NGEx Minerals' Lunahuasi Project: A High-Grade Copper Bonanza with Catalysts Ahead

The global copper market is on the cusp of a structural shift, driven by surging demand for green energy infrastructure and constrained supply. Nowhere is this dynamic clearer than at NGEx Minerals' (TSX: NGEX) Lunahuasi project in Argentina's mineral-rich San Juan region. Recent drill results from the Phase 3 program have unveiled a high-grade copper-gold-silver system with expanding resource potential, positioned to capitalize on a robust copper price environment. With newly named zones (Jupiter, Saturn, Mars) and a deposit that remains open in all directions, Lunahuasi is emerging as a premier exploration target. Here's why investors should take note.

The Drill Results: A High-Grade Breakthrough

The Lunahuasi project has delivered a series of exceptional intersections in its Jupiter, Saturn, and Mars zones, underscoring its potential as a world-class asset. Key highlights include:

• Drillhole DPDH043: A standout 46.8-meter intersection at 9.55% CuEq from 492.2 meters depth, including a 7-meter segment at 24.86% CuEq. This extends mineralization 50 meters north of previous drilling, proving the deposit's open-ended nature.
• Saturn Zone: A 48.9-meter interval at 7.75% CuEq, including a 12.55-meter segment at 19.05% CuEq, which also hosts gold values up to 68 g/t Au.
• Mars Zone: A 46.8-meter hit in DPDH043 has expanded this shallow, high-grade zone 50 meters north, while DPDH042 extended it 100 meters south, demonstrating continuity across 150 meters of strike.

These results confirm that Lunahuasi is not just a single zone play but a multi-layered porphyry system with contiguous high-grade domains. The naming of the Jupiter, Saturn, and Mars zones reflects NGEx's confidence in their commercial scale and continuity.

Resource Potential: The Numbers Tell the Story

While NGEx has not yet published a formal resource estimate, the consistency of these high-grade intersections suggests significant upside. Key technical details include:
- Copper Equivalent (CuEq) calculations use $3.00/lb Cu, $1,500/oz Au, and $18/oz Ag, with 80% recoveries. This formula highlights the project's economic viability, as even lower-grade intervals (e.g., 4.09% CuEq over 89 meters) contribute meaningfully to the overall value.
- Deposit Scale: The zones are part of a larger porphyry system, with mineralization remaining open north, south, east, and at depth. Isolated intersections in holes like DPDH040 (8 meters at 11.42% CuEq) suggest further zones await discovery.

The company's Phase 4 drilling program, slated for October 2025, will test these open areas with closer-spaced drilling, aiming to define the full extent of the zones. With 2,360 meters of pending assays from Phase 3 still to be released, the data pipeline is robust.

Copper's Robust Price Environment: Tailwinds for Lunahuasi

Copper prices have averaged $4.84/lb in June 2025, supported by U.S. dollar weakness, supply constraints, and geopolitical risks (e.g., tariffs on imports). While prices dipped slightly from their April highs, the market remains bullish on long-term fundamentals:

• Demand Drivers: The Energy Transition Metals (ETMs) boom is real. The International Energy Agency estimates that achieving net-zero goals will require 15 million tons of additional copper annually by 2050.
• Supply Constraints: Global mining capacity faces delays, and China's copper stocks, though elevated, are offset by declining grades at mature mines.

Lunahuasi's high-grade nature—where 9.55% CuEq intervals are routine—means it can thrive even in moderate price environments. With the deposit's bulk tonnage potential and proximity to infrastructure (e.g., rail lines to ports), it is strategically positioned to capitalize on rising copper demand.

Catalysts Ahead: A 2025-2026 Roadmap

Investors should mark their calendars for the following milestones:

1. Phase 4 Drilling (Q4 2025): This program will target 15,000–20,000 meters to define the geometry of the Jupiter, Saturn, and Mars zones. Results could unlock a maiden resource estimate by mid-2026.
2. Pending Phase 3 Assays: The final 2,360 meters of drill results, due in coming months, could add more high-grade hits to the dataset.
3. Strategic Partnerships: NGEx's 100% ownership and proximity to the Caserones mine (operated by Nippon Mining) may attract joint venture interest, particularly as resource delineation progresses.

Risks to Consider

• Commodity Volatility: Copper prices could drop further if trade tensions ease or demand slows.
• Drilling Risks: While intersections to date are promising, the deposit's full potential hinges on Phase 4 results.
• Regulatory Hurdles: Argentina's mining permitting process has seen delays in the past, though the government's focus on attracting investment should mitigate this.

Investment Thesis: Buy the Dip Ahead of Phase 4

NGEx's Lunahuasi project ticks all the boxes for a high-potential exploration play:
- High-Grade, Open-Pit Friendly Deposits: The system's continuity and shallow depth reduce capital costs.
- Strategic Location: Near existing infrastructure and in a politically stable mining jurisdiction.
- Catalyst-Rich Timeline: Phase 4 results and resource updates in 2026 will be critical inflection points.

At current valuations, NGEX trades at a discount to its peers, offering upside as the market digests the Phase 3 results and anticipates Phase 4. Investors should consider accumulating the stock on dips below $X.XX/share, with a target price of $X.XX/share by year-end 2025.

Conclusion

Lunahuasi is no longer just a project—it is a high-grade copper-gold-silver machine with the scale and upside to rival established mines. With a robust copper price backdrop and a clear path to resource delineation, NGEx is poised to deliver outsized returns. The stars are aligning for this Argentine asset; investors ignoring it may soon regret missing the next copper boom.

Disclosure: This analysis is for informational purposes only and does not constitute investment advice.