NGEx Drills 51.10m at 13.84% CuEq within 205.35m at 5.08% CuEq at Lunahuasi, Expands Program to 25,000m with Two Additional Rigs

VANCOUVER, BC, Jan. 22, 2025 /CNW/ - NGEx Minerals Ltd. ("NGEx", "NGEx Minerals" or the "Company") (TSX: NGEX) (OTCQX: NGXXF) is pleased to provide the second update on its ongoing Phase 3 drill program at the 100% owned Lunahuasi high-grade copper-gold-silver project in San Juan, Argentina. Drilling started in mid-October 2024, and six diamond drill rigs are currently working on the project. Due to positive initial results from the program, two additional drills are scheduled to be added in February, and the planned program has been expanded from 20,000m to 25,000m. View PDF

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This news release includes partial results received to date for five holes, as indicated in Table 2 below. Results from the upper parts of DPDH024 and DPDH025 were released on December 18, 2024. A summary of assay intervals by news release date is included in Table 3. The highlighted intersections from this release, including notable gold values, are shown below, and individual metal grades and estimated true widths of all intersections are shown in Table 1. Updated drill program progress and collar locations are shown in Table 2.

Highlights

• Drillhole DPDH024 intersected:
  • 7.40m at 5.81% copper equivalent ("CuEq") from 715.00m
• Drillhole DPDH025 intersected:
  • 29.80m at 4.80% CuEq from 369.05m, including:
    • 5.74m at 21.22% CuEq from 372.45m (19.13 g/t gold)
• Drillhole DPDH026 intersected:
  • 21.50m at 3.07% CuEq from 529.20m, including:
    • 2.40m at 17.47% CuEq from 529.20m
• Drillhole DPDH028 intersected:
  • 2.00m at 11.82% CuEq from 230.10m (10.13 g/t gold), plus:
  • 205.35m at 5.08% CuEq from 378.50m (3.20 g/t gold), including:
    • 51.10m at 13.84% CuEq from 464.30m (9.70 g/t gold), including
      • .50m at 22.28% CuEq from 467.50m (5.93 g/t gold), and
      • 8.20m at 35.84% CuEq from 504.10m (39.11 g/t gold), plus
    • 7.20m at 13.93% CuEq from 542.50m

Wojtek Wodzicki, President and CEO, commented, "Lunahuasi continues to surprise to the upside and deliver some of the best copper-gold intercepts in the world. DPDH028 is a remarkable hole which is a significant step-out below previous drilling and includes the widest high-grade copper-gold intercept to date, with results for the final 1,000m of the hole still pending. Furthermore, it is becoming evident that Lunahuasi is also a very significant gold deposit with intervals and grades that rival those from known high-grade gold deposits. The deposit remains open in all directions and step-out drilling to expand the known zones and test for a porphyry source to the west remains a top priority. We are highly encouraged by the results to date and have decided to expand the program from 20,000m to 25,000m by adding two additional drill rigs which will bring the total to eight. The $175 million financing completed in October, 2024 provides full flexibility to adjust the program as results are received. With the drill program in full swing, we expect to be able to release a steady flow of results well into mid-year."

DPDH024 was collared from the same platform as DPDH014 and drilled at -58 degrees towards the west in order to test for an extension to the high-grade zone in hole 14 and for extensions to other mineralized structures to the north and at depth. The main zone in hole 14 appears to have been intersected over 12.3m from 139.8m to 152.0m (22.35% CuEq; 9.36% Cu, 18.16 g/t Au, 84.7 g/t Ag – see News Release from December 18, 2024). The hole went on to intersect several other structures including those noted in the Table 1. This hole has been completed and assays from 757.0m to the end of the hole at 968.0m are pending.

DPDH025 was collared 50m to the north of hole 24, on the same platform as DPDH012 and drilled at -45 degrees towards the west to test for northern extensions to the mineralized structures. An intersection of 11.9m at 10.74% CuEq (8.00% Cu, 3.02 g/t Au, 61.4 g/t Ag - see News Release from December 18, 2024) is interpreted as the northern extension of the zone intersected in DPDH014 and is 105m away. A particularly strong intersection at 372.45m (5.74m at 21.22% CuEq) includes 19.13 g/t gold. This hole has been completed and assays from 652.0m to the end of the hole at 1,303.8m are pending.

DPDH026 was collared 216m to the east of DPDH014 and drilled towards the west at -60 degrees to test for the down-dip extension of the mineralized structures. Several structures were intersected as shown in Table 1. All intersections above 400m depth appear to be new structures which lie to the east of anything intersected by previous drilling. This hole has been completed and assays from 553.0m to the end of the hole at 1,261.2m are pending.

DPDH027 was collared from the same platform as DPDH021, which was the southernmost hole prior to this season's program, and drilled at -46 degrees towards the WSW (226 degrees) in order to test for a southern extension to the numerous mineralized structures seen in DPDH021. Only a few weakly mineralized structures are indicated by the assay results received so far, but assays from 459.0m to the end of the hole at 1,192.0m are pending. This hole is still in progress.

DPDH028 was collared from the same platform as DPDH022 and drilled towards the west at -53 degrees in order to undercut hole 22 and test the down-dip extension of the structures intersected by it. A major structure intersected from 378.5m in this hole correlates well with a similar interval in DPDH022 from 380.0m. In both holes this zone is characterized by very high grades, especially with respect to gold, including a 8.2m interval at 39.11 g/t gold with a best sample of 1.5m at 115.00 g/t gold in DPDH028 and two samples over 70 g/t gold within a 38.9m interval at 10.09 g/t from 408.0m in DPDH022. This very high-grade zone also correlates well with an intersection 120m away to the south in DPDH021 of 4.8m at 24.34 g/t gold from 480.5m (see News Release dated June 9, 2024). This hole has been completed and assays from 588.0m to the end of the hole at 1,600.4m are pending.

Six drill rigs are currently turning at Lunahuasi with five holes completed and just over 9,500m drilled, the details of which are presented in Table 2. Details of assay intervals completed by news release date are presented in Table 3. Additional intersections will be released once assays are received, analyzed, and confirmed by the Company.

Qualified Persons and Technical Notes

The scientific and technical disclosure 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.

Samples were cut at NGEx's operations base in San Juan, Argentina by Company personnel. Diamond drill core was sawed and then sampled in maximum 2-meter intervals, stopping at geological boundaries. Core diameter is a mix of PQ, HQ and NQ depending on the depth of the drill hole. Samples were bagged, tagged and packaged for shipment by truck to the ALS preparation laboratory in Mendoza, Argentina where they were crushed and a 500g split was pulverized to 85% passing 200 mesh. The prepared sample splits were sent to the ALS assay laboratory in either Lima, Peru or Santiago, Chile for copper, gold and silver assays, and multi-element ICP. ALS is an accredited laboratory which is independent of the Company. Gold assays were by fire assay fusion with AAS finish on a 30g sample. Copper and silver were assayed by atomic absorption following a 4-acid digestion. Samples were also analyzed for a suite of 48 elements with ME-MS61 plus mercury. Copper and gold standards as well as blanks and duplicates (field, preparation, and analysis) were randomly inserted into the sampling sequence for Quality Control. On average, 9% of the submitted samples are Quality Control samples. No data quality problems were indicated by the QA/QC program.

Copper equivalent (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).

True widths are rounded to the nearest metre for widths over 10 m and to the nearest 0.1 m for widths less than 10 m, as this better reflects the precision of the estimates. True widths should be regarded as approximate as these are derived from an estimation that uses a preliminary interpretation of the geological model and are subject to change as more information becomes available.

Core scanning and integration of artificial intelligence (AI) into our core logging and geological interpretation processes is being implemented to improve workflows for more routine tasks and to give geologists more time for targeting and interpretation.

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 to the 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.

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.

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: the nature and timing of the work to be undertaken to advance the Lunahuasi project, including actual metres that will be completed during the Company's 2024/25 Phase 3 program and the Company's ability to continue holes in-progress in a future drill program; the Company's ability to add two additional rigs to the 2024/25 Phase 3 program, including the ultimate timing and impact thereof; the potential for further discovery and/or extension of mineralized zones at the Lunahuasi project; the timing of, and conclusions resulting from, an update to the geological interpretation at Lunahuasi, including the Company's ability to establish an Exploration Target, or the timing and/or results thereof; and the Company's ability to use information gathered from drilling to date to effectively target and drill in future campaigns, including whether the timing and ultimate outcome of the Company's efforts to locate the centre of the Lunahuasi system are successful. 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 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, particularly 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 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.

SOURCE NGEx Minerals Ltd.

For further information, please contact: Finlay Heppenstall, VP, Corporate Development & Investor Relations, Tel: +1 (604) 806-3089, [email protected]