Lunahuasi’s Bonanza: NGEx Minerals and the Copper Tsunami Fueling the Energy Transition

The global energy transition is driving an insatiable appetite for copper—a metal essential for electric vehicles, solar panels, wind turbines, and grid infrastructure. With the International Energy Agency projecting a tripling of annual copper demand by 2040, investors are scrambling to secure exposure to high-grade deposits. Enter NGEx Minerals’ Lunahuasi Project, a copper-gold-silver bonanza in Argentina’s San Juan Province that could emerge as one of the most strategic plays in the critical minerals space.

The Geological Masterpiece: Scale, Grade, and Open Potential

Lunahuasi isn’t just another copper project—it’s a high-grade, epithermal-copper system with intercepts that redefine expectations. Recent drilling highlights include:
- DPDH032: 27.40 meters at 25.19% CuEq, including 8.60 meters at 23.81% CuEq with 69.82 g/t Au.
- DPDH028: 51.10 meters at 13.84% CuEq.
- DPDH035: 51.5 meters at 12.26% CuEq, with gold grades exceeding 23.81 g/t Au in parts.

These results underscore the deposit’s exceptional grade consistency and open-ended potential. The mineralized system currently extends at least 1 kilometer in all directions, and ongoing drilling (Phase 3, 25,000 meters) is aggressively testing boundaries. With step-out holes targeting unexplored zones to the north, south, and west, Lunahuasi could rapidly expand into a multi-million-ton resource.

Argentina’s Mining Renaissance: Policy Tailwinds for Lunahuasi

Lunahuasi’s timing couldn’t be better. Argentina’s Large-Scale Investment Incentive Regime (RIGI)—launched in 2023—has transformed the country into a mining-friendly jurisdiction. Key reforms include:
- 30-year fiscal stability: Guaranteed tax rates and currency repatriation terms.
- Reduced EBITDA tax burden: Capped at 38%, lower than Chile (45%) and Peru (42%).
- Streamlined permitting: San Juan Province, where Lunahuasi is located, has emerged as a leader, hosting six of Argentina’s top ten copper projects.

These policies have already attracted major players: Lundin Mining and BHP’s merger, creating Vicuña, and Barrick Gold’s record production at Veladero. For NGEx, this means lower political risk and faster path-to-production for Lunahuasi.

Valuation: A Copper Bargain in a Gold Rush Market

NGEx’s stock remains grossly undervalued relative to its asset potential. With a market cap of ~$1.5 billion and $176.9 million raised in a recent private placement, the company is financially fortified to execute its 2025 roadmap. Key metrics to watch:
- Exploration Target: Expected by year-end 2025, this will likely anchor a NI 43-101 resource estimate within 12–18 months.
- Copper Equivalent (CuEq) per share: With drilling expanding the deposit, this metric could surge, making NGEx a multi-bagger if realized.

Near-Term Catalysts: Why 2025 is a Make-or-Break Year

Investors should prepare for two critical catalysts:
1. H2 2025 Exploration Target Announcement: The Phase 3 drill program, now 80% complete, has delivered intercepts that validate the deposit’s scale. This data will form the basis of an Exploration Target—a critical step toward a formal resource estimate.
2. Feasibility Study Trigger: A robust resource estimate by early 2026 could unlock a pre-feasibility study, potentially positioning Lunahuasi as a low-cost, high-margin producer with gold byproduct credits.

Why Act Now?

The energy transition isn’t waiting. Copper’s role in renewables—40 metric tons per gigawatt of solar, 12 tons per gigawatt of wind—ensures Lunahuasi’s relevance. With Argentina’s policy tailwinds and NGEx’s advanced exploration, this project is primed to leapfrog into the critical minerals spotlight.

The Bottom Line: NGEx offers a rare combination—high-grade, scalable assets in a mining-friendly jurisdiction, backed by near-term catalysts. With copper prices hovering near $4 per pound and the energy transition accelerating, Lunahuasi isn’t just a project—it’s a strategic must-own for investors positioning for the next supercycle.

Act before the resource update arrives. The next phase of NGEx’s story could rewrite the copper market.