NGEx Minerals Reports Q2 2022 Results; New Discoveries at Los Helados
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 Q2 2022 Results; New Discoveries at Los Helados
VANCOUVER, August 25 , 2022 - NGEx Minerals Ltd. (TSXV: NGEX) (“ NGEx Minerals ” “NGEx” or the
“Company”) is pleased to report its results for the three and six months ended June 30, 2022.
Q2 2022 HIGHLIGHTS AND OUTLOOK
o The 2022 drill program undertaken at Los Helados (Region III, Chile) successfully identified two
additional, distinct high -grade centres, the Fenix and Alicanto Zones, validating the
Company’s recent reinterpretation of the geological model. The revised geological model
highlights the potential to add additional high-grade material through the discovery and
definition of satellite zones adjacent to the main deposit; and
o Following the completion of its maiden drill campaign at Valle Ancho (Catamarca Province,
Argentina), the Company announced the discovery of a new copper-gold porphyry system at
the La Quebrada target . The discovery confirms the prospectivity of the underexplored land
package and warrants follow-up in a future campaign.
Commenting on the results Wojtek Wodzicki, President and CEO stated, “During Q2 2022, we made a significant
improvement in our understanding of the Los Helados deposit, which may prove to be transformational to the
project as we follow up on our findings. Our previous geological model envisioned a single high-grade core at the
centre of the deposit with grades diminishing towards the edges. However , we have now confirmed that Los
Helados hosts multiple high-grade centres through discovery of the Fenix and Alicanto Zones.
The revised geological model holds the potential to significantly add high-grade material at Los Helados via the
discovery and definition of satellite zones to complement the high-grade Condor Zone at the centre of the current
Mineral Resource. We are incredibly excited by this past program’s findings and plans are already well underway
for our next drill campaign, which will begin when the weather moderates with the curtailment of winter in the
Southern Hemisphere."
Los Helados Drill Program Validates Reinterpreted Geological Model; Proves Deposit Hosts Multiple High -
grade Centres
The Company’s 2022 drill program at the Los Helados copper-gold project concluded in June 2022 with 10,312
metres completed in 10 holes. In addition to successfully expanding and confirming continuity of the high-grade
mineralization of the Condor Zone, the core of the current Mineral Resource, drill results received and released
during the second quarter of 2022 have confirmed the presence of two additional high-grade satellite zones.
Drillholes FSDH076 (see News Release dated May 24, 2022) and FSDH078 (see News Release dated June 12, 2022)
successfully identified two additional high- grade structures, now named the Fenix and Alicanto Zones,
respectively. These intersections support the Company’s revised geological interpretation of the Los Helados
deposit, which suggests the potential for multiple high-grade satellite zones in addition to the high-grade Condor
Zone at the centre of the current Mineral Resource model.
Assay results received, analyzed and released by the Company during and subsequent to the second quarter
of 2022 are summarized as follows:
Hole-ID
From
(m)
To
(m) Length (m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq1
(%)
Zones
Intersected
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
1 Copper equivalent (“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. Drill hole LHDH078 is the only hole into the Alicanto Zone and additional drilling is required to define the geometry of
this zone and understand the true width of this intersection.
One additional hole has been completed to date, with assays pending, and three holes are currently suspended
and planned to be resumed during the Company’s next drill campaign commencing in or around September 2022.
The objective of these additional holes are as follows:
Hole Status Objectives
LHDH079 Completed;
Assays pending
To test for potential extension of the Condor Zone at depth.
LHDH080 Suspended To test a northwest resistivity anomaly.
LHDH081 Suspended To test continuity and potential extension of the Fenix Zone.
LHDH082 Suspended To test for potential extension of the Condor Zone at depth.
Assay results for these holes will be released as they are received, analyzed and confirmed by the Company.
The data generated from the current drill program at Los Helados will form the basis for a revised geological model
and will enable evaluation of alternate development scenarios for Los Helados, exploring optionality in scale of
operations and mine plan strategies. 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.
Discovery of New Copper-Gold Porphyry System at Valle Ancho
In May 2022, the Company confirmed its discovery of a new copper-gold porphyry system at the La Quebrada
target with an intersection of 596.5m of 0.50% CuEq (see News Release dated May 4, 2022).
The 2021/2022 drill campaign at Valle Ancho consisted of 3,060 metres o f diamond drilling in eight holes at
three high priority targets. Five wide-spaced reconnaissance holes were completed at the La Quebrada target,
three of which intersected significant intervals of copper-gold mineralization consistent with a large porphyry
system. The three discovery holes were drilled to respective depths of 601m, 271m and 431m, with each
ending in mineralization. These are the first holes ever drilled by the Company at La Quebrada and the
discovery will be an exciting target of future drill campaigns at Valle Ancho, as the Company looks to better
understand extent, geometry and controls of this mineralization.
All assay results from the five holes completed at La Quebrada are summarized as follows:
La Quebrada – 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).
The completion of the 2021/2022 field and drill campaign at Valle Ancho has substantially addressed 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 by the required deadline with additional expenses related to ongoing analysis of the results of
the drill campaign.
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2022 2021 2022 2021
Exploration and project investigation 9,765 356 18,347 758
General and administration (“G&A”) 700 454 1,384 885
Net loss 9,651 784 18,327 1,577
Basic and diluted loss per share 0.06 0.01 0.12 0.01
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements for
the three and six months ended June 30, 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)
June 30, December 31,
2022 2021
Cash 6,835 21,000
Working capital (deficit) 2,672 19,974
Mineral properties 3,417 3,537
Total assets 11,231 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 $ 9.7 million during the three months ended June 30 , 2022, comprised
primarily of $ 9.8 million in exploration and project investigation costs and $0 .7 million in G&A costs, which
have been partially offset by a gain of approximately $0. 8 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding transfers. For the comparative 2021 quarter, the
Company reported a net loss of $ 0.8 million, consisting primarily of $0.4 million in exploration and project
investigation costs and $0.4 million in G&A costs.
LIQUIDITY AND CAPITAL RESOURCES
As at June 30, 2022, the Company had cash of $6.8 million and net working capital of $2.7 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
and net working capital balance decreased during the six months ended June 30, 2022 due primarily to funds
used in operations, including option payments made for the Los Helados properties, and for general corporate
purposes. This was partially offset by gross proceeds of $0.3 million received by the Company on the exercise
of stock options during the six months ended June 30, 2022.
The Company anticipates that it will deploy the majority of its treasury to fund ongoing work programs at Los
Helados in Chile and Valle Ancho in Argentina and also to support general corporate and working capital
purposes.
ABOUT NGEX MINERALS
NGEx Minerals is a 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
the Valle Ancho Projects located in Argentina. 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 . While
NGEx Minerals’ near-term focus will be on drilling the high grade core of Los Helados and exploration at the
Valle Ancho Project, it remains open to adding quality projects to its portfolio as part of its overall growth
strategy. The Company is listed on the TSXV under the trading symbol “NGEX”.
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 April 26 , 2022, May 4, 2022, May 16,
2022, May 24, 2022, June 12, 2022 and July 6, 2022.
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:
the ability of the Company to secure additional financing and/or the quantum and terms thereof; the
Company’s ability to respond to or navigate, and/or methods by which it responds to or navigates, the COVID-
19 pandemic; 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 or Valle Ancho; 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 or the accuracy of a geological model; the ability
and/or the willingness of the Company to meet the remaining earn-in expenditure at Valle Ancho to secure a
100% interest therein by December 31, 2022; the future uses of the Company’s cash and working capital; 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 an d contingencies. Known and
unknown risks, uncertainties and other factors may cause actual results 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 secu rities legislation, the
Company does not undertake any obligation to publicly update and/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 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 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.