Midnight Sun Mining's Kazhiba Target 2 Drilling Campaign: A Catalyst for Copper Discovery and Shareholder Value

The global copper market, driven by the energy transition and infrastructure demand, is at a critical inflection point. Against this backdrop, exploration-stage mining companies with high-potential projects are increasingly capturing investor attention. Midnight Sun Mining Corp.'s (TSX-V: MIM) Kazhiba Target 2 drilling campaign in Zambia's Solwezi Project represents a compelling opportunity to unlock a world-class copper deposit. With drilling underway and a robust technical rationale, the company is poised to deliver near-term value realization. Here's why investors should take notice.

The Geology of Kazhiba Target 2: A Recipe for Success

The Kazhiba Target 2 is a 4-km by 2-km sulphide copper target within the Zambia-Congo Copperbelt, one of the world's most prolific copper-producing regions. The project's allure lies in its convergence of multiple high-confidence exploration indicators:
- Partial Ionic Leach (PIL) signatures: Elevated copper values in soil samples suggest the presence of deep-seated sulphide mineralization.
- VTEM geophysical anomalies: A large, conductive zone indicative of disseminated sulphides, often associated with massive copper deposits.
- Induced polarization (IP) data: High chargeability and low resistivity responses point to a mineralized system with potential for bulk tonnage extraction.

These indicators align with the geological characteristics of the Zambian Copperbelt's world-class deposits, such as First Quantum's Kansanshi Mine. The sulphide target at Kazhiba could also represent the source of transported oxide copper mineralization previously identified in the region, implying a larger, interconnected system. This dual potential—combining deep sulphides and near-surface oxides—positions the project to deliver a high-margin, multi-stage asset.

The Drilling Campaign: Precision and Scale

The current phase of diamond drilling, which began on June 5, 2025, aims to test the core of the Kazhiba Target 2 with six to eight holes totaling ~1,000 meters. The first hole, KAZ-25-003, targets a depth of 150 meters, directly intersecting the VTEM anomaly. If successful, this phase could confirm the presence of a large, high-grade sulphide deposit.

Following sulphide drilling, the company plans a reverse circulation (RC) program targeting oxide copper mineralization. With up to 4,000 meters of drilling across 20–25 holes, this phase will focus on extending a known high-grade oxide blanket and testing new PIL targets. The phased approach ensures cost-effective prioritization: sulphide results will guide subsequent oxide drilling, minimizing risk while maximizing upside.

Strategic Advantages: Location, Team, and Timing

• Strategic Location: The Solwezi Project is nestled within the Zambia-Congo Copperbelt, adjacent to First Quantum's Kansanshi Mine—a project that has produced over 1.5 million tonnes of copper to date. Proximity to existing infrastructure, including roads and power, reduces development costs and timelines.
• Experienced Leadership: Chief Operating Officer Dr. Kevin Bonel brings deep expertise, having contributed to Barrick Gold's Lumwana Mine, which became a Tier 1 asset under his leadership. The technical team, led by Qualified Person Darin Labrenz, adheres to rigorous NI 43-101 standards, ensuring data integrity.
• Market Timing: Copper prices remain robust, with the metal trading near $4.00/lb as of June 2025. A discovery at Kazhiba would come at a time when investors are favoring projects with clear pathways to production.

Risks and Considerations

While the project's technical merits are strong, risks remain:
- Exploration Uncertainty: Drilling results may not meet expectations, though the multiple positive indicators reduce this risk.
- Regulatory and Operational Hurdles: Permitting delays or contractor availability could impact timelines.
- Commodity Price Volatility: Copper prices could weaken, though long-term demand fundamentals remain bullish.

Investment Thesis: A High-Reward Catalyst

Midnight Sun's Kazhiba Target 2 campaign is a near-term catalyst with asymmetric upside. A positive drill result could:
1. Unlock Shareholder Value: A significant copper intersection would immediately re-rate the stock, given the project's scale and location.
2. De-Risk the Portfolio: Success at Kazhiba would validate the broader Solwezi Project, opening up opportunities at adjacent targets like Mitu and Dumbwa.
3. Attract Partnerships: A major discovery could attract joint venture interest, accelerating development and reducing capital requirements.

Conclusion: A Copper Story Worth Watching

Midnight Sun Mining's Kazhiba Target 2 drilling campaign is a pivotal moment for the company. With a world-class geological setup, a methodical exploration plan, and a proven team, the project has the potential to deliver a discovery that transforms both the company and the broader Zambian mining landscape. For investors seeking exposure to high-potential copper exploration, this is a story to monitor closely. The next 12 months could be transformative—if the drill bits strike pay dirt, Midnight Sun's shares are likely to follow.

Investment Recommendation: Consider a long position in Midnight Sun Mining (TSX-V: MIM) for investors with a high-risk tolerance and a focus on copper exploration. Maintain a close watch on assay results from the Kazhiba Target 2 campaign and subsequent drilling phases.

This analysis is based on publicly available information as of June 2025. Readers are advised to conduct their own due diligence.