NGEX Minerals Reports 2021 Results; Provides Exploration Update
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
NEWS RELEASE
NGEX MINERALS REPORTS 2021 RESULTS; PROVIDES EXPLORATION UPDATE
VANCOUVER, April 13 , 2022 - NGEx Minerals Ltd. (TSXV: NGEX ) ( “NGEx Minerals ” or the “ Company”) is
pleased to announce its results for the year ended December 31, 2021.
2021 HIGHLIGHTS AND OUTLOOK
Wojtek Wodzicki, President & CEO, remarked, “The Company is carrying out significant drill programs on its
key projects, Los Helados in Chile and Valle Ancho in Argentina. The renewed exploration efforts on our portfolio
of predominantly copper and gold assets come at an ideal time, with the price of these metals maintaining
their momentum into 2022.
Drilling this season at the Los Helados copper-gold project is focused on infill holes to delineate the high-grade
core of the deposit with the ultimate goal of converting material within this high-grade zone from Indicated to
Measured, as well as to test the possibility of extending it based on our revised geological and geophysical
models. Assay results from the 2021/2022 drill program at Los Helados are pending, and we look forward to
sharing them as they become available. Management and the board continue to be mindful of the other
exciting developments in and around the Vicuña district, particularly with the other Lundin Group companies,
and we anticipate that Los Helados will be an integral asset for the region in the long-term.”
Following a reinterpretation of the geological model for the Los Helados deposit in 2021, the Company has
begun a drill program to infill and test potential extensions of the deposit’s high-grade core.
Preparations for the 2021/2022 Los Helados program began in late 2021, and drilling commenced in February
2022. The drill program is ongoing and a total of approximately 5,800 metres has been completed to date .
Initial assay results from the program are pending and will be released once received and analyzed by the
Company.
The data generated by the 2021/2022 Los Helados campaign, along with the assay results from the previously
unsampled core collected at Los Helados during a 2015 geotechnical program (see News Release dated
September 8, 2021 for details), will form the basis for a futu re update to the Mineral Resource estimate. In
turn, an updated Mineral Resource will enable evaluation of alternate development scenarios for Los Helados,
exploring optionality in scale of operations and mine plan strategies, which may illustrate alternate strategies
for realization of value on this robust asset. In addition, the drill program will provide samples for additional
detailed metallurgical testwork, which will allow for optimization of process flowsheets and a better
understanding of variability within the orebody.
Mr. Wodizcki continued, “During 2021, NGEx Minerals also planned and launched its first drill program at Valle
Ancho, which was designed to dril l test several high priority exploration targets identified during earlier
reconnaissance work . The undertaking of a substantial field program will he lp us meet the expenditure
requirement of the Valle Ancho earn-in and crystallize our 100% interest in the project, which opens the range
of possibilities for future exploration of this large land package.
The 2021/2022 program at Valle Ancho has started off on the right foot, with first assay results from two holes
drilled at the Nordin gold target intersecting oxide gold mineralization from surface down to almost 200m. We
are excited to receive the pending assay results from the other holes drilled at Valle Ancho this season, and
look forward to reporting them as they become available.”
In November 2021, the Company commenced its 2021/2022 field an d drill campaign at the Valle Ancho
project, located in the Province of Catamarca, Argentina. Drilling commenced in late December 2021 and
concluded in March 2022, completing a total of 3,060 metres of diamond drilling in 8 holes.
Initial assay results from the campaign have been received and relate to two holes completed at the Nordin
gold target. Highlights include:
• VADH001 intersecting 150m at 1.05 g/t Au from surface in oxidized rock; and
• VADH002 intersecting 198m at 0.63 g/t Au from surface in oxidized rock, including a higher- grade
interval of 0.90 g/t Au over 70m.
These initial assay results are encouraging and provide early confirmation of the prospectivity of the Valle
Ancho land package. Additional drill holes completed during this 2021/2022 drill campaign include:
• Five holes testing the La Quebrada target, a porphyry copper- gold target 15km southeast of
Nordin, where rock chip samples collected in 2019/2020 averaged 0.5 g/t Au and 0.2% Cu from
oxided and leached rock, and samples collected from structurally controlled zones in the area
returning values of up to 8.57 g/t Au and 114 g/t Ag; and
• One hole testing the Anomalia 4 target, which is located midway between Nordin and La Quebrada
with strongly anomalous gold values ranging from 0.5 g/t to 7.07 g/t and silver vales up to 580 g/t.
Assay results from the remaining 6 holes completed during the 2021/2022 drill campaign are pending and will
be released once received and analyzed by the Company.
The completion of the 2021/2022 field and drill campaign at Valle Ancho has substantially add ressed the
Company’s US$8 million expenditure requirement to earn-into the Valle Ancho project, which must be met by
the end of 2022. As of the date of this News Release, the Company anticipates making the remaining earn-in
expenditures prior by the required deadline with additional expenses related, but not limited, to
demobilization following the conclusion of the 2021/2022 field campaign, geochemical assay and analysis of
the remaining core collected during the program, and ongoing technical consul tation with respect to, and
analysis of, the results of the Company’s first drill campaign at Valle Ancho, which may include developing
preliminary geological models and interpretations. The Company may also proceed with planning future
exploration programs at Valle Ancho, including identification and prioritization of potential drill targets.
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts)
Three months ended Year ended
December 31, December 31,
2021 2020 2021 2020
Exploration and project investigation 3,518 563 5,665 3,304
Write down of mineral property
interest - - - 827
General and administration (“G&A”) 670 739 2,028 1,957
Net loss 2,390 1,302 5,457 5,893
Basic and diluted loss per share 0.01 0.01 0.04 0.05
The financial information in this table was selected from the Company’s consolidated financial statements for year ended
December 31, 2021 (the “Financial Statements”), which are available on SEDAR at www.sedar.com and the Company’s website
www.NGExminerals.com.
SELECTED FINANCIAL INFORMATION
(In thousands of Canadian dollars)
December 31, December 31,
2021 2020
Cash 21,000 899
Working capital 19,974 550
Mineral properties 3,537 4,106
Total assets 25,733 5,378
The financial information in this table was selected from the Financial Statements, which are available on SEDAR at
www.sedar.com and the Company’s website www.NGExminerals.com.
The Company incurred a net loss of $ 5.5 million during the year ended December 31, 2021, comprised
primarily of $5.7 million in exploration and project investigation costs and $2.0 million in G&A costs , which
have been partially offset by a gain of approximately $ 2.5 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding transfers (a “Funding Gain”). For the year ended
December 31, 2020, the Company reported a net loss of $ 5.9 million, consisting primarily of $3.3 million in
exploration and project investigation costs, a $0.8 million write down of the Nacimientos properties, and $2.0
million in G&A costs.
While the net loss for the year ended December 31 , 2021 was largely consistent with that of 2020, the
underlying results had two largely offsetting variances. During 2021, the Company reported higher exploration
and project investigation costs, which reflects the Company’s preparation for, and undertaking of, field and
drill campaign at Los Helados and Valle Ancho, whereas no exploration work was undertaken during 2020
following the cessation of field activity in April 2020 in response to COVID -19 and related travel restrictions
and safety concerns. This increased exploration and project investigation costs was largely offset by increased
Funding Gains realized during the year ended December 31, 2021.
LIQUIDITY AND CAPITAL RESOURCES
As at December 31, 2021, the Company had cash of $ 21.0 million and net working capital of $ 20.0 million,
compared to cash of $ 0.9 million and net working capital of $ 0.5 million as at December 31, 20 20. The
Company’s cash and net working capital balance increased during the year ended December 31, 2021 due to
the net proceeds generated by a non -brokered private placement, pursuant to which the Company sold an
aggregate of 31,250,000 common shares at a price of $0.80 per common share, for aggregate gross proceeds
of $25.0 million (the “Financing”). The Financing closed on November 1, 2021, and the net proceeds from the
Financing have been partially offset by funds used in operations, including mineral property and surface access
rights payments and for general corporate purposes.
Repayment of Credit Facility
On February 19, 2021, the Company obtained an unsecured US$3.0 million credit facility (the “2021 Facility”)
from Zebra Holdings and Investments S.à.r.l. (“Zebra”) and Lorito Holdings S.à.r.l. (“Lorito”) to provide financial
flexibility to fund ongoing exploration and for general corporate purposes. Zebra and Lorito are companies
controlled by a trust settled by the late Adolf H. Lundin and report their security holdings in the Company as a
joint actor, as the term is defined by Canadian securities regulations, and are related parties by virtue of their
combined shareholding in the Company in excess of 20%.
Following the closing of the Financing, all amounts drawn and outstanding against the 2021 Facility were
repaid in full by the Company , and it matured on February 19, 2022 with no interest paid in cash during its
term.
ABOUT NGEX MINERALS
NGEx Minerals is a Lundin Group copper and gold exploration company based in Canada with projects in Chile
and Argentina. NGEx Minerals holds the large-scale Los Helados copper-gold deposit, located in Chile's Region
III, as well as other early -stage projects located in Argentina. NGEx Minerals is the majority partner and
operator for the Los Helados Project, subject to a Joint Exploration Agreement with its joint exploration partner
in Chile, Nippon Caserones Resources Co., Ltd (formerly, Pan Pacific Copper Co., Ltd.). NGEx Minerals is actively
seeking to add to its portfolio of projects as part of its overall growth strategy. The Company is listed on the
TSXV under the trading symbol “NGEX”.
QP AND TECHNICAL INFORMATION
Technical information in this news release has been reviewed and approved by Bob Carmichael, B.Sc., P.Eng.,
who is the Qualified Person as defined by NI 43 -101. Mr. Carmichael is Vice President, Exploration for the
Company.
On behalf of NGEx Minerals,
Wojtek Wodzicki,
President and CEO
For further information:
Amanda Strong, Investor Relations,
Canada: +1 604 689 7842 or [email protected]
Additional information relating to NGEx Minerals Ltd. may be obtained or viewed on the SEDAR website at
www.sedar.com or on the Company’s website at www.NGExminerals.com.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes “forward -looking
information” and “forward -looking statements” within the meaning of applicable securities legislation (collectively,
“forward-looking information”). The forward-looking information contained in this news release is based on information
available to the Company as of the date of this news release. Except as required under applicable securities legislation,
the Company does not intend, and does not assume , any obligation, to update this forward- looking information.
Generally, this forward -looking information can frequently, but not always, be identified by 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
statements that certain actions, events, conditions or results “will”, "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connotations thereof. All statements other than statements of historical fact
may be forward-looking statements.
Forward-looking statements contained in this news release include statements regarding: the Company’s ability to
respond to or navigate, and/or methods by which it responds to or navigates, the COVID-19 pandemic; the expected size,
scope and results of the Company’s most recent exploration programs at Los Helados and Valle Ancho, including the
expected timing of receipt of pending assay results therefrom; exploration and development plans and expenditures,
including those pertaining to the 2021/2022 program at Valle Ancho and the 2021/2022 program at Los Helados, including
an update to its Mineral Resource estimate; the ability and/or willingness of the Company to meet the remaining earn-in
expenditure at Valle Ancho to secure a 100% interest therein; the timing and nature of work undertaken to advance the
Los Helados Project or the Valle Ancho Project; the future uses of net proceeds from the Financing; the success of future
exploration activities; potential for the discovery of new mineral deposits ; changes in the Company’s share price; ability
to build shareholder value ; expectations with regard to adding to Mineral Resources through exploration; expectations
with respect to the conversion of Inferred Resources to an Indicated Resource classification, or the conversion of
Indicated Resources to a Measured Resource classifi cation; ability to execute the planned work programs; estimation of
commodity prices, Mineral Resources, estimations of costs, and permitting time lines; ability to obtain surface rights and
property interests; currency exchange rate fluctuations; requirem ents for additional capital; government regulation of
mining activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on
insurance coverage; and other risks and uncertainties. Although the Company believes that the expectations reflected in
such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-
looking statements since the Company can give no assurance that such expectations will prove to be correct. These
statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward -looking statements, including the risks, uncertainties and other
factors identified in the Company’s periodic filings with Canadian securities regulators. In addition, these statements
involve assumptions made including that t he current price of and demand for commodities will be sustained or will
improve, the supply of commodities will remain stable, that the general business and economic conditions will not change
in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the
Company will not experience any material labour di spute, accident, or failure of plant or equipment. These factors are
not, and should not be construed as being, exhaustive.
The forward-looking statements contained in this news release are made as at the date of this news release and the
Company does no t undertake any obligations to publicly update and/or revise any of the included forward- looking
statements, whether as a result of additional information, future events and/or otherwise, except as may be required by
applicable securities laws. Forward -looking information is provided for the purpose of providing information about
management's current expectations and plans and allowing investors and others to get a better understanding of the
Company's operating environment. 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
the forward-looking information contained in this document is qualified by these cautionary stat ements. Readers are
cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.
Cautionary Note to U.S. Readers
Information concerning the mineral properties of the Company contained in this news release has been prepared in
accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements
of securities laws of the United States applicable to U.S. companies subject to the reporting and disclosure requirements
of the United States Securities and Exchange Commission.