NGEx is partnered with JOGMEC and Pan Pacific Copper on the Filo del Sol, Josemaria and Los Helados copper-gold projects (REUTERS/Carlos Barria)

NGEx is partnered with JOGMEC and Pan Pacific Copper on the Filo del Sol, Josemaria and Los Helados copper-gold projects (REUTERS/Carlos Barria)

NGEx Resources (NGQ:TSX), the only mineral exploration vehicle in the multi-billion dollar Lundin Group, has begun the 2013-2014 exploration program at their Josemaria and Filo del Sol projects in San Juan, Argentina.  In 2013, NGEx dramatically increased the resource base at their Josemaria and Los Helados projects.  Josemaria now hosts over 6 billion pounds of copper and 6 million ounces of gold in the indicated category.  Contained copper at Los Helados grew by nearly 50% and gold by over 30% in the indicated category.  Now Los Helados hosts over 15 billion pounds of copper and nearly 9 million ounces of gold in the indicated category.

At Josemaria drilling will be focused on testing the extension of the high-grade supergene zone located at the north of the deposit.  They will also be testing a broader target that extends 500m to the north end of the deposit where there appears to be a leach cap that has a similar IP signature to the rest of the known mineralization.  The north end is covered by overburden and the company plans to test a blind extension of the Josemaria deposit.  First assays from Josemaria are expected by late January as drilling commenced in late November.  They are planning to drill a total of 4,000m at Josemaria.

At Filo del Sol, the company is planning to drill 8,000m and to mainly complete infill drilling in the shallow high-grade copper oxide and silver zone in order to complete an initial resource estimate on this zone.

Drilling on both projects is expected to continue into February or March, depending on productivity and results, following a two week break over Christmas.

NGEx shares have suffered due to the decreased appetite for large, low-grade, high capex projects.  However, NGEx is a Lundin Group company which means financing risk is almost non-existent and they have large Asian partners to develop them with.

Here's the 5-year chart, showing NGEx is trading where it was nearly 3-years ago:

NGQ Chart
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Read: NGEx Announces Start of Drilling at Josemaria and Filo del Sol