NGEx Provides Update on Exploration Program at Nacimientos Project, Argentina - Seite 2

A field program designed to define drill targets was completed earlier this year.  The targeting program included geological mapping, geochemical sampling, a ground magnetic survey, and an IP/Resistivity survey.  Drill targets were selected based on coincident favorable geological, geochemical, and geophysical features.

Target 1 is an approximately one square kilometre area where a flat lying zone of massive silica and advanced argillic alteration with strongly anomalous gold and associated epithermal pathfinder element values outcrops on the slopes of the hill underneath a cap of post-mineralization cover rocks (see Figure 2).  This type of alteration is typical of many large high-sulfidation gold deposits like the nearby Veladero and Alturas deposits.  It is important because the massive silica can act as a seal beneath which ponding of gold bearing solutions occurs.  There is a strong resistivity anomaly that extends under the cover rocks and is interpreted to represent the extension of strong silicification under the cover rocks (see Figure 3).  The objective for the drill hole at Target 1 is to confirm that alteration and gold mineralization continue underneath the cover rocks. The planned drill hole is located approximately 500 metres from the nearest outcropping mineralization and if it intersects mineralization under the cover rocks it will open up a large target area of at least 1 square kilometre.

Target 2 is an area with outcropping porphyry-style copper/gold mineralization characterized by strong potassic alteration, stockwork veining, and visible chalcopyrite and bornite mineralization.  Sampling of a surface trench near the collar of the planned drill hole during this year’s program returned 66 metres @ 0.57 grams per tonne gold and 0.28 % copper including 24 metres @ 0.78 grams per tonne gold and 0.37 % copper.  Surface mineralization contains significant magnetite and the drill hole is targeting a strong magnetic anomaly beneath the surface mineralization.  The objective for this drill hole is to intersect further copper-gold mineralization at depth.