Singapore – NGEx Minerals (TSXV: NGEX) stock surged by almost 20% on Wednesday (local time) after the discovery of a much larger-than-initially-anticipated porphyry system at its Lunahuasi copper-gold project in Argentina. This discovery is expected to significantly enhance the long-term value of the Lunahuasi project.

Remarkable Drill Results Open New Horizon for Mineral System

NGEx Minerals announced astounding results from drill hole DPDH027, which intercepted 1,619.4 meters grading 0.52% copper and 0.32 grams per tonne gold from a depth of 385.6 meters to 2,005 meters. Notably, this interval ended in potassically altered diorite porphyry and was still mineralized, indicating further exploration potential. This discovery is particularly significant as it has opened a new district-scale porphyry deposit to the west of the previously known high-sulfidation veins.

As of May 8th, NGEx Minerals has completed a total of 25,003 meters of drilling in its third drilling campaign. Assay results for the remaining 10,369 meters from 12 drill holes are anticipated in mid-2025. The company is currently refining its drill targets and seeking partners for a pre-feasibility study.

Wojtek Wodzicki, President and CEO of NGEx Minerals, emphasized, “Drill hole DPDH027 opens a whole new dimension to the Lunahuasi Project, adding to the potential of what this truly massive mineral system could ultimately be.” He added, “While our near-term focus will remain on the high-grade vein system, this porphyry discovery has significantly increased the long-term value of the project.”

Experts Highly Evaluate Lunahuasi Project’s Potential

Peter Bell, a mining analyst at Canaccord Genuity, echoed Wodzicki’s assessment, stating in a Wednesday report that while the presence of porphyry was anticipated, this new discovery offers long-term value and demonstrates the exceptional strength of the mineralization system. Bell commented, “While we are focused on the high-grade, high-sulfidation mineralization, we believe the discovery of the new porphyry system provides long-term value.” He added, “NGEx’s land position is in a globally very prospective region, and this early success at Lunahuasi sets the stage for an even more exciting exploration story when compared to projects like the nearby Filo del Sol.”

Rene Cartier, a mining analyst at BMO Capital Markets Research, also assessed that the drill results support NGEx’s geological interpretation. Cartier added, “This discovery opens a large-scale exploration target with long-term value at the project, which is deeper but provides optionality for NGEx as they plan future exploration programs.”

 
Rising Global Copper Demand and Lunahuasi’s Dual Mineralization Style

Globally, copper inventories are at their lowest levels in a decade due to increasing demand from electrification and renewable energy. In this context, investors are focusing on projects that can simultaneously offer high-grade veins for early cash flow and large-scale porphyry deposits for significant production.

Lunahuasi’s dual-style mineralization aligns with this model and has driven the surge in NGEx’s stock price. The stock at one point rose by 17% to C$14.28 late in the trading session, boosting NGEx’s market capitalization to approximately C$3 billion.

 
Vicuña District with District-Scale Potential

The Lunahuasi project is situated in Argentina’s rapidly growing Vicuña district. This area is located 6 kilometers north of the Filo del Sol deposit, a joint venture between Lundin Mining (TSX: LUN) and BHP (ASX: BHP), and 8 kilometers west of Lundin’s Josemaría deposit. Both of these are major copper-gold projects nearing pre-feasibility or construction phases. Nearby projects like McEwen Mining’s (NYSE, TSX: MUX) Los Azules and Lundin’s Fruta del Norte across the border in Ecuador, vividly illustrate the international race to secure Tier-1 porphyry deposits.

Argentina’s San Juan province is attracting major exploration companies by reducing mining royalties and improving foreign exchange repatriation. NGEx’s success is following a similar path to its peers. The discovery drill hole at Filo del Sol, reported on May 13, 2021, ended in mineralization, reporting 1.8% copper equivalent (including 0.86% copper and 0.7 grams per tonne gold, plus 48.1 grams per tonne silver) over a 858-meter interval from a depth of 188 meters.

Bell stated that, compared to NGEx’s internal mineral inventory of 33.3 million tonnes at Lunahuasi, containing 2.12% copper, 1.09 grams per tonne gold, and 41.02 grams per tonne silver (706,700 tonnes of copper), these drill results are extremely strong.

 
Significance of High-Grade Intercepts and Mineralogical Changes

Drill hole DPDH027 showed particularly notable high-grade intercepts. High-sulfidation mineralization was confirmed over an 876.4-meter interval from 385.6 meters to 1,262 meters, averaging 0.59% copper and 0.48 grams per tonne gold. Additionally, the company reported porphyry-style mineralization at deeper intervals, including 0.44% copper and 0.13 grams per tonne gold at 743 meters.

According to the company, the change from high-sulfidation mineralization to porphyry mineralization indicates a shift in copper mineralogy. There was a transition from enargite and chalcocite to chalcopyrite and bornite, accompanied by a decrease in cyanide-soluble copper and an increase in residual copper.

Expansion drill hole DPDH028 recorded 7.79% copper equivalent (3.89% copper, 2.96 grams per tonne gold) over a 53.5-meter interval, while DPDH029 confirmed 2.16% copper equivalent (1.67% copper, 0.49 grams per tonne gold) over a 157-meter interval. NGEx Minerals stated that the deposit remains open in all directions, with multiple mineralized intervals confirmed in all drill holes, indicating the immense potential of the Lunahuasi project.

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