Thick and large porphyry copper-gold orebody discovered in the deep part of the Lunawasi mine

According to a report from Mining.com, drilling at the Lunahuasi project in Argentina by NGEx Minerals has uncovered a deeper porphyry copper deposit, exceeding previous expectations in scale.

Drill hole DPDH027 intersected ore over a length of 1,619.4 meters from 385.6 meters to 2,005 meters deep, with a copper grade of 0.52% and a gold grade of 0.32 grams per metric tonne (mt), ending in potassic-altered diorite porphyry. This indicates the discovery of a new porphyry target west of the known high-sulphide vein system, ranking among the largest in the region.

On May 8, the company completed the third phase of drilling, totaling 25,003 meters, with results from the remaining 12 drill holes (10,369 meters) expected by mid-2025. The company is currently delineating the target area in detail and seeking partners for a pre-feasibility study.

"Drill hole DPDH027 has opened up an entirely new space for the Lunahuasi project, enhancing the potential for this massive mineralizing system to ultimately take shape," said CEO Wojtek Wodzicki. "While our near-term focus remains on high-grade vein-type ore bodies, this porphyry discovery significantly enhances the project's long-term value."

Peter Bell, a mining analyst at Canaccord Genuity, echoed Wodzicki's views. In an investment note, he stated that the confirmation of the porphyry deposit and the new discovery provide long-term value, highlighting the extraordinary scale of this mineralizing system.

"Our focus is on high-grade, high-sulphide ore bodies, but we believe the discovery of this new porphyry system will add long-term value," Bell said. "The company's mining rights are located in a highly prospective mineral belt. We view the early-stage success of Lunahuasi as the beginning of a globally significant exploration project, comparable to the nearby Filo del Sol project."

Rene Cartier, a mining analyst at BMO Capital Markets, believes that this drilling has validated NGEx Minerals' understanding of the geological setting. "This discovery establishes a large exploration target with long-term value. Although it is deep, it provides the company with an option for future exploration," Cartier said.

Global copper inventories are approaching a decade-low due to rapid growth in demand driven by electrification and renewable energy. Investors are focusing on both high-grade vein-type deposits that can generate early cash flow and porphyry deposits that offer large-scale resources.

Regional Scale

Lunahuasi is located in the rapidly expanding Vicuña region. The project is situated 6 kilometers north of the Filo del Sol project, a joint venture between Lundin Mining and BHP, and 8 kilometers west of Lundin's Josemaría project. Both projects are large copper-gold mines, approaching pre-feasibility studies or construction. In Ecuador, there are McEwen Mining's Los Azules and Lundin Mining's Fruta del Norte, indicating international enthusiasm for Tier 1 porphyry projects.

The province of San Juan in Argentina has reduced mining royalties and improved foreign exchange repatriation policies, attracting major exploration companies. Mining companies are expected to respond swiftly to these changes. On May 13, 2021, Filo del Sol discovered ore at a depth of 188 meters over an 858-meter interval, with a copper equivalent grade of 1.8% (comprising 0.86% copper and 0.7 g/t gold), and the ore body was not fully penetrated at the end of the hole.

"These results are exceptional" compared to the company's internal estimates for Lunawasi (ore resources of 33.3 million mt, with a copper grade of 2.12%, gold grade of 1.09 g/t, and silver grade of 41.02 g/t), said Bell.

High-grade ore intersections

Hole DPDH027 revealed a high-grade ore body: an 876.4-meter intersection with a copper grade of 0.59% and a gold grade of 0.48 g/t, with high sulfur content. This ore section spans from 385.6 meters to 1262 meters. The company also reported a 743-meter intersection in the deep porphyry-style ore body, with a copper grade of 0.44% and a gold grade of 0.13 g/t.

The transition from high-sulfur ore bodies to porphyry mineralization indicates changes in copper minerals. The company stated that enargite-chalcocite transformed into chalcopyrite-bornite, with a decrease in cyanide-soluble copper and an increase in residual copper.

Subsequent hole DPDH028 intersected 53.5 meters of ore with a copper equivalent grade of 7.79% (comprising 3.89% copper and 2.96 g/t gold). Hole DPDH029 intersected 157 meters of ore with a copper equivalent grade of 3.89% (comprising 1.67% copper and 0.49 g/t gold). The ore body remains uncontrolled in all directions, with multiple mineralized intervals observed in each hole, the company stated.