NGEx Reports Q1 2025 Results; Successful Phase 3 Campaign Reinforces Lunahuasi’s Unique Potential
NGEx Minerals Ltd.
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NGEXminerals.com
NGEx Reports Q1 2025 Results;
Successful Phase 3 Campaign Reinforces Lunahuasi’s Unique Potential
May 9, 2025, 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, 2025 (“Q1
2025”).
Highlights for Q1 2025 and the subsequent period thereto, include the following, details of which are discussed
further below:
- Phase 3 drilling showcases the significant scale of Lunahuasi’s high-grade mineralization. Phase 3 drilling
continued to intersect high-grade copper, gold and silver mineralization across considerable widths within
all drillholes completed and assayed to date. The high -grade mineralization was encountered across our
full target scale, from short-range infill holes to longer-range step out holes.
In addition, mid - and long -range step out holes completed and assayed to date have substantially
extended the minimum dimensions of the mineralized volume at Lunahuasi to 1.2km north-south, 1.7km
east-west, and 1.2km vertically, with the deposit remaining open in all directions. Of note, additional step
out holes are still pending assay, which could further expand the mineralized volume at Lunahuasi. By
comparison, prior to the undertaking of Phase 3 drilling, the minimum dimensions measured 400 metres
north-south, 900 metres east-west, and 960 metres vertically.
- Now completed Phase 3 drill program has resulted in improved geological understanding at Lunahuasi.
The Company has improved its understanding of the geological setting at Lunahuasi, specifically increasing
its confidence that the high -grade vein mineralization is correlated to, and controlled by, individual
northeast trending, steeply dipping, structural corridors. This insight will be critical as the Company plans
to focus future exploration on this high-value mineralization.
- Gold grades intersected at Lunahuasi comparable to the world’s top tier gold-only deposits. Throughout
the high-grade vein hosted mineralization, the Company has intersected several intervals of exceptional
gold values that would rival even top-tier gold-only deposits found globally, such as 27.4m at 23.17 g/t Au
in hole DPDH032, which are in addition to high-grade copper and silver values. The Company believes that
over time, as more drilling is conducted, gold has the potential to become a significant part of Lunahuasi’s
value proposition.
Wojtek Wodzicki, President and CEO, remarked, “Although final assays from the Phase 3 Lunahuasi program are
still coming in, results received to date have already contributed to a step change in our understanding of the
deposit and the campaign has been a resounding success. In addition to consistently delivering high-grade copper,
gold and silver intercepts from short -range infill holes to our longest-range step out holes, Phase 3 drilling at
Lunahuasi has rapidly expanded the minimum north-south, east-west and vertical distances of the mineralized
volume to well over 1km. This unique combination of high-grades and significant scale strongly emphasizes the
potential exhibited by the vein hosted mineralization at Lunahuasi.
Another key takeaway from the Phase 3 program has been the g old content at Lunahuasi, which continues to
surprise to the upside. Several drill holes have intersected gold grades and widths comparable to those observed in
some of the world’s highest-grade gold mines. The emerging gold story at Lunahuasi is often overshadowed by
copper grades, but the deposit’s gold may prove to be a significant part of its future value proposition.
Having achieved our objectives for the Phase 3 program, drilling for the season has now ended, with final
demobilization now underway and on track to be wrapped up before the arrival of winter weather conditions at
the project. While we will continue to advance the remaining samples from Phase 3 through the assay process, our
cash position remains strong and focus has already turned to interpretation of all the data collected during this
recent campaign and planning for a Phase 4 Lunahuasi program to begin in the latter half of the year. We look
forward to releasing the final assay results from Phase 3 over the coming months and providing an overview of our
exciting Phase 4 plans for Lunahuasi in the third quarter.”
Q1 2025 Operating Highlights and Outlook
NGEx Successfully Completes Phase 3 Program at Lunahuasi
The Company’s primary focus for the three months ended March 31, 2025 was the execution and expansion
of its Phase 3 drill program at Lunahuasi, located in San Juan, Argentina. Phase 3 drilling began in October 2024
and, in response to the program’s early success, was expanded from six to eight rigs in February 2025 ,
increasing the campaign’s targeted drill metres to 25,000m.
Phase 3 drilling was successfully completed in early May 2025, with over 25,000 metres completed in 24 holes,
including three geotechnical holes designed to support the Company’s analysis of a potential underground
exploration adit at Lunahuasi. The program accomplished its main objectives of testing the Lunahuasi deposit
at three target scales:
• Long-range exploration holes (+300m spacing) were big step-outs that tested for significant extensions of
mineralization to the north, south, and west;
• Mid-range step out holes (50-300m spacing) explored for extensions of the mineralized zone in all
directions and started to fill in large gaps in the drill pattern; and
• Short-range infill holes (30-50m spacing) tested the short-range variability of mineralized structures and
high-grade zones and confirmed the main structural orientations.
During the three months ended March 31, 2025, and up until the date of this new s release, four sets of assay
results from the Phase 3 drill program have been released by the Company, in addition to the first set of Phase
3 assays released in December 2024. Highlights from the Phase 3 assays released thus far in 2025 include:
• Continuation of high-grade intersections across considerable widths within drillholes at all three target
scales for which assays have been received to date. Highlights include:
o DPDH028 which intersected 51.10m at 13.84% CuEq (5.98% Cu, 9.70 g/t Au, 90.4 g/t Ag);
o DPDH032 which intersected 27.40m at 25.19% CuEq (7.80% Cu, 23.17 g/t Au, 55.9 g/t Ag)
including 8.60m at 15.80% Cu, 69.82 g/t Au and 127.4 g/t Ag; and
o DPDH035 which intersected 51.5m at 12.26% CuEq (including 10.42 g/t Au) including 21.50m
at 23.81% CuEq (including 23.81 g/t Au);
• Improved confidence in geological understanding of high-grade vein hosted mineralization . The
correlation of the high-grade mineralization along individual northeast trending, steeply dipping, structural
corridors represents a significant step change in the geological interpretation of Lunahuasi, and will
facilitate planning of future programs as the Company looks to advance exploration around the priority
high-grade vein hosted mineralization;
• Significant expansion of the Lunahuasi deposit with successful mid- and long-range step out holes that
have extended the minimum distances of the mineralized volume from 400 metres north-south, 900
metres east-west, and 960 metres vertically at the end of Phase 2 to at least 1.2km north-south, 1.7km
east-west, and 1.2km vertically. While full assays for the largest step-out holes of Phase 3, DPDH027 and
DPDH029, are still pending, highlighted results from the largest step-outs assayed to date are summarized
are as follows:
o DPDH028, the best hole drilled to date at Lunahuasi, which was drilled deeper and to the west of
all previous holes;
o DPDH029, which was drilled 470m south of DPDH028 and returned 157.7m at 2.18% CuEq (1.67%
Cu, 0.49 g/t Au, 16.7 g/t Ag); and
o DPDH033, which extended the deposit 50m to the north with 16.25m at 6.79% CuEq (5.05% Cu,
1.87 g/t Au, 42.5 g/t Ag) plus 23.00m at 4.49% CuEq (2.34% Cu, 2.51 g/t Au, 35.6 g/t Ag) and
40.00m at 7.02% CuEq (2.23% cu, 6.02 g/t Au, 45.6 g/t Ag);
• Presence of elevated high-grade precious metals, particularly gold, with several intersections rivaling
renowned world-class, high-grade gold only deposits. Notable examples include:
o DPDH025 with 5.74m at 19.13 g/t Au;
o DPDH028 with 8.20m at 39.11 g/t Au, within a broader interval of 51.10m at 9.70 g/t Au;
o DPDH032 with 27.4m at 23.17 g/t Au;
o DPDH033 with 1.10m at 151.5g/t Au, within a broader interval of 10.1m at 19.32 g/t Au; and
o DPDH035 with 51.50m at 10.42 g/t Au, including 21.50m at 23.81 g/t Au.
Demobilization of equipment and personnel from Lunahuasi is now underway and anticipated to be completed
prior to the arrival of winter weather conditions at site. With the Company’s attention now shifting away from
the field, a key near-term focus will be the advancement of Phase 3 samples through the assay laboratory,
which will provide a steady flow of updates in the coming weeks. As of the date of this news release, full assay
results have been released for 10 holes DPDH024 to DPDH026, DPDH028, DPDH030 to DPDH035) and partial
assays have been released for an additional two holes (DPDH027 and DPDH029), representing approximately
53% of drill metres completed during Phase 3 . The remaining assay results from Phase 3 will be released as
they are received, analyzed, and confirmed by the Company.
During the second quarter of 2025, the Company will also begin compilation and analysis of the geological data
collected during the successful Phase 3 campaign and refining the geological model at Lunahuasi. Planning for
the Company’s next exploration program at Lunahuasi will also begin , with a Phase 4 start date currently
anticipated to be around October 2025.
Further details, such as the copper equivalent formula, can be found in the “Qualified Person s and Technical
Notes” section of this news release.
Financial Results
(In thousands of Canadian dollars, except per share amounts)
Three months ended
March 31,
2025 2024
Exploration and project investigation 36,423 22,519
General and administration (“G&A”) 3,772 1,860
Net loss 35,142 19,744
Basic and diluted loss per share 0.17 0.11
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements for the three months March
31, 2025 (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,
2025 2024
Cash 124,180 153,368
Short-term investments 45,601 45,185
Working capital 157,688 188,944
Mineral properties 6,562 6,271
Total assets 173,325 208,563
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 $ 35.1 million during the three months ended March 31, 2025, comprised
primarily of $36.4 million in exploration and project investigation costs and $ 3.8 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. For the 2024 comparative period, the
Company reported a net loss of $ 19.7 million, consisting primarily of $22.5 million in exploration and project
investigation costs and $1.9 million in G&A costs, which were 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.
Liquidity and Capital Resources
As at March 31, 2025, the Company had cash of $ 124.2 million, short-term investments of $45.6 million and
net working capital of $ 157.7 million compared to cash of $ 153.4 million, short-term investments of $ 45.2
million and net working capital of $ 188.9 million as at December 31, 202 4. The Company’s total treasury,
consisting of its cash and short-term investments, and net working capital decreased during the three months
ended March 31, 2025, due primarily to funds used in operations and for general corporate purposes.
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 30% owner of the
operating Caserones open pit copper mine located approximately 17 kilometres north of Los Helados. Lundin
Mining Corporation holds the remaining 70% 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, please contact:
Finlay Heppenstall
VP, Corporate Development & Investor Relations
Tel: +1 (604) 806-3089
Additional Information
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 dated January 22, 2025, February 19, 2025 ,
March 13, 2025, and April 24, 2025.
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”). All statements other than sta tements 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; the potential for an underground exploration adit 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 exploration properties or specific targets, 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 centre 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 ca pital; 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 explorat ion; 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; 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; requirements for additional capital; government regulation of mining activities; environmental
risks; unanticipated reclamation 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; and material adverse changes in general business and economic conditions, particularly in
Argentina with respect to uncertainty around exchange rate and other economic policies potentially affecting the
Company, as well as other factors associated with ongoing financial instability in Argentina. Generally, this forward-looking
information can frequently, but not always, be identified by use of forward-looking terminology such as "plans", "expects"
"is expected", "budget", "schedu led", "estimates", "forecasts", "intends", “projects”, “budgets”, “assumes”, “strategy”,
“objectives”, “potential”, “possible”, "anticipates", 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 intended use or deployment of the Company’s treasury balance, and the nature, scope and timing of the work to be
undertaken to advance the Lunahuasi Project . 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 forwar d-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 globa lly, or in the Company’s operating
jurisdictions and/or at 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, fluctuations in the current price of and demand for commodities; material adverse changes in general business,
government a nd economic conditions in the Company’s operating jurisdictions, such as 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; there may be o ther factors that cause results not to be as anticipated, estimated, or intended, including
those set out in the Company’s most recent annual information form and annual management discussion and analysis,
and risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators,
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 t o 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 managemen t'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 eve nts 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 informat ion 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.