VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2010) - (TSX:NGQ) NGEx Resources Inc. ("NGEx") or the "Company") is pleased to report results from 4 of 7 recently completed diamond drill holes at the Los Helados project located in Chile's Region 3. The 2010 drill program comprised 7 diamond drill holes (LH-05 to 11) totaling 4,407metres of which 3,189 are reported today (LH-05 to 08). The holes were all significant step outs from LH-04 completed in 2009, which intersected 762m of 0.43% copper and 0.22 grams/tonne gold including 345m of 0.57% copper and 0.21 grams/tonne gold. The results of the 2010 drill program confirm the presence of a large mineralized porphyry copper system that extends approximately 1,000 metres north-south and 700 metres east-west. The system is open to the north and east. The drilling as well as surface mapping and sampling completed during the field season also confirm the potential for high sulfidation gold mineralization in the upper (eastern) portions of the Los Helados system.
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 ground that the company controls in Region 3, Chile and adjacent San Juan Province Argentina (see attached map). Nearby deposits held by other companies include Caserones–Regalito (Pan Pacific Copper) and El Morro-La Fortuna (New Gold/Xstrata).
Copper mineralization at Los Helados is related to Tertiary quartz-feldspar porphyry dikes and small stocks and occurs as disseminated, stockwork, and breccia controlled chalcopyrite and bornite. Higher grades of up to 0.7% copper are associated with quartz-feldspar porphyry dikes.
Commenting on the results, Wojtek Wodzicki, President and CEO, said: "The 2010 drill program has confirmed a major porphyry copper system at Los Helados. We are encouraged by the vertical extent of the copper mineralization and by the occurrence of higher grade quartz feldspar porphyry dikes within the broad envelope of lower grade mineralization. Determining the source of these strongly mineralized dikes will be a focus for the next drill program. The high sulfidation gold mineralization that overprints the upper part of the copper system presents additional exploration potential that will also be followed up next season."
Shallow parts of the porphyry copper system are dominated by pyrite>chalcopyrite whereas deeper parts show chalcopyrite>pyrite ± bornite. Supergene copper mineralization has not been recognized in core. However, an outcrop with significant chalcocite-covellite was discovered on a new road cut during the detailed mapping of the property. The chalcocite-covellite outcrop is located approximately 300 metres to the east of the area investigated by the 2010 drill program (see summary map).
High sulfidation gold mineralization has been recognized in the topographically higher eastern and southern portions of the Los Helados system. High sulfidation gold mineralization is common in the upper portions of many porphyry copper systems including the El Salvador deposit located north of Los Helados. The results of this year's drilling and mapping demonstrate that the high sulfidation mineralization is telescoped directly onto the potassic alteration associated with the copper mineralization.
Intervals from the drill program that are above 0.2% copper are summarized in the table below. Intervals above 0.35% copper are highlighted.
Los Helados 2010 Drill Results
|Drill Hole||From (metres)||To (metres)||Interval (metres)||Copper %||Gold ppm|
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Intervals are core lengths and true widths may be less than reported here.
The Company holds a 60% interest in the Los Helados project. Japan Oil, Gas and Metals National Corporation ("JOGMEC") controls 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-meter intervals or intervals corresponding to geological breaks by Company personnel at the Company's Los Helados Camp. Samples were shipped from the Project to ACME's Santigo, Chile facilities 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. All assay results were reviewed by independent Qualified Person Dr. Giles Peatfield, P.Eng. 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
Please visit the following link to view the map and drill plan: http://media3.marketwire.com/docs/ngqmaps.pdf.
NGEx Resources Inc.