NGEX Announces Updated Mineral Resource Estimate at Los Helados Including High-Grade Fenix and Alicanto Zones; Indicated Mineral Resources Exceed 2.0 Billion Tonnes at 0.51% Copper Equivalent
NGEx Minerals Ltd.
2000 – 885 West Georgia Street
Vancouver BC Canada V6C 3E8
T +1 604 689 7842
F +1 604 689 4250
NGEXminerals.com
NGEX ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE AT LOS HELADOS
INCLUDING HIGH-GRADE FENIX AND ALICANTO ZONES;
INDICATED MINERAL RESOURCES EXCEED 2.0 BILLION TONNES
AT 0.51% COPPER EQUIVALENT
December 5, 2023, Vancouver, B ritish Columbia – NGEx Minerals Ltd. (TSX -V: NGEX) (“ NGEx” or the
“Company”) is pleased to announce an updated Mineral Resource Estimate (“MRE” or the “Resource”) for the
Los Helados Project (“Los Helados” or the “Project”) located in the Vicu ña District in Region III, Chile ,
approximately 17 kilometres from the operating Caserones mine.
Highlights
• Increased grades: 6% increase to the copper (“Cu”) grade in the Indicated Resource category and a 7%
increase to the Cu grade in the Inferred Resource category compared to the previous Mineral Resource
Estimate in 2019;
• Increased total contained metal: increase of approximately 0.8 billion pounds (“Blbs”) Cu in Indicated
Resources and 2.4 Blbs Cu in Inferred Resources compared to the previous Mineral Resource Estimate
in 2019;
• Increased Inferred Mineral Resources by 30% to 1.1 billion tonnes (“Bt”) at a grade of 0.42% copper
equivalent (“CuEq”), containing 8.2 Blbs Cu, 3.6 million ounces (“Moz”) of gold (“Au”), and 50.2 Moz of
silver (“Ag”);
• Higher quality resource: Conversion of Fenix zone from exploration potential to Indicated and Inferred
Resources and additional definition of high-grade zones in Condor zone;
• Mineral Resource Estimate now i ncludes 510 million tonnes (“ Mt”) at 0.72% CuEq in the Indicated
Resource category at a 0.60% CuEq cut-off grade;
• Future growth: Potential to convert Fenix Inferred Resources to Indicated Resources with minimal
additional drilling.
Wojtek Wodzicki, President and CEO, commented, “The delivery of this updated Mineral Resource Estimate is
another key milestone in the advancement of Los Helados with a notable increase in copper and gold grades
and contained metal compared to the 2019 Mineral Resource Estimate. With over 2 billion tonnes of Indicated
Resources and a substantial higher -grade core above a 0.6% CuEq cut -off, Los Helados is one of the largest
undeveloped copper projects globally and has the potential to provide a clean supply of copper for many
decades as the world accelerates the decarbonization of the global economy.”
“Although the Company’s current exploration efforts are focused on the Lunahuasi project, we continue to be
very excited about the exploration upside at Los Helados. The Fenix and Alicanto zones remain open for
expansion and new mapping and geophysical surveys conducted earlier this year successfully defined new
exploration targets with geological and geophysical signatures simil ar to the Fenix and Alicanto zones to be
tested in the future.”
Mineral Resource Estimate
The MRE is reported with an effective date of October 31, 2023, in Table 1.
Table 1: Los Helados Mineral Resource Estimate Summary and Cut-Off Grade Sensitivity
Cut-Off
Grade
CuEq
(%)
Category Tonnes
(Bt)
Grade Contained Metal
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq
(%)
Cu
(Blbs)
Au
(Moz)
Ag
(Moz)
0.25
Indicated 2.39 0.38 0.15 1.4 0.49 19.9 11.3 106.6
Inferred 1.84 0.30 0.10 1.3 0.38 12.2 5.8 75.4
0.3
Indicated 2.20 0.39 0.15 1.4 0.50 19.0 10.7 101.2
Inferred 1.30 0.33 0.10 1.4 0.41 9.5 4.3 58.0
0.33
Indicated 2.08 0.40 0.15 1.5 0.51 18.4 10.2 97.5
Inferred 1.08 0.34 0.10 1.4 0.42 8.2 3.6 50.2
0.4
Indicated 1.65 0.43 0.16 1.5 0.55 15.7 8.5 82.2
Inferred 0.60 0.38 0.11 1.6 0.46 5.0 2.1 31.5
0.5
Indicated 0.88 0.50 0.19 1.7 0.64 9.7 5.4 48.8
Inferred 0.18 0.47 0.12 2.1 0.56 1.9 0.7 12.0
0.6
Indicated 0.51 0.56 0.21 1.8 0.72 6.3 3.5 30.2
Inferred 0.04 0.62 0.09 2.4 0.70 0.6 0.1 3.4
Notes to Table 1:
1) Mineral Resource prepared in accordance with CIM (2014) definitions.
2) All dollar amounts are presented in U.S. dollars.
3) Mineral Resources are estimated at a cut -off grade of 0.33 g/t CuEq based on an underground block cave mining cost of
$8.00/t, a processing cost of $12.00/t, and a general & administrative cost of $1.00/t.
4) Mineral Resources are estimated using a copper price of $3.90/lb, a gold price of $1,800/oz, and a silver price of $20/oz.
5) Metallurgical recoveries used for the CuEq calculation correspond to three geometallurgical zones, defined by depth below
surface:
a) Upper: Cu 83.1%, Au 72.8%, Ag 31.0%
b) Intermediate: Cu 90.2%, Au 80.3%, Ag 54.9%
c) Deep: Cu 93.1%, Au 82.5%, Ag 70.5%
6) The formulas used for the CuEq calculation are:
a) Upper: CuEq % = Cu % + (0.681008 x Au (g/t)) + (0.002989 x Ag (g/t))
b) Intermediate: CuEq % = Cu % + (0.692039 x Au (g/t)) + (0.004877 x Ag (g/t))
c) Deep: CuEq % = Cu % + (0.688852 x Au (g/t)) + (0.006068 x Ag (g/t))
7) Bulk density is 2.67 t/m3.
8) Mineral Resources are reported within an optimized underground block cave mining shape to demonstrate reasonable
prospects for eventual economic extraction (RPEEE). The block cave considered a column size of 20m x 20m x (≥ 80m).
9) There are 40 Mt of unclassified material excluded from inside the base case block cave shape.
10) Cut-off grades refer to diluted cut -off grades used to generate the corresponding block cave shapes. For each cut -off grade,
the tonnes and grade represent the total Indicated or Inferred material within each of these shapes.
11) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
12) Numbers may not add due to rounding.
The MRE incorporates results from 21 new drill holes from the 2021/2022 and 2022/2023 seasons, as well as
two geotechnical holes which were not sampled until 2021. In addition, the MRE is based on a new geological
modeling approach and a newly improved dyke model, all of which contribute to increased confidence in the
estimation at Los Helados.
As shown in Table 2, the Indicated Resource copper grade has increased by 6%, and contained copper metal
has increased by 5%. The differences between the 2019 and 2023 Minera l Resource Estimates are primarily
due to: (a) inclusion of the Fenix zone at depth; (b) the exclusion of near or below cut-off grade material within
the mineralized zone through the improved geological modeling and estimation approaches ; and (c) the
conversion of previously Inferred higher-grade material through the inclusion of 2021/2022 and 2022/2023 in-
fill drilling data.
Tonnage has increased in the Inferred Resources category due to inclusion of additional mineralization
discovered by the recent drilling.
Table 2: Comparison of 2023 and 2019 Mineral Resource Estimates
October 2023 Mineral Resource Estimate at 0.33% CuEq Cut-Off Grade
Category
Tonnes
(Bt)
Grade Contained Metal
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq
(%)
Cu
(Blbs)
Au
(Moz)
Ag
(Moz)
Indicated 2.08 0.40 0.15 1.5 0.51 18.4 10.2 97.5
Inferred 1.08 0.34 0.10 1.4 0.42 8.2 3.6 50.2
April 2019 Mineral Resource Estimate at 0.33% CuEq Cut-Off Grade
Category
Tonnes
(Bt)
Grade Contained Metal
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq
(%)
Cu
(Blbs)
Au
(Moz)
Ag
(Moz)
Indicated 2.10 0.38 0.15 1.4 0.48 17.6 10.1 92.5
Inferred 0.83 0.32 0.10 1.3 0.39 5.8 2.7 35.1
Percentage Change from 2019 Mineral Resource Estimate to 2023 Mineral Resource Estimate
Category
Tonnes
(Bt)
Grade Contained Metal
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq
(%)
Cu
(Blbs)
Au
(Moz)
Ag
(Moz)
Indicated (1%) +6% +2% +6% +7% +5% +1% +5%
Inferred +30% +7% +4% +10% +8% +41% +33% +43%
Notes to Table 2 for the 2019 MRE. See Table 1 notes for 2023 MRE.
1) The 2019 Mineral Resource was prepared in accordance with CIM (2014) definitions.
2) All dollar amounts are presented in U.S. dollars.
3) The 2019 Mineral Resources are reported using a CuEq cut-off grade. CuEq is calculated using $3.00/lb copper, $1,300/oz gold
and $23/oz silver, and includes a provision for selling costs and metallurgical recoveries corresponding to three zones defined
by depth below surface. The formulas used are: CuEq % = Cu % + 0.6264*Au (g/t) + 0.0047*Ag (g/t) for the Upper Zone (surface
to ~250m); Cu % + 0.6366*Au (g/t) + 0.0077*Ag (g/t) for the Intermediate Zone (~250m to ~600m); Cu% + 0.6337*Au (g/t) +
0.0096*Ag (g/t) for the Deep Zone (>~600m).
4) Cut-off grades refer to diluted cut -off grades used to generate the corresponding block cave shapes. For each cut -off grade,
the tonnes and grade represent the total Indicated or Inferred material within each of these shapes.
5) The 2019 Mineral Resources are reported within block cave underground mining shapes based on 0.33% CuEq grades,
$13.07/t operating costs, and include a provision for capital expenditure.
6) Numbers may not add due to rounding.
Geological Model Update
The Los Helados MRE is based on an interpreted breccia body emplaced within the local country rock. The
breccia hosts three internal higher -grade zones: Condor, Fenix, and Alicanto. A series of steep, sub -parallel
dykes are found cross cutting both the breccia and higher-grade zones. The dykes appear to terminate relatively
close to the breccia boundary. Three-dimensional views of this geological interpretation are shown in Figure 1
and Figure 2.
The mineralization model was created in Leapfrog Geo 2023.1 by NGEx geologists and refined by SLR Consulting
(Canada) Ltd. (“SLR”). The breccia was modeled using interpreted contacts drawn onto level plans by the site
project geologists. Higher -grade mineralized zones (Condor, Fenix, and Alicanto) were modeled within the
breccia at a modeling threshold of approximately 0.5% Cu. The breccia has a footprint of approximately 1,000
metres (“m”) by 650 m at its widest with a vertical extension of 1,600 m. Condor and Alicanto are broad oval
shaped bodies, while Fenix is more pipe -like in geometry. The dykes were flagged from the original logged
lithology and refined with assay results. They are modeled as steep, narrow domains, dipping at approximately
80° north-northeast. A colluvium surface was also created in this model, using the base of logged colluvium
intervals and an offset surface from the topography.
A broad lithology model (Figure 3) was created by NGEx geologists to define the host rocks in more detail:
granite, andesite, and porphyries. This lithology model was used to designate bulk density values to the block
model.
Figure 1: Three-Dimensional Plan View of Los Helados Model of Breccia, Condor, Fenix, Alicanto, and Dykes
Figure 2: Three-Dimensional Oblique View of Los Helados Model of the Breccia, Condor, Fenix, and
Alicanto
Figure 3: Three-Dimensional View of Los Helados Lithology Model
Data Verification
The data used in this Mineral Resource Estimate is supported by industry standard Quality Assurance and
Quality Control (“QA/QC”) procedures, such as the insertion of certified standards and blanks into the sample
stream and the utilization of certified independent analytical laboratories for all assays. No significant QA/QC
issues were discovered during review of the data.
All geological data used in the Mineral Resource Estimate was reviewed and verified by Luke Evans, M.Sc.,
P.Eng. (SLR Global Technical Director, Geology Group Leader). Mr. Evans visited the Los Helados project from
September 18 to 22 , 2023. The site visit included a review of historical and recent drill core; a review of
procedures used to collect, record, store and analyze project exploration data; observation of drill hole
locations and an overview of claim/property boundaries.
All aspects that could materially impact the integrity of the data informing the Mineral Resource Estimate for
Los Helados were reviewed by SLR, including outcrop inspection, core logging, sampling methods and security,
analytical and QA/QC procedures, and database management.
SLR was given full access to relevant data and conducted interviews with NGEx personnel to obtain information
on exploration work and to understand the procedures used to collect, record, store, and analyze historical
and current exploration data.
Mineral Resource Estimation Methodology
The updated MRE was completed by SLR using the database provided by NGEx. The MRE was prepared in
accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for
Mineral Resources and Mineral Reserves dated May 10, 2014 (C IM (2014) definitions) as incorporated by
reference into NI 43-101.
The updated MRE is based on results from 106 drill holes totaling 93,750 m of drilling, including 23 new surface
diamond drill holes totaling 23,014 m drilled since the previous MRE was completed in 2019. The Los Helados
estimate is based on an interpreted breccia body emplaced within the local country rock. The breccia hosts
three internal higher -grade zones: Condor, Fenix, and Alicanto. The mineralization model was created in
Leapfrog Geo 2023.1 by NGEx geologists and refined by SLR.
The block model and MRE were completed in Leapfrog Edge software. A parent block size used was 20 m x 20
m x 20 m, with sub-blocking to 2.5 m x 2.5 m x 2.5 m. Grades for copper, gold, silver, and molybdenum were
estimated into parent blocks using ordinary kriging (OK). Inverse distance cubed (ID3) and nearest neighbour
(NN) interpolation were also carried out for validation purposes. Geometallurgical wireframes prepared for the
previous 2019 MRE were used to generate a geometallurgical model in Leapfrog Geo 2023.1 to assign domains
onto the block model. Representative cross sections showing block grades for copper and gold compared with
drill hole composites are shown in Figure 4 and Figure 5.
Figure 4: Los Helados Cross Section Showing Copper Grades
Figure 5: Los Helados Cross Section Showing Gold Grades
Mineral Resources were classified into Indicated and Inferred categories using a combination of drill hole
spacing and confidence in the continuity of mineralization. Drill hole spacings , using a minimum of three drill
holes, of up to approximately 150 m for Indicated and up to approximately 300 m for Inferred have been used
to support the classification (Figure 6).
To meet the RPEEE requirement for Mineral Resources, an underground bulk mining scenario was considered.
A series of block cave mining shapes were prepared at different cut-off grades to constrain the block model for
Mineral Resource reporting purposes (Figure 7).