From: Berhane Habtemariam (Berhane.Habtemariam@gmx.de)
Date: Tue Feb 15 2011 - 16:40:32 EST
Press Release - NGEx Announces Major Exploration Programs Underway in South
America and Africa
To view accompanying maps, click on the following link:
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 15, 2011) - NGEx Resources
Inc. (TSX:NGQ) ('NGEx' or the 'Company') is pleased to provide an update on
the significant exploration programs being carried out on its projects in
South America and Africa (please see attached maps). The Company's
exploration budget is focused on large scale copper, gold, and potash
targets that demonstrate the potential for world class discoveries. In
total, the Company and its partners are expecting to drill more than 20,000
meters by the end of September, 2011. This is a very significant amount of
drilling for a company of our size and we believe that this program can
create substantial value for shareholders by defining new mineral resources
at our more advanced projects such as Los Helados, or by drilling the
initial discovery drill holes on our new projects like the Bada potash
project in Eritrea.
Three drill programs are in progress on copper-gold projects in South
America with a fourth program scheduled to begin in April. In Eritrea
drilling on both base metal and potash projects should start in April.
Drilling on all programs is expected to continue through the first half of
the year, with results released as they become available. In addition, Teck
Resources Limited ("Teck") plans a $4.5 million program on the Company's GJ
project in northern BC beginning in June. Around 45% of the approximately
$17,000,000 expected to be spent on the company's projects this year will
come from its joint venture partners.
Los Helados, Chile
Drilling is underway at NGEx's 60% owned Los Helados project located east of
Copiapo in Chile's Region 3 where previous drilling defined a porphyry
copper-gold system measuring about 1,000 meters by 600 meters and up to 700
meters thick and is open in several directions. The best grades intersected
to date are associated with a large hydrothermal breccia located in the
southern two thirds of the zone. Drilling this field season will focus on
defining the higher grade portion of the system. See attached map for some
previously released intercepts.
The prospect has recently been surveyed by deep penetrating IP-Resistivity
to define zones of higher grade mineralization and any possible extensions
to guide further drilling. Using two drills, the Company has completed
approximately half of the initial 10 hole, 7,500 meter drill program to
date. It is anticipated that this drill program will be extended with the
objective of completing sufficient drilling to permit an initial resource
calculation later this year.
Drilling is also underway at the Josemaria project, located approximately 15
kilometers east of Los Helados in northern San Juan Province, Argentina.
Josemaria has a previously announced NI 43-101 inferred resource of 460Mt @
0.4% Cu and 0.3 g/t Au. This year's drilling at Josemaria is focused on
discovering extensions of the known deposit under post-mineralization cover
and testing a strong chargeability anomaly north of the current resource.
The current 2,500 meter drill program is funded by JOGMEC who are earning a
40% interest in the project. Approximately 1000 meters have been completed
Filo del Sol, Argentina
A fourth drill is working at the 60% owned Filo del Sol project located
approximately 12 kilometers south of Los Helados in San Juan Province,
Argentina. Previous drilling at Filo del Sol has identified near surface
copper oxides and gold within a large diatreme breccia. Most of the drilling
to date has focused on shallow copper sulfate mineralization and deeper
copper sulfide in the southern part of the project area. The main copper
sulfate mineral, chalcanthite, is water soluble and potentially amenable to
low cost heap leaching. Chalcanthite was an important component of copper
production from Chuquicamata in the early part of the last century.
A recent review of drill data from Filo del Sol identified several
compelling gold targets in the northern part of the project area. An initial
2,000 meter drill program will follow up some of the better gold results
from previous drilling and as well as better define the extent of the near
surface copper sulfate mineralization. The program will be extended as
needed to follow-up any encouraging results.
Colmillos is an exciting early stage porphyry copper project located east of
Ovalle, Chile. Mapping and sampling at Colmillos have defined a 4.3
kilometer trend of tourmaline breccia bodies, local visible copper oxide
mineralization and anomalous copper and molybdenum geochemistry. Copper
mineralized tourmaline breccias are a common feature of many major porphyry
copper systems. An access road has recently been completed and an IP survey
is underway. An initial drill program of up to 2,000 meters in 6 to 8 holes
is planned for March.
Bada Potash, Eritrea
Initial mapping and geophysical surveying is underway on the Company's
recently awarded Bada potash license located approximately 35 kilometers
from the Red Sea coast of Eritrea. NGEx's license covers the northern
portion of the Dallol evaporite basin which in Ethiopia hosts the historic
potash deposits of Musley held by Sainik Coal Company, India and Dallol,
held by Allana Resources, Canada. The Eritrean portion of the basin hosts
the Colluli potash deposit which is currently being explored by South
Boulder Mines of Australia. All three areas are being actively explored with
resource estimates recently issued for all three projects. Recent results
released by South Boulder Mines highlight the potential for shallow potash
mineralization on the Eritrean side of the border. NGEx's license lies
approximately 20 kilometers northwest of South Boulder's license and covers
the northwest extension of the same basin. Any discovery of potash on the
Eritrean side of the border will have significant logistical advantages over
deposits on the Ethiopian side because they have much closer access to the
Red Sea coast.
NGEx has contracted experienced potash consultants and has begun an initial
program of gravity and magnetic surveying to define the basin depth and
geometry, to be followed by a reconnaissance diamond drilling program of
approximately 1000 meters in three holes. The initial drilling should be
completed by the end of April and is expected to provide important
information to guide a more extensive exploration program to commence before
the end of the exploration season in July.
The Company holds approximately 650 square kilometers covering prospective
stratigraphy near Nevsun Resources' recently commissioned Bisha Mine. The
successful development of the Bisha Mine has significantly increased
investor confidence in Eritrea. The Company's land position hosts the Hambok
Deposit for which an initial NI 43-101 resource estimate was announced in
2009 as well as the high grade Aradaib discovery announced in 2010.
Previously released drill results from Aradaib include 13 meters of 3.3% Cu,
5.6% Zn, 1.8 g/t Au, and 46 g/t Ag.
In late 2010 the Company completed a high resolution helicopter- borne
electromagnetic, magnetic, and radiometric (VTEM) survey covering the
Company's entire land position. The survey was designed to identify
volcanic-hosted massive sulfide (VMS) mineralization beneath recent cover.
Initial screening of the survey results has highlighted 18 anomalies to be
geophysically modeled for massive sulfide bodies. A drill program to test
targets generated by the VTEM survey and to follow-up on the positive
results from Aradaib is planned for late in the first quarter of 2011. The
size of the drill program will be determined once initial follow-up is
GJ Project, BC
GJ is a copper-gold project, located in northern British Columbia. The
Company has optioned the project to Teck which has the right to earn an
initial 51% by spending $12,000,000 by December 31, 2014 and up to a 75%
interest by spending an aggregate of $44,000,000 by December 31, 2020. Teck
has received internal approval for a $4.5 million exploration program
consisting of ground geophysics and up to 5,000 meters of drilling. The
objective of the program is to add to the previously reported NI 43-101
compliant resource and to test the potential for high grade copper-gold
zones similar to those discovered at Imperial Metals' nearby Red Chris
project. Exploration is expected to begin in late June, 2011 and continue
through to September.
Dr. Wojtek Wodzicki, P. Geo. (BC), President and CEO of NGEx, a Qualified
Person as defined by National Instrument 43-101, has reviewed the technical
contents of this release.
Read more: <http://www.digitaljournal.com/pr/223705#ixzz1E48W4Ofs>
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