Lundin Group copper and gold explorer NGEx Minerals (TSXV: NGEX) said Friday it has restarted and increased the drill rig count at the Lunahuasi project in Argentina to four following a recent $85.7 million financing.
Supported by strong exploration results earlier this year, the August non-brokered private placement saw NGEx issuing about 13 million common shares at $6.50 each, netting over $83 million.
This capital injection funds the 2023-2024 drilling campaign at Lunahuasi, suggesting the company’s focus is formally shifting from the Los Helados project in Chile.
NGEx said it had decided to defer further exploration at Los Helados to concentrate its field personnel and resources on the Lunahuasi project. This strategic move is likely due to the significant high-grade mineralization intersected at Lunahuasi.
The initial second-quarter drilling program returned some of the highest-grade mineralization within the Vicuña district. Among the highlights was hole DPDH002, which intersected 60 metres at 7.52% copper equivalent. Such high grades are significant indicators of the strength and potential of the underlying porphyry copper-gold systems in the area, the company said.
The main focus of the next phase of drilling entails further defining and expanding the high-grade mineralization zone discovered earlier this year. Additionally, the company plans to explore other high-potential targets within the 11 sq. km alteration system, indicating a widespread and aggressive exploration strategy.
The company expects initial assay results by late December or early in the new year.
As of market close Friday, at $7.00 per share, NGEx is up 117% over the past 12 months, trending near the period high of $7.35, having also touched a low of $2.72. It has a market capitalization of $1.3 billion.
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