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NGEx Drills 5.80% Copper Over 22 Metres at Filo Del Sol Project

Apr 10, 2014 - 08:30 ET
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VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 10, 2014) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce results from ten additional 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 continue to extend the high-grade manto zone and expand the broader zone of disseminated copper, gold and silver mineralization. To view the Map associated with this release, visit the following link: http://media3.marketwire.com/docs/938936-F1.pdf.

Highlights include:

  • VRC63 which intersected 12 metres of 663 g/t silver (from 262m), extending the high grade manto zone approximately 145 metres to the northeast of previous drilling (VRC38);

  • VRC66 which intersected the high grade manto zone with 16 metres of 222 g/t silver (from 358m), extending the zone by 290 metres to the northwest of previous drilling (FSDH02). This hole also intersected 20 metres of 2.11% copper (from 238m) in the supergene enrichment blanket;

  • VRC69 which intersected 20 metres of 2.44% copper (from 92m) in the supergene blanket;

  • VRC70 which intersected 22 metres of 5.80% copper (from 146m) in the supergene blanket plus a 6 metre interval of 12.41 g/t gold (from 120m);

  • VRC72 which intersected the high-grade manto zone with 12 metres of 907 g/t silver (from 176m), extending the zone 140 metres to the east of previous drilling (VRC34);

  • All drill holes terminated in porphyry mineralization.

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, including supergene enrichment, have created several different styles of mineralization at Filo, including copper-gold porphyry, structurally-controlled gold, manto-style high-grade silver (+/- copper) and high-grade supergene copper enrichment.

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 ten holes released here span a north-south distance of 2,000 metres, with VRC65 at the southern edge of the drill pattern and VRC78 at the north. Drill hole collar locations are shown on the plan map which accompanies this news release.

A total of 8,208 metres of reverse circulation (RC) drilling was completed in 24 holes between December 10th, 2013 and March 5th, 2014. Assays for seven holes were released on March 17 and assays are pending for an additional seven holes. 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. Once complete drill results are received the Company plans to start work on an initial resource which is expected to be complete in the fourth quarter of 2014. Until all drill results are received, the Company does not have sufficient data to commence this assessment.

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

HOLE-ID FROM TO LENGTH2 AU GPT CU % AG PPM CU EQ1
VRC633 152.0 370.0 218.0 0.56 0.41 46.5 1.30
incl 216.0 234.0 18.0 0.76 0.97 29.4 1.81
or incl 226.0 274.0 48.0 0.42 0.40 196.0 2.85
or incl 262.0 274.0 12.0 0.36 0.34 663.3 7.88
and incl 316.0 330.0 14.0 2.68 0.34 6.4 2.24
VRC65 0.0 246.0 246.0 0.45 0.34 21.4 0.88
incl 6.0 68.0 62.0 0.59 0.42 37.7 1.23
and incl 84.0 116.0 32.0 0.24 0.39 62.6 1.25
and incl 210.0 224.0 14.0 1.38 0.33 3.9 1.32
VRC66 70.0 150.0 80.0 0.50 0.02 1.3 0.37
plus 238.0 457.0 219.0 0.26 0.36 18.4 0.74
incl 238.0 258.0 20.0 0.12 2.11 1.4 2.21
and incl 358.0 374.0 16.0 0.29 0.34 222.1 2.98
VRC67 120.0 191.0 71.0 0.52 0.16 2.0 0.54
incl 142.0 160.0 18.0 1.16 0.02 2.1 0.83
and incl 186.0 191.0 5.0 0.18 1.99 0.5 2.11
VRC67 lost at 191 metres in strong mineralization.
VRC68 Abandoned at 84 metres - re-drilled as VRC69
VRC69 0.0 32.0 32.0 1.08 0.01 2.0 0.77
plus 92.0 332.0 240.0 0.35 0.53 7.6 0.85
incl 92.0 112.0 20.0 0.22 2.44 1.4 2.60
and incl 174.0 194.0 20.0 0.81 0.53 0.5 1.09
and incl 312.0 332.0 20.0 0.59 0.31 37.5 1.12
VRC70 120.0 164.0 44.0 2.48 2.84 4.8 4.58
incl 120.0 134.0 14.04 6.44 0.06 4.0 4.49
or incl 120.0 126.0 6.04 12.41 0.05 3.3 8.54
and incl 146.0 276.0 130.0 0.33 1.26 3.1 1.52
or incl 146.0 168.0 22.0 0.71 5.80 5.8 6.35
VRC72 90.0 342.0 252.0 0.30 0.30 49.9 1.05
incl 108.0 190.0 82.0 0.40 0.43 141.4 2.26
or incl 166.0 188.0 22.0 0.69 0.80 507.2 6.85
or incl 176.0 188.0 12.0 0.64 0.51 907.3 10.93
VRC73 148.0 331.0 183.0 0.24 0.69 2.7 0.88
incl 148.0 194.0 46.0 0.21 1.73 4.3 1.92
VRC78 344.0 401.0 57.0 0.07 0.24 7.4 0.37
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.
3 - Overlimit Silver assay (greater than 3,000 g/t) cut to 3,000 g/t;
4 - True width unknown.

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
VRC63 435300 6848800 5156.6 370.0 0.0 -90.0
VRC65 434866 6847600 5157.6 325.0 0.0 -90.0
VRC66 434900 6848800 5270.0 457.0 0.0 -90.0
VRC67 435000 6848400 5264.1 191.0 270.0 -80.0
VRC68 435100 6848700 5201.1 84.0 0.0 -90.0
VRC69 435100 6848700 5201.1 332.0 0.0 -90.0
VRC70 435000 6848200 5175.9 276.0 0.0 -90.0
VRC72 435260 6848400 5139.5 350.0 0.0 -90.0
VRC73 434900 6848100 5201.9 331.0 0.0 -90.0
VRC78 435350 6849550 5155.0 401.0 270.0 -70.0

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 the Vicuña Project 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.


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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