Q3 2022 HIGHLIGHTS AND OUTLOOK
We see exciting times ahead for NGEx and much optionality to generate value for our shareholders. We have recently replenished our treasury with a
2022-2023 Los Helados Drill Program to Test Extension of High-grade Satellite Structures
The drill campaign completed by the Company at Los Helados during the first half of 2022 provided validation of the Company's current geological interpretation, which postulates that the Los Helados deposit contains multiple centres of high-grade mineralization and that elevated grades do not necessarily dissipate towards the edges of the deposit. Further exploration and expansion of new high-grade satellite structures, such as the Fenix and Alicanto Zones, represent the potential to add significantly more high-grade material at Los Helados.
The Company kicked off its 2022-2023 drill campaign at Los Helados in
The drill program plans to use directional drilling to optimize drilling efficiency and reduce the number of total metres required to effectively test the targets at depth. Directional drilling uses specialized down hole tools to direct the drill bit toward multiple target areas from a single pilot hole, allowing for different targets to be tested from a single drill collar.
As of the date of this new release, the program has ramped up to four rigs and is anticipated to continue into the first quarter of 2023 targeting completion up to 15,000 metres.
Completion of 100% Earn-in at Valle Ancho
During the third quarter of 2022 and the subsequent period thereto, the Company prepared requisite reports and made formal submissions to the Province of Catamarca to evidence of its completion of the expenditure requirement to earn into the Valle Ancho and Interceptor properties (collectively, the "
The Company completed a successful program at Valle Ancho in the first quarter of 2022 which included 3,060 metres of diamond drilling in eight holes at two high priority targets. Significant oxide gold mineralization was intersected at the
FINANCIAL RESULTS
(In thousands of Canadian dollars, except per share amounts) | |||||
Three months ended | Nine months ended | ||||
2022 | 2021 | 2022 | 2021 | ||
Exploration and project investigation | 4,539 | 1,390 | 22,885 | 2,147 | |
General and administration ("G&A") | 1,704 | 473 | 3,150 | 1,359 | |
Net loss | 6,068 | 1,491 | 24,395 | 3,067 | |
Basic and diluted loss per share | 0.04 | 0.01 | 0.16 | 0.02 |
The financial information in this table was selected from the Company's condensed interim consolidated financial statements for the three and nine months ended |
SELECTED FINANCIAL INFORMATION
(In thousands of Canadian dollars) | ||||
2022 | 2021 | |||
Cash | 638 | 21,000 | ||
Working capital (deficit) | (1,899) | 19,974 | ||
Mineral properties | 3,489 | 3,537 | ||
Total assets | 4,881 | 25,733 |
The financial information in this table was selected from the Financial Statements, which are available on SEDAR at www.sedar.com and the Company's website www.NGExMinerals.com. |
The Company incurred a net loss of
LIQUIDITY AND CAPITAL RESOURCES
As at
Credit Facility
On
As consideration for the 2022 Facility, Zebra and Lorito received 12,500 common shares upon execution thereof (the "Commitment Shares")and shall receive an additional 200 common shares each month, for every
All common shares issued in conjunction with the facilities are subject to a four-month hold period under applicable securities laws.
Subsequent Private Placement
On
The common shares issued under the Financing are subject to a hold period expiring on
The Company anticipates that it will deploy the majority of its treasury and capital resources, including the net proceeds resulting from the Financing, towards furthering exploration programs in
ABOUT
The Company is listed on the TSXV under the trading symbol "NGEX".
QUALIFIED PERSONS AND TECHNICAL NOTES
The scientific and technical disclosure for the
CuEq for drill intersections is calculated based on
On behalf of
President and CEO
Additional information relating to
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"). 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; the anticipated drill meters to be completed at Los Helados and the improvements to efficiency that will be realized through directional drilling; whether current interpretation of the exploration and/or drill results to date will be confirmed by future work, including statements regarding prospectivity of exploration properties, the accuracy of a geological model, or the ability to extend and define of the Fenix and Alicanto Zones; the result of the Province of Catamarca's review of the Company's submission with respect to the completion of the earn-in expenditure at Valle Ancho to secure a 100% interest therein and the timing thereof; the future uses of the Company's cash and working capital, including the net proceeds resulting from the Financing; the success of future exploration activities; potential for the discovery of new mineral deposits or expansion of existing mineral deposits; ability to build shareholder value; expectations with regard to adding to Mineral Resources through exploration; expectations with respect to the conversion of Inferred Resources to an Indicated Resource classification, or the conversion of Indicated Resources to a Measured Resource classification; and the ability to execute the planned work programs. Words 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 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 ongoing COVID 19 pandemic and the risk that an intensification of the pandemic or an outbreak at the project 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 receive the permits required to drill at Valle Ancho in a timely manner, fluctuations in the current price of and demand for commodities; material adverse changes in general business 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
SOURCE
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