NGEx Minerals Reports Q2 2023 Results; Major Discovery at Lunahuasi; Now Fully Financed for 2023-2024 Field Season
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 2023 Results; Major Discovery at Lunahuasi; Now Fully
Financed for 2023-2024 Field Season
VANCOUVER August 24 , 2023 - 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, 2023.
Wojtek Wodzicki, President and CEO remarked, “NGEx continued its strong performance during the second quarter
and concluded the most successful exploration season in the Company’s history by making a major new high-grade
copper-gold-silver discovery at the Lunahuasi Project. Initial drill testing of a small portion of the 11 km2 Lunahuasi
alteration zone has returned some of the highest grades seen in the Vicuña District to date and we are looking
forward to testing the rest of the system in the upcoming field season. Earlier this month , we closed an
oversubscribed non-brokered private placement, which received overwhelming support from new and long-term
shareholders. The upsized financing raised over $85 million in gross proceeds, which gives the Company significant
flexibility to plan its exploration programs for the upcoming field season and beyond. NGEx has had remarkable
exploration success in the first half of 2023, and now with funding in place we are eager to build on that success
with a major new drill program at Lunahuasi that is expected to start early in the fourth quarter of 2023.”
Q2 2023 AND SUBSEQUENT PERIOD HIGHLIGHTS
• On August 11, 2023, the Company closed a non-brokered private placement, whereby the Company
sold 13,178,460 common shares at a price of $6.50 per common share for gross proceeds of $85.7
million.
• Lunahuasi becomes the fourth major discovery in the Vicu ña District by the Lundin Group of
Companies, following the earlier discoveries of the Los Helados, Filo del Sol, and Josemaria
deposits.
o On April 4, 2023, the Company announced a significant high -grade copper-gold-silver
discovery at the Lunahuasi Project highlighted by a drill intercept in DPDH002 of 60m at 5.65%
Cu, 2.04 g/t Au, AND 44.0 g/t Ag.
o Subsequent Lunahuasi drill holes released on July 4, 2023, confirmed and extended the initial
results and included DPDH007 with 90m at 2.05% Cu, 2.46 g/t Au, 23.2 g/t Ag and 20.8m at
5.54% Cu, 2.02 g/t Au, 121.3 g/t Ag.
o The maiden Lunahuasi drill campaign concluded in May 2023, with a total of 4,912 m of
diamond drilling completed in eight holes.
o The veins intersected at Lunahuasi are interpreted to be part of the outer halo of a yet to be
discovered porphyry copper centre in the vicinity. In addition, the grades and thickness of this
intersected mineralization are potential indicators of the strength of the system that is the source
of these high-grade vein structures.
• The Company also completed a successful drill program comprising 11 holes totaling 10,436m at
its 69% owned Los Helados Project.
o The drilling successfully extended the recently discovered high -grade Fenix and Alicanto
Zones.
o Highlights from the quarter include Fenix zone holes LHDH084 with 390m at 1.02% Cu, 0.15
g/t Au, 2.4g/t Ag, and 187 ppm Mo, and LHDH081-2, which intersected 343.8m at 0.81% Cu,
0.12 g/t Au, 2.5 g/t Ag, and 204 ppm Mo.
o Detailed geophysical surveys and geological mapping were also completed during the 2022 -
2023 Los Helados field program, which have generated a number of new exploration targets
with signatures similar to the Condor, Fenix and Alicanto Zones, illustrating t he potential for
further satellite discoveries to be made at the advanced stage Los Helados exploration project.
Q2 2023 DRILLING RESULTS
Drilling and Assay Results from the Company’s 2022-2023 season’s drill programs at Los Helados and Lunahuasi
are summarized in Appendix 1 to this news release. Lunahuasi results are discussed in News Releases dated April
4, 2023, and July 4, 2023. Los Helados results are discussed in News Releases dated January 26, 2023, April 13,
2023, and July 28, 2023
OUTLOOK
The Company is expecting its exploration efforts to focus on Lunahuasi over the upcoming field season and is
currently finalizing plans for a significant drill program. This drill program will target extensions of the mineralized
zones intersected in the first half of 2023 and will also test other targets identified within the broader 11 km2
Lunahuasi alteration zone. Drilling is expected to resume in the fourth quarter of 2023 and continue into the first
half of 2024.
A more limited program at Los Helados will focus on updating the geological model to incorporate the recent
drilling completed in the Condor, Fenix, and Alicanto Zones, and continued targeting work using the recently
completed geophysical surveys and geological mapping to guide future exploration. A small reconnaissance
mapping and sampling program to review earlier stage targets adjacent to Los Helados is also planned.
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2023 2022 2023 2022
Exploration and project investigation 10,898 9,765 26,020 18,347
General and administration (“G&A”) 1,218 732 2,579 1,446
Net loss 9,719 9,651 24,886 18,327
Basic and diluted loss per share 0.06 0.06 0.14 0.12
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, 2023 (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,
2023 2022
Cash 4,952 23,249
Working capital (deficit) (2,733) 20,222
Mineral properties 4,181 3,903
Total assets 12,149 32,312
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, 2023, comprised
primarily of $10.9 million in exploration and project investigation costs and $ 1.2 million in G&A costs, which
have been partially offset by a gain of approximately $ 2.2 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding transfers. For the comparative 2022 period, the
Company reported a net loss of $ 9.7 million, consisting primarily of $ 9.8 million in exploration and project
investigation costs and $0.7 million in G&A costs, which were 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.
LIQUIDITY AND CAPITAL RESOURCES
As at June 30 , 2023, the Company had cash of $ 5.0 million and a net working capital deficit of $2.7 million,
compared to cash of $ 23.2 million and net working capital of $20. 2 million as at December 31, 202 2. The
Company’s cash de creased during the six months ended June 30 , 2023, due to funds used in operations,
including mineral property and surface access rights payments, and for general corporate purposes. The cash
outflows for operations during the six months ended June 30, 2023, were partially offset by gross receipts of
$394,659 resulting from the exercise of stock options.
Subsequent Private Placement
On August 11, 2023, the Company closed a non-brokered private placement, pursuant to which the Company
sold an aggregate of 13,178,460 common shares at a price of $6.50 per common share, generating aggregate
gross proceeds of $85.7 million (the “Financing”). A 5.0% finders’ fee was paid in cash on a portion of the
Financing upon closing.
The common shares issued under the Financing are subject to a hold period expiring on December 12, 2023.
The Company anticipates that it will deploy the majority of its treasury and capital resources, including the net
proceeds resulting from the Financing, towards furthering exploration programs in Chile and Argentina, as well
as for general corporate and working capital purposes.
ABOUT NGEX MINERALS
NGEx Minerals is a copper and gold exploration company based in Canada, focused on exploration of its Los
Helados copper-gold project located in Chile's Region III and the nearby Lunahuasi copper -gold-silver project
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
Lunahuasi lie along the same major north -northeast trending structure that also 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 is the 49% owner of the Caserones open p it
copper mine located approximately 15km north of Los Helados. Lundin Mining Corporation holds the
remaining 51% stake in Caserones.
The Company is listed on the TSXV under the trading symbol "NGEX". NGEx Minerals is 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 January 26, 2023, April 4, 2023 , April
13, 2023, July 4, 2023 and July 18, 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.sedarplus.ca 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, p articularly at Los Helados and Lunahuasi; whether current
interpretation of the exploration and/or drill results to date at Los Helados or Lunahuasi will be confirmed by
future work, including statements regarding prospectivity of exploration properties, the accuracy of a
geological model, the ability to extend and define of the Fenix, Alicanto and Condor Zones at Los Helados, or
the scale, grade, or significance of the system that is the source of the high- grade mineralization intersected
during the 2023 drill campaign at Lunahuasi , or the Company’s ability to locate it; the expected results or
success of exploration activities; 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 statement s 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 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 securities legislation, the
Company does not u ndertake 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 caut ionary 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.
Appendix 1
Composited intervals from the 2023 drill campaign undertaken at Lunahuasi are summarized as follows (see News
Releases dated April 4, 2023 and July 4, 2023):
Hole-ID
From
(m)
To
(m)
Length
(m)
Estimated
True Width
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq1
(%)
DPDH001 No significant values
DPDH002 150.0 154.0 4.0 1.4 5.81 2.62 81.5 8.44
plus 212.0 272.0 60.0 20.5 5.65 2.04 44.0 7.52
incl. 226.0 236.0 10.0 3.4 14.19 4.07 94.0 18.00
incl. 244.0 250.0 6.0 2.1 10.57 3.73 80.0 14.00
plus 308.0 312.0 4.0 1.4 3.99 0.26 44.5 4.57
plus 340.0 342.0 2.0 0.7 2.77 1.41 25.0 4.02
plus 520.0 524.0 4.0 1.4 2.53 0.52 112.0 3.89
plus 564.0 566.0 2.0 0.7 3.01 1.02 36.0 4.07
plus 574.0 584.0 10.0 3.4 3.70 1.51 259.4 7.08
incl. 580.0 582.0 2.0 0.7 11.81 4.70 1,165.0 25.49
plus 644.0 648.0 4.0 1.4 3.90 4.37 61.0 7.62
DPDH003 No significant values
DPDH004 112.0 132.0 20.0 12.9 0.31 0.70 9.0 0.90
plus 148.0 180.0 32.0 20.6 0.28 0.31 13.2 0.62
plus 316.0 318.0 2.0 1.3 3.25 1.63 26.0 4.67
plus 334.0 386.0 52.0 33.4 0.51 0.61 6.8 1.01
incl. 334.0 342.0 8.0 5.1 1.05 0.59 11.3 1.58
incl. 350.0 356.0 6.0 3.9 0.70 1.38 8.0 1.78
incl. 364.0 386.0 22.0 14.1 0.56 0.68 8.6 1.13
plus 412.0 416.0 4.0 2.6 2.01 1.68 31.0 3.51
plus 438.0 444.0 6.0 3.9 1.87 0.38 36.3 2.47
plus 452.0 466.0 14.0 9.0 1.99 0.55 81.3 3.11
plus 501.8 503.0 1.3 0.8 3.81 2.44 112.0 6.57
DPDH005 109.2 185.0 75.8 25.9 0.86 0.92 41.5 1.90
incl. 129.0 142.0 13.0 4.4 0.87 2.33 141.5 3.81
incl. 160.3 166.4 6.2 2.1 2.61 1.40 69.0 4.23
incl. 176.5 185.0 8.5 2.9 1.66 1.27 46.3 2.99
plus 371.6 375.0 3.4 1.2 3.18 1.32 24.0 4.36
plus 461.6 465.0 3.4 1.2 4.83 2.23 75.5 7.12
plus 488.0 494.0 6.0 2.1 2.67 0.82 31.1 3.54
incl. 488.0 489.8 1.8 0.6 7.86 2.53 100.8 10.59
plus 521.6 525.2 3.6 1.2 5.64 0.39 111.6 6.9
plus 530.0 536.7 6.7 2.3 2.05 0.49 6.5 2.47
plus 572.9 578.4 5.5 1.9 3.93 1.24 47.0 5.25
plus 636.0 669.4 33.4 11.4 2.5 1.12 19.8 3.5
incl. 648.8 650.8 2.0 0.7 20.38 7.71 65.0 26.57
incl. 667.6 669.4 1.8 0.6 9.83 2.89 109.0 12.9
1 CuEq for drill intersections is calculated based on US$ 3.00/lb Cu, US$ 1,500/oz Au and US$ 18/oz Ag, with 80% metallurgical recoveries
assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 * Au g/t) + (0.0088 * Ag g/t).
Composited drillhole intervals from the 2022-2023 Los Helados program are summarized as follows (see News
Releases dated January 26, 2023, April 13, 2023 and July 28, 2023):
Hole-ID
From
(m)
To
(m)
Length
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq1
(%)
Mo
(ppm)
Zones
Intersected
LHDH079 148.0 1,363.2 1,215.2 0.32 0.18 1.5 0.43 28
Condor Zone incl. 676.0 932.9 256.9 0.54 0.16 2.6 0.65 26
and incl. 985.8 1,086.0 100.2 0.53 0.17 1.4 0.64 21
LHDH081 436.0 1,604.8 1,168.8 0.37 0.08 1.8 0.43 32 Fenix Zone incl. 1,144.0 1,364.0 220.0 0.63 0.12 2.6 0.72 66
plus 692.0 735.0 43.0 14.7 1.26 0.48 16.3 1.75
incl. 719.0 724.0 5.0 1.7 5.34 0.84 22.2 6.15
incl. 719.0 735.0 16.0 5.5 2.4 0.56 11.1 2.91
plus 752.7 762.0 9.3 3.2 2.03 0.96 12.4 2.84
plus 940.1 958.0 18.0 6.1 2.66 0.48 18.1 3.17
incl. 942.5 946.7 4.3 1.5 9.58 1.64 61.4 11.32
DPDH006 174.0 184.0 10.0 1.7 0.40 1.04 9.0 1.24
plus 261.0 267.0 6.0 1.0 0.76 1.34 16.2 1.88
plus 338.5 342.4 3.9 0.7 2.79 1.53 48.3 4.33
DPDH007 74.0 164.0 90.0 51.6 2.05 2.46 23.2 4.05
incl. 74.0 94.0 20.0 11.5 5.49 6.31 57.7 10.60
incl. 91.8 94.0 2.2 1.3 6.54 35.07 60.4 32.64
incl. 101.6 112.0 10.5 6.0 5.73 4.98 53.3 9.83
plus 316.0 359.2 43.2 24.8 0.70 0.89 13.5 1.47
incl. 328.0 339.0 11.0 6.3 1.53 1.42 27.2 2.80
plus 380.0 388.0 8.0 4.6 5.19 2.44 36.8 7.29
incl. 384.2 388.0 3.9 2.2 9.33 4.17 50.8 12.82
plus 439.2 460.0 20.8 11.9 5.54 2.02 121.3 8.08
incl. 448.8 453.1 4.3 2.5 16.99 6.05 506.9 25.86
plus 482.5 486.2 3.7 2.1 4.13 1.72 127.5 6.51
plus 511.3 514.0 2.8 1.6 1.19 0.76 146.2 3.03
plus 524.0 526.0 2.0 1.1 0.22 4.98 23.0 4.05
plus 564.4 566.2 1.8 1.0 3.77 2.60 75.4 6.33
plus 589.5 598.4 8.9 5.1 2.83 2.90 278.8 7.39
incl. 589.5 593.3 3.8 2.2 3.25 3.31 323.6 8.51
plus 634.0 647.7 13.7 7.9 5.51 1.49 170.5 8.10
incl. 636.0 643.0 7.0 4.0 9.51 1.93 302.7 13.58
DPDH008 61.7 70.0 8.3 4.8 0.13 1.69 27.5 1.60
plus 142.0 160.0 18.0 10.3 1.25 2.39 31.0 3.27
incl. 148.0 156.0 8.0 4.6 1.96 3.97 50.1 5.30
plus 212.0 228.0 16.0 9.2 0.73 1.06 14.3 1.63
incl. 216.0 219.0 3.0 1.7 1.64 1.31 21.7 2.78
plus 276.0 280.0 4.0 2.3 1.29 0.76 11.5 1.95