Koryx Copper Charges Ahead - Upgrading Giant Namibian Copper Project to Attract Majors

• Koryx Copper is an exploration company with a copper project in Namibia
• They are currently drilling to upgrade the resource grade and improve project economics
• The existing 1 billion ton resource at 0.31% copper could be economic using bioleaching
• They aim to complete a feasibility study in 2 years to attract interest from majors or private equity
• Koryx has resumed promoting itself to investors after resolving previous license issues

About Koryx Copper Resources

Koryx Copper (formerly Deep-South Resources) is a mineral exploration and development company that focuses on growing through the exploration and development of quality mineral assets. Their assets are located in significant mineralized regions close to infrastructure in politically stable countries.

Specifically, Koryx currently holds the Haib Copper Project in Namibia as well as interests in three copper exploration licenses in Zambia's Copperbelt. As the company works to develop its copper projects, it actively embraces environmentally friendly technologies aligned with the global transition towards sustainable mining practices.

Interview with President & CEO, Pierre Léveillé

Pushing Ahead with Drilling to Upgrade Flagship Namibian Copper Project

Koryx Copper Resources is an exploration company operating in Namibia and Zambia. Their flagship project is located in Namibia - a large copper porphyry deposit containing over 1 billion tons at 0.31% copper. As President and CEO Pierre Léveillé explained in a recent interview, “We're an exploration company busy in Namibia and Zambia. In Namibia we have a quite an advanced project and we're starting a feasibility study next year”.

After resolving long-running issues surrounding their mining license, Koryx is now able to focus on advancing this project. As Leveille stated, this resolution was “quite good because Namibia shows something rule of law prevails in Namibia.” With no further penalties or actions against them, Koryx can move forward with their exploration plans unhindered.

The key to improving the project’s economics is increasing the resource grade. Although the deposit is large, the copper grade is currently quite low. However, mapping has revealed several higher-grade structures cutting through the porphyry that were never previously drilled. As Léveillé explained, “We found quite a lot of structures that have never been mapped before and that was not even drilled and the grade was underestimated”. Initial drilling into these structures has returned exceptional grades up to 2.5% copper, nearly 10 times higher than the average resource grade.

Koryx commenced a 5,000 meter drill program a few weeks ago targeting these structures. The goal is to incorporate these high-grade zones into an updated resource estimate by March/April 2024. As Léveillé stated, “We're convinced now that we will increase the grade. We will do a new resource estimation right after that program”. Even without a grade upgrade, the project could still be economic using innovative lower-cost processing methods. Léveillé highlighted that at $3.50/lb copper, the project had an NPV of $1.3 billion and 36% IRR based on a $340 million capex. However, delineating higher-grade zones would significantly boost economics.

Over the next 2 years, Koryx aims to complete a feasibility study at an estimated cost of $5 million. As Léveillé explained, “We need to complete the feasibility study about US$5 million over the next two years...after the feasibility study that's where we talk about the pilot plant and we talk about construction”. Completing detailed technical studies will enable them to attract interest from major mining companies or private equity investors to fund further development.

Before their previous license issues, Koryx had commenced discussions with several majors and private equity groups. Now that drilling is underway again, the company is focused on promoting itself and the upgraded potential of this project. As Léveillé stated, “We will start doing quite a lot of marketing. We have started with Mines & Money. We're resuming being on the path of promoting the company and we will increase that in 2024”. This includes presenting at conferences, and roadshows, and engaging with potential strategic partners. An updated resource estimate by early 2024 will provide a catalyst to reignite interest in the project.

The Investment Thesis for Koryx Copper

• Large copper porphyry deposit already defined with significant resource upside from upgrading grade
• Innovative lower-cost processing route provides alternative economic development option
• Near-term exploration drilling targeting higher grade zones aims to greatly improve project economics
• Completing a feasibility study over the next 2 years will enable further funding and development partnerships
• Tight capital structure after resolving license issues provides an opportunity at an early low valuation
• Management refocused on promoting Koryx investment case to attract funding and strategic partners

Koryx Copper provides exposure to a substantial copper development project, with clear potential to significantly expand and improve upon the currently defined low-grade resource. Upcoming drilling targeting identified higher-grade zones aims to transform the economics of this project over the next 12-18 months. Completing a detailed feasibility study will enable Koryx to secure further funding and partner interest to progress the project towards a potential construction decision. The recent license resolution, tight share structure and renewed exploration activity provide an opportune entry point for investors.