Deep-South Resources

Developing a World Class Copper Project in Namibia

This profile is part of a paid investor education campaign.*

Overview

Deep-South Resources (TSXV:DSM) is advancing exploration on the Haib copper-molybdenum project located in the mining-friendly jurisdiction of Namibia. Deep-South recently signed an agreement with Teck Namibia, a subsidiary of Teck Resources Limited, that gives the company full ownership of the Haib project. The deal is representative of Deep South’s growth strategy which is focused on the exploration and development of quality assets, in significant mineralized trends, close to infrastructure and in stable countries.

With a stable democracy and economy, Namibia ranks as the best investment jurisdiction in Africa. Mining accounts for 12 percent of the country’s GDP. Namibia’s well-established mining policies are similar in structure to those of Canada and Australia, attracting several of the world’s major mining players including Rio Tinto, B2 Gold, De Beers, Areva and Exxaro.

The Haib project hosts one of the largest copper porphyry deposit in Africa and recent exploration by former owner Teck Namibia identified new high-grade zones with five highly prospective targets for further exploration. In January 2018, Deep-South released an updated resource estimate which outlined an indicated resource of 457 million tonnes at a grade of 0.31 percent copper and an inferred resource of 324 million tonnes at 0.29 percent copper. This will be used as part of the upcoming preliminary economic assessment (PEA) for the project.

Additionally to the Haib project, the company has recently signed options to acquire further holdings across the African continent. This includes 75 percent of the INAL gold project in Mauritania and 90 percent of the St John gold project Liberia.

Deep-South Resources is led by a strong management and exploration team with decades of experience in finance, mining and exploration in Africa, particularly in Namibia. President and CEO Pierre Léveillé has decades of experience as an executive and director of several African-based exploration companies, realizing over US$70 million in transactions and financing for Namibian and African mining exploration projects. VP Exploration Vivian Stuart-Williams is a geologist with nearly 50 years of experience in the mining and exploration industry, principally in the southern African region. He has been involved with the Haib project since the mid-1990s.

Company Highlights 

  • One of the largest copper porphyry deposit in Africa hosting recently identified high-grade zones with numerous exploration targets.
  • Located in politically and economically stable country of Namibia—best investment jurisdiction in Africa; mining-friendly policies.
  • Large database of exploration work completed by past operators including Teck Namibia.
  • 2018 indicated resource for Haib contains 3.12 billion pounds and an inferred resource containing 2.19 billion pounds, at a cut-off grade of 0.25% CU
  • Additional holdings for two properties in gold jurisdictions of Mauritania and Liberia.
  • Tight Share Structure; largest shareholder is Teck Resources with 35 percent; Namibian investment group 25 percent; management and board 25 percent.
  • Management and technical team well-versed in exploration and mining in Namibia and other regions in Africa.

Key Project: Haib Copper-Molybdenum Project, Namibia

The Haib Project covers 37,000 hectares and hosts a large copper-molybdenum porphyry deposit discovered in the early 1900s. The deposit is approximately 2 kilometers long and 1 kilometer wide, extending from surface to over 800 meters deep. Haib is considered the oldest porphyry deposit in the world and contains easily identifiable porphyry veins and alteration.

Located in the Karas region of southern Namibia, the project lies 8 kilometers from the Orange River and the South African border, and 3 kilometers from main power lines and the main interstate highway which connects Namibia and South Africa. Other infrastructure in the project area includes the railway station at Grunau (100 kilometers from the property) which could provide access to multiple ports in the region.

deepsouth1

High-grade discovery using modern exploration techniques

Teck Namibia took control of the Haib Project in 2008. Teck’s exploration program was on a more regional scale than previous operators and focused on determining the deposit’s potential for large-scale mining and improving the economics of the project by targeting higher-grade mineralization.

Between 2010 and 2015, the company completed a total of 14,252 meters in 32 diamond drill holes on the historically defined orebody, the eastern IP anomaly, and the Haib South and Haib West satellite targets.

Teck intersected higher grade copper near surface and at depth.

These results led to the discovery of near surface zones with significantly higher grades of copper mineralization (>0.5% Cu).

Mineralizating Trends—Main Haib Body

Teck’s drilling campaign also led to the discovery of an extension of known mineralization below the historical drilling within the Main Haib zone.

deepsouth4
Deep drilling at Haib intersects higher grade copper at depth.

“What is attractive about this project is that we have clearly defined high grade areas and Teck’s recent work shows that we can potentially increase the tonnage substantially because this porphyry system tends to open up as it goes deeper; especially between a depth of 300 and 500 meters below surface,” said Deep-South President and CEO Pierre Léveillé.

Teck Namibia has combined drilling and surface geological information to construct a provisional 3D geological model of the Main Haib zone.

deepsouth5

New exploration targets identified

Using IP surveys and coincident copper geochemistry, Teck identified five new satellite targets.

deepsouth6

Updated Resource Estimate

Following work conducted over the course of 2017 and using drilling results from Teck Resources, Deep-South released an updated resource estimate for the Haib copper project. The NI 43-101-compliant estimate outlined an indicated resource of 457 million tonnes at a grade of 0.31 percent copper and an inferred resource of 324 million tonnes at 0.29 percent copper. Moving forward, the company plans on using this updated resource estimate as a component of the upcoming PEA for the project.

“With the initial resource estimation completed and the PEA nearly completed, we will now start to evaluate our options and start planning a pre-feasibility study, including further drilling and metallurgy test work,” said Deep-South President and CEO Pierre Leveille.

Additional Projects Across the African Continent

INAL Project in Mauritania

In August 2017, Deep-South announced that it would acquire 75 percent of the INAL project in Mauritania. The project covers 441 square kilometers of the Aoueouat greenstone belt and is along trend from the Kinross (TSX:K) 21-million-ounce Tasiast gold mine. The property hosts a number of prime granite greenstone belt geological structures which are considered to have potential for gold mineralization.

deep-south-image

St John Property in Liberia

Deep-South has closed the acquisition of 90 percent of the St John property in Northern Liberia. The property covers 480.4 square kilometers and is located 20 kilometers northeast from MNG Gold’s Kokoya gold mine. Hosting a number of artisanal miners through mining licenses, the project is highly prospective.

deep-south-image2

Management

John H. Akwenye, Chairman

Mr. Akwenye is a Namibian retired lawyer with over 30 years of experience in business development in Namibia. From 1994 to 2008, he was Chairman of Guinas Investents (PTY) Ltd a Swapo owned investment company. He has been chairman of the Namibian Airports Company from 2001 to 2004. He is Director of Corporations such as Areva Resources Namibia and PE Minerals and he his currently Chairman of Deep-South Mining Company (PTY) Ltd and Director of Haib Minerals (PTY) Ltd.

Pierre Léveillé, President & CEO

Mr. Léveillé has over 28 years of experience in the International financial sector and 20 years of experience in the mining exploration industry. Mr. Léveillé has started is career as a Stock Broker and Corporate Finance specialist with Lévesque, Beaubien, Geofrion and National Bank Financial. From the mid 1990’s to today, he has been Executive and Director of several exploration companies active in Africa. He has financed and managed exploration projects in Namibia since 1996 and has realized over US$ 70 million in transactions and financing for Namibian and African mining exploration projects. He his currently Executive Director of Deep-South Mining Company (PTY) Ltd. and Director of Haib Minerals (PTY) Ltd.

Vivian Stuart-Willams, Vice-President Exploration

Mr. Stuart-Williams is a geologist with 46 years of experience in the mining and exploration industry, principally in the southern African region. He holds a M.Sc degree in uranium and he has been involved in base metals, gold, coal, and industrial mineral projects. Mr. Stuart-Williams has a worldwide exposure (including Liberia, Philippines, Afghanistan, Canada, Uzbekistan, Australia, Uganda, Mauritania and all of the Southern African countries). He has been involved with the Haib project from the mid-1990s as exploration Manager and subsequently as a Technical Director (geology) for Deep South Mining who held the Mineral Rights over the Haib Project during the recent exploration by Teck Namibia.

Clifford Fitzhenry, Exploration Manager

Mr. Fitzhenry is a Geologist with 14 years experience across a number of African countries. He began his career with Anglo Platinum on the Bushveld Complex and has subsequently worked on mining and exploration projects throughout Africa including Central African Republic, Liberia, Madagascar, South Africa, Mozambique and Malawi. Mr. Fitzhenry holds MSc and BSc Honours (cum laude) degrees from the University of KwaZulu Natal (South Africa) and is a Registered Professional Natural Scientist in South Africa.

Jean-Luc Roy, Director

Mr. Roy has been a major contributor to the development of several important corporations in Africa during the last 30 years working for majors, mid-tiers and junior exploration companies, such as First Quantum Minerals, Resolute Mining and Ampella Mining. He brings to Deep-South, as Independent Director, a wealth of experience in all aspects of exploration from generating, negotiating, funding and managing projects, to corporate, community and governmental relations. Mr. Roy is presently a Director for Can Alaska Uranium (TSX:CVV).

Paul Lemmon, Consultant Geologist, Gold Projects

Mr. Lemmon is a professional Geologist with experience in numerous jurisdictions worldwide. Most notably, he has over 25 years experience in several African countries such as Liberia, Zambia and many others. In addition to having held directorship positions at a number of public and private companies, Mr. Lemmon is Chief Geologist and Director of Copperzone Resources Ltd, a successful project generator and exploration company focused in Zambia. Mr. Lemmon is a Professional Graduate of United Kingdom’s Institute of Materials, a Fellow of the Geological Society of London, and a Registered Professional Natural Scientist in South Africa.

Tim Fernback, Vice-President, Director

Tim Fernback has over 20 years of experience in the venture capital and investment banking industries. He is currently the Regional Director for the CFO Centre Limited, responsible for all operations in Western Canada. The CFO Centre is the world’s leading provider of part-time Chief Financial Officers for mid-tier businesses.  The company has over 350 active CFOs worldwide.

Mr. Fernback holds an Honours B.Sc. from McMaster University, and holds a MBA with a concentration in Finance from the University of British Columbia. Mr. Fernback holds a Certified Professional Accounting (CPA) designation in Canada and is currently director of several publicly traded companies in Canada.

Ryan Cheung, CFO, Director

Ryan Cheung is the founder and managing partner of MCPA Services Inc. A chartered professional accountant firm. Ryan’s role is focused on business development, and managing all aspects of the Firm and professional services delivery. He started in 2002 at a boutique CA firm eventually moving on to a mid-sized CA firm and successfully wrote the Uniform Final Examination in September 2007. Ryan works closely with high net worth and self-employed individuals, private companies and public companies (TSX Venture listed) in various industries including general professional services, real estate, mining, and technology. He is currently director of several publicly traded companies in Canada.

Sadike Nepela, Director

Sadike Nepela serves as General Manager of Kalahari Minerals PLC. For a number of years, Mr. Nepela served as an Assistant to the Minister in the Namibian Ministry of Mines and Energy and most recently he has been the General Manager for Westport Resources, a subsidiary of Forsys Metals Corp.(listed on the TSX). He is also a Fellow of the International Centre for Research and Training in Major Projects Management, Montreal, Canada. Mr. Nepela is a graduate of the University of Witwatersrand, Johannesburg and has also studied at the University of Connecticut, West Hartford, USA.


 

*Disclaimer: The profile provides information which was sourced and approved by Deep-South Resources in order to help investors learn more about the company. Deep-South Resources is a client of the Investing News Network (INN). The company’s campaign fees pay for INN to create and update this profile page, to which links are placed on Investingnews.com and channel newsletters.

The company description, investment highlights and catalysts were sourced by INN and approved by the company. INN does not guarantee the accuracy or thoroughness of the information contained on this page.

INN does not provide investment advice and the information on Investingnews.com profile should not be considered a recommendation to buy or sell any security.

INN does not endorse or recommend the business, products, services or securities of any company profiled.

Readers should conduct their own research for all information publicly available concerning the company.