Canadian Mining Journal


Argentine tax relief improves NGEx’s Constellation project

Argentina’s recent elimination of an export retention tax on copper concentrate exports improves the economics of NGEx Resources’ (TSX: NGQ; NASDAQ: OMX) Constellation copper-gold-silver project, the company says.

The junior exploration company, part of the Lundin Group of Companies, says under the new tax regime, Constellation’s after tax net present value rises to US$2.61 billion from US$2.09 billion and its after tax internal rate of return increases from 14.5% to 16.6%.

The project, which consists of two deposits, one in Chile and one in Argentina’s San Juan province, would have a central processing facility that would produce about 150,000 tonnes of copper, 180,000 oz of gold and 1.18 million oz of silver a year over a 48-year mine life.

The company believes that if the project becomes a mine, it would start as an open pit at the Josemaria copper-gold porphyry in Argentina and later move underground as a block caving operation at the Los Helados copper-gold porphyry deposit in Chile. The two deposits are about 10 km apart.

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