NGEx Resources Inc. achieved a number of significant milestones during fiscal 2016, most notably the release of the results of the Preliminary Economic Assessment (the “Integrated PEA”) of Project Constellation and the completion of the spin out of the Filo del Sol property into Filo Mining Corp. on August 16, 2016.
On January 7, 2016 the Company published the results of the Integrated PEA for Project Constellation, which contemplates the combined development of the Los Helados (III Region of Chile) and Josemaría (San Juan province) deposits, whereby material from both deposits would be processed at a centralized processing plant located in Argentina.
With the spin out of Filo Mining complete, the Company is focused on advancing its Project Constellation. On September 19, 2016, NGEx provided an update on the Company’s plans to advance Project Constellation and take advantage of opportunities to add value at modest costs by evaluating lower cost development options including: testing the heap leach potential of the oxide cap at Josemaría; and continuing baseline environmental studies. The Company continues to pursue these de-risking opportunities and will seek to engage with potential partners to lay the groundwork for either the eventual development by the Company and its partners or through a sale to a third party. The Company also plans to evaluate a number of earlier stage exploration targets between Los Helados and Josemaría.
During 2016, NGEx completed an agreement which provides surface rights covering the Los Helados deposit, including areas for infrastructure and access, representing an important milestone in Project Constellation’s development. Work during the fourth quarter of 2016 focused on developing the metallurgical test program for the oxide cap at Josemaría in addition to regional exploration targeting.
The completion of the spin out of Filo Mining Corp. during the year enables the Company to focus on advancing Project Constellation and on continued efforts to lay the groundwork for the development of this significant flagship project. Work is planned to explore the varied development options that the Project provides in this new mining region