Deep-South Discloses a Ni 43-101 Indicated Resource of 457 MT
Suite 162, 2912 West Broadway, Vancouver, British Columbia, V6K 0E9
Tel: 604-340-0140. E-mail: [email protected]
Web site: http://www.deepsouthresources.com
DEEP-SOUTH DISCLOSES A NI 43-101 INDICATED RESOURCE OF 457 MT
@ 0.31% CU AND AN INFERRED RESOURCE OF 342 MT @ 0.29% CU AND
METS IS NEAR TO COMPLETING A PRELIMINARY ECONOMIC
ASSESSMENT (PEA) ON HAIB COPPER IN NAMIBIA.
- Haib hosts an indicated resource containing 3.12 billion pounds and an
inferred resource containing 2.19 billion pounds, at a cut-off grade of
0.25% Cu;
Vancouver, B.C., Canada – January 16, 2018 – Deep-South Resources Inc. ("Deep-
South" or “the Company") (TSX-V: DSM) has disclosed today its independent NI 43-
101 Resource estimation on the Haib Copper project in Namibia. Deep-South has also
announced that Midas Engineering and Technical Services of Australia (“METS”) has
been appointed to complete a Preliminary Economic Assessment (“PEA”), that should
be available by the end of February 2018.
Mr. Pierre Léveillé, President & CEO of Deep-South stated that: “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.”
Highlights of the Haib Mineral Resource estimate, prepared for Deep-South by P & E
Walker Consultancy and Obsidian Consulting Services, both of South Africa , in
accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral
Reserves:
Table-1: Classified mineral resources of the Haib Project at a 0.25% Cu cut-off
grade:
Resource Class xMillion
Tonnes Cu(%) Contained Cu
x billion lbs
Indicated 456.9 0.31 3.12
Inferred 342.4 0.29 2.19
Notes:
1. Dean Richards of Obsidian Consulting Services, a Member of the Geolog ical Society of South Africa and
Professional Natural Scientist (Pr. Sci. Nat) with the South African Council for Natural Scientific Professions
(SACNASP), estimated the Mineral Resources under the supervision of Peter Walker of P & E Walker
Consultancy, both of whom are the Qualified Persons for the Mineral Resource Estimates. The effective date of the
estimate is January 15, 2018. Mineral Resources are estimated using the CIM Definition Standards for Mineral
Resources and Reserves (2014).
2. Reported Mineral Resources contain no allowances for hanging wall or footwall contact boundary loss and dilution.
No mining recovery has been applied.
3. Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and
contained metal content.
Table 2. Haib Copper Indicated Mineral Resources, Sensitivity Cases.
%Cu Cut-off xMillion
Tonnes Cu(%) Contained Cu
x billion lbs
0.20% 904.8 0.27 5.39
0.25% 456.9 0.31 3.12
0.30% 219.8 0.36 1.74
Table 3. Haib Copper Inferred Mineral Resources, Sensitivity Cases.
%Cu Cut-off xMillion
Tonnes Cu(%) Contained Cu
x billion lbs
0.20% 686.2 0.26 3.93
0.25% 342.4 0.29 2.19
0.30% 109.8 0.34 0.82
This Haib Copper Mineral Resource has been defined by diamond core drilling covering
a total surface area of some 2.6 square kilometres. The mineral resource classification is
closely related to data proximity. Topographic elevations within the mineral resource
area vary from 320m to 640m above mean sea level and average 480m above mean
sea level. Indicated resources are constrained between the variable topographic surface
and a horizontal level which is 75m above mean sea level and within which the majority
of the drill and assay data are constrained. Inferred resources are laterally constrained
by the last line of drill holes and extend vertically from the horizontal surfaces defined by
the +75m and -350m above mean sea level ( a block of 425m thickness) within which
there is a lesser data set derived from drilling.
Mineralization is open near surface and at depth to at least 800 met res deep. The
Mineral Resource estimate is based on the results from approximately 66,500 metres of
drilling in 196 holes. The most recent drilling data comes from Teck Resources drilling
programs totalling 14,500 metres (2010 & 2014) and from re-assaying a part of the 164
historical drill cores which are well preserved on site. Indicated Resources are defined
by a drill grid of 150 metres by 150 metres, while Inferred Resources are defined by a
drill grid of 300 metres by 150 metres.
The Haib Copper exploration licence provides significant potential for resource
expansion, since there is known, but poorly drilled and assayed, mineralisation beyond
the drill grid boundaries and below the main mineralised body (which covers some 2
square kilometres of surface area), where a few drillholes from 75m above mean sea
level to -350m above mean sea level (i.e. a thickness of 425m) have shown that
mineralisation is present. The deepest drillhole did not pass out of mineralised material.
In addition (see map below), there are 5 satellite mineralised target areas surrounding
the main Haib porphyry body which still require further evaluation.
Map 1 – The location of the Haib porphyry deposit and satellite targets
within the exclusive prospecting licence area.
Mr. Peter Walker of P & E Walker Consultancy is the main Qualified Person for the 43-
101 resource estimation report, which has an effective date of January 15, 2018. A
technical report will be filed on SEDAR at www.sedar.com and on the Deep-South
website at www.deepsouthresources.com shortly after the issuance of this news
release.
Preliminary Economic Assessment underway
With the Haib Copper resources estimate completed, Deep-South has retained Midas
Engineering and Technical Services of Perth, Australia, to prepare a Preliminary
Economic Assessment (PEA) for the further development of the Haib Copper deposit.
The PEA, which is expected to be completed before the end of February 2018,
concentrates on establishing the economic parameters of potential mining operations at
Haib.
METS has examined the latest metallurgical process technology and review ed the
historical test work to develop conceptual ideas for processing options. METS is using
the results of their processing study and the Resource Estimates completed by P & E
Walker Consultancy and Obsidian Consulting Services.
The METS Engineering report will consider various mineral processing and metallurgical
options that will include, amongst others:
• Comminution
• Heavy Liquid Separation
• Colorimetric Sorting
• Bio-Heap Amenability
• Flotation
Four recovery options are considered for economic evaluation:
• Option 1: Ore sorter upgrading, dense media upgrading, flotation and heap
leaching of the tails.
• Option 2: Two-stage dense media upgrading, flotation and heap leaching of
the tails.
• Option 3: Ore sorter upgrading and heap leaching of the upgraded material.
• Option 4: Whole ore heap leaching.
“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,” said Mr. Léveillé.
Quality Control and Assurance and data verification
The independent qualified persons for the Haib Copper Mineral Resource estimate are
Mr. Peter Walker of P & E Walker Consultancy and Mr. Dean Richards of Obsidian
Consulting Services.
Obsidian Consulting Services conducted a review of the QA/QC programme
implemented by Teck using the certificates of analysis received from Acme Labs and
provided by Teck. This review compared the results of field duplicates, blanks as well as
the various standards utilised with respect to Cu and Mo.
The design of Teck's drilling programme, quality assurance / quality control programme
and the interpretation of results were under the control of Teck's geological staff. The
QA/QC programme is consistent with industry best practices. Drill core is logged and cut
onsite, with half-core samples prepared at Analytical Laboratory Services, Windhoek,
Namibia. Prepared samples are shipped to Acme Analytical Laboratories, Vancouver,
Canada for appropriate base metal assaying and gold fire assaying techniques. All
analytical batches contain appropriate blind standards, duplicates and blanks inserted at
regular intervals to independently assess analytical accuracy and precision.
Mr. Walker and Mr. Richards reviewed the sample chain-of-custody, quality-assurance
and quality-control (QA/QC) procedures, and the accreditations of analytical laboratories
used by Teck. The QPs are of the opinion that the procedures and QA/QC are
acceptable to support Mineral Resource estimation. Mr. Walker also audited the assay
database, core logging and geological interpretations and found no material issues with
the data as a result of these audits.
In the opinion of the QPs, the data verification programs undertaken on the geological
and assay data collected from the Haib Copper support the geological interpretations
and the analytical and database quality, and the data collected, can support Mineral
Resource estimation.
Qualified Persons
Peter Walker B.Sc. (Hons.) MBA Pr.Sci.Nat. of P & E Walker Consultancy is the main
author of the 43-101 resource estimation report and is responsible for the technical part
of this press release, and is the designated Qualified Person under the terms of National
Instrument 43-101.
Mr. Dean Richards Pr.Sci.Nat. , MGSSA – BSc. (Hons.) Geology, of Obsidian Consulting
Services is the contributing author of the 43-101 resource estimation report and is a
Qualified Person under the Terms of the National Instrument 43-101.
About Deep-South Resources Inc.
Deep-South Resources Inc. is a mineral exploration company largely held by Namibian
shareholders and Teck Resources Ltd, which holds about 35% of Deep -South share
capital. Deep-South is actively involved in the acquisition, exploration and development
of major mineral properties. Deep-South currently holds 100% of the Haib Copper
project in Namibia, one of the largest copper porphyries in Africa. Deep-South’s growth
strategy is to focus on the exploration and development of quality assets, in significant
mineralized trends, close to infrastructure, in politically stable countries.
More information is available by contacting Pierre Léveillé, President & CEO at
+1-819-340-0140 or at: [email protected] or
Paradox Public Relations at +1-514-341-0408.
Cautionary statement on forward-looking information
Certain statements in this release constitute “forward -looking statements” or “forward-looking
information” within the meaning of applicable securities laws.
Such statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the company, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward -looking
statements or information. Such statements can be identified by the use of words such as “may”, “would”,
“could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”,
“predict” and other similar terminology, or state that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current
expectations regarding future events, performance and results and speak only as of the date of this release.
All such forward-looking information and statements are based on certain assumptions and analyses made
by Deep-South’s management in light of their experience and perception of historical trends, current
conditions and expected future developments, as well as other factors management believe are appropriate
in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ materially from those projected in the
forward-looking information or statements including, but not limited to, unexpected changes in laws, rules
or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform
as agreed; social or labour unrest; changes in commodity prices, including the price of copper; unexpected
failure or inadequacy of infrastructure, or delays in the development of infrastructure, the failure of
exploration programs or other studies to deliver anticipated results or results that would justify and support
continued studies, development or operations, and the results of economic studies and evaluations. Other
important factors that could cause actual results to differ from these forward -looking statements also
include those described under the heading “Risk Factors” in the compan y’s most recently filed MD&A
filed by Deep-South. Readers are cautioned not to place undue reliance on forward-looking information or
statements. The factors and assumptions used to develop the forward-looking information and statements,
and the risks that could cause the actual results to differ ma terially are set forth in the “Risk Factors”
section and elsewhere in the company’s most recent Management’s Discussion and Analysis report and
Annual Information Form, available at www.sedar.com.
This news release also contains references to estimates of Mineral Resources. The estimation of Mineral
Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any
such estimates is a function of the quantity and quality of available data, and of the assumptions made and
judgments used in engineering and geological interpretation, which may prove to be unreliable and depend,
to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove
to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i)
fluctuations in copper prices or other mineral prices; (ii) results of drilling; (iii) results of metallurgical
testing and other studies; (iv) changes to proposed mining operations, including dilution; (v) the evaluation
of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required
permits, approvals and licences, or changes to any such permits, approvals or licence.
Although the forward-looking statements contained in this news release are based upon what management
of the company believes are reasonable assumptions, the company cannot assure investors that actual
results will be consistent with these forward-looking statements. These forward-looking statements are
made as of the date of this news release and are expressly qualified in their entirety by t his cautionary
statement. Subject to applicable securities laws, the company does not assume any obligation to update or
revise the forward-looking statements contained herein to reflect events or circumstances occurring after
the date of this news release.