LUXEMBOURG / ACCESSWIRE / October 24, 2024 / Nexa Resources S.A. ("Nexa Resources", "Nexa", or "Company") is pleased to provide today the drilling and assay results from the third quarter of 2024. This document contains forward-looking statements.
Summary
Nexa's 2024 drilling strategy emphasizes near-mine expansion and brownfield and infill drilling, with additional exploration drilling planned for promising greenfield projects.
Exploration expenditure and drilling execution are approximately 14% behind schedule, mainly due to operational challenges and rainfall impacting activities at Cerro Lindo. By the end of the third quarter, cumulative drilling reached 170,008 meters comprising 44,658 meters from exploration drilling and 125,350 meters from mining infill drilling. Total exploration drilling for 3Q24 amounted to 18,850 meters, with 11,391 meters completed in Peru (using eight rigs), 6,712 meters in Brazil (using six rigs), and 746 meters in Namibia (using one rig). This includes 5,193 meters dedicated to early-stage greenfield projects in Brazil and Peru. Drilling activities in 3Q24 were behind schedule, primarily due to technical and mechanical issues affecting early-stage greenfield projects in Brazil, Peru, and Namibia, resulting in of 2,496 meters less drilling than was planned. For the next quarter, planned exploration drilling includes 13,475 meters in Peru (with nine rigs), 5,350 meters in Brazil (with six rigs), and 1,450 meters in Namibia (with two rigs), totaling 20,275 meters.
Highlights
Cerro Lindo, Orebody 8B: 4.6 meters at 2.75% Zn and 0.47% Cu in drill hole PECLD07556 from 544.95 meters.
Aripuan?, Massaranduba target: 4.1 meters at 0,61% Cu in drill hole BRAPD000198 from 651.4 meters.
Vazante, Sucuri Norte orebody: 3.3 meters at 7.13% Zn in drill hole BRBVZEND000067 from 469.0 meters.
El Porvenir, Integración target: 19.2 meters at 4.53% Zn in drill hole PEEPD02781 from 297.9 meters;
5.5 meters at 5.84% Zn and 1.58% Cu in drill hole PEEPD02802 from 452.8 meters.
14.4 meters at 4.02% Zn and 0.50% Cu in drill hole PEEPD02802 from 501.0 meters.
Commenting on the report, Jones Belther, Senior Vice President of Mineral Exploration & Business Development, said "Our brownfield exploration programs are progressing well, focused on expanding our exploration portfolio and extending the life of our mines. At Cerro Lindo, drilling has confirmed the depth and continuity of mineralization in Orebody 8B. At Aripuan?, recent exploration of the Massaranduba target, located 3 km southeast of Baba?u, identified mineralized intercepts. Results at Vazante confirm the extent of mineralization at the northern end of the Sucuri target. Meanwhile, at our Pasco complex, drilling continues to expand the depth of mineralization at the Integración orebody.
Nexa is a large-scale, low-cost integrated zinc producer with over 65 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life mines, three of which are located in the central Andes region of Peru, and two of which are located in Brazil (one in the state of Minas Gerais and one in the state of Mato Grosso). Nexa also currently owns and operates three smelters, two of which are located in the state of Minas Gerais in Brazil, and one of which is Cajamarquilla located in Lima, Peru, which is the largest smelter in the Americas.
Nexa was among the top five producers of mined zinc globally in 2023 and one of the top five metallic zinc producers worldwide in 2023, according to Wood Mackenzie.
Cautionary Statement on Forward-Looking Statements
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this news release as "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of NEXA to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for a number of reasons, many of which are not under our control, among them, the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements. Our estimates and forward-looking statements may also be influenced by, among others, legal, political, environmental or other risks that could materially affect the potential development of our projects, including risks related to outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally.
These forward-looking statements related to future events or future performance and include current estimates, predictions, forecasts, beliefs and statements as to management's expectations with respect to, but not limited to, the business and operations of the Company and mining production our growth strategy, the impact of applicable laws and regulations, future zinc and other metal prices, smelting sales, CAPEX, expenses related to exploration and project evaluation, estimation of mineral reserves and/or mineral resources, mine life and our financial liquidity.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable and appropriate by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies and may prove to be incorrect. Statements concerning future production costs or volumes
are based on numerous assumptions of management regarding operating matters and on assumptions that demand for products develops as anticipated, that customers and other counterparties perform their contractual obligations, full integration of mining and smelting operations, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labor disturbances, interruption in transportation or utilities, adverse weather conditions, and that there are no material unanticipated variations in metal prices, exchange rates, or the cost of energy, supplies or transportation, among other assumptions.
We assume no obligation to update forward-looking statements except as required under securities laws. Estimates and forward-looking statements involve risks and uncertainties and do not guarantee future performance, as actual results or developments may be substantially different from the expectations described in the forward-looking statements. Further information concerning risks and uncertainties associated with these forward-looking statements and our business can be found in our public disclosures filed under our profile on SEDAR+ (www.sedarplus.ca) and on EDGAR (www.sec.gov).
