Announcement • Jun 23
Ngex Minerals Reports Drilling Results from Lunahuasi Project in San Juan, Argentina
NGEx Minerals Ltd. announced results of two drill holes from the Phase 4 drill program at its 100% owned Lunahuasi high-grade copper-gold-silver project in San Juan, Argentina. Copper equivalent (CuEq) for drill intersections is calculated based on USD 3.00/lb Cu, USD 1,500/oz Au and USD 18/oz Ag, with 80% metallurgical recoveries assumed for all metals. The formula is: CuEq % = Cu % + (0.7292 Au g/t) + (0.0088 Ag g/t). Estimated true widths are rounded to the nearest metre for widths over 10m and to the nearest 0.1m for widths less than 10m, as this better reflects the precision of the estimates. Estimated true widths should be regarded as approximate as these use a preliminary interpretation of the geological model and are subject to change as more information becomes available. Intervals greater than 300m are interpreted as bulk disseminated and stockwork mineralization and drilled width is equal to estimated true width. DPDH064 was drilled from the same platform as DPDH027 at an azimuth of 260o and dip of -46o to test the southern extent of the Saturn Zone and the adjacent porphyry deposit at depth. The Saturn Zone was intersected as expected between 572.00m and 660.00m, averaging 8.65% CuEq, including a very high-grade section of 15.65m at 30.13% CuEq starting at 583.35m, extending the zone by 70m to the southwest of DPDH021. Much like in hole DPDH027, characteristic porphyry vein types define a zonation towards the porphyry system, with D veins appearing at about 400 m, B veins around 900 m and A veins at around 1,000 m. The overprinting HS mineralization continues to a down-hole depth of 1,235m where a sharp transition to porphyry mineralization is indicated by a distinct change in copper mineralogy from enargite to chalcopyrite +/- bornite. This contact correlates well with the same transition in DPDH027 at 1,262m. The intensity of veining increases below the contact, and a thick section of early-mineral porphyry beginning at 1,350m corresponds with a sharp increase in copper and gold grades, confirming the conclusion from DPDH027 that the system includes several phases of porphyry intrusions, including a well-mineralized early phase. DPDH064 continues through a very strong stockwork of well mineralized A veins cutting porphyry and rhyolite and andesite country rock, with vein intensity increasing towards a magmatic-hydrothermal breccia contact at around 1,512m. This breccia contains fragments with truncated A veins, but is also cut by A veins, indicating its inter-mineral timing. It is characterized by potassic alteration and a notable increase in copper and gold grades and continues to around 1,668m. The hole continues in very strong A vein stockwork cutting andesite, still well mineralized, to its end at 1,736.10m due to weather conditions at the end of the season. The porphyry intersection in DPDH064 is about 200m above similar mineralization in DPDH027 and mineralization remains open in all directions. The well-mineralized breccia and associated very strong A vein stockwork (with A veins comprising up to 40% of the rock volume and widths up to 40cm) confirm an important high-grade component to the porphyry system. DPDH066 was drilled from the top of the plateau, collared just over 2km to the west and 670m above DPDH064, at an azimuth of 064o and a dip of -73o. The hole was planned to flatten and test the upper part of the porphyry system, however it became steeper as it progressed and intersected porphyry alteration, veining and mineralization developed in host rock. The hole first intersected a zone of advanced argillic alteration cut by pyrite veins down to a depth of around 180m, interpreted as part of the lithocap, including steam-heated alteration indicating a very shallow erosional level within the system. It should be emphasized that this near-paleo-surface alteration occurs just over 1.5km vertically above the potassic core of the system, with the column between the bottom of DPDH064 and surface very prospective for the presence of a Filo-style HS system above the apex of the porphyry. This will form a key target for the Phase 5 drill program, which is set to commence later this year. Porphyry veining and mineralization increased towards the bottom of the hole, with D veins beginning at around 500m, B veins at around 1,000m and finally A veins at around 1,250m, coincident with an increase in copper and gold grades. The vein pattern, alteration and the presence of copper and gold grades, form important vectors which will help guide the next phase of drilling. The hole ended in mineralization at 1,643m. Holes DPDH064 and DPDH066 confirm the presence of a large, high-grade copper-gold porphyry system to the west of, and in part overprinted by, the Lunahuasi HS deposit. Hole DPDH064 intersected early porphyry veinlets over more than 800m and discovered a broad, continuous interval of copper-gold mineralization associated with a distinct magmatic-hydrothermal breccia body with potassic alteration. This breccia appears to be similar to the Fenix and Alicanto high-grade breccias developed at the Los Helados deposit, 10km to the north, and is a key exploration target for further drilling. The information gained from these holes, combined with several earlier holes, clearly shows a characteristic pattern of vein development and alteration which will be used to optimize targeting for the Phase 5 drill program. In hole DPDH064, the entire interval from 196.00m to the end of the hole at 1,736.10m is mineralized and the hole ended in good mineralization. Over this interval, the composite is based on a 0.5% CuEq cutoff grade including up to 30m of consecutive internal dilution (material less than 0.5% CuEq). The overall composite grade is influenced by the 88m long Saturn Zone interval from 572.00m to 660.00m which averages 8.65% Cu. In order to illustrate this influence, if the copper grade of the individual samples in this interval is capped at 5.0%, the average grade of the 1,540.10m interval from 196.00m to 1,736.10m drops from 0.79% Cu to 0.52% Cu and from 1.17% CuEq to 0.90% CuEq. The Phase 4 program is now complete, with a total of 27,318m drilled and 32 holes completed. Assay results from the final nine holes will be released once assays are received, analyzed, and confirmed by the Company. Samples were cut at NGEx's operations base in San Juan, Argentina by Company personnel. Diamond drill core was sawed and then sampled in maximum 2-meter intervals, stopping at geological boundaries.
