NGEx shares shoot up 23% on new copper-gold discovery in Argentina

NGEx Minerals’ (TSXV: NGEX) shares surged Tuesday on results from the first drill program at its Potro Cliffs project in northwest Argentina that reveal a potential major new copper-gold system.

Highlights from hole DPDH002, the first at the target, include 60 metres grading 5.65% copper, 2.04 grams gold per tonne and 44 grams silver from 212 metres downhole; 10 metres grading 3.7% copper, 1.51 grams gold and 259.4 grams silver from 574 metres depth; and four metres grading 5.81% copper, 2.62 grams gold and 81.5 grams silver from 150 metres depth.

The project, in San Juan province, is located between NGEx’s Los Helados copper-gold porphyry deposit to the north and Filo Mining‘s (TSX: FIL; US-OTC: FLMMF) gold-copper-silver deposit to the south, part of the prospective Vicuna District, where Lundin Group companies have been exploring since the early 2000s.

NGEx CEO and President Wojtek Wodzicki said in the release that the grades are some of the best he has seen in his career.

“It is remarkable to have hit such significant mineralization so early in the first ever drill program on this target,” he said. “Today’s results include the highest copper grades drilled to date in the Vicuna District and rank among the highest copper grades intersected globally in the last few years. This style of mineralization typically occurs lateral to, or above major porphyry copper-gold systems and the grades and thickness reported today are very encouraging indicators of the strength and potential of the system that is the source of these high-grade zones.”

DPDH002 cut several zones of massive to semi-massive sulphide veins and breccias and was drilled at an elevation of 4,700 metres towards the west to a total depth of 719 metres.

Of the five drill rigs turning at the site, assay results are pending for two other holes drilled at the top of the cliffs and ongoing drilling in holes DPDH004 and 005 are testing for extensions of the mineralization intersected in DPDH002. Drilling started at Potro Cliffs in January.

NGEx shares traded at $5.35 apiece on Tuesday in Toronto, hitting a new yearly high, with its 52-week floor at $1.36. It has a market capitalization of $929.6 million.