Midas’ Namibian Expansion: What Risks Lurk Beneath the South Otavi Project?

Strategic Expansion in Namibia

Midas Minerals Limited (ASX: MM1) has taken a significant step in expanding its footprint in Namibia’s Otavi copper-gold region by signing an option agreement to acquire up to 80% of Exclusive Prospecting Licence (EPL) 8374, known as the South Otavi Project. This tenement lies adjacent to Midas’ recently announced Otavi Project and is situated just 25 kilometres north of the established 3 million ounce Otjikoto gold mine operated by B2Gold.

Historic Anomalies Revisited

The South Otavi Project area has a rich history of exploration dating back to the late 1960s and late 1990s, during which significant gold and copper anomalies were identified but remain largely untested. Notably, a large bedrock gold anomaly was delineated by geochemical drilling in the late 1990s, coinciding with the discovery of the Otjikoto deposit nearby. Additionally, a copper anomaly at the Deutsche Erde prospect has been known for over 50 years, situated in a geological setting analogous to Midas’ Deblin deposit within the Otavi Project.

Confirming Potential Through Due Diligence

Midas’ recent due diligence soil sampling has confirmed copper anomalism consistent with historical data, while trenching and mapping activities have commenced to better define mineralisation zones. The company has already located near-surface copper mineralisation and is preparing to drill-test the prioritized gold and copper targets once sufficient data is gathered. This proactive approach underscores Midas’ commitment to rapidly advancing exploration in this underexplored yet highly prospective region.

Geological Context and Exploration Outlook

The project is situated within the Pan-African Damaran Orogen, a region known for hosting significant mineral deposits. The South Otavi EPL straddles two major geological terranes separated by the Khorixas-Gasenirob Thrust Zone, with copper mineralisation associated with the contact between the Nosib and Otavi Groups. The gold potential is equally compelling, with mineralisation hosted in formations similar to those at Otjikoto. Midas plans to combine further soil sampling and drilling, particularly beneath calcrete cover, to delineate the extent of mineralisation and unlock the project’s full potential.

Option Agreement and Joint Venture Structure

The option agreement with Chorab Minerals (Pty) Ltd and licensee Hans Hain Haraseb allows Midas a 12-month exclusive period to explore and acquire up to 80% of the EPL, with staged cash payments and conditions including third-party approvals. Upon exercising the option, Midas and Chorab will form a joint venture to fund development and mining expenditure on a pro rata basis, with Midas free-carrying Chorab through initial phases. This structure provides Midas with strategic control while managing risk and capital exposure.

Looking Ahead

With exploration activities already underway and drilling preparations in progress, Midas Minerals is positioning itself to capitalize on the South Otavi Project’s promising geology and historical data. The company’s broader Namibian portfolio, including the Otavi Project acquisition, signals a focused growth strategy in a region with proven mineral wealth and significant upside potential.