VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2013) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to report initial results from this season's drilling at the Josemaria copper-gold porphyry project located in San Juan Province, Argentina. The results published here extend the high grade chalcocite zone intersected last season by 100 metres to the north and are the first three of fourteen holes drilled to test the possible extension of the high grade zone (see attached map: http://media3.marketwire.com/docs/862104map.pdf). The results of the remaining eleven holes which step out another 600 metres to the north of the holes published today are pending receipt of assays.
The highlights of the holes released today include JMDH61 which intersected 230.5 metres at 0.62% copper and 0.24 g/t gold and JMDH62 which intersected 160.5 metres at 0.53% copper and 0.19 g/t gold. Both holes are on a section line 100 metres north of high grade hole JMDH50 drilled last year. The third drill hole released today, JMDH60, was collared 100 metres to the east of JMDH50.
A total of 7,300 metres in 14 holes have been completed to date. Assays from the first three of these holes have now been received and are reported here. The focus of this season's drill program has been to try to expand the currently defined resource to the north of two high-grade intersections drilled at the end of the 2011/2012 field season in holes JMDH49 and JMDH50 (see attached map). These holes intersected a previously unknown zone of high-grade chalcocite mineralization at the northern edge of the drill pattern (see May 23, 2012 and July 16, 2012 News Releases).
|*CuEq - Copper Equivalent calculated using US$3.00/lb copper and US$1,400/oz gold, with no provision for metallurgical recoveries. Drilled lengths are interpreted to be representative of the true width of the mineralized zone.
Wojtek Wodzicki, President and CEO of NGEX commented, "Today's results are very positive and expand a zone of high grade chalcocite mineralization that could if further extended have a significant impact on the existing resource and the project. The high grade zone remains open in several directions and we continue an aggressive program of step out drilling to test this potential."
Assays are pending for an additional 11 holes which were drilled over an area extending up to 600 metres to the north of JMDH61 and 62. Assay turnaround time from Josemaria is typically up to 2 months due to logistical issues in getting the samples to the lab, combined with longer turnaround from the lab during the busy South American summer exploration season. Drilling at Josemaria is expected to continue until early April and continues to test the northern high grade zone as well as possible extensions of mineralization to the south of the current resource. The results of this program are expected to contribute to an updated resource estimate which we expect to produce during the third quarter.
Collar coordinates and drill hole orientations for the holes in this news release are shown below:
At a 0.30% copper equivalent cutoff grade, Josemaria has a current Indicated Resource of 656 million tonnes at 0.36% copper and 0.26 g/t gold and an additional Inferred Resource of 326 million tonnes at 0.33% copper and 0.19 g/t gold(i).
Elsewhere in the Vicuna area, drilling continues at the Los Helados project, located 12 kilometres to the northwest of Josemaria. To date, approximately 30,000 metres of drilling have been completed at Los Helados this season, and the results will be incorporated into an updated resource estimate that is expected to be completed during the third quarter of 2013. Drilling at Los Helados is expected to continue until early April when it will stop for the Southern Hemisphere winter. At Filo del Sol four holes totalling 820 metres were completed this season. Results are pending.
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 its Vicuna Project which includes several large copper-gold systems including the Josemaria, Los Helados, and Filo del Sol projects, located on a contiguous 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 Vicuna 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 Person and Assay Protocols
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 on the Josemaria Project is under the management of Diego Charchaflie MSc., P.Geo (BC), a Qualified Person pursuant to NI 43-101.
The drill core was logged, sawed, and half cores were sampled in their entirety in two meter intervals or intervals corresponding to geologic breaks determined by Company personnel. Samples were shipped to Acme Labs in Mendoza, Argentina and pulps were forwarded 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. Copper was analyzed by AAS using a 4 acid digestion and 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.
(i) Technical Report: Updated Mineral Resource Estimate for the Josemaria Property, San Juan Province Argentina, dated February 22, 2013 filed under the Company's profile on www.sedar.com and on the Company's website.
Cautionary Note Regarding Forward-Looking 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 reserves and resources, the realization of mineral reserve estimates, capital expenditures, costs and timing of the development of new deposits, 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 reserve and 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 reserves" or "mineral resources" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions that the mineral reserves and 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.