NGEx announces phase four Lunahausi drilling

In what some analysts are calling a significant advancement for copper exploration in Argentina, NGEx Minerals Ltd has announced the commencement of its phase four drilling program at the Lunahuasi project, continuing to build on promising results from previous campaigns.

The Vancouver-based exploration company confirmed Tuesday that drilling operations are now underway, with two diamond drill rigs actively working on site. The company plans to deploy additional rigs in the coming weeks as part of an aggressive exploration strategy aimed at further defining what appears to be a substantial copper-gold-silver system.

NGEx’s decision to accelerate exploration follows encouraging outcomes from the project’s third drilling phase, which concluded earlier this year. Those results revealed notable copper mineralization across multiple zones, with several drill holes intersecting high-grade deposits that exceeded the company’s initial expectations.

“What we’re seeing at Lunahuasi continues to validate our geological model,” said Wojtek Wodzicki, President and CEO of NGEx Minerals. “The mineralization patterns we’ve encountered suggest we’re dealing with a system that has significant scale potential, and this fourth phase will help us better understand its true dimensions.”

The Lunahuasi project, located in Argentina’s San Juan Province, sits within the prolific Andes mountain range, a region historically known for hosting world-class copper deposits. The project area lies approximately 20 kilometers from the Filo del Sol project, another significant copper-gold deposit being developed by Filo Mining Corp, a company that shares common leadership with NGEx.

This geographic positioning is particularly strategic, as the broader region has emerged as one of the world’s most promising copper frontiers. The San Juan Province has seen increased attention from major mining companies in recent years as global demand for copper continues to rise, driven largely by the metal’s crucial role in renewable energy infrastructure and electric vehicle production.

Industry experts point out that the timing of NGEx’s accelerated exploration program aligns with forecasted copper supply constraints. Goldman Sachs recently projected that copper demand could outstrip supply by as much as 8.2 million tonnes by 2030, potentially driving prices to record levels and highlighting the importance of developing new resources.

“Companies with advanced copper projects in politically stable jurisdictions are increasingly valuable in this market environment,” noted Michael Goode, a mining analyst at Reynolds Capital. “The preliminary results from Lunahuasi suggest NGEx could be positioned to capitalize on the anticipated copper deficit if they can successfully delineate an economically viable resource.”

The phase four drilling program is expected to include approximately 15,000 meters of diamond drilling, making it the most extensive exploration effort at Lunahuasi to date. The company has indicated that drilling will focus on expanding known mineralized zones while also testing several newly identified targets that exhibit similar geological characteristics.

NGEx has implemented enhanced environmental protocols for this latest drilling phase, including water recycling systems and habitat restoration initiatives. These measures reflect growing pressure on mining companies to minimize their environmental footprint, particularly in ecologically sensitive areas like the Andes.

The company also reports strengthening relationships with local communities near the project. NGEx has established training programs for local residents and prioritized regional procurement, strategies that have helped secure social license to operate in a region where community opposition has occasionally complicated mining development.

Financial markets have responded positively to NGEx’s exploration progress at Lunahuasi. The company’s share price has increased approximately 18% since the announcement of the third-phase drilling results, outperforming the broader mining sector index during the same period.

Analysts note that NGEx’s strong treasury position, bolstered by a successful C$30 million equity financing completed in March, allows the company to pursue this ambitious drilling program without immediate financing concerns. This financial flexibility is particularly valuable given current market volatility and tightening conditions for junior mining companies seeking capital.

The company expects to release initial results from the fourth drilling phase by early December, with comprehensive data analysis scheduled for completion in the first quarter of next year. These results will likely provide further clarity on Lunahuasi’s potential and could serve as catalysts for corporate developments.

As exploration advances, industry observers are watching closely to see whether Lunahuasi might eventually join other significant copper discoveries in the region, potentially contributing to Argentina’s growing importance as a copper producer on the global stage.