NGEx Reports Q2 2024 Results; 2023-2024 Lunahuasi Drill Program Successfully Expands High-Grade Mineralization and Confirms Significant Scale Potential
NGEx Minerals Ltd.
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Vancouver BC, Canada V7X 1L2
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NGEXminerals.com
NGEx Reports Q2 2024 Results;
2023-2024 Lunahuasi Drill Program Successfully Expands High-Grade Mineralization
and Confirms Significant Scale Potential
August 12, 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 and six months ended
June 30, 2024.
Highlights for the second quarter of 2024, include the following, details of which are discussed further below:
Successful drill program: 2023-2024 program at Lunahuasi completed in April 2024 with 12,952 metres
drilled in 15 holes significantly expanded the high-grade system which remains open in all directions and
to depth.
High-grade intersections: Assays covering the final 11 holes of the recent Lunahuasi program received
and released during the quarter. Results continued to showcase some of the highest copper grades drilled
to date in the Vicuña District, which hosts other world class deposits like Filo del Sol on trend to the south.
Highlights include:
o DPDH013 intersecting 509.4 metres at 1.33% copper equivalent (“CuEq”);
o DPDH018 intersecting 429.4 metres at 2.31% CuEq, including 102.7 metres at 4.26% CuEq;
o DPDH020 intersecting 750.1 metres at 1.13% CuEq, including 17.3 metres at 5.94% CuEq;
o DPDH021 intersecting 772.5 metres at 1.60% CuEq, including 58.1 metres at 6.04% CuEq; and
o DPDH022 intersecting 726.5 metres at 1.66% CuEq, including 157.0 metres at 4.37% CuEq.
Significant size potential : Lunahuasi program continued to consistently intersect high-grade
mineralization stepping out from the initial discovery hole. High-grade mineralization has now been
intersected across a significant volume, measuring at least 900 metres east-west, 400 metres north-south,
and 960 metres vertically, which remains open in all directions.
Strong treasury: Cash and short-term investments totaled $50.9 million as of June 30, 2024.
Wojtek Wodzicki, President and CEO, remarked, “Drilling at Lunahuasi this season successfully followed up on the
discovery made last year with numerous high-grade copper-gold-silver intersections, demonstrating the significant
size potential of the system. With only 17,864 drill metres completed to date over two programs, Lunahuasi is
proving to be a remarkable discovery and with $50.9 million in cash and short-term investments as of June 30,
2024, the Company is well funded and a follow-up program consisting of step-out and infill drilling is planned to
begin early in the fourth quarter.”
Q2 2024 Highlights
Following the discovery of high-grade mineralization at Lunahuasi in early 2023, the Company launched a follow-
up drill program in October 2023, which ran until the onset of winter weather conditions in April 2024 (the “2023-
2024 Lunahuasi Program”). This second campaign completed 12,952 metres of drilling in 15 holes and showcased
Lunahuasi as the newest high-grade deposit with meaningful size potential to be discovered in the developing
Vicuña District.
Final assays results of the 2023-2024 Lunahuasi Program were received and disclosed during the second quarter
of 2024 and were highlighted by:
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);
o including 78.3 metres at 2.05% CuEq (1.71% Cu, 0.33 g/t Au, 11.5 g/t Ag);
DPDH016: 179.6 metres at 1.24% CuEq (0.81% Cu, 0.38 g/t Au, 17.8 g/t Ag);
o including 22.1 metres at 3.36% CuEq (2.45% Cu, 0.76 g/t Au, 40.3 g/t Ag);
DPDH018: 429.4 metres at 2.31% CuEq (1.41% Cu, 0.67 g/t Au, 46.6 g/t Ag);
o including 102.7 metres at 4.26% CuEq (1.89% Cu, 1.43 g/t Au, 150.6 g/t Ag);
DPDH020: 750.1 metres at 1.13% CuEq (0.74% Cu, 0.38 g/t Au, 11.9 g/t Ag);
o including 17.3 metres at 5.94% CuEq (4.87% Cu, 0.72 g/t Au, 61.0 g/t Ag);
DPDH021: 772.5 metres at 1.60% CuEq (1.02% Cu, 0.64 g/t Au, 14.2 g/t Ag);
o including 58.1 metres at 6.04% CuEq (3.53% Cu, 2.76 g/t Au, 56.3 g/t Ag);
DPDH022: 726.5 metres at 1.66% CuEq (0.89% Cu, 0.88 g/t Au, 14.5 g/t Ag); and
o including 157.0 metres at 4.37% CuEq (1.86% Cu, 3.03 g/t Au, 33.6 g/t Ag).
The 2023-2024 Lunahuasi Program successfully extended the system’s high-grade mineralization and expanded
the overall mineralized volume to at least 900 metres east-west, 400 metres north-south, and 960 metres
vertically. The mineralized volume also remains open in all directions, including at depth, where several holes
ended in good mineralization, such as DPDH018 which returned 3.37% CuEq (2.87% Cu, 0.45 g/t Au, 20.2 g/t Ag)
and DPDH021 which returned 1.32% CuEq (1.07% Cu, 0.25 g/t Au, 7.1 g/t Ag) over the final 20 metres of each
respective hole.
Drilling at Lunahuasi has discovered a significant new zone of high-grade copper, gold and silver mineralization,
which includes some of the highest copper grades drilled to date in the Vicuña District and intersected globally in
recent years. Follow-up drilling completed during the 2023-2024 field program has demonstrated the significant
size potential of the initially discovered high-grade copper-gold-silver veins and confirmed the presence of longer
intercepts of high-grade stockwork mineralization. Both styles of mineralization are interpreted to be part of a
porphyry copper-gold system centered nearby and following up on these initial findings will continue to be a focus
for the Company moving forward. Drilling is planned to resume early in the fourth quarter of 2024.
Select drilling and assay results from the 2023-2024 Lunahuasi Program as noted above are summarized in
Appendix 1 to this news release. 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.
Drilling and assay results from the complete 2023-2024 Lunahuasi Program are discussed in news releases dated
January 8, 2024, February 21, 2024, April 30, 2024, May 9, 2024, and June 19, 2024, specifically:
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 published June 19, 2024
DPDH018 Hole completed; Results published May 9, 2024
DPDH019 Hole completed; Results published June 19, 2024
DPDH020 Hole completed; Results published June 19, 2024
DPDH021 Hole completed; Results published June 19, 2024
DPDH022 Hole completed; Results published June 19, 2024
DPDH023 Hole completed; Results published June 19, 2024
Buy Back of Lunahuasi Royalty
Under the terms of a 2018 royalty agreement with Filo Corp. (“Filo”), the Company held the right to buy back two
thirds of a 3% net smelter return (“NSR”) royalty held by Filo on the Nacimiento I concession, within which the
Company would discover the Lunahuasi deposit in 2023. On May 13, 2024, the Company exercised that right for
cash consideration totaling US$ 1.5 million, reducing Filo’s NSR royalty on the Nacimiento I concession to 1%.
Financial Results
(In thousands of Canadian dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2024 2023 2024 2023
Exploration and project investigation 7,818 10,898 30,337 26,020
General and administration (“G&A”) 1,977 1,218 3,836 2,579
Net loss 7,579 9,719 27,323 24,886
Basic and diluted loss per share 0.04 0.06 0.15 0.14
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, 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)
June 30, December 31,
2024 2023
Cash 45,672 59,503
Short-term investments 5,217 15,230
Working capital 45,561 69,684
Mineral properties 6,002 3,815
Total assets 59,123 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 $7.6 million during the three months ended June 30, 2024, comprised
primarily of $7.8 million in exploration and project investigation costs and $2.0 million in G&A costs, which
have been partially offset by a gain of approximately $2.4 million resulting from the use of marketable
securities for the purposes of facilitating intragroup funding transfers. For the 2023 comparative period, the
Company reported a net loss of $9.7 million, consisting primarily of $10.9 million in exploration and project
investigation costs and $1.2 million in G&A costs, which were 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.
Liquidity and Capital Resources
As at June 30, 2024, the Company had cash of $45.7 million and net working capital of $45.6 million compared
to cash of $59.5 million and net working capital of $69.7 million as at December 31, 2023. The Company’s total
cash and net working capital decreased during the six months ended June 30, 2024, due primarily to funds used
in operations, including mineral property acquisition and option payments, and for general corporate purposes.
The cash outflows have been partially offset by $10.3 million in proceeds received on the redemption of short-
term investments, and $1.6 million in gross proceeds received pursuant to the exercise of stock options.
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:
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 April 30, 2024, May 9, 2024 and June 19, 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”). 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 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 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; 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",
"scheduled", "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 expectations and beliefs of management with respect to 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 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 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 and 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 other 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 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
(%)
DPDH013 524.0 1,033.4 509.4 254.7 0.75 0.55 19.6 1.33
DPDH015 556.0 884.0 328.0 196.8 0.73 0.30 16.4 1.10
incl. 802.0 880.3 78.3 51.7 1.71 0.33 11.5 2.05
DPDH016 587.4 767.0 179.6 147.3 0.81 0.38 17.8 1.24
incl. 696.0 718.1 22.1 18.1 2.45 0.76 40.3 3.36
DPDH018 738.0 1,167.4 429.4 300.6 1.41 0.67 46.6 2.31
incl. 741.3 844.0 102.7 71.9 1.89 1.43 150.6 4.26
DPDH020 204.0 954.1 750.1 360.0 0.74 0.38 11.9 1.13
incl. 589.8 607.1 17.3 8.0 4.87 0.72 61.0 5.94
DPDH021 430.0 1,202.5 772.5 564.0 1.02 0.64 14.2 1.60
incl. 438.0 496.1 58.1 38.0 3.53 2.76 56.3 6.04
DPDH022 380.0 1,106.5 726.5 503.0 0.89 0.88 14.5 1.66
incl. 380.0 537.0 157.0 100.0 1.86 3.03 33.6 4.37