NGEx Minerals Reports 2022 Results
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 2022 Results
VANCOUVER, March 31, 2023 - NGEx Minerals Ltd. (TSXV: NGEX ) (“ NGEx Minerals ” “NGEx” or the
“Company”) is pleased to report its results for the year ended December 31, 2022.
Wojtek Wodzicki, President and CEO commented , “ Led by strong exploration results, NGEx performed
exceptionally well in 2022, resulting in share price performance which outpaced its peer group. The discovery of
the high-grade Fenix and Alicanto Zones at Los Helados during the early 2022 drill campaign confirmed our
geological reinterpretation of the deposit, and demonstrated clear potential to add significantly more high-grade
material to an already sizeable resource located in the emerging giant copper-gold-silver Vicuña District. We began
a follow-up drill program in November, 2022 and initial assay results from this ongoing campaign have already
begun to extend the Fenix and Alicanto Zones, which both remain open in multiple directions.
During 2022, NGEx also completed its earn-in at Valle Ancho to crystallize a 100% interest in the prospective land
package, and began preparations for drill testing the Potro Cliffs exploration target located on the major structural
trend that controls Los Helados to the north and Filo del Sol to the south. We received permits in December, and
drilling began at Potro Cliffs early in 2023. We will be sharing the drill results from the Los Helados and Potro Cliffs
programs as they become available, and look forward to carrying our momentum through 2023.”
2022 HIGHLIGHTS AND OUTLOOK
• Discovered two satellite high-grade breccias at Los Helados, now known as the Fenix and Alicanto
Zones, which confirm the Company’s revised geological interpretation of the deposit,
demonstrating that it hosts multiple centres of mineralization with elevated grades.
• Launched 2022/2023 Los Helados drill program in November 2022, focusing on extension of the
recently discovered Fenix and Alicanto Zones, with initial assay results showing early success and
expanding these satellite zones.
• Discovered a new copper-gold porphyry system at the La Quebrada target and a shallow oxide gold
system at the Nordin target on the Valle Ancho project.
• Completed the earn-in expenditure requirement at Valle Ancho to secure a 100% interest in the
project.
• Received permits for a Potro Cliffs drill program in December 2022, paving the way to the
commencement of drilling at this highly prospective exploration target in January 2023.
H1 2022 Los Helados Drill Program Discovers Satellite High -grade Breccias; 2022-2023 Program to Test
Extension
The drill program carried out at Los Helados between January and June 2022 (the “H1 2022 Los Helados Drill
Program”) successfully expanded and tested continuity of mineralization in the Condor Zone, the high -grade
breccia phase at the core of the Los Helados deposit. In addition, the program validated the Company’s geological
interpretation at Los Helados, which was revised in 2021 and hypothesized that the deposit hosts multiple centres
of high-grade mineralization and that elevated grades do not necessarily dissipate away from the Condor Zone.
The Company confirmed the existence of two additional distinct, high-grade centres to the Los Helados deposit,
the Fenix Zone, located at the western edge of the current Mineral Resource, and the Alicanto Zone, located 550m
north of the Condor Zone.
Highlights from the H1 2022 Los Helados Drill Program include LHDH076, which confirmed the existence of the
Fenix Zone with an intersection returning 234.0m at 0.97% Copper Equivalent (“CuEq”) within a broader interval,
including the Condor zone, of 1,290m at 0.74% CuEq. LHDH078 successfully discovered the Alicanto zone and
returned 474.8m at 0.61% CuEq, including 100.0m at 1.20% CuEq (see News Releases dated May 24, 2022 and
June 12, 2022).
A follow-up program was launched in the fall of 2022 to test for extension of the two new zones (the “2022/2023
Los Helados Drill Program”). Initial assays from this follow-up program have already confirmed extension with
LHDH081 returning 1,168.8m at 0.43% CuEq, including 220.0m at 0.72% CuEq through the Fenix Zone, extending
the mineralization 130m to the northwest. In addition, LHDH083 successfully expanded the Alicanto Zone 90m to
the east with an intersection of 626.0m at 0.59% CuEq from 514.0m, including 122.1m at 1.05% CuEq from 884.0m
(see News Release dated January 26, 2023).
Assay results from the completed H1 2022 Los Helados Drill Program, and assays to date from the ongoing
2022/2023 Los Helados Drill Program, are summarized below.
Hole-ID
From
(m)
To
(m)
Length
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq1
(%)
Zones
Intersected
H1 2022 Los Helados Drill
Program
LHDH073 124.0 1,000.0 876.0 0.56 0.28 2.1 0.74
Condor Zone incl. 216.0 912.0 696.0 0.60 0.31 2.2 0.80
incl. 314.0 524.0 210.0 0.76 0.45 2.8 1.06
LHDH074 42.0 1,058.3 1,016.3 0.45 0.31 1.9 0.65
Condor Zone
incl. 136.0 890.0 754.0 0.52 0.30 2.0 0.71
and incl. 210.0 504.0 294.0 0.60 0.41 2.1 0.87
and incl. 606.0 746.0 140.0 0.64 0.29 2.5 0.83
and incl. 816.0 890.0 74.0 0.58 0.25 2.5 0.74
LHDH075 14.0 922.0 908.0 0.39 0.24 1.3 0.55
Condor Zone incl. 88.0 652.0 564.0 0.47 0.29 1.4 0.65
incl. 222.0 602.0 380.0 0.51 0.31 1.6 0.70
incl. 222.0 378.0 156.0 0.59 0.42 1.7 0.86
LHDH076 110.0 1,400.0 1290.0 0.60 0.21 2.3 0.74
Condor Zone incl. 138.0 922.0 784.0 0.63 0.25 1.9 0.80
incl. 138.0 542.0 404.0 0.77 0.35 2.2 1.00
and incl. 1,166.0 1,400.0 234.0 0.80 0.24 4.5 0.97 Fenix Zone incl. 1,166.0 1,308.0 142.0 1.14 0.35 3.8 1.38
incl. 1,384.0 1,400.0 16.0 0.86 0.19 23.4 1.11
LHDH077 0.0 989.0 989.0 0.51 0.27 1.7 0.69
Condor Zone
incl. 42.0 778.0 736.0 0.58 0.32 1.9 0.79
incl. 328.0 548.0 220.0 0.69 0.41 2.4 0.95
incl. 328.0 452.0 124.0 0.71 0.47 2.6 1.02
Upper ext. 42.0 150.0 108.0 0.53 0.38 1.6 0.77
Lower ext. 526.0 778.0 252.0 0.57 0.20 2.0 0.71
LHDH078 566.0 1,040.8 474.8 0.55 0.08 1.7 0.61
Alicanto Zone incl. 700.0 1,040.8 340.8 0.67 0.09 2.0 0.73
incl. 844.0 944.0 100.0 1.10 0.14 2.1 1.20
2022/2023 Los Helados Drill
Program
LHDH079 148.0 1,363.2 1,215.2 0.32 0.18 1.5 0.43
Condor Zone incl. 676.0 932.9 256.9 0.54 0.16 2.6 0.65
and incl. 985.8 1,086.0 100.2 0.53 0.17 1.4 0.64
LHDH081 436.0 1,604.8 1,168.8 0.37 0.08 1.8 0.43 Fenix Zone incl. 1,144.0 1,364.0 220.0 0.63 0.12 2.6 0.72
LHDH082 152.0 1,133.3 981.3 0.38 0.15 1.7 0.48
Condor Zone incl. 550.0 1,039.7 489.7 0.46 0.20 1.9 0.60
incl. 826.0 968.0 142.0 0.55 0.26 2.3 0.73
LHDH083 514.0 1,140.0 626.0 0.46 0.20 1.9 0.59
Alicanto Zone incl. 678.0 724.0 46.0 0.28 0.96 1.2 0.87
and incl. 884.0 1,006.1 122.1 0.94 0.14 2.7 1.05
1 CuEq for drill intersections is calculated based on US$ 3.50/lb Cu, US$ 1,700/oz Au and US$ 20/oz Ag, with metallurgical recoveries
of 88% for copper, 76% for gold and 60% for silver based on a comprehensive program of metallurgical testwork. The formula is :
CuEq % = Cu % + (0.6117 * Au g/t) + (0.0057 * Ag g/t).
2 Los Helados hosts large-scale porphyry and associated breccia mineralization and drilled lengths are interpreted to be approximate
true widths.
The ongoing 2022/2023 Los Helados Drill Program will continue to be focused on defining the geometry and size
of the Alicanto and Fenix Zones, with the majority of the remaining holes of the program allocated to this objective.
Several additional holes have now been completed, with assays in progress. Results will be released as they are
received, analyzed and confirmed by the Company.
In addition to the drill program, the Company is also carrying out a comprehensive geophysical program to assist
in targeting higher grade mineralization, including a 3D IP/resistivity survey, a drone borne magnetics survey, and
a magneto-telluric survey.
Commencement of First Drill Program at Potro Cliffs
Starting in the third quarter of 2022, the Company began making preparations for a drill campaign at its Potro
Cliffs copper-gold exploration target (“Potro Cliffs”), located in San Juan Province, Argentina. Potro Cliffs is the
largest untested hydrothermal system in the emerging Vicuña District, which hosts several sizeable coppe r-
gold deposits, such as Josemaria, Filo del Sol, and the Company’s Los Helados Project. The Potro Cliffs target
lies along the same major north -northeast structural trend that controls the Filo del Sol deposit located
approximately 8 km to the south and Los Helados located approximately 9 km to the north.
The Company received permits in late December 2022 and began drilling at Potro Cliffs in January 2023 with
two rigs. To date, the Company has completed its first two holes at Potro Cliffs, one from the plateau at the
top of the cliff and another collared in the valley approximately 700 metres below, and results will be released
as they are received, analyzed and confirmed by the Company.
Drilling at Potro Cliffs has continued through March 2023 with drill targeting guided by the geology seen in
the first two holes.
Initial Discoveries at Valle Ancho Confirm Prospectivity of Land Package; NGEx Completes 100% Earn-in
During the first quarter, the Company completed a 3,060 metre diamond drill program at the Valle Ancho
project, located in Catamarca Province, Argentina.
The program successfully discovered a new copper-gold porphyry system at the La Quebrada target (see News
Release dated May 4, 2022), as well as shallow oxide gold mineralization at the Nordin target (see News release
dated February 28, 2022). While both discoveries will require additional exploration, the initial results
successfully demonstrated the prospectivity that exists on this large and underexplored land package.
Assay results from the 8 holes completed this campaign are summarized as follows:
La Quebrada Target – Copper-gold Porphyry Discovery
Hole-ID
From
(m)
To
(m)
Length
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq1
(%)
VADH003 4.0 600.5 596.5 0.23 0.37 1.4 0.50
incl. 4.0 108.0 104.0 0.25 0.50 1.5 0.62
incl. 350.0 600.5 250.5 0.23 0.40 1.6 0.53
VADH004 No significant values
VADH005 0.0 271.0 271.0 0.12 0.26 1.1 0.32
incl. 76.0 271.0 195.0 0.14 0.29 1.2 0.36
incl. 138.0 224.0 86.0 0.15 0.33 1.5 0.40
VADH006 8.0 431.0 423.0 0.19 0.27 2.2 0.40
incl. 162.0 270.0 108.0 0.22 0.38 1.9 0.50
incl. 292.0 428.0 136.0 0.25 0.32 4.2 0.50
VADH007 No significant values
1 CuEq for drill intersections is calculated based on US$ 3.50/lb Cu, US$ 1,700/oz Au and US$ 20/oz Ag, with
metallurgical recoveries of 80% assumed for all metals. The formula is: CuEq % = Cu % + (0.7083 * Au g/t) +
(0.0083 * Ag g/t).
Nordin Target – Near Surface, Oxide Gold Discovery
Hole-ID
From
(m)
To
(m)
Length
(m)
Au
(g/t)
Ag
(g/t)
VADH001 0.0 150.0 150.0 1.05 0.67
incl. 4.0 128.0 124.0 1.21 0.73
incl. 36.0 56.0 20.0 2.12 0.59
VADH002 0.0 198.0 198.0 0.63 0.44
incl. 0.0 70.0 70.0 0.94 0.46
Anomalia 4 Target
Hole-ID
From
(m)
To
(m)
Length
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq
(%)
VADH008 No significant values
In November 2022, after having completed the US$8.0 million minimum expenditure requirement pursuant
to an option agreement with the Province of Catamarca to earn a 100% interest in Valle Ancho, the Company
prepared requisite reports and made its formal submissions to the province to complete the Valle Ancho earn-
in.
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts)
Three months ended Year ended
December 31, December 31,
2022 2021 2022 2021
Exploration and project investigation 6,038 3,518 28,924 5,665
General and administration (“G&A”) 2,346 695 5,496 2,054
Net loss 8,020 2,390 32,415 5,457
Basic and diluted loss per share 0.04 0.01 0.20 0.04
The financial information in this table was selected from the Company’s consolidated financial statements for the year ended
December 31, 2022 (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,
2022 2021
Cash 23,249 21,000
Working capital 20,222 19,974
Mineral properties 3,903 3,537
Total assets 32,312 25,733
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 $ 32.4 million during the year ended December 31 , 2022 , comprised
primarily of $28.9 million in exploration and project investigation costs and $ 5.5 million in G&A costs, which
have been partially offset by a gain of approximately $ 2.0 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding transfers. For the comparative 202 1 year, the
Company reported a net loss of $ 5.5 million, consisting primarily of $ 5.7 million in exploration and project
investigation costs and $2.1 million in G&A costs, which were 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.
LIQUIDITY AND CAPITAL RESOURCES
As at December 31 , 2022, the Company had cash of $ 23.2 million and net working capital $ 20.2 million,
compared to cash of $21.0 million and net working capital of $20.0 million as at December 31, 2021. The
Company’s cash in creased during the year ended December 31 , 2022 , due to an October 25, 2022 non-
brokered private placement whereby the Company sold an aggregate of 15,000,000 common shares at a price
of $2.00 per common share, generating aggregate gross proceeds of $30.0 million (the “Financing”) (see News
Release dated October 25, 2022). 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. In addition, during the year ended December 31, 2022, the Company received $495,847 in gross
proceeds on the exercise of stock options.
Credit Facility
On September 28, 2022, the Company obtained an unsecured US$3.0 million credit facility (the “2022 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 exp loration and for general corporate purposes. Zebra and Lorito are companies
controlled by a trust settled by the late Adolf H. Lundin. Zebra and Lorito report their respective security
holdings in the Company as joint actors, as the term is defined by Cana dian securities regulations, and are
related parties by virtue of their combined shareholding in the Company in excess of 20%.
As consideration for the 2022 Facility, Zebra and Lorito received 12,500 common shares upon execution
thereof (the “Commitment Shares”) and shall receive an additional 200 common shares each month, for every
US$50,000 in principal outstanding, prorated accordingly for the number of days outstanding. The 2022 Facility
matures on September 28, 2023, and no interest is payable in cash during its term.
All common shares issued in conjunction with the facilities are subject to a four- month hold period under
applicable securities laws.
The Company anticipates that it will deploy the majority of its treasury and capital resources towards
furthering exploration programs in Chile and Argentina, and for general corporate and working capital
purposes.
ABOUT NGEX MINERALS
NGEx Minerals is a copper and gold exploration company based in Canada, focused on advancing its Los
Helados copper-gold project located in Chile's Region III and testing the nearby Potro Cliffs exploration target
located approximately 12 kilometres to the southwest in San Juan Province, Argentina. Both projects are
located within the Vicuña District which includes the Josemaria and Filo del Sol deposits. Los Helados and the
Potro Cliffs target lie along the same major north -northeast trending structure th at controls the Filo del Sol
deposit.
NGEx Minerals is the majority partner and operator for the Los Helados Project, subject to a Joint Exploration
Agreement with Nippon Caserones Resources Co., Ltd. which operates the Caserones open pit copper mine
located approximately 15km north of Los Helados through a subsidiary that is subject to a recently announced
agreement whereby Lundin Mining Corporation will acquire a controlling stake.
NGEx Minerals' near- term objectives are to continue drilling for extens ions of the high -grade Fenix and
Alicanto Zones identified at Los Helados in early 2022, and to complete an initial drill campaign at the Potro
Cliffs exploration target.
The Company is listed on the TSXV under the trading symbol "NGEX". NGEx Minerals i s part of the Lundin
Group of Companies.
QUALIFIED PERSONS AND TECHNICAL NOTES
The scientific and technical disclosure for the Los Helados Project included in this news release have been
reviewed and approved by Bob Carmichael, B.A.Sc., P.Eng. who is the Qualified Person as defined by NI 43 -
101. Mr. Carmichael is Vice President, Exploration for the Company. Additional details on the drill results
disclosed above can be found in the Company’s press releases dated February 28, 2022, May 4, 2022, May
24, 2022, June 12, 2022 and January 26, 2023.
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.
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”). All statements other than statements of historical facts included
in this document constitute forward-looking information, including but not limited to, statements regarding:
exploration and development plans and expenditures, including the size, scope, nature, timing and foci of the
Company’s future exploration programs, particularly at Los Helados, Valle Ancho and Potro Cliffs; the
anticipated improvements to efficiency that will be realized through directional drilling at Los Helados; the
amount or timing of drilling that will be completed during the 2022/2023 Los Helados Drill Program; whether
current interpretation of the exploration and/or drill results to date will be confirmed by future work, including
statements regarding prospectivity of exploration properties, the accuracy of a geological model, or the ability
to extend and define of the Fenix, Alicanto and Condor Zones at Los Helados; the result of the Province of
Catamarca’s review of the Company’s submission with respect to the completion of the earn -in expenditure
at Valle Ancho to secure a 100% interest therein and the timing thereof; the expected results or success of
exploration activities at Potro Cliffs, including but not limited to, drill results from the current program
underway and the anticipated drill meters to be completed at Potro Cliffs, including whether the Company will
drill holes in addition to the two initially planned and completed; the expected timing of assay results
generated by the Company's drill program at Potro Cliffs; the future uses of the Company’s cash and working
capital, including the net proceeds resulting from the Financing ; the success of future exploration activities;
potential for the discovery of new mineral deposits or expansion of existing mineral deposits; 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 classification; and the ability to execute the planned work
programs. Words 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 and similar
expressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without
limitation, the expectations and beliefs of management as outlined above. Although the Company believes
that these factors and expectations are reasonable as at the date of this document in light of management’s
experience and perception of current conditions and expected developments, these statements are inherently
subject to significant business, economic and competitive uncertainties and contingencies. Known and
unknown risks, uncertainties and other factors may cause actual r esults or events to differ materially from
those anticipated in such forward -looking statements and undue reliance should not be placed on such
statements and information. Such factors include, without limitation: the ongoing COVID 19 pandemic and the
risk that an intensification of the pandemic or an outbreak at the project could impact the company’s ability
to carry out the program and could cause the program to be shut down, estimations of costs, and permitting
time lines; ability to obtain environmental permits, surface rights and property interests in a timely manner;
currency exchange rate fluctuations; requirements for additional capital; changes in the Company’s share
price; changes to government regulation of mining activities; environmental risks; unanticipated reclamation
or remediation expenses; title disputes or claims; limitations on insurance coverage; assumptions that the
Company will receive the permits required to drill at Valle Ancho in a timely manner, fluctuations in the current
price of and demand for commodities; material adverse changes in general business and economic conditions
in Chile; the availability of financing if and when needed on reasonable terms; risks related to material labour
disputes, accidents, or failure of plant or equipment; and other risks, uncertainties and other factors identified
in the Company’s periodic filings with Canadian securities regulators which are available on SEDAR at
www.sedar.com under the Company’s profile.
The forward -looking information contained in this news release is based on information available to the
Company as at the date of this news release. Except as required under applicable securities legislation, the
Company does not undertake any obligation to publicly update an d/or revise any of the included forward -
looking information, whether as a result of additional information, future events and/or otherwise. 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 containe d 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 mat erially from
those anticipated in such statements. All the forward -looking information contained in this document is
qualified by these cautionary statements. 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.