NGEX REPORTS 2023 RESULTS
NGEx continues to strive to be a top-tier mineral exploration and development investment opportunity, and with a strong treasury balance, a portfolio of world-class exploration assets, a recent graduation to the
2023 and Subsequent Period Highlights
Lunahuasi High-Grade Discovery Made; Follow-up Program Underway
In May of 2023, NGEx successfully completed its first ever drill program at its 100%-owned
Highlights from the Maiden Lunahuasi Program include:
- DPDH002, which returned 60.0m at 7.52% copper equivalent ("CuEq") from 212.0m, comprised of 5.65% copper ("Cu"), 2.04 g/t gold ("Au"), and 44.0 g/t silver ("Ag"), and 10.0m at 7.08% CuEq from 574.0m, comprised of 3.70% Cu, 1.51 g/t Au, and 259.4 g/t Ag;
- DPDH005, which returned 33.4m at 3.50% CuEq from 636.0m, comprised of 2.50% Cu, 1.12 g/t Au, and 19.8 g/t Ag; and
- DPDH007, which returned 90.0m at 4.05% CuEq from 74.0m, comprised of 2.05% Cu, 2.46 g/t Au, and 23.2 g/t Ag, and 20.8m at 8.08% CuEq from 439.2m, comprised of 5.54% Cu, 2.02 g/t Au, and 121.3 g/t Ag.
A follow-up drill program began in
To date, complete assay results for four holes have been received, analyzed and released by the Company, which have begun to illustrate the extent of the high-grade system. Highlights include:
- DPDH009, which returned 128.3m at 4.01% CuEq from 144.0 metres, comprised of 2.01% Cu, 2.07 g/t Au, and 57.0 g/t Ag, including:
- 62.0m at 6.98% CuEq from 144.0 metres (3.75% Cu, 3.43 g/t Au, and 83.2 g/t Ag), which in itself included 26.1m at 13.36% CuEq from 168.9 metres (7.53% Cu, 5.83 g/t Au, and 178.6 g/t Ag);
- DPDH010, which returned 102.0m at 4.56% CuEq from 192.0m, comprised of 2.45% Cu, 1.71 g/t Au, and 97.3 g/t Ag, including:
- 62.6m at 5.84% CuEq from 226.0 metres (3.10% Cu, 2.09 g/t Au, and 138.3 g/t Ag), which in itself included 9.4m at 12.10% CuEq from 232.0 metres (4.86% Cu, 4.49 g/t Au, and 450.2 g/t Ag); and
- DPDH014, which returned 184.2m at 4.61% CuEq from 166.0m, comprised of 2.85% Cu, 2.15 g/t Au, and 22.3 g/t Ag, including:
- 71.9m at 9.63% CuEq from 171.2 metres (5.79% Cu, 4.70 g/t Au, and 46.9 g/t Ag), which in itself included 23.0m at 23.02% CuEq from 220.0 metres (14.68% Cu, 9.95 g/t Au, and 123.1 g/t Ag).
Drilling and assay results from the Maiden Lunahuasi Program and the 2023-2024 Lunahuasi Program, including those received and released since
Drilling at Lunahuasi continues with four rigs, and assays from the ongoing program will be released once received, analyzed and confirmed by the Company. 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 |
DPDH010 |
Hole completed; Results published |
DPDH011 |
Hole completed; Results published |
DPDH012 |
Hole completed; Results pending |
DPDH013 |
Hole completed; Results pending |
DPDH014 |
Hole completed; Results published |
DPDH015 |
Hole completed; Results pending |
DPDH016 |
Hole completed; Results pending |
DPDH017 |
Hole completed; Results pending |
DPDH018 |
Hole completed; Results pending |
DPDH019 |
Hole in progress |
DPDH020 |
Hole in progress |
DPDH021 |
Hole in progress |
DPDH022 |
Hole in progress |
Los Helados High-Grade Zones Continue to Expand; Mineral Resource Updated
In
During the Los Helados Program, the Company also completed a comprehensive targeting exercise, which used detailed geophysical survey data and geological mapping to generate a number of new drill-ready targets with signatures similar to those associated with the Condor, Fenix, and Alicanto Zones. The Company continues to assess these exploration targets for future drill testing, however at this time, the Company has decided to focus its field personnel and resources on Lunahuasi.
In the fourth quarter of 2023, the Company completed an update to the Mineral Resource Estimate for Los Helados (the "2023 MRE"), which is detailed in the 43-101 technical report entitled "Technical Report on the Los Helados and Lunahuasi Projects,
Compared to the previous Mineral Resource Estimate from 2019 (the "2019 MRE"), the 2023 MRE has made notable improvements to the overall tonnage, grades and contained metal for Los Helados as summarized in the following table:
|
2019 MRE |
2023 MRE |
2023 MRE vs. 2019 MRE |
||||
|
Unit |
Indicated |
Inferred |
Indicated |
Inferred |
Indicated |
Inferred |
Tonnage |
Billion Tonnes |
2.10 |
0.83 |
2.08 |
1.08 |
-1 % |
+30 % |
Grade |
Cu (%) |
0.38 |
0.32 |
0.40 |
0.34 |
+6 % |
+7 % |
Au (g/t) |
0.15 |
0.10 |
0.15 |
0.10 |
+2 % |
+4 % |
|
Ag (g/t) |
1.37 |
1.32 |
1.46 |
1.45 |
+6 % |
+10 % |
|
CuEq (%) |
0.481 |
0.391 |
0.51 |
0.42 |
+7 % |
+8 % |
|
Metal Content |
Cu (million lbs) |
17,600 |
5,800 |
18,426 |
8,152 |
+5 % |
+41 % |
Au (million oz) |
10.1 |
2.7 |
10.2 |
3.6 |
+1 % |
+33 % |
|
Ag (million oz) |
92.5 |
35.1 |
97.5 |
50.2 |
+5 % |
+43 % |
1 Refer to the technical notes at the end of this news release for additional information regarding the key assumptions, parameters, and methods used in the 2019 MRE and 2023 MRE. |
Work Programs Fully Funded Following
On
NGEx Graduates to the TSX; Commences Trading on the OTCQX® Best Market
The Company graduated to the
In addition, on
Financial Results
(In thousands of Canadian dollars, except per share amounts) |
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|
Three months ended |
Year ended |
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|
|
|
|
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|
|
2023 |
2022 |
2023 |
2022 |
Exploration and project investigation |
|
9,795 |
6,038 |
40,283 |
28,924 |
General and administration ("G&A") |
|
1,919 |
2,345 |
8,704 |
5,496 |
Net loss |
|
8,614 |
8,020 |
37,718 |
32,415 |
Basic and diluted loss per share |
|
0.04 |
0.04 |
0.21 |
0.20 |
The financial information in this table was selected from the Company's consolidated financial statements for the year ended |
Selected Financial Information
(In thousands of Canadian dollars) |
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|
|
|
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|
|
2023 |
|
2022 |
Cash |
|
59,503 |
|
23,249 |
Short-term investments |
|
15,230 |
|
- |
Working capital |
|
69,684 |
|
20,222 |
Mineral properties |
|
3,815 |
|
3,903 |
Total assets |
|
81,293 |
|
32,312 |
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
Liquidity and Capital Resources
As at
About
NGEx owns 100% of Lunahuasi and is the majority partner and operator for the Los Helados project, subject to a Joint Exploration Agreement with
The Company's common shares are listed on the TSX under the trading symbol "NGEX" and also trade on the OTCQX under the symbol "NGXXF".
Additional information relating to
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Los Helados and Lunahuasi Projects included in this news release have been reviewed and approved by
Copper equivalent for the 2023 MRE was based on
Copper equivalent for the comparative 2019 MRE was based on
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. In particular, this news release contains forward-looking statements or information pertaining to: the assumptions used in the Mineral Resources estimates for the
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 Los Helados and Lunahuasi; whether current interpretation of the exploration and/or drill results to date at Los Helados or Lunahuasi will be confirmed by future work, including statements regarding prospectivity of specific exploration targets or an exploration property as a whole; the accuracy of a geological model or geological interpretation; 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 expected results or success of exploration activities; ability to build shareholder value; and the ability to execute, continue or conclude the planned work programs. Words such as "plans", "expects" or "does not expect", "is expected", "budgets", "scheduled", "estimates", "forecasts", "targets", "intends", "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", "occur" or "be achieved" or the negative connotations thereof and similar expressions identify forward-looking information.
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
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
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
Without limiting the foregoing, this news release uses the terms, such as "Indicated Resources" and "Inferred Resources". Investors in
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