The initial drill program completed at Lunahuasi in Q2 2023 returned some of the highest grades seen in the Vicuña District to date, including DPDH002 which intersected 60 metres at 7.52% copper equivalent. The 2023-2024 follow-up program, which has now ramped up to four rigs, will initially focus on defining and expanding the zone of high-grade mineralization intersected in the maiden campaign. As additional targeting work is completed, we will also test other high potential targets, including zones of outcropping high-grade mineralization within the broader 11 km2 alteration system. The Company anticipates that initial assay results will be available late in the fourth quarter of 2023 or early in the first quarter of 2024, subject to drilling rates and assay turn-around times, which would cap off a very successful year for the Company."
Q3 2023 and Subsequent Period Highlights
- On
August 11, 2023 , the Company closed a non-brokered private placement, whereby the Company sold 13,178,460 common shares at a price of$6.50 per common share (the "Financing"). The Financing generated gross proceeds of$85.7 million , or$83.2 million net of related share issuance costs.- The common shares issued under the Financing are subject to a hold period expiring on
December 12, 2023 .
- The common shares issued under the Financing are subject to a hold period expiring on
- In
July 2023 , NGEx received and released its final drill results from the maiden 2023 drill campaign undertaken from January toMay 2023 at its 100%-ownedLunahuasi Project , located inSan Juan, Argentina , which comprised a total of 4,912 metres ("m") of diamond drilling. The initial drill program intersected a large swarm of quartz-sulphide veins carrying high values of copper, gold and silver, confirming the newest major discovery in the emerging Vicuña District.- Highlights from the 2023 program include:
- DPDH002, which returned 60.0m at 7.52% copper equivalent ("CuEq") from 212.0m and 10.0m at 7.08% CuEq from 574.0m;
- DPDH005, which returned 33.4m at 3.50% CuEq from 636.0m; and
- DPDH007, which returned 90.0m at 4.05% CuEq from 74.0m and 20.8m at 8.08% CuEq from 439.2m.
- The Company's current interpretation is that the veins intersected at Lunahuasi and the surrounding 11 km2 alteration zone were created by one or more porphyry copper-gold systems and that the grades and thickness of the mineralization observed are positive indicators of the strength and potential of the source system(s).
- Highlights from the 2023 program include:
- In
October 2023 , the Company commenced its 2023-2024 follow-up field and drill campaign at Lunahuasi, which has since ramped up to four diamond rigs.- The Lunahuasi program as currently planned, targets approximately 15,000m of drilling, with an initial focus around defining and expanding the zone of high-grade mineralization intersected in the maiden 2023 campaign.
- As guided by additional targeting work planned for early in the 2023-2024 campaign, the Company will also look to drill test other high potential targets, including zones of outcropping high-grade mineralization within the broader 11km2 alteration system.
- In
July 2023 , the Company also released the final assay results from its successful 2022-2023 drill program at its approximately 69%-owned Los Helados Project, located in Region III,Chile .- The 2022-2023 program, which finished in
May 2023 , completed 10,450m of diamond drilling in 11 holes, and successfully extended the recently discovered high-grade satellite Fenix and Alicanto Zones, which are distinct from, and in addition to, theCondor Zone , the high-grade breccia phase around which the current Los Helados Resource estimate is centered. - Although detailed geophysical surveys and geological mapping completed during the 2022-2023 Los Helados field program generated a number of new exploration targets with similar signatures as the Condor, Fenix and Alicanto Zones for potential exploration, the Company has decided to defer further exploration at Los Helados in order to focus its field personnel and resources at Lunahuasi.
- The 2022-2023 program, which finished in
Q3 2023 Drilling Results
Drilling and assay results from the 2022-2023 season's drill programs at Lunahuasi, including those received and released during the third quarter of 2023 are discussed in news releases dated
Financial Results
(In thousands of Canadian dollars, except per share amounts) | |||||
Three months ended | Nine months ended | ||||
2023 | 2022 | 2023 | 2022 | ||
Exploration and project investigation | 4,469 | 4,539 | 30,489 | 22,885 | |
General and administration ("G&A") | 4,300 | 1,704 | 6,879 | 3,150 | |
Net loss | 4,311 | 6,068 | 29,197 | 24,395 | |
Basic and diluted loss per share | 0.02 | 0.04 | 0.17 | 0.16 |
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) | ||||
2023 | 2022 | |||
Cash and cash equivalents | 66,050 | 23,249 | ||
Working capital | 80,344 | 20,222 | ||
Mineral properties | 3,853 | 3,903 | ||
Total assets | 88,412 | 32,312 |
The financial information in this table was selected from the Financial Statements, which are available on SEDAR+ at www.sedarplus.ca and the Company's website www.NGExMinerals.com. |
The Company incurred a net loss of
Liquidity and Capital Resources
As at
About
The Company is listed on the
Additional information relating to
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Los Helados and Lunahuasi Projects included in this news release have been reviewed and approved by
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 and Lunahuasi; whether current interpretation of the exploration and/or drill results to date at Los Helados or Lunahuasi will be confirmed by future work, including statements regarding prospectivity of exploration properties, the accuracy of a geological model, the ability to extend and define of the Fenix, Alicanto and Condor Zones at Los Helados, or the scale, grade, or significance of the system that is the source of the high-grade mineralization intersected during the 2023 drill campaign at Lunahuasi, or the Company's ability to locate it; the expected results or success of exploration activities; the future uses of the Company's cash and working capital; 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", "budgets", "scheduled", "estimates", "forecasts", "targets", "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 be able to carry out exploration program at Lunahuasi as planned; fluctuations in the current price of and demand for commodities; material adverse changes in general business and economic conditions, particularly 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
© Canada Newswire, source