International mining firm NGEx Minerals has announced the commencement of phase four drilling operations at its Lunahuasi copper-gold project in Argentina. The campaign will include up to 20,000 meters of diamond drilling, marking a significant expansion of exploration activities at the high-potential site.
Located in San Juan Province, approximately 130 kilometers north of the company’s Los Helados project, Lunahuasi has emerged as one of the most promising copper discoveries in Argentina
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International mining firm NGEx Minerals has announced the commencement of phase four drilling operations at its Lunahuasi copper-gold project in Argentina. The campaign will include up to 20,000 meters of diamond drilling, marking a significant expansion of exploration activities at the high-potential site.
Located in San Juan Province, approximately 130 kilometers north of the company’s Los Helados project, Lunahuasi has emerged as one of the most promising copper discoveries in Argentina’s mineral-rich Andes region. The project sits within the prolific Vicuña District, an area known for world-class copper-gold deposits that straddles the Argentina-Chile border.
Wojtek Wodzicki, President and CEO of NGEx Minerals, expressed optimism about the upcoming drilling program. “The phase four drilling campaign represents our most ambitious exploration effort at Lunahuasi to date,” Wodzicki said. “Previous phases have consistently delivered exceptional results, confirming our belief that this project has the potential to become a significant copper-gold discovery.”
The company reported that the new drilling program will focus on expanding the known mineralized zones and testing new target areas identified through geological mapping and geophysical surveys. Two diamond drill rigs are already operational at the site, with plans to add more as the campaign progresses.
Phase three drilling, completed earlier this year, revealed substantial copper and gold mineralization, with several holes intersecting high-grade zones exceeding 1% copper equivalent over significant intervals. Notably, drill hole DPDH008 returned 1,028 meters at 1.04% copper equivalent, including higher-grade sections that bolstered confidence in the project’s economic potential.
The Lunahuasi project represents a strategic asset in NGEx’s portfolio as global demand for copper continues to rise amid the energy transition. Copper, essential for electric vehicles, renewable energy infrastructure, and grid modernization, faces a projected supply deficit in the coming decades. Industry analysts predict that copper prices could reach new highs as the gap between supply and demand widens.
“The timing of our Lunahuasi development aligns with favorable market fundamentals,” Wodzicki noted. “Major copper producers are increasingly looking to Argentina and Chile for new resources, and our position in the Vicuña District gives us a significant advantage.”
Argentina’s mining sector has seen increased investment in recent years, despite periodic economic challenges at the national level. The San Juan provincial government has maintained a supportive stance toward responsible mining development, recognizing its potential to drive economic growth and employment.
Ricardo Martínez, a regional mining analyst with South American Resource Consulting, commented on the significance of the Lunahuasi project: “What makes this discovery particularly interesting is its location in an established mining district with proven potential. The initial results suggest a deposit that could rival some of the region’s most productive mines.”
NGEx Minerals has implemented comprehensive environmental monitoring programs at Lunahuasi, adhering to international best practices and local regulations. The company emphasized its commitment to sustainable development and engagement with local communities throughout the exploration and potential development phases.
The Vicuña District, where Lunahuasi is located, hosts several significant deposits, including Filo del Sol, operated by Filo Mining Corp., and the Los Helados project, also owned by NGEx. The geological continuity across these projects suggests the potential for a mining district of considerable scale and importance.
Financial markets have responded positively to NGEx’s ongoing success at Lunahuasi. The company’s share price has shown resilience despite broader market volatility affecting the mining sector. Analysts cite the consistent high-grade results and the project’s strategic location as factors supporting investor confidence.
NGEx expects to release initial results from the phase four drilling program in the first quarter of 2024, with regular updates as the campaign progresses. The company has secured sufficient funding for the current exploration phase and anticipates that positive results will support future capital raising for advanced studies.
Industry observers note that successful development at Lunahuasi could position NGEx Minerals as a potential acquisition target for major mining companies seeking to replenish their project pipelines. Several copper giants have expressed interest in expanding their presence in the Andean region to secure long-term production capacity.
As copper remains central to global decarbonization efforts, projects like Lunahuasi represent critical components of the future supply chain. The company plans to advance the project through systematic exploration while maintaining the flexibility to accelerate development should market conditions warrant.
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