NGEx Reports Further Excellent Drill Results From Los Helados, Chile

NGEx Reports Further Excellent Drill Results From Los Helados, Chile

May 5, 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) -NGEx Resources Inc. (TSX:NGQ) ("NGEx" or the "Company") is pleased to announce further very positive results from three more diamond drill holes completed this season at the Los Helados project located in Chile's Region 3. The results reported today are from holes LH-19 to LH-21. Highlights include: LH-19 with 558 metres of 0.48% copper and 0.19 g/t gold including the final 92 metres grading 0.88% copper and 0.20 g/t gold; LH-20 with 312 metres of 0.73% copper and 0.35 g/t gold including the final 108 metres grading 0.86% copper and 0.33 g/t gold; LH-21 with 728 metres of 0.47% copper and 0.19 g/t gold including 210 metres of 0.61% copper and 0.23 g/t gold with the final 8 metres of the hole grading 1.03% copper and 0.49 g/t gold (Note assays are rounded to two significant figures whereas assays in the table below show three significant figures).

The three drill holes released today are important because they extend the width of the zone of higher grade mineralization that is being delineated by the current drill program by approximately 150 metres to the west and 100 metres to the east of previously released drilling. LH-19 extends higher grade mineralization 150 metres to the west of LH-18 on the southern side of the system; LH-20 extends higher grade mineralization approximately 100 metres to the east of previously reported hole LH-17; and LH-21 extends higher grade mineralization approximately 150 metres to the west of previously reported LH-16. These drill holes mean the zone is still open laterally. Equally important, all three drill holes bottomed in mineralization grading between 0.86% copper and 1.03% copper leaving the zone open at depth. Holes were stopped due to the limits of current drilling equipment.

The three holes reported today are part of an on-going drill program that is expected to total 14 holes and will continue until the end of the summer exploration season in mid- May. The results of the 4 remaining holes from this season, LH-22 to LH-25 will be released as they become available over the next six weeks or so. The objective of the current drill program is to better define a zone of higher grade mineralization that was also intercepted in previously reported holes including; LH-12 with 711 metres of 0.54% copper and 0.26 grams/tonne gold, including 114 metres of 0.67% copper and 0.19 grams/tonne gold; and LH 16 with 701 metres of 0.67% copper and 0.30 g/t gold.

Intervals from the holes reported today are summarized in the table below. Intervals >0.5% copper are highlighted.

 FromToIntervalCopper %Gold
grams/tonne
LH-DDH-19013.7513.75casing
and13.75194180.250.2480.214
and1947525580.4770.192
including2984781800.5650.262
and including660752920.8760.202
      
LH-DDH-2002424casing
and244384140.1830.216
and4387503120.7260.346
including6427501080.8590.326
or including674702280.9920.376
      
LH-DDH-2101414casing
and142280.0702.167
and227507280.4710.187
including60126660.4850.282
and including1944042100.6070.234
and including4686081400.5880.178
and including74275081.0350.490

Intervals are core lengths.

Please see attached appendix for a summary of all the results to date from the current field season.

Commenting on the results, Wojtek Wodzicki, President and CEO, said, "The results we report today continue to expand the higher grade core of the Los Helados system. We continue to be encouraged by both the length and grade of the intercepts and by the fact that the drill holes contain long intervals of better than 0.6% copper plus gold. Because of the gold the reported intervals look even more encouraging on a copper equivalent basis. These three drill holes are all on the outer margins of the current drill pattern and they demonstrate that the system continues to be well mineralized and open to the west, south, east, and at depth. There is also potential for additional higher grade material north of LH-12. All three holes reported today bottom in mineralization grading approximately 0.9% copper along with significant gold. These holes along with those previously released confirm that mineralization extends to more than 750 metres depth and has excellent potential for additional high grade mineralization at depth. We are beginning to plan for a major infill drill program scheduled to start in November, 2011 at the beginning of the South American spring. This program will include drills with the capability to drill to more than 1 kilometre depth in order to test for the potential high grade core of the system. We are very encouraged by the results to date and are confident that we are working on a major new copper-gold discovery."

The higher grade mineralization reported above is hosted within a quartz-feldspar porphyry stock and cross-cutting magmatic-hydrothermal breccia body that, based on mapping and drilling to date, has an estimated area of approximately 600 metres by approximately 500 metres and extends to depths of more than 750 metres. The higher grade zone remains open in several directions and further drilling is required to confirm these dimensions and to define the limits of the mineralization laterally and at depth. Please see attached map, http://media3.marketwire.com/docs/ngex0505.pdf.

The higher grade mineralization at Los Helados is associated with potassic alteration which is represented by strong biotite alteration. Copper mineralization occurs primarily as chalcopyrite in both veinlets and breccia matrix. There is a close association of chalcopyrite with magnetite. In the upper parts of some drill holes, the potassic alteration is overprinted by a chlorite-sericite assemblage. This resulted in the introduction of pyrite and alteration of magnetite to hematite and apparently a slight reduction in copper grade. On the eastern side of the system, the topography rises steeply and a thicker section of relatively copper depleted chlorite-sericite and advanced argillic alteration is preserved in the wall of the valley. This may explain the thicker zone of lower grade material in the upper part of LH-20 which was collared at higher elevations. Drill holes such as LH-19 and LH-21 collared at lower elevations in the western part of the system have thinner zones of overprinting high level alteration and consequently intersect better grades at shallower levels. The system is open to the west where the topography is relatively flat. Interpretation of the drill results is an ongoing process and will be updated as additional data become available.

Los Helados is one of several large porphyry copper-gold systems including the Company's Josemaria and Filo del Sol projects all located within the large block of contiguous claims that the company controls in Region 3 Chile and adjacent San Juan Province, Argentina. Josemaria, located approximately 20 kilometres from Los Helados, has a previously released NI 43-101 compliant inferred resource of 460 million tonnes of 0.4% copper and 0.3 g/t gold. Nearby deposits held by other companies include Caserones-Regalito (Pan Pacific Copper-Mitsui) and El Morro (Goldcorp/New Gold). The Company holds a 60% interest in the Los Helados project. Japan, Oil, Gas, and Metals National Corporation ("JOGMEC") holds the remaining 40% interest in the project. Both parties contribute their pro-rata share of exploration expenditures.

Sample Preparation and Analysis and Qualified Person

The drill core was logged, sawed, and half cores were sampled in their entirety in two metre intervals or intervals corresponding to geologic breaks by Company personnel at the Company's field office in Copiapo, Chile. Samples were shipped ACME's Copiapo sample preparation facility for crushing and grinding. The sample pulps were analyzed by standard industry assay methods- in ACME's Santiago, Chile Laboratories. 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 Los Helados Project is under the management of Diego Charchaflie MSc., P.Geo (BC), a qualified person pursuant to NI 43-101. Dr. Wojtek Wodzicki Ph.D, P.Geo (BC), a Qualified Person as defined by National Instrument 43-101 and President and CEO of NGEX has reviewed and verified the technical exploration information contained herein.

On behalf of the Board,

Dr. Wojtek Wodzicki, President and CEO

APPENDIX

Summary of Los Helados Drill Results To Date From 2010/2011 Field Season

HoleFromToLengthCu (%)Au (g/t)
LH-12     
      
Total hole407517110.540.26
incl.172236640.590.46
& incl.306332260.680.30
& incl.348392440.790.31
& incl.5166301140.670.19
& incl.636720840.690.19
      
LH-13     
      
Upper section181801620.200.18
      
Lower section180742.3562.30.540.25
incl.4346462120.680.30
& incl.658710520.820.26
      
LH-14     
      
Total hole607156550.260.09
incl.536582460.420.10
& incl.588622340.410.11
& incl.658704460.560.18
or incl.694704100.830.22
HoleFromToLengthCu (%)Au (ppm)
LH-DDH-15     
 03030casing 
 and307116810.2560.105
including104138340.2670.162
and including138152140.0210.511
and including352416640.3000.073
and including506604980.4350.118
and including650711610.5140.145
      
LH-DDH-16     
 03232casing 
and3276440.0210.296
and767777010.6720.303
including76126500.4980.328
and including2086464380.6970.309
and including646678321.1240.559
and including678744660.6830.213
and including744777330.9390.241
LH-DDH-1703636casing 
and361861500.1590.209
and1867615750.5850.334
including514540260.8600.486
and including564761.3197.30.7070.264
      
LH-DDH-18033 casing 
and331341010.0390.139
and1346024680.5520.315
including186212260.8490.478
and including424452280.7470.371
and602695.493.40.2850.078
HoleFromToLengthCu (%)Au (ppm)
LH-DDH-19013.7513.75casing
and13.75194180.250.2480.214
and1947525580.4770.192
 including2984781800.5650.262
and including660752920.8760.202
      
LH-DDH-2002424casing
and244384140.1830.216
and4387503120.7260.346
including6427501080.8590.326
or including674702280.9920.376
      
LH-DDH-2101414casing
and142280.0702.167
and227507280.4710.187
including60126660.4850.282
and including1944042100.6070.234
and including4686081400.5880.178
and including74275081.0350.490
 
NGEx Resources Inc.
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
ngexresources@namdo.com
www.ngexresources.com
 

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