“Whereas we’re dissatisfied within the present scenario, we do imagine it is going to be rectified,” CEO Al Fabbro mentioned in a launch. “We’re taking all doable steps to expedite a swift decision in order that we will resume our exploration at Kazhiba.”
Shares in Midnight Solar Mining fell 11% on Thursday in Toronto to shut at C$0.355 apiece, valuing the corporate at C$58.7 million ($43.5 million).
Kazhiba is certainly one of three licensed goal areas on the corporate’s 506-sq.-km property which have had important copper discoveries to this point. It’s underlain by a beforehand undiscovered basement dome much like these on the Kansanshi mine held by First Quantum Minerals (TSX: FM) and Barrick Gold‘s (TSX: ABX; NYSE: GOLD) Lumwana mine, Midnight Solar mentioned.
Excessive-grade goal
The Kazhiba undertaking options the high-grade 22 zone, positioned 10 km from the western mine gate of First Quantum’s Kansanshi mine complicated. This zone was found by follow-up shallow drilling in 2012 over a refined copper anomaly with thick overburden, Midnight Solar mentioned. One discovery gap intersected 11.3 metres of 5.71% copper close to floor.
Midnight Solar had deliberate to additional discover the goal this yr to outline its copper oxide sources, in addition to potential feed sources for the close by Kansanshi mine underneath a cooperative exploration plan with First Quantum.
For this program, the corporate mentioned it had submitted an software to resume the Kazhiba licence. It was due this yr for a remaining three-year extension allowed underneath Zambian mining legislation.
No formal discover
Nonetheless, when Zambia’s mining licencing committee rejected the applying in June, it didn’t ship a proper discover to the corporate, and as an alternative solely revealed the choice on its web site, Midnight Solar mentioned, including that it was unclear what firm was as an alternative awarded the exploration rights.
In the meantime, Midnight Solar mentioned its different two licences are unaffected by the federal government’s transfer. One covers the Dumbwa goal, which is underneath an earn-in settlement with KoBold Metals, the high-profile startup backed by billionaires Invoice Gates and Jeff Bezos. The opposite is the Kansanshi-style Mitu goal, a part of the cooperative exploration plan with First Quantum.
Exploration is to maneuver ahead as deliberate at Mitu, which represents a much bigger goal than Kazhiba and likewise hosts near-surface oxide copper. Beforehand, drilling at Mitu returned 11.6 metres at 3.44% copper.