Bli medlem
Bli medlem

Du är här

2016-02-23

NGEX 2015 FINANCIAL AND OPERATIONAL HIGHLIGHTS

INANCIAL AND OPERATIONAL HIGHLIGHTS

February 22, 2016: NGEx Resources Inc. (TSX: NGQ) (Nasdaq Stockholm: NGQ)
(?NGEx? or the ?Company?) is pleased to announce its operating and financial
results for the year ended December 31, 2015 and to provide an update on the
results of work on its projects during the year.

HIGHLIGHTS AND SIGNIFICANT EVENTS

Project Constellation

-- The results of a Preliminary Economic Assessment (the ?Integrated PEA?) of
Project Constellation, which contemplates the combined development of the
Los Helados and Josemaria deposits, were announced on January 7, 2016.
Subsequent to that news release, the Argentine government announced the
removal of a tax on copper concentrate exports. Accordingly, the financial
information presented in this press release incorporates the updated
financial analysis reflecting the removal of this tax. The financial
results shown in the table below reflect this change and differ from those
first reported in the January 7, 2016 news release. The removal of the
export tax increases Project Constellation?s NPV(8%) to US $2.61 billion
and the IRR to 16.6%.

-- The Integrated PEA includes an optimized conceptual mine plan for the Los
Helados deposit, which includes several improvements over the standalone
Los Helados Preliminary Economic Assessment, which was disclosed in October
of 2014.

-- The Integrated PEA also includes an updated mineral resource estimate for
the Josemaria deposit.

Filo del Sol Property, Argentina

-- On November 23, 2015, the Company announced an updated mineral resource
estimate for its 100% controlled Filo del Sol copper-gold-silver deposit.
The updated mineral resource estimate replaces the initial resource
estimate released on December 2, 2014, and incorporates data from 24
additional step-out and infill holes from the 2014/2015 drilling program.
The results show a significant increase in the size of the resource. Above
a 0.3% CuEq cutoff, contained copper has increased by 42%, contained gold
has increased by 39% and contained silver has increased by 71%

Corporate Activities

-- On November 5, 2015, the Company and Teck Resources Limited completed the
sale of their respective interests in the GJ Project to Skeena Resources
Limited.

-- On February 19, 2016, the Company completed a private placement and sold an
aggregate of 13,333,333 common shares for gross proceeds of $8 million.

Wojtek Wodzicki, President and CEO commented, ?We are very pleased with the
results of our 2015 work programs, especially the Project Constellation PEA
which shows robust economics and highlights the potential to develop this
project into one of the largest producers of copper, gold, and silver in South
America. The recent positive changes to fiscal policies made by the new
government in Argentina further enhance the potential of this project. We also
delivered a significant increase to the Filo del Sol resource and believe that
there is excellent potential to further expand it. As we move into 2016, we
will continue to look for ways to add value to our projects through focused,
cost effective exploration and targeted engineering studies.?

PROJECT CONSTELLATION

The Integrated PEA of Project Constellation was announced on January 7, 2016
and contemplates an integrated project combining the Los Helados and Josemaria
projects, whereby material from both the Los Helados and Josemaria deposits
would be processed at a centralized processing plant located in Argentina.

Pursuant to the results of the Integrated PEA, Project Constellation is
estimated to produce a life-of-mine annual average of approximately 150,000
tonnes of copper, 180,000 ounces of gold and 1,180,000 ounces of silver over a
project life of 48 years from two porphyry deposits. Forecast annual metal
production over the first five years of production is 185,000 tonnes of copper,
345,000 ounces of gold and 1,310,000 ounces of silver.

A summary of the findings of the Integrated PEA was announced in a news release
dated January 7, 2016. Subsequent to that news release, the Argentine
government announced the elimination of an export retention tax that was
applicable to copper concentrate exports from Argentina. When the change to
the export retention tax was announced, the Company asked the authors of the
technical report to update the financial analysis in the PEA to remove this
tax. The financial results shown in the table below reflect this change and
differ from those first reported in the January 7, 2016 news release. The
removal of the export tax increases Project Constellation?s after-tax NPV (8%)
from the initial estimate of US $2.09 billion to US $2.61 billion and the
after-tax IRR from the initial estimate of 14.5% to 16.6% (assuming metal
prices of US$3.00/lb copper, US$1,275/oz gold and US$20/oz silver). The initial
capital investment for the project is estimated to be US$3.08 billion. Average
operating costs are estimated at US$9.34/t, with cash costs, net of by-product
credits, of US$1.05 per pound of copper produced.

A National Instrument 43-101 Technical Report with an effective date of
February 12, 2016 and titled ?Constellation Project incorporating the Los
Helados Deposit, Chile and the Josemaria Deposit, Argentina NI 43-101 Technical
Report on Preliminary Economic Assessment? (the ?Project Constellation Report?)
was prepared by Amec Foster Wheeler International Ingenier?a y Construcci?n
Limitada (?AMEC?) under the direction of Jamie Beck P. Eng, Project Manager
(NGEx Resources). The report has been filed on SEDAR and is available for
review under the Company?s profile on SEDAR (www.sedar.com).

Integrated PEA Summary:

Pre-Tax NPV (8%) & IRR $4.43 billion NPV
20.7% IRR
--------------------------------------------------------------------------------
After-Tax NPV (8%) & IRR $2.61 billion NPV
16.6% IRR
--------------------------------------------------------------------------------
Payback Period (undiscounted, after-tax cash 3.6 Years
flow)
--------------------------------------------------------------------------------
Metals Prices Assumed $3.00/lb Cu
$1,275/oz Au
$20.00/oz Ag
--------------------------------------------------------------------------------
Initial Capital Expenditures $3.08 billion
--------------------------------------------------------------------------------
LOM Sustaining Capital Expenditures $4.36 billion
--------------------------------------------------------------------------------
LOM C-1 Cash Costs (net of by-product credits) $1.05/lb Cu payable
--------------------------------------------------------------------------------
Nominal Mill Capacity 150,000 t/d
--------------------------------------------------------------------------------
Mine Life 48 years
--------------------------------------------------------------------------------
-----------------------------------------------
Average Annual Metal Production (rounded) Life of Mine First 5 years
---------------------------------
150,000 t Cu 185,000 t Cu
180,000 oz Au 345,000 oz Au
1,180,000 oz Ag 1,310,000 oz Ag
--------------------------------------------------------------------------------
LOM Average Process Recovery 88.3% Cu
72.7% Au
61.4% Ag
--------------------------------------------------------------------------------

* All figures reported are in 2015 US dollars and on a 100% Project and 100%
equity basis valuation.

Note: The reader is advised that the Integrated PEA results in this Press
Release are only intended to provide an initial, high-level summary of the
project. The Integrated PEA is preliminary in nature and includes the use of
inferred mineral resources, which are considered too speculative geologically
to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves and there is no certainty that the
Integrated PEA results will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic viability.

Los Helados is subject to a Joint Exploration Agreement (?PPC JEA?) with Pan
Pacific Copper Ltd. (?PPC?), whereby the Company holds approximately a 60%
interest and PPC holds approximately a 40% interest in the Los Helados Project.
Effective September 1, 2015, PPC has elected not to fund its pro-rata share of
expenditures and, as a result, has elected to dilute its interest pursuant to
the PPC JEA. Accordingly, the Company has funded 100% of the Los Helados
project starting September 1, 2015. As at December 31, 2015, PPC?s interest in
the Los Helados Project has been diluted by approximately 0.3%.

Josemaria is subject to a Joint Exploration Agreement with Japan Oil, Gas, and
Metals National Corporation (?JOGMEC?), whereby the Company owns a 60% interest
and JOGMEC holds a 40% interest in the Jose Maria project. JOGMEC is funding
its pro-rata share of expenditures.

FILO DEL SOL PROPERTY, ARGENTINA

Filo del Sol is a high sulphidation epithermal copper-gold-silver system
associated with a porphyry copper-gold system. Filo del Sol is a very large
mineralized system, with dimensions based on wide spaced drill holes, of at
least 3.7 kilometres in a north-south direction and 1 kilometre in an east-west
direction. The mineralized system includes both disseminated and stockwork
mineralization and is open in all directions. Filo del Sol is located on the
border between Chile and Argentina and is 100% controlled by NGEx.

An updated Mineral Resource estimate for the Filo del Sol deposit was announced
on November 23, 2015. The new resource estimate updates and replaces the
initial resource estimate released on December 2, 2014. The updated Mineral
Resource estimate incorporates data in 24 additional step-out and in-fill holes
from the 2014/2015 drill program, which has resulted in a significant increase
in the size of the resource. Above a 0.3% CuEq cutoff, contained copper has
increased by 42%, contained gold has increased by 39% and contained silver has
increased by 71%.

The Mineral Resource estimate has an effective date of August 26, 2015 and was
completed by James N. Gray, P.Geo. of Advantage Geoservices Ltd., an
Independent Qualified Person as defined by National Instrument 43-101. Further
details of the estimation methods and procedures are described in the Technical
Report ?Updated Mineral Resource Estimate for the Filo del Sol Property, Region
III of Atacama, Chile and San Juan Province, Argentina? dated December 11, 2015
which is available under the Company?s profile at www.sedar.com or on the
Company?s website.

On October 23, 2014, the Company acquired the 40% interest in the Filo del Sol
project held by PPC for total cash consideration of US$7.0 mill...

Författare SSE

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.