NGEx hits big copper strikes at Josemaria, Los Helados

VANCOUVER — Vancouver-based copper explorer NGEx Resources (NGQ-T) is enjoying a June comeback, as the company benefits from drill results on promising targets at its land package on the established Region III corridor along the Chile-Argentine border.

NGEx has lost roughly 36% or 87¢ per share since late March, falling from a high of $2.60 to a low of $1.60 on June 15. A lull in exploration results and negative trends in copper prices stemming from global economic turbulence took a toll on the company before new drilling finally started to drive positive market sentiment over the past two weeks.

NGEx is focusing on three contiguous properties that appear to be significant copper porphyry discoveries encompassing a territorial swathe that lies across both Chile and Argentina — 60% owned under joint venture with Japan Oil, Gas and Metals National. The company announced a major copper find at its Los Helados property last June, and is working diligently to establish an updated resource on the project by year end.

Good news started to roll in at the end of April, when NGEx announced a massive 1,090-metre copper strike grading 0.69% copper equivalent in hole DH17A at Los Helados. Highlights also include: 937 metres grading 0.66% copper equivalent in hole DH28, and 296 metres carrying 1.1% copper equivalent in hole DH23A. 

“Initial results from this year’s drill program at Los Helados have significantly extended the mineralization both laterally and to depth,” commented president and CEO Wojteck Wolski. “Copper-gold intercepts of over 1,000 metres are extremely rare and the results announced today are highly encouraging. The mineralization remains open in all directions and at depth and we look forward to continued expansion success.”

Meanwhile, NGEx is also pursuing a resource update at its Josemaria target 10-km-southeast of Los Helados. Josemaria already hosts 460 million tonnes at 0.39% copper and 0.3 gram gold per tonne at a 0.3% copper cutoff, but NGEx thinks the deposit has a real shot at expansion, and if recent results are any indication, the company is probably onto something.

In late May NGEx announced the discovery of new high-grade mineralization at Josemaria, including the highest-grades it had ever encountered at the project. Hole DH49 cut 172 metres of 1.57% copper equivalent, including 1.33% copper and 0.36 gram gold. The mineralization was discovered on the northeastern edge of the current resource and remains open in that direction. NGEx also cut 552 metres carrying 0.75% copper equivalent in hole JMDH25 and 412 metres grading 0.65% in hole JMDH39.

“Josemaria has been somewhat overshadowed by the excellent results from Los Helados; however, these results confirm the potential for high grade mineralization at Josemaria too,” Wodzicki said. “Together with previously released results from Los Helados the results support our view that the land package has the potential to host a very significant new copper-gold district with multiple deposits within a fifteen kilometer radius.”

To cap off a promising bout of exploration, NGEx released results on its earlier-stage Filo del Sol target 15-km-west of Josemaria on June 19. The company’s diamond-drill program at Filo Del Sol is focused on confirming and extending a series of reverse-circulation results, as most holes to date have bottomed out in mineralization.

Highlights from the most recent assays include: 223 metres grading 0.46% copper, 0.5 gram gold and 74 grams silver in hole FSDH02; 98 metres carrying 1.45% copper, 0.3 gram gold, and 16.3 grams silver in hole FSDH03D; and 24 metres grading 3.4% copper, 0.29 gram gold, and 9.3 grams silver in hole FSDH03D.

NGEx expects to release more results as it moves towards updated resources at Los Helados and Josemaria scheduled for September. The company is in the midst of 40,000 metres worth of drilling.

NGEx has experienced a 22% or 35¢ surge since June 18 on average volumes in the 172,000 shares per day range. The company is still well off its 52-week high of $4, but briefly leapt to a high of $2.20 on June 20, before closing at $1.95 at presstime. NGEx has 158 million shares outstanding and a $308 million market capitalization.