with these widths.. and grade getting better at depth..along with the stable of other properties and a Lundin pedigree this one is a no brainer..
caliche

2011-05-05 08:47 ET – News Release

Dr. Wojtek Wodzicki reports

NGEX REPORTS FURTHER EXCELLENT DRILL RESULTS FROM LOS HELADOS, CHILE

NGEx Resources Inc. is providing further very positive results from three more diamond drill holes completed this season at the Los Helados project located in Chile’s region 3. The results given today are from holes LH-19 to LH-21. Highlights include:

LH-19, with 558 metres of 0.48 per cent copper and 0.19 gram per tonne gold including the final 92 metres grading 0.88 per cent copper and 0.20 g/t gold;
LH-20, with 312 metres of 0.73 per cent copper and 0.35 g/t gold including the final 108 metres grading 0.86 per cent copper and 0.33 g/t gold;
LH-21, with 728 metres of 0.47 per cent copper and 0.19 g/t gold including 210 metres of 0.61 per cent copper and 0.23 g/t gold with the final eight metres of the hole grading 1.03 per cent copper and 0.49 g/t gold.
(Note that assays are rounded to two significant figures, whereas assays in the table show three significant figures.)

The three drill holes released today are important because they extend the width of the zone of higher-grade mineralization that is being delineated by the current drill program by approximately 150 metres to the west and 100 metres to the east of previously released drilling. LH-19 extends higher-grade mineralization 150 metres to the west of LH-18 on the southern side of the system; LH-20 extends higher-grade mineralization approximately 100 metres to the east of previously reported hole LH-17; and LH-21 extends higher-grade mineralization approximately 150 metres to the west of previously reported LH-16. These drill holes mean the zone is still open laterally. Equally important, all three drill holes bottomed in mineralization grading between 0.86 per cent copper and 1.03 per cent copper leaving the zone open at depth. Holes were stopped due to the limits of current drilling equipment.

The three holes reported today are part of a continuing drill program that is expected to total 14 holes and will continue until the end of the summer exploration season in mid-May. The results of the four remaining holes from this season, LH-22 to LH-25, will be released as they become available over the next six weeks or so. The objective of the current drill program is to better define a zone of higher-grade mineralization that was also intercepted in previously reported holes including LH-12, with 711 metres of 0.54 per cent copper and 0.26 g/t gold, including 114 metres of 0.67 per cent copper and 0.19 g/t gold; and LH 16, with 701 metres of 0.67 per cent copper and 0.30 g/t gold.

Intervals from the holes released today are summarized in the table.

From To Interval Copper Gold
(m) (m) (m) (%) (g/t)

LH-DDH-19 0 13.75 13.75 casing
and 13.75 194 180.25 0.248 0.214
and 194 752 558 0.477 0.192
including 298 478 180 0.565 0.262
and including 660 752 92 0.876 0.202
LH-DDH-20 0 24 24 casing
and 24 438 414 0.183 0.216
and 438 750 312 0.726 0.346
including 642 750 108 0.859 0.326
or including 674 702 28 0.992 0.376
LH-DDH-21 0 14 14 casing
and 14 22 8 0.070 2.167
and 22 750 728 0.471 0.187
including 60 126 66 0.485 0.282
and including 194 404 210 0.607 0.234
and including 468 608 140 0.588 0.178
and including 742 750 8 1.035 0.490
Intervals are core lengths.

Please see the table for a summary of all the results to date from the current field season.

Commenting on the results, Dr. Wojtek Wodzicki, president and chief executive officer, said: “The results we report today continue to expand the higher-grade core of the Los Helados system. We continue to be encouraged by both the length and grade of the intercepts and by the fact that the drill holes contain long intervals of better than 0.6 per cent copper plus gold. Because of the gold, the reported intervals look even more encouraging on a copper-equivalent basis. These three drill holes are all on the outer margins of the current drill pattern and they demonstrate that the system continues to be well mineralized and open to the west, south, east and at depth. There is also potential for additional higher-grade material north of LH-12. All three holes reported today bottom in mineralization grading approximately 0.9 per cent copper along with significant gold. These holes along with those previously released confirm that mineralization extends to more than 750 metres depth and has excellent potential for additional high-grade mineralization at depth. We are beginning to plan for a major infill drill program scheduled to start in November, 2011, at the beginning of the South American spring. This program will include drills with the capability to drill to more than one-kilometre depth in order to test for the potential high-grade core of the system. We are very encouraged by the results to date and are confident that we are working on a major new copper-gold discovery.”

The higher-grade mineralization reported above is hosted within a quartz-feldspar porphyry stock and crosscutting magmatic-hydrothermal breccia body that, based on mapping and drilling to date, has an estimated area of approximately 600 metres by approximately 500 metres and extends to depths of more than 750 metres. The higher-grade zone remains open in several directions and further drilling is required to confirm these dimensions and to define the limits of the mineralization laterally and at depth.

The higher-grade mineralization at Los Helados is associated with potassic alteration which is represented by strong biotite alteration. Copper mineralization occurs primarily as chalcopyrite in both veinlets and breccia matrix. There is a close association of chalcopyrite with magnetite. In the upper parts of some drill holes, the potassic alteration is overprinted by a chlorite-sericite assemblage. This resulted in the introduction of pyrite and alteration of magnetite to hematite and apparently a slight reduction in copper grade. On the eastern side of the system, the topography rises steeply and a thicker section of relatively copper-depleted chlorite-sericite and advanced argillic alteration is preserved in the wall of the valley. This may explain the thicker zone of lower-grade material in the upper part of LH-20, which was collared at higher elevations. Drill holes such as LH-19 and LH-21 collared at lower elevations in the western part of the system have thinner zones of overprinting high-level alteration and consequently intersect better grades at shallower levels. The system is open to the west where the topography is relatively flat. Interpretation of the drill results is a continuing process and will be updated as additional data become available.

Los Helados is one of several large porphyry copper-gold systems including the company’s Josemaria and Filo del Sol projects, all located within the large block of contiguous claims that the company controls in region 3, Chile, and adjacent San Juan province, Argentina. Josemaria, located approximately 20 kilometres from Los Helados, has a previously released NI 43-101-compliant inferred resource of 460 million tonnes of 0.4 per cent copper and 0.3 g/t gold. Nearby deposits held by other companies include Caserones-Regalito (Pan Pacific Copper/Mitsui) and El Morro (Goldcorp/New Gold). The company holds a 60-per-cent interest in the Los Helados project. Japan Oil, Gas and Metals National Corp. holds the remaining 40-per-cent interest in the project. Both parties contribute their pro rata share of exploration expenditures.

Sample preparation and analysis and qualified person

The drill core was logged, sawed and half cores were sampled in their entirety in two-metre intervals or intervals corresponding to geologic breaks by company personnel at the company’s field office in Copiapo, Chile. Samples were shipped to Acme’s Copiapo sample preparation facility for crushing and grinding. The sample pulps were analyzed by standard industry assay methods in Acme’s Santiago, Chile, laboratories. 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 per cent of the submitted samples correspond to quality control samples. The quality control/quality assurance program on the Los Helados project is under the management of Diego Charchaflie, MSc, PGeo (B.C.), a qualified person pursuant to NI 43-101. Dr. Wodzicki, PhD, PGeo (B.C.), a qualified person as defined by National Instrument 43-101, has reviewed and verified the technical exploration information contained herein.

SUMMARY OF LOS HELADOS DRILL RESULTS TO DATE FROM 2010/2011 FIELD SEASON

Hole From (m) To (m) Length (m) Cu (%) Au (g/t)

LH-12
Total hole 40 751 711 0.54 0.26
including 172 236 64 0.59 0.46
and including 306 332 26 0.68 0.30
and including 348 392 44 0.79 0.31
and including 516 630 114 0.67 0.19
and including 636 720 84 0.69 0.19
LH-13
Upper section 18 180 162 0.20 0.18
Lower section 180 742.3 562.3 0.54 0.25
including 434 646 212 0.68 0.30
and including 658 710 52 0.82 0.26
LH-14
Total hole 60 715 655 0.26 0.09
including 536 582 46 0.42 0.10
and including 588 622 34 0.41 0.11
and including 658 704 46 0.56 0.18
or including 694 704 10 0.83 0.22

Hole From (m) To (m) Length (m) Cu (%) Au (ppm)

LH-DDH-15
0 30 30 casing
and 30 711 681 0.256 0.105
including 104 138 34 0.267 0.162
and including 138 152 14 0.021 0.511
and including 352 416 64 0.300 0.073
and including 506 604 98 0.435 0.118
and including 650 711 61 0.514 0.145
LH-DDH-16
0 32 32 casing
and 32 76 44 0.021 0.296
and 76 777 701 0.672 0.303
including 76 126 50 0.498 0.328
and including 208 646 438 0.697 0.309
and including 646 678 32 1.124 0.559
and including 678 744 66 0.683 0.213
and including 744 777 33 0.939 0.241
LH-DDH-17 0 36 36 casing
and 36 186 150 0.159 0.209
and 186 761 575 0.585 0.334
including 514 540 26 0.860 0.486
and including 564 761.3 197.3 0.707 0.264
LH-DDH-18 0 33 casing
and 33 134 101 0.039 0.139
and 134 602 468 0.552 0.315
including 186 212 26 0.849 0.478
and including 424 452 28 0.747 0.371
and 602 695.4 93.4 0.285 0.078

Hole From (m) To (m) Length (m) Cu (%) Au (ppm)

LH-DDH-19 0 13.75 13.75 casing
and 13.75 194 180.25 0.248 0.214
and 194 752 558 0.477 0.192
including 298 478 180 0.565 0.262
and including 660 752 92 0.876 0.202
LH-DDH-20 0 24 24 casing
and 24 438 414 0.183 0.216
and 438 750 312 0.726 0.346
including 642 750 108 0.859 0.326
or including 674 702 28 0.992 0.376
LH-DDH-21 0 14 14 casing
and 14 22 8 0.070 2.167
and 22 750 728 0.471 0.187
including 60 126 66 0.485 0.282
and including 194 404 210 0.607 0.234
and including 468 608 140 0.588 0.178
and including 742 750 8 1.035 0.490

May 7th, 2011
Categories: Uncategorized . Author: caliche