NGEx Minerals Ltd. has released final assay results from the concluding phase of its ongoing exploration campaign at the Lunahuasi project in San Juan, Argentina, highlighted by a high-grade intercept of 20.50 meters grading 17.83% copper equivalent (CuEq). The breakthrough drillhole, designated DPDH078, underscores the exceptional precious and base metal endowment of the high-grade Mars zone within the district, offering new technical insights as global markets evaluate the broader copper price forecast 2026 against tightening supply realities.
The results, announced as part of the company’s operational update, validate structural models in the high-altitude Andean copper-gold-silver belt. As mining operators and investors track key global mining news, discoveries of this grade profile continue to draw attention to advanced-stage Latin American assets capable of bridging impending structural deficits in refined metal supply.
High-Grade Intersections Define the Mars Zone
Drillhole DPDH078 targeted the core of the Mars zone at Lunahuasi, intersecting significant mineralization at a downhole depth starting from 246.50 meters. Within a broader mineralized envelope of 95.00 meters grading 4.77% CuEq, the drill string encountered a concentrated 20.50-meter interval grading 17.83% CuEq beginning at 284.00 meters downhole.
The high-grade core is characterized by pronounced multi-metal assemblages, featuring notable gold sub-intervals. Specifically, the intercept includes a 2.30-meter section grading 76.43 g/t gold: which incorporates a 1.00-meter interval assaying 135.50 g/t gold: alongside a separate 3.50-meter interval grading 21.30 g/t gold. According to geological data released by NGEx, DPDH078 is situated approximately 190 meters southwest of a previously reported high-grade intercept in hole DPDH075, successfully expanding the known lateral and vertical continuity of the high-grade structural corridor.
“The consistency and magnitude of these grades reinforce our understanding of the high-grade feeder systems operating at Lunahuasi,” noted technical specialists familiar with the Vicuña district geology. The structural controls governing these high-grade veins indicate robust hydrothermal fluid flow, a hallmark of major porphyry-epithermal systems in the region.
Metallurgical Parameters and Calculation Basis
To provide comparable metrics across diverse mineral assemblages, NGEx calculates copper equivalent values utilizing standard industry pricing parameters and metallurgical recovery assumptions. The reported CuEq formula incorporates copper, gold, and silver based on long-term baseline economic evaluations:
$$\text{CuEq %} = \text{Cu %} + 0.7292 \times \text{Au g/t} + 0.0088 \times \text{Ag g/t}$$
This formulation relies on baseline commodity pricing assumptions of US$3.00 per pound for copper, US$1,500 per ounce for gold, and US$18.00 per ounce for silver. Furthermore, the calculation assumes an estimated 80% metallurgical recovery rate across all three payable metals. While spot commodity prices have experienced considerable volatility, these standardized parameters allow technical analysts and financial institutions to benchmark Lunahuasi against developing projects globally.
| Parameter | Assumption / Value |
|---|---|
| Copper Price | US$3.00 / lb |
| Gold Price | US$1,500 / oz |
| Silver Price | US$18.00 / oz |
| Metallurgical Recovery | 80% across Cu, Au, Ag |
| Key Intercept (DPDH078) | 20.50 m at 17.83% CuEq |
| Broader Envelope | 95.00 m at 4.77% CuEq |
Exploration Continuity in the Vicuña District
The Lunahuasi project represents a key pillar of exploration activity within San Juan Province, an emerging jurisdiction for major copper developments. Situated in proximity to other major regional deposits, Lunahuasi benefits from shared regional synergies while maintaining distinct geological characteristics, particularly its exceptionally high gold and silver byproduct credits relative to standard porphyry systems.
Phase 4 drilling operations were designed to test the limits of the mineralization discovered during earlier reconnaissance phases, systematically stepping out along strike and at depth. The completion of this drill block provides the necessary geological control data to update resource estimation models. Independent engineering firms and mining analysts monitoring project pipelines note that continuous step-out success is vital for establishing the scale required for future economic assessments and preliminary economic evaluations (PEEs).
Operating in high-altitude Andean environments presents distinct logistical challenges, ranging from extreme weather windows to complex access routes. NGEx has maintained continuous logistical support, utilizing advanced diamond drilling rigs capable of penetrating hard rock formations while maintaining strict environmental and safety standards.
Macroeconomic Context and Market Implications
The release of high-grade assay data from Lunahuasi arrives at a crucial juncture for global mineral markets. Industrial consumers, smelters, and financial markets continue to assess medium-term supply adequacy amid declining ore grades in mature operations worldwide.
While market participants evaluate the trajectory of refined metal values, exploration-stage discoveries serve as key indicators of future asset replacement pipelines. Major mining houses and institutional investors closely examine drill results from districts like San Juan to gauge where future capital allocation will flow. Analysts tracking supply-demand fundamentals emphasize that bringing high-grade discoveries through the development pipeline remains essential to offsetting depletion across legacy operations.
As exploration companies transition from initial discovery phases to resource definition and engineering studies, adherence to rigorous reporting standards ensures that technical disclosures meet regulatory requirements across international exchanges.
