NGEx Minerals Ltd. (TSX-V: NGEX) is pleased to report results from hole LHDH076 at the Los Helados copper-gold project located in Region III, Chile.  Hole LHDH076 is the best hole drilled on the project to date, measured by copper-equivalent (“CuEq”) multiplied by intercept length, and ended in strong mineralization at 1,400m depth. The last sample in the hole returned 1.50% CuEq (1.02% Cu, 0.32 g/t Au, 49.0 g/t Ag).  Hole LHDH076 confirms the Company’s new geological interpretation that the Los Helados deposit contains at least two centres of high-grade mineralization.

Seven holes have been completed to date, and three holes are underway. These holes are testing other areas with potential for extensions of existing zones as well as potential new centres of high-grade mineralization. Hole LHDH078, located approximately 700m north of LHDH76, at the northwest edge of the current drill pattern is testing one of these new targets with results pending.  Drilling with three rigs will continue until the onset of winter weather, which is expected in mid June, and is planned to resume after a short winter break.

The Los Helados deposit is located 16km northeast of the Filo del Sol deposit where Filo Mining is drilling a major copper-gold-silver discovery.  Filo del Sol and Los Helados lie along the same major northeast-trending structure which controls a series of alteration zones, representing high-quality exploration targets, between the two deposits.

HIGHLIGHTS

• Drillhole LHDH076 returned 1290m at 0.74% CuEq from 110m including:
  • 784m at 0.80% CuEq from 138m
  • 404m at 1.00% CuEq from 138m
  • 142m at 1.38% CuEq from 1166m
  • And 16m at 1.11% CuEq in the final metres of the hole

This year’s drilling has confirmed and expanded a high-grade breccia phase at the core of the current mineral resource which we are now calling the Condor Zone.  This zone remains completely open at depth and additional drilling is required to better understand its extent and geometry.  Hole FSDH076 has confirmed the presence of a second high-grade zone located on the west edge of the current resource, now called the Fenix Zone.  Intersections from earlier drilling which are now recognized to be part of the Fenix Zone include holes LHDH028 (377m at 0.84% CuEq; 0.67% Cu, 0.25 g/t Au, 2.1 g/t Ag) and LHDH034 (104m at 1.02% CuEq; 0.76% Cu, 0.37 g/t Au, 2.1 g/t Ag).  Both these holes also ended in mineralization. The Fenix Zone is open in several directions and at depth.

Commenting on the results Wojtek Wodzicki, President and CEO stated “From a grade-thickness perspective Hole 76 is the best hole ever drilled at Los Helados.  It has successfully extended both the Condor Zone and the Fenix Zone, intersecting some of the highest copper, gold and silver grades yet seen at Los Helados.  Both zones remain open at depth, and it is early days in defining the Fenix zone which also remains open towards surface and laterally.  The Fenix Zone is at the edge of the current drill pattern, but the strength of the mineralization indicates that it is clearly not close to the margin of the system.  We are starting to see that the Fenix Zone likely represents a separate centre of high-grade mineralization that is open at depth and laterally.

Drilling is ongoing and we are looking forward to the results from additional holes which are testing other areas with potential for higher-grade material.  Following an exceptional result like Hole 76 we are very excited to continue the drill program after a short winter break.”

Composited intervals are shown in the table below:

Hole LHDH076 was planned to infill a shallow gap in the Condor Zone and continue on to test the Fenix Zone at depth.  The hole was mineralized continuously from 110m to its end, successfully intersecting both target zones.  The Condor Zone was intersected from 138 to 784m, including a 404m section of 1.00% CuEq.  The Fenix Zone was intersected over 234m from 1166m to the end of the hole, an interval which averaged 0.97% CuEq (0.80% Cu, 0.24 g/t Au, 4.5 g/t Ag).  The hole ended in 16 metres of strong mineralization grading 1.11% CuEq (0.86% Cu, 0.19 g/t Au, 23.4 g/t Ag), including 1.50% CuEq (1.02% Cu, 0.32 g/t Au, 49.0 g/t Ag) in the last sample in the hole.  The silver grades at the bottom are the highest silver grades yet seen in the entire deposit, and the full width of this zone remains unknown.  Although the Fenix Zone lies on the edge of the current resource the alteration and mineralization including the high silver grades suggest that the Fenix Zone is part of a separate high-grade centre.

2022 LOS HELADOS DRILL PROGRAM OVERVIEW

The 2022 drilling program is focused on defining zones of high-grade mineralization within the footprint of the Los Helados deposit and expanding the deposit’s high-grade core.  The planned drill program includes a mix of holes designed to test for extensions of the high-grade zone, and holes to test targets where geological and geophysical modelling suggest potential for satellite high-grade zones. The drill program, including completed and planned holes, is outlined below:

Holes Completed

LHDH073: Results previously released; infills a gap between existing holes and extends the Condor Zone at depth
LHDH074: Results previously released; infills a large gap between existing holes and extends the Condor Zone
LHDH075: Results previously released; extends the Condor Zone to the south
LHDH076: Results released today; testing gap between the Condor Zone and the Fenix Zone and testing the extension of the Fenix Zone
LHDH077: Assays pending; testing southern extension of the Condor Zone
LHDH078: Assays pending; testing low resistivity anomaly and northern extension of deposit
LHDH080: Assays pending; testing low resistivity anomaly

Holes in Progress

LHDH079: Testing depth extension of the central portion of the Condor Zone
LHDH081: Testing continuity and extension of Fenix Zone
LHDH082: Testing depth extension of the eastern sector of the Condor Zone

NEXT STEPS

Drilling is planned to continue until the onset of winter weather, anticipated to be around mid-June.  The data generated from the current drill program at Los Helados will form the basis for a revised geological model. The drill program will also provide samples for additional detailed metallurgical test work, which will allow for optimization of process flowsheets and a better understanding of variability within the orebody.  With the encouragement from results to date and particularly the results of LHDH076, the Company plans to resume drilling in September following a short break during the Southern Hemisphere winter.

ABOUT NGEX MINERALS

NGEx Minerals is a copper and gold exploration company based in Canada with projects in Chile and Argentina. NGEx Minerals holds the large-scale Los Helados copper-gold deposit, located in Chile’s Region III, as well as the Valle Ancho Projects located in Argentina. NGEx Minerals is the majority partner and operator for the Los Helados Project, subject to a Joint Exploration Agreement with Nippon Caserones Resources Co., Ltd. While NGEx Minerals’ near-term focus will be on drilling the high grade core of Los Helados, it remains open to adding quality projects to its portfolio as part of its overall growth strategy.

QUALIFIED PERSONS AND TECHNICAL NOTES

The scientific and technical disclosure for the Los Helados 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.

Samples were cut at NGEx Resources’ operations base in Copiapó, Chile by Company personnel. Diamond drill core was sampled in 2 metre intervals (except where shortened by geological contacts) using a rock saw. Core diameter is a mix of HQ and NQ depending on the depth of the drill hole. Samples were bagged and tagged and packaged for shipment by truck to the ALS preparation laboratory in Copiapó, Chile where they were crushed and a 500g split was pulverized to 85% passing 200 mesh. The prepared samples were sent to the ALS assay laboratories in either Lima, Peru or Santiago, Chile for copper, gold and silver assays, and multi-element ICP and sequential copper analyses. 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 49 elements with ME-MS61 and a sequential copper leach analysis was completed on each sample with copper greater than 500ppm (0.05%). 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.

Mineralized zones within the Los Helados deposit are bulk porphyry-style zones and drilled widths are interpreted to be very close to true widths.

Copper Equivalent (CuEq) for drill intersections is calculated based on US$ 3.50/lb Cu, US$ 1,700/oz Au and US$ 20/oz Ag, with metallurgical recoveries of 88% for copper, 76% for gold and 60% for silver based on a comprehensive program of metallurgical testwork. The formula is: CuEq % = Cu % + (0.6117 * Au g/t) + (0.0057 * Ag g/t).

Section LHDH076 (CNW Group/NGEx Minerals Ltd.)

NGEx Base Map Sat. Image (CNW Group/NGEx Minerals Ltd.)