Deep-South Resources is a mineral exploration company looking to advance its Haib copper project in Namibia towards production. In 2018, Deep-South Resources released a preliminary economic assessment (PEA) and a resource estimate for the project. The resource estimate report outlined an indicated resource of 456.9 million tonnes grading 0.31 percent copper and an inferred resource of 342.4 million tonnes grading 0.29 percent copper.
The PEA focused on four extraction options and offered numerous suggestions for improving the project’s economics. At a price of copper of US$ 2.65 per pound, the Haib has an after-tax IRR of 19.3 percent, an after-tax NPV (7.5 percent) of C$427.5 million and 55-year mine life for a throughput of 8.5 million tonnes per annum. At a throughput of 20 million tonnes per annum, the after-tax IRR is 23.7 percent, the after-tax NPV is C$782.6 million with a 24-year mine life. The PEA also suggested that a pre-feasibility study (PFS) should be completed on the project to help improve economics. Work on the PFS is currently underway along with metallurgical testing.
Deep-South Resources has also acquired a 75 percent interest in the Kapili Tepe copper-nickel–cobalt–gold project in Turkey. The property contains two IP anomalies that have the potential to host over 200 million tonnes of mineralization amongst multiple targets. Deep-South Resources is currently working towards completing a NI 43-101-complaint resource estimate for Kapili Tepe.
Deep-South Resources’ company highlights include the following:
- Haib is one of the largest copper porphyry deposits in Africa, hosting a recently identified high-grade zone and numerous sizeable exploration targets.
- Located in the politically and economically stable country of Namibia.
- Past operators have completed an extensive database of exploration work at Haib.
- Haib has an indicated resource of 456.9 million tonnes grading 0.31 percent and an inferred resource of 342.4 million tonnes grading 0.29 percent copper.
- 2018 PEA includes a 55-year mine life, after-tax IRR of 19.3 percent and an after-tax NPV (7.5 percent) of C$427.5 million for a price of copper of US$2.65 per pound.
- Bio-assisted heap leaching at Haib shows recovery rates of 86 percent and 93 percent.
- PFS development is currently underway.
- The Kapilli Tepe project contains 20 near-surface targets that grade over one percent copper with multiple drill-ready targets.
- Teck Resources owns 28 percent of the company’s shares, making Teck Resources the largest shareholder.
- Deep-South Resources is led by an experienced management team and board of directors with numerous years of experience in the mining industry.
- Management and directors own 25 percent of the company’s shares.