NGEx Reports Q2 2026 Results; Phase 4 drilling delivers high grades and expands Lunahuasi Deposit

NGEx Minerals, the project operator, released Phase 4 drilling results for the Lunahuasi high-sulphidation epithermal Cu-Au-Ag deposit in the Vicuña district of San Juan, Argentina, where LunR Royalties Corp. holds a 1.00% NSR royalty.

Key intercepts reported as core-length composites include: - DPDH064 (Saturn & porphyry expansion): 1,540.10 m @ 1.17% CuEq (0.79% Cu, 0.39 g/t Au, 11.3 g/t Ag), incl. 88.00 m @ 8.65% CuEq (6.49% Cu, 1.91 g/t Au, 87.8 g/t Ag), incl. 15.65 m @ 30.13% CuEq (24.33% Cu, 4.72 g/t Au, 268.1 g/t Ag). Also a 501.10 m porphyry-style interval @ 0.73% CuEq. - DPDH077 (Jupiter extension): 57.75 m @ 9.41% CuEq (6.51% Cu, 2.50 g/t Au, 121.8 g/t Ag), incl. 19.00 m @ 25.84% CuEq. - DPDH071 (Saturn/Mars): 573.40 m @ 2.17% CuEq (1.27% Cu, 0.88 g/t Au, 28.6 g/t Ag). - DPDH072: 207.00 m @ 2.37% CuEq incl. 3.50 m @ 30.49% CuEq. - Gold-dominant quartz veins: DPDH070: 17.30 m @ 207.79 g/t Au (incl. 2.00 m @ 1,740 g/t Au); DPDH063: 4.88 m @ 60.10 g/t Au. - New discovery (DPGT004, 300 m east of Mars): 23.10 m @ 4.72% CuEq (2.75% Cu, 2.08 g/t Au, 50.9 g/t Ag), incl. 4.20 m @ 17.94% CuEq.

All zones remain open, with continuity confirmed by multiple step-out holes and a new high-grade zone discovered east of Mars.

Simultaneously, LunR Royalties Corp. reported Q2 2026 inaugural revenue of $4.6 M from the Fruta del Norte (FDN) silver stream, positive operating cash flow of $2.9 M, and a negligible net loss of $0.1 M.

LunR Royalties Corp. (LUNR) holds a 1% net smelter return (NSR) on the Lunahuasi project, which analysts view as a call option on a potentially tier-one copper-gold-silver asset. Recent drill programs have expanded the high-grade footprint and de-risked continuity, confirming world-class grades and increasing the royalty’s fair value.

Lunahuasi remains a greenfield exploration project with no resource estimate, no Preliminary Economic Assessment (PEA), and no defined mine plan. The 1% royalty represents a fractional interest; even if a ten-billion-dollar mine were developed, it would yield approximately $100 million in life-of-mine royalties, a figure that is years away and heavily discounted.

The stock traded up only 1% on the day, moving from $20.84 to $20.90, suggesting the market had already priced in the robust Phase 4 results or that the impact on LunR’s $2.5 billion market cap is incremental. The simultaneous maiden cash flow from the FDN stream provided modest incremental de-risking, adding less than $3 million in quarterly cash, while the drill results remain the far larger driver of value.

Because the drill results are spectacular but do not materially change the near-term cash-flow profile or the timeline to production, and because they align with the district’s known prospectivity, the overall impact is considered routine.

LunR Royalties Corp. (TSXV: LUNR) is a Canadian royalty and streaming company listed on the TSXV, having spun out of NGEx Minerals in October 2025. The company’s core assets include a 100% life-of-mine silver stream on the Fruta del Norte gold-silver mine in Ecuador, operated by Lundin Gold. First silver deliveries began in Q2 2026, with 69,959 oz received, and the annual payable silver forecast stands at 500,000 to 600,000 oz. Additionally, LunR holds a 1.38% NSR royalty on the Los Helados porphyry Cu-Au-Ag project in Chile, one of the largest undeveloped copper-gold resources globally, and a 1.00% NSR royalty on the Lunahuasi high-sulphidation epithermal Cu-Au-Ag project in Argentina, which is currently the subject of intensive drilling by NGEx.

Financially, the company was pre-revenue in FY2025 with $1.37 million in cash and no debt. Following the close of the Fruta del Norte stream, the balance sheet expanded significantly by Q2 2026, recording $81 million in cash, a $252 million investment in LunR shares, and $133 million in short-term investments, bringing total assets to $478 million. A net working capital of $463 million provides ample funding for future royalty acquisitions. Management is led by Adam Lundin, who serves as President, CEO, and Chair, while the board includes experienced mining financiers and technical directors.