Midnight Sun Finds Excellent Copper Potential in Zambia

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Midnight Sun Mining Corp. (MMA:TSX.V; MDNGF:OTCQB) has moved a third diamond drill rig to its flagship Dumbwa target, a crucial part of the company's Solwezi project situated in Zambia's Domes region, the company announced in a September 23 release.

The latest drilling contract has been awarded to Chibuli Investments Ltd., a local contractor based in Ndola, Zambia.

According to the agreement, the newly added rig will complete a minimum of 6,000 meters of core drilling. This initial drilling phase will concentrate on the southern 11.5 kilometers of the roughly 20-kilometer Dumbwa target, the company said.

"The addition of a third rig allows us to fast-track our exploration efforts at Dumbwa," said Midnight Sun Chief Executive Officer Al Fabbro. "This is an incredibly exciting phase for the company, as we work to build upon our new geological model of the mineralization at Dumbwa. Our intensified drilling campaign reflects our structured approach and strong commitment to aggressive, but systematic, exploration. With drilling continuing to ramp-up, we anticipate a consistent stream of results in the coming months."

About Dumbwa

Dumbwa is a near-surface, low-strip, bulk-tonnage exploration target with geology and mineralization similar to Barrick Mining Corp.'s (ABX:TSX; B:NYSE) Lumwana mine, located about 60 kilometers to the west.

The site features a high-grade copper-in-soil anomaly extending approximately 20 kilometers along strike and over one kilometer wide, with peak copper values reaching 0.73%. Previous drilling has confirmed the presence of sulfide copper mineralization, but further drilling, guided by structural controls, is necessary to better understand the dip, continuity, size, and scale of the system, Midnight Sun said in the release. Multiple stacked mineralized horizons have been identified, resembling those at the Lumwana mine.

A recent dipole-dipole IP survey covering the southern 11.5 kilometers of the strike extent has revealed the structural framework of the Dumbwa target, which is essential for understanding its geometry. The interpreted IP results show a horizon that varies from relatively flat lying and gently dipping to areas with clear evidence of folding, ranging from open folds to very tight upright folds.

There is a strong correlation between the mineralized intervals encountered in prior drilling at Dumbwa and the target horizon interpreted from the IP data, according to the company. Additionally, a positive relationship exists between this horizon and the overlying soil anomaly. The interpreted IP survey also identified several major crosscutting structures, which help explain offsets between historical soil geochemistry and previously drilled mineralization.

'Lots of Upside at Dumbwa'

Red Cloud Securities Analyst Taylor Combaluzier wrote in an updated research note on September 11 the firm had just "caught up with Midnight Sun management and received an updated on its latest activities at Solwezi."

Drilling programs are currently active at both Kazhiba and Dumbwa, and the analyst anticipated significant news flow throughout the second half of 2025. Management shared with Combaluzier that drilling began after the rainy season this spring and has been ongoing for about three months.

Additionally, after switching its lab service provider, the company expects a substantial reduction in assay turnaround time — from approximately three months to about three weeks.

Midnight Sun remains well-funded with around CA$10 million in the bank, and steady warrant exercises have been covering expenses, keeping its treasury largely intact.

"We believe Midnight Sun is poised to continue re-rating as it executes on its strategy of delineating a significant Cu oxide resource at Kazhiba with the goal of signing a formal agreement with First Quantum Minerals (TSX:FM, Not Rated) to reach near-term cash flow." 

"We believe Midnight Sun is poised to continue re-rating as it executes on its strategy of delineating a significant Cu oxide resource at Kazhiba with the goal of signing a formal agreement with First Quantum Minerals (TSX:FM, Not Rated) to reach near-term cash flow," the analyst wrote. "We also see lots of upside at Dumbwa, where the company has the potential to confirm significant Cu sulfide mineralization and make more discoveries. We maintain our BUY rating and no target price."

Additionally, Combaluzier said Red Cloud expected the maiden Mineral Resource Estimate (MRE) at Kazhiba to be a significant catalyst for the stock, as it would lay the groundwork for a formal agreement with First Quantum, enabling Midnight Sun to swiftly move towards generating cash flow.

Located 6 kilometers southwest of First Quantum Minerals Ltd.'s (FM:TSX; FQM:LSE) Kansanshi Copper Mine, the Kazhiba Target is one of four key prospects within Solwezi. The company has structured exploration efforts under multiple agreements, including a Cooperative Exploration Plan with First Quantum Minerals to evaluate oxide copper deposits that could potentially supply Kansanshi's solvent extraction-electrowinning (SX/EW) facility. Additionally, Midnight Sun exited the earn-in agreement with KoBold Metals, to explore Dumbwa, which means Midnight Sun will now retain 100% ownership of its flagship asset, and all upside related to a discovery on this remarkable tier-one exploration target, a very positive development for the company. 

Midnight Sun's exploration success has drawn attention from analysts and industry experts, with some viewing the company as a potential acquisition target. Malcolm Shaw of Hydra Capital has pointed to Midnight Sun's proximity to First Quantum's Kansanshi operation as a key strategic advantage. He noted that the company's oxide copper discoveries could be valuable feedstock for Kansanshi's processing plant, making a partnership or acquisition a logical next step. Shaw also highlighted the company's Dumbwa Target as a high-priority exploration opportunity with the potential for a large-scale copper discovery. 

The Catalyst: Copper Prices Reaching Higher

According to a report by Reuters on September 24, copper prices reached their highest level in over 15 months on Wednesday after Freeport-McMoRan Inc. (FCX-N) announced a force majeure at its Grasberg mining complex in Indonesia and reduced its production forecast for 2026.

A fatal landslide at the Grasberg Block Cave underground mine on September 8 led Freeport to halt operations in the area. While two unaffected mines might resume operations in the fourth quarter, the Grasberg Block Cave is expected to have a phased restart in the first half of 2026, according to the company.

The market had already anticipated some supply constraints, but Freeport's update, indicating that its Indonesian unit's 2026 production could be 35% lower than previously estimated, drove benchmark three-month copper on the London Metal Exchange up by as much as 3.9% to its highest level since May 2024. As of 1600 GMT, the metal was trading at US$10,335.50. Dan Smith, managing director of Commodity Market Analytics, noted that the force majeure "should result in an immediate short-covering rally."

Ahead of the Herd on July 13 pointed out that despite the U.S. importing about 1 million tonnes of refined copper in 2024, it only had two operational smelters, leading to a capacity shortfall that limited any significant increase in domestic refining in the near term. Jefferies analysts were quoted as saying, "The U.S. does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper," and they expected that tariffs would lead to "continued significant price premiums in the U.S. relative to other regions."

Rob Haworth from U.S. Bank stressed copper's essential role in everyday life, stating, "You probably don't go a day where you haven't used something that has copper in it."

According to S&P Global Market Intelligence, the average time from copper discovery to production in the U.S. is 32 years, complicating any immediate efforts to increase domestic output.

Oxford Economics economist Grace Zwemmer noted that tariffs could raise costs for manufacturers in sectors such as construction, electronics, and automotive. ING strategist Ewa Manthey added that while a short-term stockpile of imported copper might provide temporary relief, "higher copper prices also risk higher inflation, raising costs for U.S. manufacturers without a domestic alternative available."

Ownership and Share Structure

According to Refinitiv, management and insiders own about 12% of Midnight Sun Mining, institutions own 23%, and the rest is retail.  

The stock has traded in a 52-week range between CA$0.27-1.48. The company's market cap was CA$263.76 million on September 24.