VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2011) - NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is planning the most ambitious exploration program in its history as it seeks to follow-up highly encouraging exploration results obtained earlier this year at the Los Helados Project in Chile, and to significantly expand the resource base on its flagship South American copper-gold projects. The objective of the planned exploration program is to: define an initial resource at Los Helados, upgrade the inferred resource at Josemaria to the measured and indicated category, and to better define the copper and gold potential of the Filo del Sol project. In preparation for the expanded exploration program the Company has hired an experienced Vice-President of Exploration with a strong background in managing resource drilling programs.
Elsewhere, Teck Resources carried out a significant exploration drilling program on the Company's GJ copper-gold project in British Columbia and the Company began drill testing its potash exploration license in Eritrea. On the business front we closed a transaction to divest our Congo-Brazzaville projects. The Company's exploration effort is now focused on potentially very large, high value copper-gold porphyry systems in the Andes with smaller programs exploring for potash and massive sulfide systems in Eritrea.
SOUTH AMERICAN PROJECTS
During the third quarter, the Company's South American team made significant progress in upgrading camp and logistical infrastructure, hiring of personnel, and planning for the upcoming summer exploration season which will be very busy with over 60,000 metres of drilling planned on four copper-gold projects in the Andes of Chile and Argentina. The proposed drilling listed below is the Company's best current estimate of the number of metres required to test targets and define resources. The actual number of metres drilled will vary depending on results and actual drilling rates. 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.
The largest program, comprising up to 40,000 metres, will be at Los Helados in Chile, where previous drilling has identified a large copper-gold porphyry system. The upcoming drill program will focus on further-expanding a higher grade zone within the larger system which is open in several directions and at depth. Highlights from drilling earlier this year include 701 metres of 0.67% copper and 0.3 grams/tonne gold. Many current drill holes bottomed in mineralization and the deepest hole drilled to date was still in mineralization at 900 metres depth. Drilling at Los Helados is expected to start in late December 2011, and will use drills with the capability of drilling to 1 kilometre depth. We are targeting an initial resource calculation for late in the third quarter of 2012.
At Josemaria approximately 15,000 metres will be drilled to convert the existing inferred resource to measured and indicated. Drilling at Josemaria is expected to start in mid November, 2010.
Filo del Sol is a very large and complex high sulfidation system with similarities to both the Pascua-Lama and Veladero deposits. Previous drilling focused on an area of shallow copper oxide and deeper sulfide copper mineralization in the southern part of the area. This year approximately 5,000 metres are planned at Filo del Sol to follow-up significant gold intercepts encountered during previous drilling and to better define the copper oxide potential.
An initial drill program of approximately 2,000 metres is planned to follow up encouraging results from last season's program at the Colmillos porphyry copper project located east of Ovalle, Chile. Mapping and sampling at Colmillos have defined a 4.3 kilometre trend of tourmaline breccia bodies, local visible copper oxide mineralization, and anomalous copper and molybdenum geochemistry. Copper mineralized tourmaline breccias are a common feature of many major porphyry copper systems. An access road and an IP survey were completed earlier this year.
Base Metals Projects Eritrea
NGEx holds approximately 650 square kilometres covering prospective stratigraphy near Nevsun Resources' recently commissioned Bisha Mine. The successful development of the Bisha Mine has significantly increased investor confidence in Eritrea. NGEx's land position hosts the Hambok Deposit for which an initial NI 43‐101 resource estimate was announced in 2009 as well as the high grade Aradaib discovery announced in 2010. Previously released drill results from Aradaib include 13 metres of 3.3% Cu, 5.6% Zn, 1.8 g/t Au, and 46 g/t Ag. In late 2010, NGEx completed a high resolution helicopter‐borne electromagnetic, magnetic, and radiometric (VTEM) survey covering NGEx's entire land position. The survey was designed to identify volcanic‐hosted massive sulfide (VMS) mineralization beneath recent cover. A drill program to test targets generated by the VTEM survey and to infill the Hambok deposit is expected to commence in November.
Potash Project Eritrea
A reconnaissance drill program is currently underway on the Company's Bada potash license located approximately 35 kilometres from the Red Sea coast of Eritrea. NGEx's license covers the northern portion of the Dallol evaporite basin which in Ethiopia hosts the historic potash deposits of Musley held by Sainik Coal Company, India and Dallol, held by Allana Resources, Canada. The Eritrean portion of the basin hosts the Colluli potash deposit which is currently being explored by South Boulder Mines of Australia. NGEx's license lies approximately 20 kilometres northwest of South Boulder's license and covers the northwest extension of the same basin. The four drill holes completed to date bottomed in overburden. Drilling is ongoing and the results of the current program will determine whether further work is warranted.
GJ Project, BC
GJ is a copper‐gold project, located in northern British Columbia. NGEx has optioned the project to Teck Resources Limited ("Teck") which has the right to earn an initial 51% by spending $12,000,000 by December 31, 2014 and up to a 75% interest by spending an aggregate of $44,000,000 by December 31, 2020. During the quarter Teck completed 4,307 metres of drilling as well as ground geophysics and geochemical sampling. The objective of the program was to test new targets developed by Teck in their initial 2010 program and to test the potential for high grade copper‐gold zones similar to those discovered at Imperial Metals' nearby Red Chris project. Results from this year's exploration are expected in the fourth quarter.
The next few quarters will be very exciting as the South American and Eritrean field season move into full gear. The Company plans to complete up to 62,000 metres of drilling on its South American projects over the next several quarters and hopes to significantly increase its resource base. The objective of this drill program is to extend the higher grade zone at Los Helados, upgrade the resource at Josemaria, and to test gold and oxide copper targets at Filo del Sol. A first pass drill program will also test the newly discovery porphyry copper system at Colmillos in Chile. The South American drilling is expected to begin in mid November 2011, and will generate drill results until the second quarter of 2011. The Company also expects to receive results from Teck's summer program at GJ in the coming months. The $27 million financing completed subsequent to the quarter end combined with the Company's current cash are sufficient to cover the planned exploration program.
On behalf of the board
Wojtek Wodzicki, President and CEO