samples were cut at NGEx's operations base in San Juan,
Argentina by Company personnel.
Diamond drill core was sawed and then sampled in maximum 2-meter
intervals, stopping at geological boundaries. Core diameter is a
mix of PQ, HQ and NQ depending on the depth of the drill hole.
Samples were bagged, tagged and packaged for shipment by truck to
the ALS preparation laboratory in Mendoza, Argentina where they were crushed and a 500g
split was pulverized to 85% passing 200 mesh. The prepared sample
splits were sent to the ALS assay laboratory in either Lima, Peru or Santiago, Chile for copper, gold and silver
assays, and multi-element ICP. ALS is an accredited laboratory
which is independent of the Company. Gold assays were by fire assay
fusion with AAS finish on a 30g sample. Copper and silver were
assayed by atomic absorption following a 4-acid digestion. Samples
were also analyzed for a suite of 48 elements with ME-MS61 plus
mercury. 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 are Quality Control samples. No data quality
problems were indicated by the QA/QC program.
Copper equivalent (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). True widths are estimated based on a
preliminary geological interpretation and are subject to change as
more information is acquired and the geological interpretation is
refined.
ABOUT NGEX MINERALS
NGEx Minerals is a copper and gold exploration company based in
Canada, focused on exploration of
the Lunahuasi copper-gold-silver project in San Juan Province,
Argentina, and the nearby Los
Helados copper-gold project located approximately nine kilometres
to the northeast in Chile's Region
III. Both projects are located within the Vicuña District, which
includes the Caserones mine, and the Josemaria and Filo del Sol
deposits.
NGEx owns 100% of Lunahuasi and is the majority partner and
operator for the Los Helados project, subject to a Joint
Exploration Agreement with Nippon Caserones Resources LLC.
The Company's common shares are listed on the TSX under the
symbol "NGEX" and also trade on the OTCQX under the symbol "NGXXF".
NGEx is part of the Lundin Group of Companies.
Additional information relating to NGEx may be obtained or
viewed on SEDAR+ at www.sedarplus.ca.
Website: www.ngexminerals.com
Additional Information
Neither the TSX nor its Regulation Services Provider (as
that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this news
release.
The information contained in this news release was accurate at
the time of dissemination but may be superseded by subsequent news
release(s). The Company is under no obligation, nor does it intend
to update or revise the forward-looking information, whether as a
result of new information, future events or otherwise, except as
may be required by applicable securities laws.
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:
the nature and timing of the work to be undertaken to advance the
Lunahuasi and Los Helados projects, including actual metres that
will be completed during the Company's 2024/25 field program and
the Company's ability to continue drilling holes in-progress in a
future drill program; the potential for further discovery and/or
extension of mineralized zones at the Lunahuasi project; the timing
of, and conclusions resulting from, an update to the geological
interpretation at Lunahuasi, including the Company's ability to
establish an Exploration Target, or the timing and/or results
thereof; and the Company's ability to use information gathered from
drilling to date to effectively target and drill in future
campaigns, including whether the timing and ultimate outcome of the
Company's efforts to locate the centre of the Lunahuasi system; the
timing and outcome of geophysical surveys undertaken at the
Lunahuasi and Los Helados projects; and the timing and outcome of
the Company's application to the UNGC. Generally, this
forward-looking information can frequently, but not always, be
identified by use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "projects",
"budgets", "assumes", "strategy", "objectives", "potential",
"possible", "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", "should", "might" or "will be taken", "will occur" or
"will be achieved" or the negative connotations
thereof.
Forward-looking information is necessarily based upon various
estimates and assumptions including, without limitation, the
expectations and beliefs of management with respect to the nature,
scope and timing of the work to be undertaken to advance the
Lunahuasi Project. 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 emergence or intensification of infectious
diseases, such as COVID 19, and the risk that such an occurrence
globally, or in the Company's operating jurisdictions and/or at its
project sites in particular, 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, fluctuations in the current price of and demand for
commodities; material adverse changes in general business,
government and economic conditions in Argentina and/or 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; there may be
other factors that cause results not to be as anticipated,
estimated, or intended, including those set out in the Company's
annual information form and annual management discussion and
analysis for the year ended December 31,
2023, which are available on the Company's website and
SEDAR+ at www.sedarplus.ca 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.
