Nexa Reports Third Quarter 2023 Exploration Results

LUXEMBOURG / ACCESSWIRE / October 23, 2023 / Nexa Resources S.A. ("Nexa Resources", "Nexa", or the "Company") is pleased to provide today the drilling and assay results from the third quarter of 2023. This document contains forward-looking statements.

Summary

Nexa's drilling strategy for 2023 is focused on near-mine expansion brownfield and infill drilling, including Aripuanã, which is in the ramp-up stage. Additional exploratory drilling is also planned for greenfield projects with a favorable perspective.

We invested in our exploration program a total amount of US$24.1 million cumulatively for the 9M23 period, with US$9.6 million invested in 3Q23. This represents 74% of the US$32.6 million projected for the year, our initial budget was US$35.2 million. The difference between the initially budgeted investment amount and the revised amount projected for 2023 is explained by a review undertaken to our mineral exploration guidance in light of the challenging backdrop of lower LME metal prices. As previously released, in order to accommodate the revised level of investment, we have postponed the start of drilling at Hilarión from June 2023 to 3Q23, and drilling at Florida Canyon has been postponed to 4Q23, compared to our previous estimate of a start in 3Q23. Furthermore, some areas of other regional exploration projects were deprioritized. Our initial plan envisaged 97,290 meters of drilling and, after the review mentioned above, our target for this year was reduced to 88,196 meters. Despite this review and in accordance with the meterage forecast monitored monthly, we performed in line with what was initially projected for 3Q23.

At the end of 3Q23, 215,238 meters of cumulative drilling production was carried out, including 69,614 meters of exploratory drilling and 145,624 meters of mining infill drilling. Total exploratory drilling carried out in 3Q23 was 28,573 meters, including 16,790 meters drilled in Peru, 8,896 meters in Brazil, and the remaining 2,887 meters in Namibia. Exploratory drilling scheduled for 4Q23 includes 14,507 meters in Peru with twelve rigs, 2,075 meters in Brazil with four rigs, and 2,000 meters in Namibia with two rigs, totaling 18,582 meters.

Commenting on the report, Jones Belther, Senior Vice President of Mineral Exploration & Business Development, said: "Our brownfield exploration programs have progressed as planned and the results are confirming our expectations of extending the life of mine of our current operations. Drilling results at Cerro Lindo confirmed the extent of mineralization at depth in Orebody 8, with an intercept of 11.5 meters grading 2.87% Zn, 0.34% Pb, 0.12% Cu and 8.16 g/t Ag. At Aripuanã, the Babaçu exploration infill drilling confirmed thick and high-grade intercepts such as 21.1 meters with 11.56% Zn, 5.08% Pb, 0.18% Cu, 50.24 g/ t Ag and 0.21 g/t Au, 4.8 meters with 21.59% Zn, 13.25% Pb, 0.07% Cu, 453.32 g/t Ag and 0.28 g/t Au, and 10.9 meters with 14.00% Zn, 4.51% Pb, 0.04% Cu, 130.08 g/t Ag and 0.16 g/t Au. All drilled holes feature multiple mineralized intervals with high polymetallic content. At the Pasco complex, the Integración orebody continues to be expanded in depth in holes at multiple intersections, such as 3.2 meters with 10.59% Zn, 0.18% Pb, 0.26% Cu, 43.79 g/t Ag and 0.39 g/t Au, and 6.6 meters with 9.43% Zn, 1.02% Pb, 0.12% Cu, 32.77 g/t Ag and 0.08 g/t Au".