NGEx Reports Q1 2024 Results; Demonstrates Size and Grade Potential at Lunahuasi with Successful 2023-2024 Drill Program
NGEx Minerals Ltd.
Suite 2800 – Four Bentall Centre
1055 Dunsmuir Street
Vancouver BC, Canada V7X 1L2
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NGEXminerals.com
NGEx Reports Q1 2024 Results;
Demonstrates Size and Grade Potential at Lunahuasi with Successful 2023-2024 Drill
Program
May 13, 2024, Vancouver, British Columbia – NGEx Minerals Ltd. (“NGEx Minerals” “NGEx” or the
“Company”) (TSX: NGEX) (OTCQX: NGXXF) is pleased to report its results for the three months ended March
31, 2024.
Operating highlights for the three months ended March 31, 2024, and subsequent period thereto, include the
following, details of which are discussed further below:
Recently completed drill program at Lunahuasi successfully confirms size and grade potential of deposit;
o Assays to date continue to deliver bonanza-grade intersections, such as DPDH009 returning
62.0 metres at 6.98% copper equivalent (“CuEq”), including 26.1 metres at 13.36% CuEq, and
DPDH014 returning 184.2 metres at 4.61% CuEq, including 23.0 metres at 23.02% CuEq;
o In addition, drilling to date has also intersected longer intervals of mineralization at elevated
grades, such as DPDH013, which intersected 509.4 metres at 1.33% CuEq and DPDH018, which
intersected 429.4 metres at 2.31% CuEq.
Graduation to the Toronto Stock Exchange in February 2024, followed by the Company’s common shares
commencing trading on the OTCQX in March; and
Strong treasury balance of $63.5 million at March 31, 2024.
Wojtek Wodzicki, President and CEO, commented, “The Lunahuasi drill program has continued to deliver
mineralized intercepts that rank among the highest copper grades encountered globally in recent years. Our drill
results demonstrate the potential for a large volume of high-grade stockwork mineralization in addition to the
previously identified bonanza-grade veins. With its increasingly evident size potential, elevated grades, and central
location within the evolving Vicuña District, NGEx is positioning Lunahuasi as a significant asset with growing
strategic importance to the region’s future development. The potential for further discovery and expansion at
Lunahuasi remains strong with mineralization open in all directions.
With our objectives for the campaign accomplished, drilling for the season has now ended and our team has
demobilized from the field. Our focus over the coming weeks will be on processing the remaining core collected
from the final six holes of the 2023-2024 program and expediting the samples through the assay laboratory. At the
same time, NGEx will continue to update its geological interpretation of the Lunahuasi deposit, which will feed into
the development of an exploration strategy for Lunahuasi’s next program, set to begin early in the fourth quarter.”
Q1 2024 and Subsequent Period Highlights
NGEx Successfully Illustrates Size and Grade Potential at Lunahuasi; Looks Ahead to 2024-2025 Program
In April 2024, the Company finished the 2023-2024 Lunahuasi drill program (the “2023-2024 Lunahuasi
Program”), with 12,952 metres of drilling in 15 holes. The program, which began in mid-October 2023,
successfully extended the high-grade mineralization first intersected in last year’s discovery holes and also
drilled long intervals of stockwork mineralization, which has confirmed Lunahuasi’s size potential. To date, the
Company has identified two distinct styles of porphyry-related mineralization at Lunahuasi: bonanza-grade
vein mineralization and high-grade stockwork mineralization.
The presence of both styles of mineralization is consistent with the Company’s current geological interpretation
that drilling completed to date has intersected the peripheral parts of a porphyry copper-gold system at Lunahuasi.
The grades and thickness of the mineralization observed within drill holes completed at Lunahuasi are positive
indicators of the strength and potential of the system that is thought to be the source of these high-grade
structures.
Highlights from the vein mineralization intersected during the recently completed drill campaign include:
DPDH009: 62.0 metres at 6.98% CuEq (3.75% Cu, 3.43 g/t Au, 83.2 g/t Ag), including:
o 26.1 metres at 13.36% CuEq (7.53% Cu, 5.83 g/t Au, 178.6 g/t Ag);
DPDH010: 102.0 metres at 4.56% CuEq (2.45% Cu, 1.71 g/t Au, 97.3 g/t Ag), including:
o 62.6 metres at 5.84% CuEq (3.10% Cu, 2.09 g/t Au, 138.3 g/t Ag), including:
9.4 metres at 12.10% CuEq (4.86% Cu, 4.49 g/t Au, 450.2 g/t Ag); and
DPDH014: 184.2 metres at 4.61% copper equivalent (“CuEq”) (2.85% Cu, 2.15 g/t Au, 22.3 g/t Ag),
including:
o 71.9 metres at 9.63% CuEq (5.79% Cu, 4.70 g/t Au, 46.9 g/t Ag), including:
23.0 metres at 23.02% CuEq (14.68% Cu, 9.95 g/t Au, 123.1 g/t Ag).
Highlights from the high-grade stockwork mineralization intersected during the 2023-2024 Lunahuasi Program
include:
DPDH010: 460.9 metres at 1.09% CuEq (0.64% Cu, 0.35 g/t Au, 22.2 g/t Ag);
DPDH013: 509.4 metres at 1.33% CuEq (0.75% Cu, 0.55 g/t Au, 19.6 g/t Ag);
DPDH015: 328.0 metres at 1.10% CuEq (0.73% Cu, 0.30 g/t Au, 16.4 g/t Ag); and
DPDH018: 429.4 metres at 2.31% CuEq (1.41% Cu, 0.67 g/t Au, 46.6 g/t Ag).
Select drilling and assay results from the 2023-2024 Lunahuasi Program as noted above are summarized in
Appendix 1 to this news release. Drilling and assay results from the 2023-2024 Lunahuasi Program released to date
are discussed in news releases dated January 8, 2024, February 21, 2024, April 30, 2024, and May 9, 2024. The
assumptions and formula used to calculate copper equivalent for the Lunahuasi drill intersections noted above are
provided in the technical notes at the end of this news release.
A summary of the status of the drill holes of the 2023-2024 Lunahuasi Program as of the date of this new
release are as follows:
Hole ID Status
DPDH009 Hole completed; Results published January 8, 2024
DPDH010 Hole completed; Results published January 8, 2024 & February 21, 2024
DPDH011 Hole completed; Results published February 21, 2024
DPDH012 Hole completed; Results published April 30, 2024
DPDH013 Hole completed; Results published April 30, 2024
DPDH014 Hole completed; Results published February 21, 2024
DPDH015 Hole completed; Results published April 30, 2024
DPDH016 Hole completed; Results published April 30, 2024
DPDH017 Hole completed; Results pending
DPDH018 Hole completed; Results published May 9, 2024
DPDH019 Hole completed; Results pending
DPDH020 Hole completed; Results pending
DPDH021 Hole completed; Results pending
DPDH022 Hole completed; Results pending
DPDH023 Hole completed; Results pending
Remaining assays from the final six holes of the 2023-2024 Lunahuasi Program will be released once received,
analyzed and confirmed by the Company.
Exploration potential at Lunahuasi is excellent, with mineralization remaining open in all directions, including
at depth, as noted most recently in hole DPDH018, which ended with the final 20.4 metres averaging 3.37%
CuEq (2.87% Cu, 0.45 g/t Au, and 20.2 g/t Ag). Both the vein and stockwork mineralization are interpreted to
be part of a porphyry copper-gold system, which the Company believes may be centered to the west of current
drilling at Lunahuasi. As the Company receives and analyzes the final assay results from the 2023-2024
Lunahuasi Program, it will update its geological interpretation of the deposit, which will form the basis for
developing its exploration strategy for a third Lunahuasi drill campaign to begin early in the fourth quarter of
2024.
NGEx Graduates to the TSX; Commences Trading on the OTCQX
The Company graduated to the Toronto Stock Exchange (the “TSX”) and began trading on the exchange at
market open on February 22, 2024. There were no changes to the symbol, and the Company continues to trade
under “NGEX”. As a result of the graduation to the TSX, the Company’s common shares were voluntarily
delisted from the TSX Venture Exchange at the end of trading on February 21, 2024.
In addition, on March 8, 2024, the Company’s common shares commenced trading in the United States on the
OTCQX (the “OTCQX”) under the symbol “NGXXF”.
Financial Results
(In thousands of Canadian dollars, except per share amounts)
Three months ended
March 31,
2024 2023
Exploration and project investigation 22,519 15,122
General and administration (“G&A”) 1,860 1,361
Net loss 19,744 15,167
Basic and diluted loss per share 0.11 0.09
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements for the three months ended
March 31, 2024 (the “Financial Statements”), which are available on SEDAR+ at www.sedarplus.ca and the Company’s website www.ngexminerals.com.
Selected Financial Information
(In thousands of Canadian dollars)
March 31, December 31,
2024 2023
Cash 53,236 59,503
Short-term investments 10,293 15,230
Working capital 52,899 69,684
Mineral properties 3,636 3,815
Total assets 70,424 81,293
The financial information in this table was selected from the Financial Statements, which are available on SEDAR+ at www.sedarplus.ca and the Company’s
website www.ngexminerals.com.
The Company incurred a net loss of $19.7 million during the three months ended March 31, 2024, comprised
primarily of $22.5 million in exploration and project investigation costs and $1.9 million in G&A costs, which
have been partially offset by a gain of approximately $3.7 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding transfers and $0.9 million of interest income. For
the 2023 comparative period, the Company reported a net loss of $15.2 million, consisting primarily of $15.1
million in exploration and project investigation costs and $1.4 million in G&A costs, which were partially offset
by a gain of approximately $1.2 million resulting from the use of marketable securities for the purposes of
facilitating intragroup funding transfers.
Liquidity and Capital Resources
As at March 31, 2024, the Company had cash of $53.2 million and net working capital of $52.9 million compared
to cash of $59.5 million and net working capital of $69.7 million as at December 31, 2023. The Company’s cash
and net working capital decreased during the three months ended March 31, 2024, due primarily to funds used
in operations, including mineral property option payments, and for general corporate purposes. The cash
outflows have been partially offset by $5.1 million in proceeds received on the redemption of short-term
investments and $375,096 in gross proceeds received pursuant to the exercise of stock options during the
period.
About NGEx Minerals
NGEx Minerals is a copper and gold exploration company based in Canada, focused on exploration of the
Lunahuasi copper-gold-silver project in San Juan Province, Argentina, and the nearby Los Helados copper-gold
project located approximately nine kilometres northeast in Chile’s Region III. Both projects are located within
the Vicuña District, which includes the Caserones mine, and the Josemaria and Filo del Sol deposits.
NGEx owns 100% of Lunahuasi and is the majority partner and operator for the Los Helados project, subject to
a Joint Exploration Agreement with Nippon Caserones Resources LLC, which is the indirect 49% owner of the
operating Caserones open pit copper mine located approximately 17 kilometres north of Los Helados. Lundin
Mining Corporation holds the remaining 51% stake in Caserones.
The Company’s common shares are listed on the TSX under the symbol "NGEX" and also trade on the OTCQX
under the symbol “NGXXF”. NGEx is part of the Lundin Group of Companies.
Additional information relating to NGEx may be obtained or viewed on SEDAR+ at www.sedarplus.ca.
For Further Information:
NGEx Investor Relations
Email: [email protected]
Website: www.ngexminerals.com
Telephone: +1 (604) 689-7842
Additional Information
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts
responsibility for the adequacy or accuracy of this news release.
The information contained in this news release was accurate at the time of dissemination but may be
superseded by subsequent news release(s). The Company is under no obligation, nor does it intend to update
or revise the forward-looking information, whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Lunahuasi 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 January 8, 2024, February 21, 2024, April 30,
2024, and May 9, 2024.
Copper equivalent for Lunahuasi 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).
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 Company believes that the expectations reflected in the forward-looking statements and information
included in this news release are reasonable, but no assurance can be given that these expectations will prove to be correct
and such forward-looking statements and information should not be unduly relied upon. This statement and information
is as of the date of the news release.
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 Lunahuasi; whether
current interpretation of the exploration and/or drill results to date at Lunahuasi will be confirmed by future work, including
statements regarding prospectivity of specific exploration properties or specific; the accuracy of a geological model or
geological interpretation; the ability of future drilling to convert exploration potential to a Mineral Resource Estimate; the
scale, grade, or significance of the system that is the source of the high-grade mineralization intersected at Lunahuasi, or
the Company’s ability to locate it; 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; and the ability to commence, execute, continue or conclude planned work programs. 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",
“projects”, “budgets”, “assumes”, “strategy”, “objectives”, “potential”, “possible”, "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", “should”, "might" or "will be taken", "will occur" or "will be achieved" or the negative
connotations thereof.
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 emergence or
intensification of infectious diseases, such as COVID-19, and the risk that such an occurrence globally, or in the Company’s
operating jurisdictions and/or its project sites in particular, 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 be able to carry out exploration program at Lunahuasi as planned;
fluctuations in the current price of and demand for commodities; material adverse changes in general business,
government and economic conditions in Argentina; 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 as set out in the Company’s annual information form and annual management discussion and analysis for
the year ended December 31, 2023, which are available on the Company’s website and SEDAR+ at www.sedarplus.ca 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 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.
Appendix 1
Composited intervals from the 2023-2024 Lunahuasi Program as discussed in this news release are summarized
as follows:
1 True widths are estimated based on a preliminary geological interpretation and are subject to change as more information is acquired
and the geological interpretation is refined.
2 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).
Hole-ID
From
(m)
To
(m)
Length
(m)
Estimated
True Width1
(m)
Cu
(%)
Au
(g/t)
Ag
(g/t)
CuEq2
(%)
DPDH009 144.0 206.0 62.0 34.1 3.75 3.43 83.2 6.98
incl 168.9 195.0 26.1 14.4 7.53 5.83 178.6 13.36
DPDH010 192.0 294.0 102.0 64.3 2.45 1.71 97.3 4.56
incl 226.0 288.6 62.6 39.4 3.10 2.09 138.3 5.84
incl 232.0 241.4 9.4 5.9 4.86 4.49 450.2 12.10
plus 609.3 1,070.2 460.9 290.4 0.64 0.35 22.2 1.09
DPDH013 524.0 1,033.4 509.4 254.7 0.75 0.55 19.6 1.33
DPDH014 166.0 350.2 184.2 93.9 2.85 2.15 22.3 4.61
incl 171.2 243.0 71.9 36.6 5.79 4.70 46.9 9.63
incl 220.0 243.0 23.0 11.7 14.68 9.95 123.1 23.02
DPDH015 556.0 884.0 328.0 196.8 0.73 0.30 16.4 1.10
DPDH018 738.0 1,167.4 429.4 300.6 1.41 0.67 46.6 2.31