NGEx Reports Q3 2024 Results; Closing of Successful Financing and Restart of Drilling at High-grade Lunahuasi Project
NGEx Minerals Ltd.
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Vancouver BC, Canada V7X 1L2
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NGEXminerals.com
NGEx Reports Q3 2024 Results; Closing of Successful Financing and
Restart of Drilling at High-grade Lunahuasi Project
November 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 nine months ended
September 30, 2024.
Highlights for the three months ended September 30, 2024 (“Q3 2024”), and subsequent period thereto,
include the following, details of which are discussed further below;
• Planning and initiation of 20,000m drill program at Lunahuasi: The Phase 3 drill program at Lunahuasi
commenced in October 2024 and all six rigs are now in operation . The current drill campaign follows a
highly successful Phase 2 program completed earlier in the year, which showcased the Lunahuasi deposit’s
exceptional copper, gold and silver grades and large size potential. Phase 3 drilling intends to grow the
deposit through step -out drilling and provide enough closer-spaced drilling data to develop an initial
Exploration Target , as provided for in National Instrume nt 43 -101 (“NI 43 -101”). Initial results are
expected toward the end of the fourth quarter of 2024 , but exact timing will be subject to drilling and
assay turn-around times.
• Significant financing strengthens treasury and adds optionality : On October 31, 2024, the Company
closed a non-brokered private placement of 16.1 million common shares of the Company at CAD$11 per
share for gross proceeds of CAD$176.9 million, upsized from $100 million in response to strong investor
demand (the “Private Placement”) . The net proceeds from the financing significantly strengthen the
Company’s treasury, which as of September 30, 2024, consisted of CAD$44.1 million in cash. The
significantly improved financial position following the financing will provide the Company with adequate
funds to support ongoing exploration at Lunahuasi beyond the Phase 3 program currently underway and
allow for flexibility in expanding the program at Lunahuasi in response to encouraging early results.
Wojtek Wodzicki, President and CEO, commented, “Phase 2 drilling at Lunahuasi earlier this year produced some
of the highest-grade copper, gold, and silver intercepts drilled anywhere in the world. Following a short austral
winter break, we have now initiated an exciting Phase 3 program, which looks to advance our understanding of
this unusually high-grade discovery and expand its mineralized volume.
We are confident that we have only just scratched the surface at Lunahuasi, and believe that Phase 3 drilling has
the potential to return more world class results. With the successful completion of the heavily oversubscribed
equity financing of approximately CAD$176.9 million last month, NGEx is in a strong position to generate significant
shareholder value through further drilling at Lunahuasi, all amid the backdrop of the rapidly evolving Vicuña giant
metals district.”
Q3 2024 and Subsequent Period Operating Highlights
Restart of Drilling at High-grade Lunahuasi Project
Final assays results from the successful Phase 2 drill campaign at Lunahuasi, San Juan, Argentina, were received
and released in June 2024, following which the Company shifted its focus to planning the project’s next phase of
drilling. Preparations were undertaken during the three months ended September 30, 2024, and Phase 3 drilling
commenced in October 2024.
The Phase 3 drill program will be the largest ever undertaken at Lunahuasi, targeting the completion of up to
20,000m of diamond drilling, which would more than double the total drill metres completed to date at the
deposit. Initial results are expected toward the end of the fourth quarter of 2024 , but exact timing will be
subject to drilling rates and assay turn-around times.
Phase 2 drilling confirmed the presence of mineralized high-grade structures throughout a volume measuring at
least 400m by 900m by 960m. The mineralized volume remains open in all directions and several holes completed
at the outer boundaries of the current drill pattern are marked by significant mineralization, such as:
• Northern boundary: DPDH002 which included 60m at 7.52% copper equivalent (“CuEq”) (5.65% Cu, 2.04
g/t Au, 44.0 g/t Ag);
• Southern boundary: DPDH021 which included 58.1m at 6.04% CuEq (3.53% Cu, 2.76 g/t Au, 56.3 g/t Ag);
and
• Western boundary: DPDH022 which included 12m at 4.48% CuEq (3.82% Cu, 0.59 g/t Au, 25.2 g/t Ag) near
the bottom of the hole.
In addition, due to limited rig capacity, certain holes from the Phase 2 program ended in strong mineralization,
such as DPDH021, which returned 20m at 1.32% CuEq (1.07% Cu, 0.25 g/t Au, 7.1 g/t Ag) at the end of the hole.
The Lunahuasi project continues to hold significant exploration potential. Over the first two phases of exploration
drilling which began in early 2023, only 17,862m have been drilled into the deposit. The Phase 3 program is
designed to improve the Company’s understanding of the full extent of the high-grade mineral system at Lunahuasi
and to provide enough data to develop an Exploration Target, as defined and provided for in NI 43-101.
To achieve these objectives the planned program will test the deposit at three target scales:
• Long-range exploration holes (+300m spacing) are big step-outs that will test for significant extensions of
mineralization to the north, south, and west and include holes that will explore for the central part of the
Lunahuasi system.
• Mid-range step out holes (50-300m spacing) will explore extensions of the mineralized zone in all
directions.
• Short-range infill holes (30-50m spacing) will test the short-range variability of mineralized structures and
high-grade zones and confirm the main structural orientations and ultimately contribute towards
developing a future mineral resource estimate for Lunahuasi.
Phase 3 drilling includes drill rigs with depth capacities beyond 2,000m, which will help achieve the program’s
objectives by testing for expansion below where previous holes ended in strong mineralization during the last
campaign.
In addition, the Company will be conducting a ground-based SPARTAN MT (magnetotelluric) survey over the
Lunahuasi project area. The 2024/25 program will improve survey coverage over the deposit area, making use of
new access roads that were not available when an earlier survey was completed in 2023. The new survey will tie
into the earlier dataset and is anticipated to allow for imaging of the porphyry/high sulphidation epithermal target
area to assist with drillhole targeting and interpretation.
Financial Results
(In thousands of Canadian dollars, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
2024 2023 2024 2023
Exploration and project investigation 6,218 4,469 36,555 30,489
General and administration (“G&A”) 6,035 4,207 9,871 6,786
Net loss 9,847 4,218 37,170 29,104
Basic and diluted loss per share 0.05 0.02 0.20 0.17
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements for the three and nine
months ended September 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)
September 30, December 31,
2024 2023
Cash 44,080 59,503
Short-term investments - 15,230
Working capital 41,605 69,684
Mineral properties 6,248 3,815
Total assets 53,959 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 $9.8 million during the three months ended September 30, 2024, comprised
primarily of $ 6.2 million in exploration and project investigation costs and $ 6.0 million in G&A costs, which
have been partially offset by a gain of approximately $ 2.1 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 $ 4.2 million, consisting primarily of $ 4.5 million in exploration and project
investigation costs and $4.2 million in G&A costs, which were partially offset by a gain of approximately $ 4.4
million resulting from the use of marketable securities for the purposes of facilitating intragroup funding
transfers.
Liquidity and Capital Resources
As at September 30, 2024, the Company had cash of $ 44.1 million and net working capital of $ 41.6 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 nine months ended September 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 $15.6 million in proceeds received
on the redemption of short -term investments, and $ 2.6 million in gross proceeds received pursuant to the
exercise of stock options. The Company’s cash and working capital position have significantly increased
following the closing of the Private Placement on October 31, 2024.
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 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 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; whether current interpretation of the exploration and/or drill results to date at Lunahuasi will be confirmed
by future work, including statements regarding prosp ectivity 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 th e 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, including the anticipated use of net proceeds resulting from the Private Placement ; 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; envi ronmental 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 d emand 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 fact ors 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 timing of receipt of all required regulatory approvals
related to the Private Placement, the use of net proceeds of the Private Placement, 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 forward-looking statements and undue reliance should
not be placed on such statements and information. Such factors include, wi thout limitation: the timing of receipt of
required regulatory approvals for the Private Placement; 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 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.