Deep-South Resources Inc. Share Price Rises 40% Following Haib Copper Renewal

Koryx Copper , listed on the TSX-V, stunned the market yesterday with the annocuement that the Haib #Copper Exclusive Prospecting Licence (3140) has been officially renewed by the Ministry of Mines and Energy of #Namibia. In response the share prise rose 38.5% to C$0.09 per share.

President & CEO, Pierre Leveille , and his team have been working tireless for this moment for the past 25-months. In June 2021 Deep-South was notified by the Ministry that its application for the renewal of its licence had been denied. In its refusal the Ministry cited its belief that the Deep-South was unable to advance the licence to the pre-feasibility stage or complete the proposed drilling programme as planned.

This was a shock to all involved as Deep-South had been advancing the Haib Project since 2016 and had invested millions of dollars into defining a complaint mineral resource estimate and completing a preliminary economic assessment (PEA) at the project. The share price fell from C$0.22 to C$0.05 in the weeks after.

At the time the renewal was refused, Deep-South was well funded and moving ahead with a full feasibility study at an estimated cost of C$7.1 million, with three drill rigs on site and 42 employees working in the field as it looked to complete a 10,000-meter drill programme.

Earlier this year, after a lengthy legal process the High Court of Namibia set aside the decision of the Minister not to renew the Haib licence and ordered the Minister to resume the licence renewal process and arrive at a new decision. After a further 4-months of waiting the Haib licence has now been renewed for two years and Deep-South can move the Haib Project forward.

Haib is one of the oldest copper porphyry deposits in the world formed in the Precambrian some 1,868 million years ago (± 7). Hiab is also one of the larger undeveloped copper deposits with a total NI 43-101 complaint mineral resource estimate of 799.1 million tonnes at a low average grade of 0.30% copper.

Despite being a large low-grade deposit an updated PEA for the project completed in December 2020 returned robust economics with a post-tax NPV7.5 of US$957 million and a post-tax IRR of 29.7%, with a payback period of 4.2 years, using a copper price of US$6,613/t (US$3.0/lbs) over a 24 year mine life.

At a copper price of over US$7,700.t (US$3.5/lbs), still below the current copper price, the post-tax NPV7.5 increases to US$1.3 billion and the post-tax IRR increases to 36.1%, with a payback period of 3.4 years.

Deep-South has now began preparing to commence its work programme and resume the development of Hiab as soon as possible.

Read the announcement here: https://www.deepsouthresources.com/investors/news-releases/haib-copper-licence-renewed/

#DSM #mining #exploration

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