Nexa Reports Third Quarter Exploration Results

Rhea-AI Summary

Nexa Resources (NYSE:NEXA) announced its 2021 third-quarter exploration results, marking a total of 111,000 meters of planned drilling for the year. In Q3 alone, 36,293 meters were drilled across various sites: 24,246 meters in Peru, 7,339 meters in Brazil, and 4,708 meters in Namibia. Key findings include high-grade intersections at Cerro Lindo, confirming orebody continuity and new VMS mineral discoveries at Pucasalla. These results aim to extend the life of current operations and enhance resource estimates.

Positive

• Confirmed high-grade intersections at Cerro Lindo: 11.9 meters at 3.14% ZnEq and 12.8 meters at 6.85% ZnEq.
• New VMS mineralization discovered at Pucasalla, with intersections of 18.2 meters at 5.68% ZnEq.
• Positive drilling results supporting the extension of the mine life in various projects.

Negative

• None.

LUXEMBOURG / ACCESSWIRE / October 21, 2021 / Nexa Resources S.A. (NYSE:NEXA) ("Nexa Resources", "Nexa", or "Company") is pleased to provide today the drilling and assay results from the third quarter of 2021. This document contains forward-looking statements.

Summary

Nexa's Mineral Exploration program for 2021 comprises a total of 111,000 meters of exploratory drilling, of which 36,293 meters were executed in the third quarter of 2021 through 21 operating drill rigs, totaling 80,697 meters of exploratory drilling in 9M21. The program in Peru accounts for 69,000 meters, in Brazil for 30,000 meters and in Namibia for 12,000 meters.

In Peru, 24,246 meters were drilled in 3Q21 with 9 rigs, totaling 58,244 meters in 9M21. At the Pasco Complex, the exploration continued to focus on the Sara Sur target in El Porvenir with thick and high grade new intersections. At Cerro Lindo, drilling in 3Q21 has remained focused at the Pucasalla target, aiming to expand the new VMS discovery at the site and near mine underground ore body expansion at orebody 9 and 5B.

In Brazil, 7,339 meters of exploratory drilling were executed with 8 rigs in 3Q21, totaling 14,894 meters in 9M21. At Aripuanã, exploratory drilling has been focused on northwest extension at Babaçu and new drilling continues to confirm a high-grade mineralization area.

In Namibia, 4,708 meters were drilled in 3Q21 with 4 rigs, totaling 7,559 meters in 9M21. Exploratory drilling was focused on exploratory targets at the Otavi and Namibia North projects.

3Q21 Mineral Exploration Highlights

• At Cerro Lindo, drilling results confirmed continuity of orebody 9 with thick intersections such as 11.9 meters with 3.14% ZnEq and 9.5 meters with 3.69% ZnEq. In orebody 5B continuity revealed thick intersections such as 12.8 meters with 6.85% ZnEq and 9.7 meters with 3.12% ZnEq.
• The new discovery of VMS mineralization at the Pucasalla target located 4.5 kilometers northwest of the Cerro Lindo mine is confirming lateral extension of mineralization with intersections such as 18.2 meters with 5.68% ZnEq and 8.8 meters with 5.49% ZnEq.
• In El Porvenir, drilling activities continue to confirm lateral extensions of the Sara orebody. At Sara Sur, thick intersections such as 11.3 meters with 6.29% ZnEq were confirmed as a result of drilling. At Integración orebody, intersections such as 19.4 meters with 4.12% ZnEq confirmed mineralization below 3,300 level.
• At Hilarión Sur, drilling confirmed the southeast continuity of the Hilarión deposit towards the edge of the Hilarión stock with thick intersections such as 12.9 meters with 4.12% ZnEq, 8.0 meters with 5.13% ZnEq, 9.6 meters with 4.93% ZnEq and 32.7 meters with 5.03% ZnEq.
• At Vazante Extremo Norte, drilling is confirming continuity of the main orebody at depth.
• In Morro Agudo, drilling continued at Bonsucesso to confirm deep continuity of mineralization in the central area of the deposit with a thick intersection of 25.3 meters with 11.57% ZnEq.
• At Aripuanã, exploratory drilling continued at the deep northwest extension of Babaçu, confirming thick massive sulfide intersections in two holes with broad mineralized zones.

"During 3Q21, all our brownfield exploration programs have continued to progress with positive results," commented Jones Belther, Senior Vice-President Mineral Exploration & Technology. "We continue extending the Cerro Lindo ore bodies to the southeast with thick and high grade intersections in orebodies 9 and 5B opening up promising mineralized body extensions and discovering new mineralized zones like Pucasalla. As previously mentioned, Pucasalla is the first relevant discovery north of Topará Creek and it opens up new ground for resource definition and possible reserve increase and life of mine extension for Cerro Lindo.

At the Pasco complex, the Sara orebody continues to be extended to the south, with thick and high grade drill intersection in Sara Sur, and in San Gerardo open pit, we have continued to obtain new positive drill intersections. At Morro Agudo/Bonsucesso, the parallel trend continues revealing positive results along strike and at depth.

At Aripuanã, the Babaçu NW confirmed thick intersections with good grades. In Hilarión, new drilling results are confirming thick and continuous bodies in the southern extension of the Hilarión deposit.

These results support our exploration program objective, which aims to extend the mine life of our operations while also increasing the resources of our project portfolio."

For a full version of this document, please go to our Investor Relations website at: http://ir.nexaresources.com

Contact:
Roberta Varella - Head of Investor Relations
ir@nexaresources.com
+55 11 3405-5601

About Nexa

Nexa is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life underground mines - three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil - and is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil. Nexa was among the top five producers of mined zinc globally in 2020 and also one of the top five metallic zinc producers worldwide in 2020, 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 other COVID-19 related impacts, 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.sedar.com) and on EDGAR (www.sec.gov).

SOURCE: Nexa Resources S.A.

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FAQ

What were Nexa Resources' third-quarter results for 2021?

Nexa Resources reported 36,293 meters of drilling in Q3 2021, with significant findings at Cerro Lindo and Pucasalla.

How many meters of drilling did Nexa complete in the first nine months of 2021?

In the first nine months of 2021, Nexa completed a total of 80,697 meters of exploratory drilling.

Where is Nexa conducting its mineral exploration efforts?

Nexa's exploration efforts are primarily in Peru, Brazil, and Namibia.

What is the significance of the high-grade intersections reported by Nexa?

The high-grade intersections indicate continuity of ore bodies, which may lead to extended mine life and increased resource estimates.

What type of mineralization was found at the Pucasalla target?

Nexa discovered VMS (Volcanogenic Massive Sulfide) mineralization at the Pucasalla target.