Impact: Positive
Koryx reported drill results from an additional three holes located either within or near Pit 1 at its flagship Haib Cu project in southern Namibia (Table 1; Figure 1). Koryx designed the drilling to close the spacing between Pits 1 and 2 and better understand the controls on mineralization in Pit 1. Highlights include 1) 0.93% CuEq over 12m from near surface incl. 1.52% CuEq over 4m (HM17), 2) 0.43% CuEq over 98m incl. 1.12% CuEq over 4m and 1.47% CuEq over 2m (HM32), and 3) 0.37% CuEq over 34m incl. 0.49% CuEq over 8m (HM33). Holes HM32 and HM33 were both designed as infill drill holes. Although, HM32 appears to have widened the near surface mineralized zone to ~100m, this could potentially be due to the hole not being orthogonal to the mineralization given numerous mineralized trends potentially intersect in that area. Meanwhile, extensional hole HM17 extended near surface mineralization in Pit1 an additional ~180m eastward than previously recognized, which we view positively as it suggests the potential for resource expansion. Similar to previous results (read notable), these latest assays are also well above the current resource grade of ~0.3% Cu. We expect these results to support an updated MRE (Q2/24) that should likely include increases in both tonnage and grade. Further positive drilling results and an updated MRE could help re-rate the stock, as outlined in our update report.
