The company’s share price surged almost 50 percent after the news was released. Teck Resources has a 35-percent stake in Deep-South.
Junior explorer Deep-South Resources (TSXV:DSM) released a resource estimate for its Haib copper project in Namibia on Tuesday (January 16).
The report shows Haib has an indicated resource of 3.12 billion pounds of contained copper and an inferred resource of 2.19 billion pounds of contained copper, both at a cut-off grade of 0.25 percent copper.
Deep-South, which is 35 percent owned by diversified miner Teck Resources (TSX:TCK.B,NYSE:TECK), is also working on a preliminary economic assessment (PEA) to further develop Haib. The report is being created by Midas Engineering and Technical Services and is expected to be done by the end of February.
“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 Pierre Léveillé, president and CEO of Deep-South.
The Toronto-listed company has owned a 100-percent interest in the Haib project since May of last year, after reaching a deal with Teck Namibia, a subsidiary of Teck Resources.
The asset, one of Africa’s largest copper-molybdenum porphyry deposits, hosts an existing historical estimate of 2 billion pounds of copper in situ, open near surface and at depth.
“The Haib Copper PEA will allow Deep-South’s technical team and consultants to maximize opportunities for project enhancements as we move the Haib Copper Project forward,” added Léveillé.
Aside from Haib, the company recently signed a letter of agreement to acquire a 90-percent stake in the St. John project from Sparrowhawk Gold in Liberia. Deep South is also awaiting for final legal and technical reports to complete a 75-percent acquisition of the INAL property in Mauritania.
On Tuesday, shares of Deep-South closed up 45 percent, at C$0.29. The company’s share price has been on an uptrend since the beginning of the year, and is up 57.89 percent year-to-date.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Deep-South Resources is a client of the Investing News Network. This article is not paid-for content.