Lundin Mining (TSX: LUN) agreed to pay $215 million to boost its majority stake in Chile’s Caserones copper mine and acquire a piece of the nearby Los Helados copper-gold project, strengthening its foothold in the emerging Vicuña mining district.

Base Metal Producer Lundin Mining Agreed to Pay $215 Million to Purchase an Additional 5% Stake in the Caserones Copper/Molybdenum Mine in Chile and a 30.9% Stake in the Nearby Los Helados Project.These assets were acquired from JX Advanced Metals and its affiliates.Once the transaction is completed, Lundin Mining’s ownership interest in the business will increase from 70% to 75%.

According to a report on the BNAmericas website, the Vicuña mining district has attracted the attention of junior mining companies. It hosts the Josemaría and Filo del Sol copper-gold-silver projects, as well as the Lunahuasi and Los Helados copper-gold mines. The Vicuña mining district is located in the Andes Mountains, between the Atacama Region of Chile and the San Juan Province of Argentina, at an altitude of 3000-4500 meters. The harsh climate, lack of energy infrastructure, and logistical challenges have not deterred exploration efforts. However, these factors have not stopped Sendero Resources, which is exploring the Peñas Negras project, and Mogotes Metals, which is prospecting in Filo Sur. Mogotes Metals recently secured $7 million from the Braun family of Argentina to strengthen its prospecting efforts in the region. The most advanced project is the Vicuña Group, a joint venture between Lundin Mining and BHP, which owns the Josemaría and Filo del Sol projects. Additionally, there are the Los Helados and Lunahuasi projects of NGEx Minerals, covering an area of approximately 150 square kilometers. There are also hopes for downstream copper processing in the region. "We are trying to convince Argentina to build a copper smelter in San Juan Province," said Juan Rayo, director of local engineering firm JRI. Josemaría Josemaría is the most advanced project in the region. Currently, while awaiting permits, the joint venture is conducting detailed engineering studies and is researching the locations for a processing plant and shared infrastructure, including tailings storage facilities, roads, and power lines, to enable coordinated development with the Filo del Sol project, located 10 kilometers away. On June 3, the Vicuña Group announced that it had awarded a road maintenance contract to local company Zlato for the highway between Angualasto and La Majadita in San Juan Province. This road "will improve the stability of fuel, light vehicle, and critical material supply to remote areas, serving as a reliable and safe alternative to the current route to the field site in Guandacor, La Rioja Province," the company said in a press release. Filo del Sol As one of the company's projects, exploration work at Filo del Sol continues to advance, with the goal of submitting a technical report in Q1 2026. Vicuña Group plans to submit an application to include the Filo del Sol and/or Josemaría projects in the list of large-scale investment incentive plans (Rigi), with a combined investment of nearly $6 billion for these two projects. The projects have measured and indicated copper metal content of 13 million mt, 32 million ounces of gold, and 659 million ounces of silver, as well as inferred copper metal content of 25 million mt, 49 million ounces of gold, and 808 million ounces of silver. Los Helados This project, located in the Atacama Region, is the only one with nearby infrastructure, situated approximately 17 kilometers from the Caserones copper mine, which is 70% owned by Lundin Mining Corporation. As of now, the project has inferred copper metal content of 18.4 billion pounds (8.35 million mt), inferred copper metal content of 8.3 billion pounds, inferred gold of 10 million ounces, and inferred silver of 97.5 million ounces, making it another large project in the Vicuña mining district. Lunawasi However, Future Minerals' current focus is on advancing exploration of the Lunawasi project, while the company is considering various options, including mergers or acquisitions. The company estimates that the total transaction value of Lunawasi and Los Helados is comparable to that of Caserones, at approximately $3.3 billion. Last year, Caserones produced 124,761 mt of copper, while Filo del Sol is valued at $4.5 billion and Josemaría at $1.9 billion. However, the region faces significant challenges that require bilateral negotiations. While Argentina lacks infrastructure, Chile has better conditions in terms of mining logistics and infrastructure. Appropriate cross-border cooperation can reduce costs, increase water and energy supply, and enhance the region's competitiveness as a new source of critical minerals.

According to a report from Mining.com, drilling at the Lunahuasi project in Argentina by NGEx Minerals has uncovered a deeper porphyry copper deposit, exceeding previous expectations in scale. Drill hole DPDH027 intersected ore over a length of 1,619.4 meters from 385.6 meters to 2,005 meters deep, with a copper grade of 0.52% and a gold grade of 0.32 grams per metric tonne (mt), ending in potassic-altered diorite porphyry. This indicates the discovery of a new porphyry target west of the known high-sulphide vein system, ranking among the largest in the region. On May 8, the company completed the third phase of drilling, totaling 25,003 meters, with results from the remaining 12 drill holes (10,369 meters) expected by mid-2025. The company is currently delineating the target area in detail and seeking partners for a pre-feasibility study. "Drill hole DPDH027 has opened up an entirely new space for the Lunahuasi project, enhancing the potential for this massive mineralizing system to ultimately take shape," said CEO Wojtek Wodzicki. "While our near-term focus remains on high-grade vein-type ore bodies, this porphyry discovery significantly enhances the project's long-term value." Peter Bell, a mining analyst at Canaccord Genuity, echoed Wodzicki's views. In an investment note, he stated that the confirmation of the porphyry deposit and the new discovery provide long-term value, highlighting the extraordinary scale of this mineralizing system. "Our focus is on high-grade, high-sulphide ore bodies, but we believe the discovery of this new porphyry system will add long-term value," Bell said. "The company's mining rights are located in a highly prospective mineral belt. We view the early-stage success of Lunahuasi as the beginning of a globally significant exploration project, comparable to the nearby Filo del Sol project." Rene Cartier, a mining analyst at BMO Capital Markets, believes that this drilling has validated NGEx Minerals' understanding of the geological setting. "This discovery establishes a large exploration target with long-term value. Although it is deep, it provides the company with an option for future exploration," Cartier said. Global copper inventories are approaching a decade-low due to rapid growth in demand driven by electrification and renewable energy. Investors are focusing on both high-grade vein-type deposits that can generate early cash flow and porphyry deposits that offer large-scale resources. Regional Scale Lunahuasi is located in the rapidly expanding Vicuña region. The project is situated 6 kilometers north of the Filo del Sol project, a joint venture between Lundin Mining and BHP, and 8 kilometers west of Lundin's Josemaría project. Both projects are large copper-gold mines, approaching pre-feasibility studies or construction. In Ecuador, there are McEwen Mining's Los Azules and Lundin Mining's Fruta del Norte, indicating international enthusiasm for Tier 1 porphyry projects. The province of San Juan in Argentina has reduced mining royalties and improved foreign exchange repatriation policies, attracting major exploration companies. Mining companies are expected to respond swiftly to these changes. On May 13, 2021, Filo del Sol discovered ore at a depth of 188 meters over an 858-meter interval, with a copper equivalent grade of 1.8% (comprising 0.86% copper and 0.7 g/t gold), and the ore body was not fully penetrated at the end of the hole. "These results are exceptional" compared to the company's internal estimates for Lunawasi (ore resources of 33.3 million mt, with a copper grade of 2.12%, gold grade of 1.09 g/t, and silver grade of 41.02 g/t), said Bell. High-grade ore intersections Hole DPDH027 revealed a high-grade ore body: an 876.4-meter intersection with a copper grade of 0.59% and a gold grade of 0.48 g/t, with high sulfur content. This ore section spans from 385.6 meters to 1262 meters. The company also reported a 743-meter intersection in the deep porphyry-style ore body, with a copper grade of 0.44% and a gold grade of 0.13 g/t. The transition from high-sulfur ore bodies to porphyry mineralization indicates changes in copper minerals. The company stated that enargite-chalcocite transformed into chalcopyrite-bornite, with a decrease in cyanide-soluble copper and an increase in residual copper. Subsequent hole DPDH028 intersected 53.5 meters of ore with a copper equivalent grade of 7.79% (comprising 3.89% copper and 2.96 g/t gold). Hole DPDH029 intersected 157 meters of ore with a copper equivalent grade of 3.89% (comprising 1.67% copper and 0.49 g/t gold). The ore body remains uncontrolled in all directions, with multiple mineralized intervals observed in each hole, the company stated.

Jose Morea, country head of Vicuna Corp, said on Tuesday evening that Vicuna expects two copper projects in Argentina to commence production in 2030. Vicuna is jointly controlled by Australia's BHP and Canada's Lundin Mining.

[Lundin Mining Discloses Q1 2025 Production for Sold Zinc-Lead Mines] On May 7, Lundin Mining released its Q1 2025 report, detailing the output of its two zinc-lead operations—Neves-Corvo and Zinkgruvan—prior to their sale. In the first quarter, Neves-Corvo produced approximately 27,700 tonnes of zinc in concentrate and 2,000 tonnes of lead in concentrate, marking year-on-year increases of 4.5% and 24%, respectively. Zinkgruvan produced approximately 21,300 tonnes of zinc in concentrate and 7,600 tonnes of lead in concentrate, up 10.7% and 12.4% year-on-year. These mines were officially acquired by Swedish miner Boliden on April 16, and production from that date onward will be reported under Boliden’s Q2 output.