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2016-05-09

NGEX REPORTS FIRST QUARTER 2016 RESULTS

EPORTS FIRST QUARTER 2016 RESULTS

May 6, 2016: NGEx Resources Inc. (TSX: NGQ) (OMX: NGQ) (“NGEx” or the
“Company”) is pleased to announce that it has filed its unaudited Consolidated
Financial Statements and Management’s Discussion and Analysis for the three
months ended March 31, 2016. Both documents can be found on SEDAR
(www.sedar.com) and on the Company’s website (www.ngexresources.com). The
highlights provided below are derived from these documents and should be read
in conjunction with them.

Wojtek Wodzicki, President and CEO of NGEx commented, “We are very pleased with
the results of the Project Constellation PEA which demonstrates that Project
Constellation is one of the best development stage copper-gold projects in the
world and one of very few controlled by a junior company. We believe that the
long term fundamentals for copper are strong and that the Company is well
placed to benefit from a recovery in copper prices. Work completed during this
quarter confirmed our belief in the potential for us to grow Filo del Sol into
another outstanding asset for our shareholders. We will be working hard over
the coming year to add value to both projects.”

Q1 2016 HIGHLIGHTS AND SIGNIFICANT EVENTS

-- Positive results from the Preliminary Economic Assessment of Project
Constellation
A Preliminary Economic Assessment (the “Integrated PEA”) of Project
Constellation, which contemplates the combined development of the Los
Helados and Josemaria deposits, was completed during the three months ended
March 31, 2016. The Integrated PEA contemplates a large, long life project,
with life of mine average annual metal production of 150,000 tonnes of
copper, 180,000 ounces of gold, and 1.18 million ounces of silver over 48
years. The Integrated PEA shows a base case after-tax NPV (8%) of US$2.61
billion and IRR of 16.6%.

-- Positive results from surface exploration program at Filo del Sol
Field work including geological mapping, geophysical surveys, and
geochemical sampling was successful in extending the Filo system to the
north and identified new targets for future drill testing

-- Completed two private placements for total net proceeds of $10.6 million
The Company completed two separate private placements and sold an aggregate
of 17,333,333 common shares during the three months ended March 31, 2016
for net proceeds of $10.6 million.

-- Appointed new Interim CFO
On February 3, 2016 the Company announced the appointment of Ms. Joyce Ngo
as Interim Chief Financial Officer.

PROJECT CONSTELLATION

The Integrated PEA, initially announced on January 7, 2016, contemplates an
integrated project combining the Los Helados and Josemaria projects, whereby
materials from both the Los Helados and Josemaria deposits would be processed
at a centralized processing plant located in Argentina. Following the removal
of an export retention tax that was applicable to copper concentrate exports in
Argentina, the results of the Integrated PEA were updated on February 22, 2016
to reflect an increase in Project Constellation’s after-tax NPV and after-tax
IRR to US$2.61 billion and 16.6% respectively.

A National Instrument 43-101 Technical Report with an effective date of
February 12, 2016, an amended signature date of March 31, 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 Ingeniería y Construcción 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).

Pursuant to the updated 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 are 185,000 tonnes of
copper, 345,000 ounces of gold and 1,310,000 ounces of silver.

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.

Both Los Helados and Josemaria are subject to separate Joint Exploration
Agreements with joint exploration partners. The Company acts as the operator
of both agreements and, in each case, both parties are required to contribute
their pro-rata share of expenditures or dilute their interest in their
respective projects.

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 March 31, 2016, PPC’s interest in
the Los Helados Project has been diluted by approximately 0.6%.

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 Josemaria project. JOGMEC is funding its
pro-rata share of expenditures.

The Mineral Resource Estimate for Josemaria was updated in conjunction with the
completion of the Project Constellation Report. For further details on the
updated Josemaria Resource estimate please refer to the Project Constellation
Report.

During the three months ended March 31, 2016, the Company continued with
environmental baseline data collection and studies in support of Project
Constellation. Negotiations towards the acquisition of surface rights were
also ongoing.

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.

The total Inferred Resource for the Filo del Sol deposit, at a 0.30% copper
equivalent cut-off grade, is:

-- 381.0 million tonnes at a grade of 0.39% copper, 0.33 g/t gold and 12 g/t
silver for a copper equivalent grade of 0.69% (3.3 billion pounds of
copper, 4.0 million ounces of gold, and 149.8 million ounces of silver).

Copper equivalent assumes metallurgical recoveries of 84% for copper, 70% for
gold and 77% for silver based on similar deposits, as only limited acid-leach
metallurgical testwork has been done on Filo del Sol mineralization, and metal
prices of US$3/lb copper, US$1300/oz gold, US$23/oz silver. The CuEq formula
is: CuEq=Cu+Ag*0.0102+Au*0.5266.

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<...

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