NGEx Minerals reports new high-grade Lunahuasi drill results, boosting large-scale copper discovery potential in Argentina

The company reported new high-grade intercepts at its Lunahuasi project in San Juan, including 335 metres grading 2.25% copper, 2.17 g/t gold and 27.6 g/t silver. The market reacted strongly, sending the stock sharply higher in Toronto.

NGEx Minerals has released new high-grade drilling results from its Lunahuasi project in San Juan province, Argentina, reinforcing market interest in what is emerging as one of the most significant copper-gold-silver discoveries in the Andean region.

The company reported that drill hole DPDH059 intersected 335 metres grading 2.25% copper, 2.17 grams of gold per tonne and 27.6 grams of silver per tonne, from a depth of approximately 409 metres. Within that interval, the company highlighted 20 metres grading 6.83% copper, 15.64 g/t gold and 82.3 g/t silver, as well as a standout 1.5-metre interval grading 21.65% copper.

The results were well received by the market. NGEx Minerals shares jumped 12% on Monday morning in Toronto to C$24.69, lifting the company’s market capitalization to around C$5.4 billion. Over the past 12 months, the stock has traded in a range between C$10.15 and C$32.41.

The strong share price performance came amid improved risk appetite in global markets, supported by signs of geopolitical easing following talks involving the United States and Iran.

Beyond hole DPDH059, the company also reported other significant results supporting the continuity and scale of the mineralized system. Drill hole DPDH056 intersected 294 metres grading 1.87% copper from 433 metres, including 8 metres grading 14.09% copper, 4.06 g/t gold and 87.1 g/t silver from 553 metres depth.

Meanwhile, hole DPDH058 returned approximately 36 metres grading 2.77% copper, 3.3 g/t gold and 113.5 g/t silver, from roughly 431 metres downhole. Two of the holes targeted the Saturn zone, while the third was drilled toward the northern edge of the deposit to test a potential new mineralized zone.

Market analysts also underscored the importance of the new results. Bryce Adams, mining analyst at Desjardins Capital Markets, said the drilling update “reinforces Lunahuasi as a large-scale, high-grade copper-gold system with an expanding footprint and strong resource upside potential.”

In a similar view, Rabi Nizami, mining analyst at National Bank Financial, said Lunahuasi “continues to establish itself as one of the largest high-grade copper-gold-silver discoveries globally.”

The new holes form part of NGEx’s ongoing drill campaign, which has now reached nearly 23,000 metres. Encouraged by the consistency of the results and strong drilling efficiency, the company has increased the program target to 30,000 metres, up from the previously planned 25,000 metres. Completion is expected in early May.

Lunahuasi is a relatively recent discovery, first identified in 2023 within the emerging Vicuña district along the Chile-Argentina border. The project has rapidly attracted market attention for delivering some of the highest copper and gold grades encountered in this mining belt, which also hosts deposits such as Josemaria, Filo del Sol and Los Helados.

Since last year, drilling has outlined multiple styles of mineralization, including high-sulphidation epithermal systems, porphyry copper-gold mineralization and high-grade gold veins. The mineralized footprint extends for more than 1 kilometre in multiple directions and remains open.

Despite the project’s progress, Lunahuasi is still at an early stage, and NGEx has not yet published a maiden resource estimate. There is also no formal capital cost estimate at this stage, although comparable large-scale Andean copper developments in the Vicuña district typically require multi-billion-dollar investments and several years of construction.

Two weeks ago, the mining authority in San Juan province approved the environmental impact statement for the development of an exploration adit at Lunahuasi. The company is targeting the fourth quarter to begin underground development, subject to the timely receipt of the remaining permits.

NGEx is part of the Lundin group of companies, whose founding family controls other miners including Lundin Mining and Lundin Gold. Members of the Lundin family currently own about 36% of NGEx Minerals’ equity.