NGEx Minerals' Lunahuasi Project: A High-Grade Copper-Gold Gem with Scalability Potential

NGEx Minerals' Lunahuasi project in Argentina's San Juan province has emerged as one of the most compelling exploration stories in the base metals and precious metals sectors. Recent drill results from its Phase 3 program have underscored the project's potential to host a world-class, multi-metal deposit, driven by high-grade copper-equivalent (CuEq) intersections and expanding mineralized zones. This article examines Lunahuasi's technical merits, scalability drivers, and investment implications for stakeholders.

The Technical Case: High-Grade Intersections and Expanding Dimensions

Lunahuasi's Phase 3 drilling campaign, completed in May 2025, has delivered results that redefine the project's scale and grade profile. Key highlights include:

1. Expanded Mineralized Volume: The deposit's dimensions have grown to 1.2 km north-south, 1.7 km east-west, and 1.2 km vertically, with open potential in all directions. This represents a tripling of strike length and doubling of vertical depth compared to earlier estimates. Notably, the discovery of a major copper-gold porphyry system beneath the high-sulphidation epithermal (HS) zone adds a second high-value target to the project. Drill hole DPDH027 intersected 1,619 meters of mineralization at 0.87% CuEq, with the porphyry system's full extent yet to be determined.

2. Best-in-Class Grades: The project's intersections rival top-tier deposits globally. For example:

3. DPDH032: 27.4 meters at 25.19% CuEq, including a subset of 8.6 meters at 15.80% Cu, 69.82 g/t Au, and 127.4 g/t Ag.
4. DPDH033: A narrow but ultra-high-grade interval of 1.1 meters at 151.5 g/t Au.

5. DPDH038: Extended high-grade mineralization northward, with a 16.35-meter interval at 12.97% CuEq, including 6.4 meters at 23.93% CuEq.

6. Gold Content Surprise: Gold grades have exceeded expectations, with intersections like 23.17 g/t Au over 27.4 meters in DPDH032. This positions Lunahuasi as a dual copper-gold asset, enhancing its economic viability and reducing reliance on a single commodity price.

7. Geological Insights: Drilling has revealed that high-grade vein mineralization is controlled by northeast-trending, steeply dipping structural corridors. This structural model is guiding exploration toward high-value targets, with the porphyry system's westward vector suggesting further upside.

Scalability Metrics: A Deposit with Legs

The Lunahuasi project's scalability is its crown jewel. With only 16 of 24 Phase 3 holes fully assayed, pending results from the remaining 8 holes (6,082 meters) could push the deposit's dimensions even further. Key scalability drivers include:

• Open-Pit Potential: The HS zone's shallow, high-grade intersections (e.g., DPDH038's surface-near mineralization) suggest bulk-minable oxide zones, which typically have lower stripping ratios and faster payback periods.
• Porphyry System Depth: The discovery of a 1,619-meter-deep porphyry system indicates potential for a large-scale, long-life mine. Such systems often host billions of tons of lower-grade material, which can be leveraged as the HS zone is developed.
• Continuity and Depth: The deposit remains open in all directions, with no boundaries identified. Drilling to date has only scratched the surface of what could be a multi-stage, multi-decade resource.

Financial Position and Project Timeline

NGEx's financial health supports aggressive exploration. As of March 2025, the company held $124.2 million in cash and $45.6 million in short-term investments, with minimal debt. While Q1 2025 net losses rose to $35.1 million (due to increased drilling costs), this is a temporary drag as the company invests in high-impact exploration. Phase 4 drilling, expected to begin in October 2025, will focus on:- Vectoring toward the porphyry system's center.- Extending the HS zone's strike length.- Testing deeper targets in the central and western zones.

Investment Thesis: Risk vs. Reward

Lunahuasi's combination of high-grade intersections, expanding resource potential, and strategic metal exposure (copper, gold, silver) makes it a compelling exploration play. However, investors should weigh the risks:

Upside Drivers:- Positive assay results from remaining Phase 3 holes.- Discovery of the porphyry system's core.- Potential for a resource estimate in 2026, which could attract joint venture partners or valuations.

Risks:- Assay delays or downgrades: While pending results are expected to be positive, there is inherent uncertainty in exploration.- Commodity price volatility: Copper and gold prices remain key to the project's economics.- Regulatory hurdles: Argentina's mining permitting process, while historically supportive, could introduce delays.

Conclusion: A Project Worth Watching

NGEx Minerals' Lunahuasi project is a rare example of a greenfield exploration asset with both high-grade, near-surface mineralization and large-scale porphyry potential. With a strong balance sheet and a clear path to expanding resources, the project could become a cornerstone of NGEx's portfolio. For investors seeking exposure to the copper-gold cycle, Lunahuasi offers a high-risk, high-reward opportunity. Consider a position in NGEx as a speculative bet on the project's success, with a focus on catalysts like Phase 4 drilling results and potential resource upgrades in 2026.

Disclaimer: This analysis is for informational purposes only. Always conduct thorough due diligence and consult a financial advisor before making investment decisions.