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NGEx Intersects 1.27% Copper Equivalent Over 182 Metres and Expands New Josemaria High-Grade Zone

Jul 16, 2012 - 05:00 ET
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2012) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce additional assay results from the 2011 / 2012 infill drilling program at the Josemaria copper-gold porphyry project located in San Juan province, Argentina.

To view the maps accompanying this press release, please click on the following link: http://file.marketwire.com/release/ngq716.pdf

Highlights from the latest batch of results include: JMDH50 with 182 metres at 1.27% CuEq* (70 to 252m, 1.06% Cu and 0.31 g/t Au); JMDH45 with 452 metres at 0.82% CuEq* (0 to 452m, 0.51% Cu and 0.46 g/t Au) and JMDH59 with 428 metres at 0.64% CuEq* (154 to 582m, 0.39% Cu and 0.37 g/t Au).

The objective of this season's program was to complete infill drilling on the deposit in order to allow conversion of the currently defined Inferred Resource(i) of 460 million tonnes at 0.39% Cu and 0.30 g/t Au to an Indicated Resource. The drill program, comprising 39 holes totaling 19,220 metres, was completed in the first quarter of 2012. Assay results from the first 10 holes of the program were released on March 28, 2012. Results from an additional 13 holes were released on May 23, 2012. Results from a further 9 holes are disclosed here. Results from the remaining 7 holes are pending and will be released when received.

Wojtek Wodzicki, President and CEO of NGEX, commented on the results, stating, "We are very pleased with the continued positive results from this year's drill program at Josemaria. JMDH50 is an important hole which extends the high-grade, supergene-enriched mineralization first intersected in JMDH49 by 100m to the north, but what is really exciting, is the fact that these results open up a large area of leached cap which was previously interpreted as peripheral to the main deposit. The results from this season's drilling at Josemaria are a good example of the positive surprises that can come from detailed drilling of very large systems and bodes well for future positive surprises as we continue to drill the potentially larger Los Helados and Filo del Sol systems. Together with previously released results from the Company's Los Helados project, located approximately 10 kilometers to the northwest of Josemaria, as well as highly encouraging results from Filo del Sol, the results released today support our view that the Company's land package has the potential to host a very significant new copper-gold district with multiple deposits within a 15 kilometer radius."

The results from hole JMDH50 are of particular interest as they extend the newly discovered high-grade zone first intersected in hole JMDH49 a further 100 metres to the north. This drill hole intersected approximately 70 metres of leached cap before passing into a well-developed supergene enriched zone which contains chalcocite replacing primary pyrite, chalcopyrite, and bornite. The occurrence of bornite is encouraging because this mineral is typical of the central part of porphyry systems rather than the margins. This intersection is on the edge of the current drill pattern and mineralization remains wide open to the north (see attached map and section).

The table below shows details of the drill intersections from the drill holes released today:

HOLE-ID FROM (m) TO (m) LENGTH (m) Cu % Au g/t CuEq*
JMDH41 0.0 451.5 451.5 0.33 0.32 0.55
incl 0.0 142.0 142.0 0.47 0.48 0.79
Infill hole.
JMDH45 0.0 452.0 452.0 0.51 0.46 0.82
incl 78.0 156.0 78.0 0.89 0.56 1.27
Infill into high-grade core.
JMDH46 24.0 500.7 476.7 0.35 0.27 0.53
incl 392.0 450.0 58.0 0.53 0.40 0.80
Infill along eastern edge of high-grade core.
JMDH48 0.0 418.0 418.0 0.31 0.21 0.46
Step-out 80m north of hole JMRC20.
JMDH50 70.0 252.0 182.0 1.06 0.31 1.27
incl 72.0 92.0 20.0 1.48 0.17 1.60
incl 172.0 182.0 10.0 3.75 0.29 3.95
Step-out 100m north of JMDH49, northernmost hole in new high-grade zone which remains open to north.
JMDH51 248.0 598.0 350.0 0.28 0.20 0.42
Along southeastern margin of deposit, beneath barren volcanic cover rock.
JMDH52 Stopped above target zone in barren volcanic cover rock - No Significant Values.
JMDH57 0.0 401.5 401.5 0.39 0.36 0.64
incl 48.0 94.0 46.0 0.88 0.45 1.19
Twin of 2005 RC hole JMRC21, western part of deposit.
JMDH59 62.0 72.0 10.0 0.01 0.55 0.38
plus 154.0 582.0 428.0 0.39 0.37 0.64
incl 210.0 354.0 144.0 0.50 0.47 0.82
Twin of 2005 RC hole JMRC16, extended mineralization to depth.

*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.

Holes JMDH41 and JMDH46 were drilled on the same section in the northern part of the deposit. JMDH41 intersected a low-grade intramineral dyke starting at 142 metres which lowers the overall grade in this hole. These dykes are interpreted to be steeply dipping, so the drilled length of lower-grade mineralization is likely to be much longer than the true width of the dyke. JMDH46 was drilled along the eastern margin of the deposit.

Hole JMDH45 intersected the high-grade core of the deposit, extending it 100 metres to the west of previous reverse circulation hole JMRC01.

Hole JMDH48 was a vertical hole which defines the eastern limit of the deposit towards the northern extent of the drill information.

Holes JMDH51 and JMDH59 were drilled on the same section. JMDH51 was drilled to define the eastern limit of the deposit 450 metres to the south of JMDH48. JMDH59 is one of the most southerly holes into the high-grade core of the deposit. This hole also confirms and extends to depth the mineralized intersection in previously drilled RC hole JMRC16.

Hole JMDH52 was abandoned in post-mineral volcanic cover prior to reaching the mineralized porphyry underneath.

Hole 57 was drilled as a confirmation hole in order to evaluate the mineralized intersection in hole JMRC21 which was an earlier reverse circulation hole. The comparison between the two holes was excellent; JMRC21 intersected 400 metres at 0.36 g/t gold and 0.36% copper compared to 401.5 metres of 0.36 g/t gold and 0.39% copper.

Collar coordinates and drill hole orientations for the holes in this news release are shown below:

HOLE-ID East North Elevation Length (m) Azimuth Dip
JMDH41 2446317 6855397 4642 451.5 270 -75
JMDH45 2446310 6855302 4681 452.0 90 -65
JMDH46 2446540 6855398 4610 500.7 270 -70
JMDH48 2446524 6855485 4586 452.2 0 -90
JMDH50 2446356 6855696 4519 452.5 90 -70
JMDH51 2446414 6855004 4778 600.0 90 -70
JMDH52 2446522 6854897 4773 238.6 90 -70
JMDH57 2446195 6855195 4723 401.5 270 -70
JMDH59 2446207 6854998 4795 585.0 90 -70

Josemaria is one of several large copper-gold systems including the Company's Los Helados and Filo del Sol projects, located on a contiguous land package that the Company holds in Chile's Region 3 and adjacent San Juan Province Argentina. Los Helados, Josemaria, and Filo del Sol are all part of a joint venture in which the Company holds 60% and JOGMEC (Japan, Oil, Gas, and Metals National Corporation) holds 40%. Each party funds its pro-rata share of expenditures. This season's drill programs on all three projects are complete. Drilling is expected to resume in the fourth quarter of 2012.

On behalf of the board

Wojtek Wodzicki, President and CEO

Qualified Person and Assay Methods

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.

The Quality Control/Quality Assurance (QA/QC) program on the Josemaria Project is under the management of Diego Charchaflie, M.Sc., P.Geo. (BC), a Qualified Person pursuant to NI 43-101. Mr. Bob Carmichael, B.A.Sc., P.Eng., Vice President, Exploration for the Company, is the Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.

(i) Technical Report: Preliminary Resource Estimate Update for the Josemaria Project, San Juan Province, Argentina dated November 20, 2007. The report is available on the Company's website or www.sedar.com.

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of NGEx Resources Inc. Forward-looking statements include, but are 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, these forward-looking statements 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 statements are 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 statements are 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 statements, 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 statements, 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 statements contained in this document are qualified by these cautionary statements. Readers should not place undue reliance on forward-looking statements. Forward-looking statements are 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. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements 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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