NGEx Minerals Ltd. (TSX: NGEX) (OTCQX: NGXXF) is pleased to report drill results from hole DPDH018 from the Lunahuasi Project located in the Vicuña District in San Juan Province, Argentina.

Highlights

• Drillhole DPDH018 intersected:
  • 5.7m at 10.38% copper equivalent from 413.3m, plus
  • 14.0m at 5.80% CuEq from 461.0m, plus
  • 429.4m at 2.31% CuEq from 738.0m, including
    • 102.7m at 4.26% CuEq from 741.3m, including
      • 13.2m at 16.24% CuEq from 827.9m, plus
    • 3.1m at 16.54% CuEq from 896.4m, plus
    • 11.0m at 8.06% CuEq from 1142.0m, plus
    • 3.5m at 10.31% CuEq from 1159.4m.
  • The hole ended in mineralization with the final 20.4m averaging 3.37% CuEq (2.87% Cu, 0.45 g/t Au, 20.2 g/t Ag).

Wojtek Wodzicki, President and CEO, commented, “These latest results confirm the pattern seen in earlier drill holes with high-grade structures intersected over the full length of the hole and the intensity of stockwork mineralization between the individual high-grade structures increasing from east to west. This pattern reflects an increase in alteration and mineralization intensity towards the west which we believe is giving us a vector towards the centre of the system. The idea of the centre of the system lying to the west is supported by the surface geology, which includes an area of intense surface alteration centered between the collar of hole DPDH019 and the bottom of DPDH018. This is a style of alteration that typically occurs vertically above porphyry centres. Despite the grades seen in this drill hole, the alteration is suggesting that although we are getting closer, we are still not in the heart of the system. The fact that this drill hole intersects very high-grade mineralization near its end, including intervals at 8.06% CuEq and 10.31% CuEq, bodes well for the potential to extend mineralization to the west and to depth and perhaps hints at the strength of the underlying porphyry system that fed the mineralization drilled to date.”

Intersection details, including estimated true widths, are shown in Table 1 below. A plan view map of Lunahuasi is attached to the end of this news release.

Drill Hole Details

DPDH018 was collared on Section 6000N, 125m south and 75m east of DPDH016, and drilled towards the west at -45 degrees to a final depth of 1,167.4m where it was ended due to rig capacity. The hole ended in mineralization with the final 20.4m averaging 3.37% CuEq (2.87% Cu, 0.45 g/t Au, 20.2 g/t Ag).

The hole intersected numerous mineralized structures, as indicated in Table 1 below, ranging from individual veins < 1m wide to composite zones of veins and breccia over 50m wide as seen starting at 787.5m. The frequency and composition of the high-grade structures is fairly consistent throughout the hole, however the intensity of alteration and mineralization between individual structures increases from east to west. In the eastern part of the hole, here above 738m, the rock between high grade structures is typically weakly mineralized with pervasive propylitic alteration, while in the western part, below 738m, the intensity of alteration and stockwork veining containing copper, gold, and silver mineralization increases. This progression of mineralization from discreet structures cutting weakly mineralized wall rock in the east to a more homogeneous stockwork zone in the west is interpreted to represent a transition towards the centre of the system which is thought to extend further west and to depth below the end of the current holes. It is important to note that the stockwork zone is also cut by high-grade structures similar to those to the east as illustrated by the intercept of 13.2m of 16.24% CuEq from 827.9m and the intercepts beginning at 896.4m, 1,142.0m and 1,159.4m as well as numerous subsidiary structures.

Table 1: Significant Intercepts

Outlook

Drilling is now complete for this season. NGEx has demobilized all personnel and equipment from the field and is focused on processing the remaining core, completing our geological interpretation, and beginning to plan for the next drill program to begin in or around early Q4 2024. Holes DPDH009 through DPDH016 and DPDH018 have been reported, with assays from another 5,309m from holes DPDH017, and DPDH019 through DPDH023 still pending. Assay results for completed holes will be released as they are received, analyzed, and confirmed by the Company.

Table 2: Drill Hole Information

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 estimated based on a preliminary geological interpretation and are subject to change as more information is acquired and the geological interpretation is refined.

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 49% owner of the operating Caserones open pit copper mine located approximately 17 kilometres north of Los Helados. Lundin Mining Corporation holds the remaining 51% stake in Caserones.

LUNAHUASI GEOLOGY DRILL PLAN 2024 MAY (CNW Group/NGEx Minerals Ltd.)