NGEx poised for major drilling at Chilean porphyry target
NGEx Minerals Ltd. [NGEX-TSXV] is planning a major new drill program at the Lunahuasi copper-gold-silver discovery in Chile. The program is expected to start in the fourth quarter of 2023.
Located on the company’s Potro Cliffs project, Lunahuasi is the fourth greenfields discovery made by the Lundin Group company within the Vacuna District, joining the Filo del Sol, Los Helados, and Josemaria deposits. Lunahuasi is located approximately 6.0 kilometres north of Filo del Sol, along the same major structural corridor that also controls mineralization at Los Helados 9.0 kilometres further to the northeast.
The portion of the Lunahuasi target drilled to date consists of a large swarm of quartz sulphide veins carrying high values of copper, gold and silver. This mineralization is interpreted to be porphyry-related and is considered to be strong evidence of the presence of a nearby porphyry-copper-gold system., possibly underlying the extensive alteration zone immediately to the west of this season’s drilling, NGEx said in a press release on July 4, 2023.
The Lunahuasi discovery was announced on April 4, 2023, and was highlighted by drill hole DPDH002, which returned 60 metres of 5.65% copper, 2.04 g/t gold, and 44.0 g/t silver. The maiden Lunahuasi drill campaign concluded in May, 2023., with 4,912 metres of diamond drilling completed in eight holes.
The veins intersected at Lunahuasi are interpreted to be part of the outer halo of a yet to be discovered porphyry copper centre in the vicinity. In addition, the grades and thickness of this intersected mineralization are potential indicators of the strength of the system that is the source of these high-grade vein structures.
The new drill program will target extensions of mineralized zones intersected in the first half of 2023 and will test other targets identified within the broader 11 square kilometre Lunahuasi alteration zone.
NGEx is poised for drilling at Lunahuasi after closing a non-brokered private placement of 13.2 million common shares priced at $6.50. Gross proceeds from the sale amounted to $85.7 million.
On Friday, NGEx shares eased 0.62% or $0.04 to $6.42. The shares are currently trading in a 52-week range of $7.35 and $1.87.
NGEx is the majority partner and operator at the large-scale Los Helados copper-gold deposit, subject to a joint exploration agreement with Nippon Caserones Resources Co. Ltd. The project is located in Chile’s Region 111.
The company also has a portfolio of exploration projects in Argentina, including the Valle Ancho project in Catmarca province, and the Potro Cliffs, located in San Juan province approximately five kilometres north of, and on the same major northeast trending structure as the Filo del Sol deposit where Filo Mining Corp. [FIL-TSXV, NASDAQ First North] is drilling a major copper-gold discovery.