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Midas Minerals Ltd (ASX:MM1) has made a leap into copper mining and development with its acquisition of a high-grade project in Namibia which it describes as ‘transformational’.
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The company will take on 10 exclusive prospecting licences from notable Brazilian base metals producer Nexa Resources S.A for an upfront cash consideration of US$3 million, plus a deferred cash consideration of the same amount upon completion of a pre-feasibility study, another US$2M upon Midas’ decision to go ahead with mine development, and a further US$2M within 12 months of the commencement of commercial production.
Additionally, Nexa will be offered a net smelter return royalty of 1%, of which Midas may acquire half for US$2M in cash.
The project – known as Otavi – stretches across approximately 1,776 square kilometres close to a town of the same name, and 360 km northeast of the capital Windhoek, and includes 2 significant deposits which are awaiting resource definitions, T13 and Deblin.
Both have yielded impressive results through past development work, including 17.2 metres at 7.24% Cu (copper) and 144.4 grams per tonne (g/t) Ag (silver) from 125.84m, including
6m at 16.65% Cu and 370.3g/t Ag from 131m at T13, which comprises 2 kilometres of strike from surface and open.
Results from Deblin – which comprises the same strike parameters – include 15m at 4.15% Cu, 14.6g/t Ag & 0.22g/t Au from 449m; and17m at 1.72% Cu from 394m.
Another sweet spot within Otavi is the Hartebeestpoort Prospect – 4km strike (from surface and open), which includes results such as 11.2m at 3.11% Cu, 0.54g/t Au & 28.4g/t Ag from 26m.
Managing director Mark Calderwood said this was an important moment for Midas.
“Exploration over the past decade at the Otavi Project has identified multiple high-grade copper deposits, with accompanying silver and gold,” he said.
“Acquiring this project is transformational for Midas, providing us with a highly prospective and advanced project that we can rapidly explore and grow a resource base to deliver value to our shareholders.”
Midas shares have been trading at 15.7 cents.
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