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NGEx Drilling Extends Josemaria Mineralization

Apr 1, 2010 - 08:30 ET
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to report the results of its recently completed drill program at the Josemaria Project located in northern San Juan Province, Argentina. The drill program comprised 7 diamond drill holes totaling 2,253 metres. The holes were drilled as significant step-outs from the boundary of the current NI 43-101 inferred resource of 460 million tonnes at 0.39% copper and 0.30 grams/tonnes gold at a cut off grade of 0.3% copper1 and results confirm that the extension of copper/gold mineralization (please see attached maps, http://media3.marketwire.com/docs/ngqq0401.pdf). 

It has long been recognized that porphyry copper deposits in the Andes are not regularly distributed but rather tend to occur in clusters with several major deposits occurring within areas of less than 200 square kilometres. The general explanation for this clustering tendency is that large scale tectonic and structural features focus the magmatism that is responsible for mineralization into these relatively restricted favourable areas. Well known examples of deposit clusters are the Quebrada Blanca-Collahuasi District, the Chuquicamata District, the Escondida District, and the Andina-Los Bronces District all in Chile.

Josemaria is one of a several large porphyry copper-gold systems including Filo del Sol and Los Helados discovered within a large block of contiguous ground that the Company controls in northern San Juan Province Argentina and adjacent parts of Region 3 Chile. The occurrence of several major copper-(gold) systems including Caserones (Regalito) and the Company's Josemaria, Los Helados, and Filo del Sol discoveries in relatively close proximity suggest that they are part of a significant new porphyry copper cluster - please see attached map.

Mineralization in the Josemaria deposit occurs as disseminated and stockwork controlled pyrite, chalcopyrite, and occasional bornite and the deposit is coincident with a moderate chargeability anomaly that extends to the north, northeast, and southwest of the known resource. This drill program targeted coincident moderate chargeability and strongly anomalous copper and gold in soils located on the periphery of the known resource. Intervals from the drill program that are above 0.2% copper are summarized in the table below. Intervals above 0.30% copper are highlighted. In all the holes except DDH 13 these intervals are associated with strong sericitic and potassic alteration and are within a larger envelope of strongly anomalous copper.

Josemaria 2009 Drill Results
DrillHole From To Interval Cu % Au ppm
DDH_08 118 407.65 289.65 0.30 0.188
Including          
DDH_08 180 322 142 0.35 0.225
DDH_08 344 366 22 0.38 0.226
           
DDH_09 110 116 6 0.28 0.113
DDH_09 148 152 4 0.28 0.101
DDH_09 266 270 4 0.27 0.108
DDH_09 352 386 34 0.32 0.099
           
DDH_10 142 146 4 0.27 0.205
DDH_10 220 308.15 88.15 0.27 0.161
Including          
DDH_10 220 238 18 0.49 0.262
           
DDH_11 72 86 14 0.25 0.043
DDH_11 114 118 4 0.27 0.067
DDH_11 130 134 4 0.36 0.088
DDH_11 156 160 4 0.29 0.062
DDH_11 228 230 2 0.49 0.089
           
DDH_12 78 100 22 0.20 0.027
DDH_12 222 228 6 0.21 0.086
           
DDH_13 No Significant Intercepts    
           
DDH_14 172 314 142 0.212 0.092
Including          
DDH_14 172 182 10 0.42 0.174
DDH_14 198 240 42 0.25 0.112
Intervals are core lengths and true widths may be less than reported here.

DDH 08 and DDH 10 successfully extended mineralization for approximately 300m to the north of the current resource.

DDH 09, 11, and 14 tested an area with a copper and gold in soils anomaly with coincident chargeability located to the northeast of a barren post-mineral intrusive cut by JMRC-04 (see map). All three drill holes intersected strong potassic alteration with secondary biotite and abundant disseminated pyrite, and lesser chalcopyrite and bornite. Although the intercepts above a 0.2% copper cut off are not as thick in these holes as those in the main deposit they contain strong porphyry style alteration throughout and clearly show that the mineralized system extends to the northeast and is still open. Future exploration drilling will try to connect the mineralization hit in these holes with the main resource.

DDH 12 tested a chargeability anomaly to the west of the resource. Although relatively low grade, the intercept shows that the system is not completely closed off to the west. The hole was intensely altered throughout.

DDH 13 tested a strong chargeability anomaly about 250m west of the current resource and intersected strong alteration and abundant disseminated pyrite but no significant copper or gold values.

Commenting on the results, Wojtek Wodzicki, the Company's President and CEO stated, "The 2009 drill program intersected thick sections of alteration and mineralization outside the current resource envelope and confirms that the already large Josemaria Deposit lies within a much larger mineralized porphyry system. Future exploration will focus on finding higher grade zones within the newly identified extensions."

The Company holds a 100% interest in the Josemaria project subject to an option agreement whereby Japan Oil, Gas and Metals National Corporation ("JOGMEC") has the right to earn a 40% interest in the project by making a total of $6.13 million in exploration expenditures over three years. This is the first year of JOGMEC's earn in and this year's $2.13 million program was 100% funded by JOGMEC.

1 For greater detail on the resource estimate, the reader is referred to the NI 43-101 report titled "Preliminary Resource Estimate Update for the Josemaría Project, San Juan Province, Argentina" dated November 20, 2007 that is filed under the company's profile on Sedar.

Sample Preparation and Analysis and Qualified Person

The drill core was logged, sawed, and half cores were sampled in their entirety in two-meter intervals or intervals corresponding to geological breaks by Company personnel at the Company's Josemaria Camp. Samples were shipped from the Project to ACME's Mendoza, Argentina facilities for crushing and grinding. The sample pulps were analyzed by standard industry assay methods- in ACME's Santiago, Chile Laboratories. 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. The Quality Control/ Quality Assurance (QA/QC) program on the Josemaria Project 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


FOR FURTHER INFORMATION PLEASE CONTACT:

NGEx Resources Inc.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
ngexresources@namdo.com
www.ngexresources.com



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