VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 23, 2013) - NGEx Resources Inc. ("NGEx" or the "Company") (TSX:NGQ) is pleased to announce complete results from the 2012/2013 exploration program at the Filo del Sol project located in San Juan province, Argentina. The results of this season's drilling expand the previously identified high grade copper zone at Filo del Sol and extend the broader zone of disseminated copper, gold, silver mineralization that surrounds the high grade zone.
Filo del Sol is a high sulphidation epithermal copper-gold-silver system that overlies a porphyry copper-gold system. It is part of the Vicuña Project which includes the nearby Los Helados and Josemaria copper-gold porphyry deposits. Filo del Sol is a very large mineralized system, with minimum dimensions, based on wide spaced drill holes, of 2.8 kilometres in a north-south direction and 1 kilometre in an east-west direction (see attached Copper-equivalent Grade x Thickness map and location map, available at the following link: http://media3.marketwire.com/docs/ngq0523.pdf). The system includes both disseminated and stockwork mineralization and is open in all directions. Leaching and secondary enrichment of this mineralized system has created a high-grade copper-silver zone, further adding to the potential of the deposit. New maps and sections prepared for Filo del Sol are available on the NGEx website http://www.ngexresources.com/s/FiloDelSol_Maps.asp.
Today's results combined with previously released drilling are encouraging and support plans for a larger drill program next season that could, if successful, lead to a maiden resource estimate for the project. The exploration season is during the South American summer and drilling is expected to restart in late 2013.
A total of 819.6 metres were drilled in 5 holes during the program. The table below summarizes the mineralized intersections from this season's drilling. Highlights from the results reported today include: FSDH08 with 38.1m of 1.23% copper, 0.21 g/t Au and 10.9 g/t Ag and FSDH11 with 65m of 0.77 g/t Au.
|Hole ID||From||To||Length||Au gpt||Cu %||Ag gpt|
|Partial test of high-grade copper-silver zone, hole abandoned in mineralization grading 1.33% Cu.|
|Composite interval from twinned holes. Hole abandoned in mineralization grading 0.44 g/t Au and 0.39% Cu.|
|Step-out 140 metres north of previous hole VRC28 (274m @ 0.55% Cu and 0.46 g/t Au), abandoned above target copper-silver zone in mineralization grading 0.35 g/t Au.|
|Intersected hanging wall gold zone, abandoned above target copper-silver zone.|
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.
The 2012/2013 drill program focused on expanding the high-grade copper-silver zone which occurs in the northern part of the mineralized system and has been traced by previous drilling over a distance of at least 1,200 metres (see attached map). The holes reported here were drilled along a northeast-southwest oriented line spanning a distance of 950 metres within the overall 1,200 metre strike length. Previous drilling had tested this zone along a 250 metre wide northeast-southwest corridor and holes FSDH08, FSDH09/09A and FSDH11 were drilled along the western margin of this corridor.
The high-sulphidation epithermal part of the Filo del Sol system has an upper zone of vuggy and sandy silica that has proved to be a challenge to drill though with diamond drills. Unfortunately all of this season's holes were abandoned due to poor ground conditions in this material above the target depth for the high grade zone. Nonetheless, FSDH08 was successful in partially testing the zone and confirming its extension 150 metres to the west of previous hole VRC-53. FSDH08 ended in strong mineralization grading 1.33% copper.
Hole FSDH09 was abandoned at a depth of 157 metres in mineralization with a grade of 0.22 g/t Au and 0.27% Cu. The drill was moved 5 metres to the south and hole FSDH09A was drilled with a tricone bit (no core recovered) to a depth of 156 metres where core recovery began. The composited interval reported here includes assays from FSDH09 to a depth of 156 metres and FSDH09A from 156 to 237.8 metres, which was the end of the hole.
Hole FSDH10 was a 200 metre step-out along the trend of the high grade zone to the north. It was abandoned above the target depth of the high grade zone but encountered significant gold mineralization in the hanging wall.
Hole FSDH11 was drilled 150 metres to the west of the high-grade zone and was abandoned at a depth of 165 metres after intersecting a gold zone which is commonly seen above the copper-silver mineralization in this area. The hole did not reach the top of the projected copper-silver mineralization.
Commenting on the results Wojtek Wodzicki, President and CEO of the Company, stated, "Although we faced challenging drilling conditions this year we are very encouraged by the results from Filo del Sol and particularly the confirmation of a potentially significant high grade copper-silver zone within a much larger area of disseminated copper-gold mineralization. It is a big system with excellent potential to add to our current resource base on the Vicuña Project."
Collar coordinates and drill hole orientations for the holes in this news release are shown below:
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 Vicuña 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 Methods
The drill core was logged, sawed, and half cores were sampled in their entirety in two meter intervals at the Company's core processing facility. Samples were shipped 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 digestion 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.
The Quality Control/Quality Assurance (QA/QC) program on the Filo del Sol Project is under the management of Diego Charchaflie MSc., 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.
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.
NGEx Resources Inc.