Koryx Copper wins analyst support after Namibia assays

Analysts at BMO Capital Markets and Red Cloud Securities say Koryx Copper (TSXV: KRY; US-OTC: KRYXF) is rapidly emerging as one of Africa’s more attractive red metal development stories after the company reported another round of wide drill intersections at its Haib project in southern Namibia on Monday.

Highlights from 15 infill holes totalling 5,351 metres at Haib included hole HM138. It cut 584 metres from surface grading 0.3% copper, 42 parts per million (ppm) molybdenum and 0.04 gram gold per tonne. Hole HM149 returned 428 metres from surface at 0.31% copper, 56 ppm molybdenum and 0.027 gram gold.

The drilling is aimed at upgrading inferred tonnes from a resource in March to the indicated category ahead of a prefeasibility study expected late this year. The company is targeting environmental approval in 2027.

“While Koryx previously released a preliminary economic assessment, the updated resource supports a larger operation,” BMO mining analyst Rene Cartier said in a note on Tuesday. “We see a limited amount of copper projects in quality African jurisdictions that can deliver more than 100,000 tonnes a year of copper-equivalent, thereby driving a scarcity premium for Haib.”

Twin Hills

Koryx is led by the team behind Osino Mining, which discovered and advanced the Twin Hills gold project in central Namibia before selling the company for $368 million (US$259 million) to China’s Shanjin International Gold in 2024. Analysts say that experience, combined with Haib’s scale, existing infrastructure and the project’s rapid advancement toward a prefeasibility study, strengthens the case for one of Africa’s next large open-pit copper mines.

Shares in Koryx Copper gained 3.4% to $3.38 apiece by mid-Tuesday in Toronto, valuing the company at $411 million. They’ve traded in a 52-week range of 96¢ to $3.90.

Other assay highlights include drill hole HM 153, which cut 714 metres from surface grading 0.26% copper, 101 ppm molybdenum and 0.018 gram gold. And drill hole HMRC001 returned 243 metres at 0.35% copper, 98 ppm molybdenum and 0.02 gram gold.

“The wide, near-surface intercepts reinforce both the deposit’s size and grade continuity and mark a meaningful step toward the resource conversion,” Red Cloud Securities mining analyst Ron Stewart said in a note on Tuesday. “The plan is to develop a conventional, large-scale open-pit mine producing copper-molybdenum concentrate utilizing sulphide flotation, with potential for additional copper cathode from oxide heap leaching.”

Orange River

The Haib project is about 700 km south of the Namibian capital, Windhoek, near the South African border. It lies near the Orange River, where it would source water.

The March resource outlined 744 million measured and indicated tonnes grading 0.28% copper, 63 ppm molybdenum and 0.02 gram gold. It hosts 579 inferred tonnes at 0.24% copper, 66 ppm molybdenum and 0.02 gram gold.

Cartier initiated BMO’s coverage on Koryx with an outperform rating and a $6 share price target.
The analyst also highlighted the company’s valuation, noting Koryx trades below comparable copper developers despite a strong balance sheet, approximately $66 million in cash and an experienced management team with a record of building and selling mining companies.

Red Cloud reiterated its buy rating and $5 share price target, saying the results advance the resource upside and de-risking plan.