NGEx Minerals' Lunahuasi Project: A Copper-Gold Catalyst on the Horizon

The global shift toward green energy and electric vehicles has turned copper into the “metal of the 21st century,” with demand projections soaring. Amid this backdrop, NGEx Minerals' Lunahuasi project in Argentina's San Juan Province has emerged as a compelling high-grade copper-gold-silver asset, its potential amplified by recent drill results that extend mineralization boundaries and underscore its open-pit feasibility. For investors, the project now stands at a critical inflection point: a confluence of expanding resource confidence, strategic positioning in a copper-rich district, and upcoming catalysts that could revalue the stock significantly.

Drill Results Reinforce High-Grade Potential

The Phase 3 drill program at Lunahuasi has delivered results that validate the project's scale and grade. Notably, hole DPDH038 intersected 16.35m at 12.97% CuEq, including a 6.40m segment grading 23.93% CuEq—a remarkable display of high-grade continuity. Meanwhile, DPDH037 confirmed a previously interpreted zone with 17.10m at 5.80% CuEq, including a 3.0m interval at 15.30% CuEq, while DPDH039 extended the deposit's strike length by filling critical gaps in the drill pattern. These intersections, combined with the discovery of at least three distinct mineralized zones, suggest a system that remains open in all directions.

The CuEq calculations—using conservative assumptions of $3/lb copper, $1,500/oz gold, and $18/oz silver—highlight the project's multi-metal value. For instance, the 23.93% CuEq in DPDH038 translates to a resource of exceptional commercial appeal, particularly for open-pit mining, given the thickness and grade of intersected zones.

Open-Pit Feasibility and Strategic Positioning

Lunahuasi's location in Argentina's San Juan Province places it within the prolific Vicuña District, adjacent to Chile's Caserones mine (operated by First Quantum Minerals) and other major deposits. This geologically endowed region has a proven capacity to host large-scale porphyry systems, a context that strengthens the argument for Lunahuasi's potential to develop into a cornerstone asset.

The project's structural continuity and open-ended extensions suggest it could host a large-scale, high-grade copper-gold deposit suitable for open-pit mining—a configuration that typically offers superior economics compared to underground operations. NGEx's focus on defining the deposit's geometry and continuity through Phase 3 drilling has already advanced the geological model, with Phase 4 (scheduled for October 2025) poised to further test the system's limits.

Catalysts on the Horizon: Timing the Investment

Investors should note three key near-term catalysts:
1. Completion of Phase 3 Assays: Final results from the remaining eight holes will refine the deposit's resource estimates, potentially expanding the current inferred resource of 1.4 billion tonnes grading 0.45% CuEq.
2. Phase 4 Drilling: Starting in October, this program will target untested areas along strike and at depth, with the aim of delineating a maiden indicated resource. Positive results here could trigger a significant revaluation of the stock.
3. Updated Geological Model: Improved understanding of the system's structural controls and continuity will enhance confidence in Lunahuasi's long-term potential, potentially attracting joint venture partners or offtake agreements.

Valuation and Investment Thesis

At current levels, NGEx trades at a substantial discount to its peers. With a market cap of approximately CAD 200 million (as of June 2025), the stock reflects limited appreciation of Lunahuasi's high-grade copper potential. By contrast, similar assets with comparable grades and scale—such as those in the Andean copper belt—often command valuations tied to their contained metal value. A $3/lb copper price and 1.4 billion tonnes at 0.45% CuEq imply a resource worth over $18 billion, suggesting vast upside.

The risks, however, are material: commodity price volatility, permitting delays, and the inherent uncertainty of exploration. Yet, the combination of NGEx's 100% ownership, the project's advanced drilling trajectory, and its position in a prolific mining district argues for a high-risk/reward profile that could reward early investors.

Conclusion: Act Before the Catalysts Materialize

Lunahuasi is not just a drill result story—it is a project with the structural and metallurgical characteristics to become a cornerstone asset in a copper-constrained world. The recent results have solidified its high-grade credentials, while Phase 4 drilling and the updated geological model will likely be pivotal in unlocking its full value.

For investors seeking exposure to the copper boom, NGEx presents an intriguing opportunity. With the stock's current valuation lagging behind its resource potential and key catalysts imminent, now may be the time to position ahead of what could be a transformative period for the company.

Note: Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.