Multiple factors drag down copper prices, with the price spread between SHFE copper and BC copper narrowing [SMM BC Copper Commentary]

Midnight Sun Mining has commenced Phase Two exploration at its wholly owned Dumbwa copper deposit in Zambia, shifting from broad systematic drilling toward a more targeted programme aimed at identifying and expanding higher-grade copper zones. The new phase will combine high-resolution ground magnetics, induced-polarisation geophysics, soil geochemistry and diamond drilling, while also testing potential extensions of the known mineralised corridor and newly identified structures to the east and west. The programme builds on nearly 75,000 metres of drilling completed during Phase One, which Midnight Sun said has defined several zones of enhanced copper mineralisation along the main north-south corridor. Phase One drilling is still underway and is expected to be completed by the end of Q3 2026, with current drilling shifting toward the northern block and using wider step-outs to test for additional higher-grade mineralised zones along the initial 11.5-km Dumbwa corridor. Midnight Sun said the broader Dumbwa system is associated with an approximately 20-km copper-in-soil anomaly. An expanded high-resolution magnetic survey is now being extended across the full anomaly, while an additional 19.1 line-km of IP surveying is underway. Initial magnetic work has already identified two previously untested targets around 1.0–1.2 km east of the main Dumbwa corridor, which display magnetic characteristics similar to areas associated with higher-grade copper mineralisation. The launch of Phase Two marks a shift from defining the broad scale and geological framework of Dumbwa toward more selective drilling of higher-priority copper targets. The programme remains exploration-stage and does not yet establish a mineral resource or future production profile, but the combination of extensive Phase One drilling and newly identified geophysical targets could help Midnight Sun better define the scale, continuity and grade distribution of the Dumbwa system as exploration advances.