Recent Developments
- Copper prices have recently surged to record levels of
~US$4.66 per pound as the global economy recovers from the pandemic and the green energy and electrification revolutions gain momentum. In a market with limited large scale development projects, the Company believes that this will lead to the revaluation of projects like Los Helados that were drilled off when prices were less than half of today's spot price. - Gold prices are also significantly higher at more than
US$1850 / ounce and Los Helados is a major gold resource. - Spotlight on district Los Helados is part of a cluster of major copper-gold-silver deposits controlled by other entities within the
Lundin Group of Companies that together comprise the largest new copper-gold district discovered in the Andes in recent decades. Management believes that the outstanding drill results released by Filo Mining last week as well as the ongoing progress toward development of the Josemaria deposit will lead to increased attention for what is the only major copper district in the world controlled by junior exploration companies.
Los Helados Assay of Geotechnical Holes and Planned Resource Update
- NGEx plans to assay several geotechnical holes that were drilled into the high-grade core of the deposit as part of the last drilling program at Los Helados. These holes had been preserved as whole core for geotechnical test work which has been completed. The holes will be sampled and assayed in the coming weeks.
- Once assays are received the Company plans to update the current resource and expect that a portion of the high-grade core of the resource will be converted into the Measured Category.
Los Helados Project Overview
Los Helados is one of the largest undeveloped copper-gold-silver deposits in the world, and it is management's view that
- Very large resource base: Los Helados is one of the largest undeveloped copper-gold-silver deposits in the world containing:
- Indicated Resources1 of: 17.6 billion pounds of copper; 10.1 million ounces of gold; 92.5 million ounces of silver.
- Inferred Resources1 of: 5.8 billion pounds of copper; 2.7 million ounces of gold; 35.1 million ounces of silver.
Los Helados ranked #11 on a list of the top copper development projects by contained copper in measured and indicated resources compiled by Mining.Com2.
- Higher current prices plus a strong outlook: The prices used to originally evaluate Los Helados were
$3.00 /lb copper and$1300 /oz gold. Current spot prices are$4.66 /lb copper and$1,865 /oz gold. - High value clean concentrate: Los Helados would produce a clean gold and silver rich copper concentrate low in impurities. Impurities such as arsenic are a growing problem for smelters, and clean concentrate such as that from Los Helados is expected to be in high demand.
- Close to existing mining infrastructure: Los Helados is located approximately 12 km from the
Caserones Mine owned by Nippon Caserones Resources who areNGEx Minerals' 36% partner at Los Helados.
1. Los Helados Mineral Resource Estimate
The Mineral Resource estimate as of the effective date of
LOS HELADOS INDICATED MINERAL RESOURCE | ||||||||
Resource Grade | Contained Metal | |||||||
Cutoff2 | Million | Cu (%) | Au (g/t) | Ag (g/t) | CuEq1 | Cu | Au | Ag |
0.58 | 531 | 0.50 | 0.21 | 1.66 | 0.65 | 5.9 | 3.6 | 28.3 |
0.50 | 981 | 0.45 | 0.18 | 1.56 | 0.58 | 9.7 | 5.7 | 49.2 |
0.44 | 1,395 | 0.42 | 0.16 | 1.52 | 0.54 | 12.9 | 7.2 | 68.2 |
0.40 | 1,733 | 0.40 | 0.15 | 1.45 | 0.51 | 15.3 | 8.4 | 80.8 |
0.33 | 2,099 | 0.38 | 0.15 | 1.37 | 0.48 | 17.6 | 10.1 | 92.5 |
LOS HELADOS INFERRED MINERAL RESOURCE | ||||||||
Resource Grade | Contained Metal | |||||||
Cutoff2 | Million | Cu (%) | Au (g/t) | Ag (g/t) | CuEq1 | Cu | Au | Ag |
0.58 | There are no Inferred Mineral Resources inside the mining shape at this cutoff. | |||||||
0.50 | 41 | 0.41 | 0.13 | 1.78 | 0.51 | 0.4 | 0.2 | 2.3 |
0.44 | 176 | 0.37 | 0.11 | 1.61 | 0.45 | 1.4 | 0.6 | 9.1 |
0.40 | 399 | 0.35 | 0.10 | 1.47 | 0.43 | 3.1 | 1.3 | 18.9 |
0.33 | 827 | 0.32 | 0.10 | 1.32 | 0.39 | 5.8 | 2.7 | 35.1 |
|
2. Ranked; World's Top 10 Copper Projects,
ABOUT
ADDITIONAL INFORMATION
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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.
QP AND TECHNICAL INFORMATION
Technical information in this news release has been reviewed and approved by
On behalf of
President and CEO
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 forward-looking information contained in this news release is based on information available to the Company as of the date of this news release. Except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information. 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", "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", "might" or "will be taken", "occur" or "be achieved" or the negative connotations thereof. All statements other than statements of historical fact may be forward-looking statements.
Forward-looking statements contained in this news release include statements regarding: the strong outlook for copper prices, expectations that increasing metal prices and positive results from the Filo del Sol and Josemaria projects will increase investor interest in and the value of the Los Helados project, assumptions included in the Los Helados Mineral Resource Estimate, potential demand for Los Helados concentrate, potential for the assaying of the geotechnical holes to convert Indicated to Measured mineral resources. Although the Company believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including but not limited to risks related to: Mineral Resources estimates, estimations of costs, and permitting time lines; ability to obtain surface rights and property interests; currency exchange rate fluctuations; requirements for additional capital; changes to government regulation of mining activities; environmental risks; unanticipated reclamation or remediation expenses; title disputes or claims; limitations on insurance coverage; and other risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators. In addition, these statements involve assumptions made including that the current price of and demand for commodities will be sustained or will improve, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material labour dispute, accident, or failure of plant or equipment. These factors are not, and should not be construed as being, exhaustive.
The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws. 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
SOURCE
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