News Summary
On December 17, 2025, NGEx Minerals announced the first assay results from its Phase 4 drill program at the Lunahuasi project in Argentina. The headline result from drill hole DPDH048 includes a high-grade interval of 22.85 metres grading 4.01% copper (Cu), 11.30 g/t gold (Au), and 228 g/t silver (Ag), for a copper equivalent (CuEq) of 14.26%. This intercept was part of a broader mineralized zone of 126.6 metres grading 2.16% Cu, 3.30 g/t Au, and 59.2 g/t Ag (5.09% CuEq).
The CEO, Wojtek Wodzicki, stated that this result is an excellent start to the Phase 4 program, confirming the size and continuity of the high-grade Saturn Zone approximately 100 metres below a previous intersection. The company reports that over 10,000 metres of the planned program have been drilled, with ten holes completed and eight underway, indicating a steady flow of results is forthcoming.
Material Impact
The drill results are materially positive. They serve as a crucial confirmation that the exceptional high-grade mineralization identified in the successful Phase 3 program continues with both grade and scale in the new Phase 4 program.
A systematic review of the company’s news over the past year provides essential context:
– Phase 3 (late 2024 – mid 2025): This program consistently delivered world-class intercepts, establishing Lunahuasi as a major discovery. Highlights included DPDH028 (51.1m @ 13.84% CuEq), DPDH032 (27.4m @ 25.19% CuEq), and the discovery of ultra-high-grade gold veins in DPDH046 (2.2m @ 142.27 g/t Au). A pivotal moment was the May 21, 2025 announcement of a major underlying copper-gold porphyry system, adding a large-scale, bulk tonnage dimension to the high-grade vein story.
– Corporate Actions (Q3 2025): The company executed a spin-out of its royalties into a new entity, LunR Royalties Corp. While this transaction crystallized value for shareholders, it removed the direct royalty upside from NGEx’s corporate structure, though the company retains a 19.9% interest in LunR.
– Financing (Q3-Q4 2025): The most significant de-risking event was the closing of a C$175 million private placement on October 15, 2025. The financing was done at a price of C$25.00 per share, with the highly-regarded Lundin Family Trusts participating for up to C$100 million. This provided a massive treasury and a strong vote of confidence from sophisticated investors at a premium to the current trading price.
Today’s news is the first tangible result validating that C$25.00 financing. The grades are spectacular and are exactly what the market was hoping to see from the new, fully-funded program. Intersecting the Saturn Zone 100m from a previous hole and confirming continuity is a textbook example of systematic exploration success that reduces project risk. While not a “new” discovery, it reinforces the geological model and confirms that Lunahuasi continues to be one of the highest-grade copper-gold discoveries globally. The market’s high expectations have been met, which should provide strong support for the stock’s valuation.
Catalysts
– Flow of Assay Results: With ten holes completed and eight underway in the 25,000-metre Phase 4 program, a steady stream of drill results is the primary catalyst.
– Deposit Expansion: Watch for results from step-out holes designed to test the boundaries of the known high-grade zones (Mars, Saturn, Jupiter) and the underlying porphyry system. The system remains open in all directions.
– New Discoveries: Results from holes testing new exploration targets will be critical to understanding the ultimate scale of the Lunahuasi district.
– Exploration Adit: Updates on permitting and potential construction of the planned exploration adit, which would facilitate underground drilling and bulk sampling.
– Initial Resource Estimate: While not explicitly guided, the market will anticipate a potential maiden resource estimate following the conclusion of the comprehensive Phase 4 program.
Materiality Conclusion
The news is materially positive. It delivers on the high expectations set by previous drilling and a major recent financing. By confirming the continuity of exceptional grades at the outset of the Phase 4 program, this result significantly de-risks the exploration thesis and reinforces the project’s world-class potential.
