$MMA.V - MIDNIGHT SUN MINING My new #copper pick is Midnight Sun...

$MMA.V - MIDNIGHT SUN MINING
My new #copper pick is Midnight Sun Mining.
You can find the synopsis here, and all the details in the thread that I will start posting.
+ It has a $78M CAD MCAP
+ It holds the large and highly prospective Solwezi property, located in the heart of the Zambia-Congo copper belt, the second largest copper-producing region in the world. The geological environment is conducive to world-class, large, high-grade and scalable copper deposits.
+ Midnight Sun is the only Copper Junior in the area with such a big land package of 506 km2.
+ The land package is surrounded by world-class copper mines and companies like First Quantum, Barrick, Rio Tinto, Ivanhoe and Anglo American.
+ It is adjacent to Africa’s largest copper mine, the First Quantum’s 1 billion tonne Kansanshi Mine.
+ High grade copper discoveries were made across the entire project, with similar geological characteristics and grades to the surrounding operating mines. The copper is there.
+ It has a $15.5 Million Earn-in Agreement with KoBold Metals (January 2024) to explore the Dumbwa target.
+ KoBold Metals is a battery metal exploration and mining company that combines geoscience, data science, machine learning, and AI to search for minerals. It is backed by technology investors including Bill Gates and his Breakthrough Energy Ventures Fund, Jack Ma and Richard Branson.
+ This earn-in agreement will provide Midnight Sun with 25% of the sale of the Dumbwa asset within a few years without taking any risk, without the need for any financing, without doing any of the work, benefiting from a wold-class copper team.
+ KoBold’s team of top-tier geologists will work diligently to unlock Dumbwa’s potential. The GEO who discovered Lumwana, thinks that Dumbwa is bigger and higher grade than Barricks Lumwana (960MT x 0.55% CU).
+ The Dumbwa asset may well sell for over $1 Billion within a few years. Midnight Sun will receive 25% or 3 times their current MCAP.
+ KoBold Metals also provides $500,000 / year of cash flow to Midnight Sun during 4 years, allowing Midnight Sun to explore its other 3 assets.
+ Midnight Sun has 3 other assets around Dumbwa of which it holds the 100% ownership. These assets all contain high grade copper. These assets will be explored using the cashflow received from KoBold Metals.
+ It has a Cooperative Exploration Plan with First Quantum (April 2024) to jointly define potential feed sources for First Quantum’s Kansanshi Mine. This near-term opportunity for oxide copper could produce significant near-term positive cash flow. This could provide a yearly cashflow of between $40M-$80M / year, the value of their MCAP.
+ A $10M financing is completed. Midnight Sun is funded for copper oxide drilling on near-surface targets, with exploration underway on Kazhiba.
+ Before the end of the year, Midnight Sun will publish the drill results, the IP Survey, the Leach Sampling, the resource definition. I expect news within the coming 2 weeks. The deal with First Quantum could be signed in 2025 Q1.

I took a large 5% position in Midnight Sun Mining as I believe the reward may be massive, while I consider the risk to be very low. But always DYODD.

See the detailed explanation below.

$MMA.V – MIDNIGHT SUN MINING
Part 1/ Midnight Sun Mining – Solwezi Property
+ The Solwezi property is large and highly prospective. It is located in the heart of the Zambia-Congo copper belt, the second largest copper-producing region in the world.
+ It is a vast 506 km2 property featuring 4 separate target areas that are believed to host unique geological systems, each with the potential for a significant copper discovery. The targets are the Dumbwa, Mitu, Kazhiba and Crunch Zones. The geological environment is conducive to world-class, large, high-grade and scalable copper deposits.
+ Midnight Sun Mining is the only Junior in the area with a land package this big. It is surrounded by world-class copper mines and companies like First Quantum, Barrick, Rio Tinto, Ivanhoe and Anglo American. It is also adjacent to Africa’s largest copper mine, the First Quantum’s 1 billion tonne Kansanshi Mine.
+ Drill discoveries were made across the project, with similar geological characteristics and grades to the surrounding operating mines.
+ It has a $15.5 Million Earn-in Agreement with KoBold Metals (January 2024) to explore the Dumbwa target. KoBold is a battery metal exploration and mining company that combines geoscience, data science, machine learning, and AI to search for minerals. It is backed by technology investors including Bill Gates and his Breakthrough Energy Ventures Fund.
+ It has a Cooperative Exploration Plan with First Quantum (April 2024) to jointly define potential feed sources for First Quantum’s Kansanshi Mine. This near-term opportunity for oxide copper could produce significant near-term positive cash flow.
+ A $10M financing is completed. Midnight Sun is funded for copper oxide drilling on near-surface targets, with exploration underway on Kazhiba.

$MMA.V – MIDNIGHT SUN MINING
Part 2/ Zambia – World Class Copper District
+ Zambia is a globally ranked top copper producer and mining powerhouse for over 100 years
+ The geological environment is conducive to large, high-grade and scalable copper deposits.
+ Zambia possesses one of the world’s highest-grade deposits of copper.
+ It is home to world-class producing copper mines and companies like First Quantum, Barrick, Rio Tinto, Anglo American and KoBold Metals
+ These are the biggest copper mines in the world, because they are massive, are at surface, are cheap to mine, are quick to bring to production as there is no overburden like with underground porphyries.
+ Mining is responsible for 75% of Zambia’s export earnings
+ Democratically elected government, the Zambian mining sector is governed and regulated by the Mines and Minerals Development Act, English language, Trained population/workforce. Zambia is a risk-free environment.

$MMA.V – MIDNIGHT SUN MINING
Part 3/ Discoveries versus World-Class Producers
+ Higher grade than the surrounding operating mines.

$MMA.V – MIDNIGHT SUN MINING
Part 4/ Multiple Opportunities
+ It is a vast 506 km2 of multiple and separate geological systems within the property. Discoveries were made across the entire property. Multiple targets exist, each representing a significant and distinct opportunity for the discovery of a transformative, multi-generational deposit or near-term value proposition
+ Target 1 – Earn-In Agreement with KoBold Metals (January 2024)
+ Target 2 – Cooperative Exploration Plan with First Quantum (April 2024)

$MMA.V – MIDNIGHT SUN MINING
Part 5/ Target 1 – Earn-In Agreement with KoBold Metals (January 2024)
+ A $15.5M Earn-In Agreement with KoBold Metals to explore the Dumbwa target.
+ Barrick made an offer for Dumbwa, but Midnight Sun refused and decided to choose for KoBold.
+ KoBold Metals Company, a US-based exploration and mining company, is advancing 60 active projects spanning 4 continents. Founded in 2018, KoBold is backed by world-class technology investors including Breakthrough Energy Ventures (Bill Gates / Jack Ma / Richard Branson), Silicon Valley venture capital firm Andreessen Horowitz, as well as institutional investors such as T. Rowe Price and the Canadian Pension Plan Investment Board. KoBold is about to go public at a $2B valuation.
+ KoBold leverages artificial intelligence through proprietary analytical tools and big data to improve and accelerate the exploration process.
+ KoBold has assembled has one of the top global sediment-hosted copper teams – including Chief Geologist, Dr. David Broughton, a world-renowned expert in sediment hosted copper deposits.
+ Dr. Broughton is credited with leading the discoveries of both Kamoa and Platreef, as well as serving as Geologist and Project Manager for Kansanshi’s pre-feasibility project, which became Zambia’s largest producing copper mine and is adjacent to the Solwezi Project.
+ He also made the discovery of the Barricks Lumwana projectwhich is now becoming a $2.6B mine near Midnight Sun. KoBold’s team of top-tier geologists will work diligently to unlock Dumbwa’s potential. The GEO who discovered Lumwana, thinks that Dumbwa is bigger than Lumwana. But it will take some time to prove it.
+ KoBold can earn a 75% interest in Dumbwa, by spending $15 million in exploration and making $500,000 in cash payments to Midnight Sun over the next 4.5 years ($2m in total). There are no intermediate stages.
+ Midnight Sun will retain 25% of Dumbwa and will also retain 100% of all the other targets (Kazhiba, Mitu and Crunch).
+ Midnight Sun doesn’t do any of the investments, doesn’t do any of the work, has a world class team doing all the work for free, receives $500,000 cash every year, takes no risks whatsoever, and will receive 25% of the money when all works out well and when the asset is sold.
+ Dumbwa is a Tier-One exploration target and contains a continuous high-grade copper-in-soil anomaly of 20 km x 1 km with peak values up to 0.73% Cu. It is the largest undeveloped target in the area. The grade is higher than almost all the surrounding assets.
+ The entire area is an open pit copper blanket. In the area these blankets are usually 150m deep and start at surface. As there is no overburden, they can bring in the equipment and start digging very fast.
+ Dumbwa has multiple stacked mineralized horizons analogous to Barrick’s Lumwana Mine (960mt x 0.55% CU), located a short distance to the west.
+ Exploration plans are focussing on systematic drilling of 10,000m to establish dip, continuity, size, and scale. The drilling is to commence in the coming months.

$MMA.V – MIDNIGHT SUN MINING
Part 6/ Target 2 – Cooperative Exploration Plan with First Quantum (April 2024)
+ A Cooperative Exploration plan is in place with First Quantum to jointly define potential feed sources on the property for First Quantum’s Kansanshi Mine.
+ First Quantum has lost its Panama Project because of nationalisation. The First Quantum Kansanshi Mine has also run out of copper oxide now.
+ First Quantum needs 25,000 tonnes / day of copper oxide as soon as possible so that they can neutralise the sulphuric acid resulting from the milling of the copper sulphides. The amount of produced sulphuric acid is gigantic, it cannot be disposed of on land, it cannot be shipped as Zambia is landlocked, and it cannot be transported over land as no one wants the sulphuric acid transported on its roads.
+ Midnight Sun can deliver this copper oxide rapidly as it has millions of tonnes of it, at surface, only 10 kms away from the Kansanshi mine. There is a highway owned by First Quantum that is running between and through both assets.
+ Extensive oxide copper potential exists across the entire property package
+ Oxide copper mining could represent significant near-term positive cash flow for Midnight Sun. It can fulfil First Quantum’s 25,000 tonnes / day input for years to come.
+ First Quantum is replacing an approximative $400M annual revenue stream on lower grade than what Midnight Sun could supply. Their mine has only a 0.66% grade copper oxide, but Midnight Sun’s mine has a 1.30% grade meaning that the margins will be much better.
+ The supply deal with First Quantum is expected to be around $40-$60M / year for over 5 years, while Midnight Sun has less than a $80M MCAP.
+ It is also possible that First Quantum won’t do a supply deal and will just buy the assets for hundreds of millions of dollars. First Quantum is to have over $1B in cash and no debt. The Saudis offered $2B for 20% of First Quantum Zambia’s assets. There are multiple players interested in the Midnight Sun assets.
+ The exploration work on the oxide copper targets is ongoing. They are drilling, and don’t need any discovery as they know that the high grade copper oxide is there. They know there is 4 million tonnes at the first target Kazhiba, but they want to know how big it is before signing the deal. It will be between 4-15 million tonnes.
+ The drill news, the resource definition, the IP Survey, the Leach Sampling, should all be finished before end 2024. Once the resource has been defined, a deal can be signed with First Quantum in 2025 Q1.
+ Midnight Sun’s goal is to delineate more than 50 million tonnes of oxide at 0.3% Copper. (4-15 million tonnes at Kazhiba and 30-50 million tonnes at Mitu). They will start first at Kazhiba, then at Mitu and then at Crunch. First Quantum has a lab on site, so the assays can go fast.
+ First Quantum is Zambia’s biggest tax payer. Zambia wants to keep them happy.

$MMA.V – MIDNIGHT SUN MINING
Part 7/ Other assets with 100% ownership
Kazhiba Zone
+ 85% Owned by Midnight Sun, with option to earn 100%
+ Drilling to date, intercepted numerous high-grade intervals of oxide mineralization and identified a high-grade oxide copper blanket, the source of which is yet to be found. The mineralisation starts from surface. Includes 14.2 m of 5.71% Cu, 24 m of 3.15% Cu, 8.0 m of 5.14% Cu, 4.5 m of 6.31% Cu
+ The exploration program is ongoing
+ Less than 10km from the Kansanshi Mine Complex
+ Underlain by a basement dome similar to those at Kansanshi and Solwezi. Domes are believed to be associated with the copper mineralization at First Quantum’s Kansanshi and Sentinel mines as well as Barrick’s Lumwana Mine.

Mitu Zone
+ 100% Owned by Midnight Sun
+ Drilling to date, intercepted numerous high-grade intervals of oxide mineralization, starting from surface. The mineralisation style (Cu-Co-Ni-Au) and grade are similar to First Quantum’s Sentinel Mine 120 km to the west. The drilling delineated a 1 kilometre by 500 metre zone of mineralization which remains open. There are multiple conductive zones in favourable geology, over more than 17 kilometres on strike. Drill intercepts included 11.6 m of 3.44% Cu, 11.5m of 1.41% Cu, 8.0 m of 1.22% Cu, 30.3 m of 0.49% Cu, 11.0m of 1.03% Cu, 32.9M of 0.82% Cu
+ Exploration program will take place in 2025 following initial drilling at Kazhiba

Crunch Zone
+ 100% owned by Midnight Sun
+ Identified the largest untested continuous EM conductive target on the property. This conductive trend represents a potential new discovery occurring in the same stratigraphy as that surrounding the neighbouring Kansanshi Mine. Untested & continuous target, extending for over 5 km in length and 2 km strike
+ Near-Surface Drill Results include 21.1m of 8.52% Cu, 4.5m of 6.31% Cu, 24m of 3.15% Cu, 8m of 5.14% Cu, 1.9m of 3.46% Cu, 3.8m of 3.42% Cu incl. 2m of 2.41% Cu and 2m of 4.54% Cu, 14.2m of 5.71% Cu, incl. 7.2m of 9.58% Cu, 2.5m of 1.62% Cu, 9.4m of 0.48% Cu

$MMA.V – MIDNIGHT SUN MINING
Part 8/ End
I took a large 5% position in Midnight Sun Mining as I believe the reward may be massive, while I consider the risk to be very low. But always DYODD.
/END