NGEx Resources (TSX:NGQ,Nasdaq Stockholm:NGQ) has announced that it has started a preliminary feasibility study on its Josemaría project in San Juan Province, Argentina.

As quoted in the press release:

Josemaría is currently part of the company’s project Constellation preliminary economic assessment which evaluated a combined project starting with an open pit mine at Josemaría, followed by underground development of the company’s nearby Los Helados deposit.  The Constellation PEA demonstrates a robust, long-life project that represents one potential development scenario for the company’s projects.  It also highlighted the quality and strengths of the Josemaría deposit including:

• A near surface supergene enrichment zone that contains an indicated resource of  150 million tonnes at 0.56 percent copper and 0.38 grams per tonnes gold for a copper equivalent grade of 0.76 percent.

• Its potential to produce an annual average of 185,000 tonnes of copper, 345,000 ounces of gold and 1.2 million ounces of silver in the first 5 years of production;

• Straightforward metallurgy producing a high-quality copper concentrate with high gold and silver content;

• A low strip ratio;

• Nearby water supply from aquifers in Argentina; and

• A well defined permitting regime and strong support for mining development  from the San Juan provincial and National authorities in Argentina

Click here to read the full NGEx Resources (TSX:NGQ,Nasdaq Stockholm:NGQ) press release.