NGEx's Lunahuasi Project: A Copper-Gold Powerhouse in Argentina's Next Mining Boom

The copper-gold market is entering a pivotal era, driven by soaring demand from green energy transitions and EV manufacturing. At the heart of this shift is NGEx Minerals' Lunahuasi project in Argentina, a high-grade deposit that's rapidly emerging as one of the most promising discoveries in the sector. Recent drilling results and strategic moves by the company signal that Lunahuasi could redefine NGEx's position in the junior mining space—and offer critical lessons for peers.

The Project's Explosive Progress

Lunahuasi has been on a roll in 2025. The Phase 3 drilling campaign, which expanded to eight rigs by February, has already surpassed 18,000 meters of drilling across 18 holes, with 25,000 meters now targeted. The results? A series of jaw-dropping intersections:

• DPDH038 delivered 42.4 meters at 6.14% copper equivalent (CuEq), including a 6.4-meter subset at 23.93% CuEq—a grade so high it's rare even in the best epithermal systems.
• DPDH036 intersected 57 meters at 2.23% CuEq, while DPDH039 returned 108 meters at 2.73% CuEq, underscoring the deposit's bulk-tonnage potential.
• Gold grades are equally compelling, with intervals like 8.6 meters at 69.82g/t Au in the Mars Zone and 1.1 meters at 151.5g/t Au in the Saturn Zone.

The deposit now spans 1.2km vertically and 1.7km laterally, with mineralization open in all directions. Drilling at depths over 2,000 meters (e.g., DPDH027) suggests the system could extend far deeper, offering a blend of high-grade veins and porphyry-style bulk tonnage.

Why This Matters for the Copper-Gold Market

Lunahuasi isn't just another deposit—it's a strategic game-changer. Here's why:

1. High-Grade, Low-Cost Potential: With copper at $4.84/lb and gold near $2,000/oz, the project's grades (e.g., 23.93% CuEq) mean it could be one of the world's most profitable mines. The shallow, open-pit-friendly zones (e.g., the Mars Zone within 300–500m depth) reduce capital and operating costs, a rare advantage in today's inflationary environment.

2. Scale and Depth: The deposit's dimensions already rival producing mines, but its open-ended nature suggests it could grow into a multi-million-ounce asset. The interconnected Jupiter, Saturn, and Mars zones form a robust, multi-layered system—a rarity in the porphyry space.

3. Location and Timing: Argentina's mining-friendly government and proximity to rail/road infrastructure (e.g., Caserones mine operator Nippon Mining is a neighbor) reduce development risks. With global copper supply constrained by permitting delays and geopolitical tensions, Lunahuasi's advanced exploration stage positions it to capitalize on the $4.5 trillion EV and renewable energy infrastructure boom.

Lessons for Junior Miners: Execution Over Hype

Lunahuasi's success isn't just about geology—it's a masterclass in execution. Key takeaways for juniors:

• Aggressive Drilling with Clear Goals: NGEx expanded its drill fleet and prioritized step-outs to test the deposit's full extent. This contrasts with many juniors that dawdle with small programs.
• Strong Management = Credibility: CEO Wojtek Wodzicki, who sold Filo del Sol for $4.5B, brings a track record of turning discoveries into value. Investors now trust his team to advance Lunahuasi efficiently.
• Leveraging Liquidity: The $176.9M private placement in October 2024 provided $124.2M in cash, avoiding dilution while funding Phase 4 drilling. This “cash-rich, drill-happy” strategy is a blueprint for survival in volatile markets.

Risks and Mitigants

• Commodity Volatility: Copper prices could dip if China's demand falters or global growth slows. However, Lunahuasi's grades give it a $3.50/lb breakeven point, far below current prices.
• Permitting Delays: While Argentina's government is pro-mining, local opposition or bureaucratic hurdles could slow timelines. NGEx's focus on community engagement and environmental compliance (e.g., partnering with Nippon Mining's Caserones team) aims to mitigate this.
• Assay Delays: With 53% of Phase 3 assays pending, there's execution risk. But the company has a clean track record of delivering on targets.

Investment Thesis: Buy Ahead of the Catalysts

Lunahuasi is a buy for investors with a 12–18-month horizon. Key catalysts ahead:

• Q3 2025: Remaining Phase 3 results could expand high-grade zones further.
• Late 2025: NI 43-101-compliant Exploration Target to be announced, giving a clearer picture of the deposit's upside.
• Q4 2025: Phase 4 drilling (15,000–20,000 meters) to test open areas, setting the stage for a maiden resource estimate by mid-2026.

At current prices, NGEx trades at a deep discount to its peers, given its advanced stage and scale. With copper prices likely to stay elevated and the project's potential for a takeover bid (think $10+/share valuation), this is a rare chance to invest in a high-potential, low-risk junior.

Conclusion

Lunahuasi isn't just a project—it's a blueprint for how to succeed in today's mining landscape. With its high grades, scalable infrastructure, and a management team that's done this before, NGEx is primed to deliver outsized returns. For juniors, it's a lesson in execution, financing, and strategic focus. Investors who act now could secure a piece of what could be the next big copper-gold mine—and a standout performer in the sector's next phase.

Recommendation: Buy NGEx (NGX:TSX) ahead of Q3/Q4 catalysts. Set a target of $10/share by mid-2026, with a stop below $4.50 for risk management.