NGEx Resources Inc. (NGQ-TSX) (‘NGEx’ or the ‘Company’) announces major exploration programs underway in South America and Eritrea. The Company’s exploration budget is focused on large scale copper, gold, and potash targets that demonstrate the potential for world class discoveries.
Three drill programs are in progress on copper-gold projects in South America with a fourth program scheduled to begin in April. In Eritrea drilling on both base metal and potash projects should start in April.
Drilling on all programs is expected to continue through the first half of the year, with results released as they become available. In addition, Teck Resources Limited (“Teck”) plans a $4.5 million program on the Company’s GJ project in northern BC beginning in June. Around 45% of the approximately $17,000,000 expected to be spent on the company’s projects this year will come from its joint venture partners.
AFRICA: Bada Potash, Eritrea
Initial mapping and geophysical surveying is underway on the Company’s recently awarded Bada potash license located approximately 35 kilometers from the Red Sea coast of Eritrea.
NGEx’s license covers the northern portion of the Dallol evaporite basin which in Ethiopia hosts the historic potash deposits of Musley held by Sainik Coal Company, India and Dallol, held by Allana Resources, Canada.
The Eritrean portion of the basin hosts the Colluli potash deposit which is currently being explored by South Boulder Mines of Australia. All three areas are being actively explored with resource estimates recently issued for all three projects. Recent results released by South Boulder Mines highlight the potential for shallow potash mineralization on the Eritrean side of the border.
NGEx’s license lies approximately 20 kilometers northwest of South Boulder’s license and covers the northwest extension of the same basin.
Any discovery of potash on the Eritrean side of the border will have significant logistical advantages over deposits on the Ethiopian side because they have much closer access to the Red Sea coast.
NGEx has contracted experienced potash consultants and has begun an initial program of gravity and magnetic surveying to define the basin depth and geometry, to be followed by a reconnaissance diamond drilling program of approximately 1000 meters in three holes.
The initial drilling should be completed by the end of April and is expected to provide important information to guide a more extensive exploration program to commence before the end of the exploration season in July.
VMS, Eritrea
The Company holds approximately 650 square kilometers covering prospective stratigraphy near Nevsun Resources’ recently commissioned Bisha Mine.
The successful development of the Bisha Mine has significantly increased investor confidence in Eritrea.
The Company’s land position hosts the Hambok Deposit for which an initial NI 43-101 resource estimate was announced in 2009 as well as the high grade Aradaib discovery announced in 2010. Previously released drill results from Aradaib include 13 meters of 3.3% Cu, 5.6% Zn, 1.8 g/t Au, and 46 g/t Ag.
In late 2010 the Company completed a high resolution helicopter- borne electromagnetic, magnetic, and radiometric (VTEM) survey covering the Company’s entire land position. The survey was designed to identify volcanic-hosted massive sulfide (VMS) mineralization beneath recent cover.
Initial screening of the survey results has highlighted 18 anomalies to be geophysically modeled for massive sulfide bodies. A drill program to test targets generated by the VTEM survey and to follow-up on the positive results from Aradaib is planned for late in the first quarter of 2011. The size of the drill program will be determined once initial follow-up is completed.
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