Deep-South Intersects 152 Metres of 0.47% CuEq, Including 30 Metres of 0.81% CuEq from Surface
Suite 888, 700 West Georgia, Vancouver, British Columbia, V7Y 1G5
Tel: +1-819-340-0140. E-mail: [email protected]
Web site: http://www.deepsouthresources.com
DEEP-SOUTH INTERSECTS 152 METRES OF 0.47% CuEq, INCLUDING 30
METRES OF 0.81% CuEq FROM SURFACE
Vancouver, B.C., Canada – May 10, 2021 – Deep-South Resources Inc. ("Deep-South"
or “the Company") (TSX-V: DSM) announced today the first assay results from its current
drilling program at its Haib Copper project in southern Namibia.
Significant copper and molybdenum intersections include:
• HM06 : 0.47% CuEq over 152 metres, including 30 metres at 0.81% CuEq
• HM07 : 0.42% CuEq over 128 metres, including 14 metres at 0.57% CuEq
• HM10 : 0.65% CuEq over 36 metres, including 12 metres at 1.04% CuEq
Pierre Leveille, President & CEO of Deep -South stated that: "We are extremely
enthusiastic by the first results from our active drill program. Previous drilling
programmes point to the presence of higher grade zones of Cu, probably
associated with near vertical structures within the broader mineralised areas of the
project. The use of vertical drilling in the past potentially missed those structures during
those programs resulting in an underestimation of overall grade. This current drilling
program is looking to redress this through the use of inclined holes to identify and delineate
these structures and test the association with higher Cu grade zones. These first results
seem to support this updated interpretation, showing substantial intersections at
Cu grades considered high for Haib. Additionally the presence of molydenum has
been confirmed with high Mo grades obtained in association with structures and
alterations. Furthermore, three holes have expanded the size of Pit 2 in the higher-
grade area.
The first five holes for which assay results have been received cover some 800.60 metres
and were drilled on central mineralised portion of the deposit to better delineate the
extension of this zone to other mineralised areas located to the northwest and southwest.
The holes have successfully encountered intercepts of mineralization from bedrock or
near bedrock surface. Assay results for the holes are tabulated below:
Significant Cu Intersections
Hole# Zone
From
(m) To (m)
Width
(m)1
CuEq
(%)2 Cu (%) Mo (%)
HM01 Main 28,00 34,00 6,00 0,38 0,38 0,001
HM06
Main 0,00 152,34 152,34 0,47 0,45 0,006
Including 4,00 42,00 38,00 0,66 0,64 0,005
Including 54,00 84,00 30,00 0,81 0,79 0,007
HM07
Main 32,00 160,00 128,00 0,42 0,38 0,011
Including 38,00 52,00 14,00 0,57 0,53 0,011
Including 92,00 104,00 12,00 0,49 0,43 0,019
Including 136,00 152,00 16,00 0,53 0,49 0,012
HM08
Main 10,00 28,00 18,00 0,26 0,22 0,011
Main 44,00 94,00 50,00 0,59 0,53 0,017
Including 48,00 64,00 16,00 0,88 0,84 0,012
HM10
Main 66,00 102,00 36,00 0,65 0,60 0,016
Including 68,00 80,00 12,00 1,04 0,90 0,043
Including 82,00 86,00 4,00 0,72 0,72 0,001
Main 114,00 120,00 6,00 0,46 0,45 0,002
1. Width refers to intersection width; true widths have not been determined.
2. CuEq (copper equivalent) has been used to express the combined value of copper and molybdenum and is
provided for illustrative purposes only. No allowances have been made of recovery losses that may occur should
mining eventually result. Calculations use metal prices of US$3.00/lb copper, US$10/lb molybdenum using the
formula: CuEq% = Cu% + (Mo% [$10/$3])
Holes HM06 and HM08
Both were on the central mineralised zone (Pit2) and HM08 was positioned to test the
westward extension of this zone. Another zone (Pit3) is located to the northwest of
Pit2 and HM06 was located to delineate the continuity of Cu grade between these two
zones. HM08 encountered a high Cu intersection over 50m, extending high grades in
Pit2 both southwards and westwards. High Mo grades were also returned from the
upper portions of this hole. HM06 encountered significant Cu grades from surface for
its entire length. Not only has it extended high grades to surface but indicates
that high grade continuity between Pit2 and Pit3 is more extensive than
previously demonstrated, A section cross these two holes is show below in Figure
1.
Figure 1: Vertical section looking west showing results for HM06 and HM08. The outline
of the 0.4% Cu contour previously derived from LeapFrogTM is shown.
Holes HM07 and HM10
Also drilled on the central high grade zone, Pit2, HM06 was planned as an infill hole to
confirm the high grade extrapolated between relatively widely space holes, while HM10
tested to extension of the Pit2 high grades towards the northeast. Both holes encountered
significant Cu intersections with HM07 confirming the presence of the high grade zone.
HM10 shows the mineralization potentially extends significantly further north than
previously shown. A vertical section for these two holes is shown in Figure 2.
Figure 2: Vertical section looking northwest showing results for HM07 and HM010. The
outline of the 0.4% Cu contour previously derived from LeapFrogTM is shown.
Drill Program Update
Two drill rigs are active on the property, fourteen holes have been completed, and two
holes are currently in progress. Results for five holes have been received and released. A
further six holes have been completed, processed, and submitted to the lab for assay with
results pending. The program is planned for 10,000 metres, of which 25% has been
completed to date. The Haib Copper Deposit is one of the oldest porphyry deposits in the
world at 1.8 billion years old (archean). Over time, it has seen severa l transformations
resulting in shearing and faulting events. Those events have re -mobilized and
concentrated the mineralization along the shears and faults.
The specific focus of this drilling campaign is to further delineate and grow the higher-
grade zone(s) of the Haib deposit uncovered by Deep-South in 2019 with the ultimate goal
of establishing a measured resource over that higher-grade section of the deposit. The
Company also plans to drill a number of holes to depths greater than 350 meters to test
the vertical extent of the deposit. The MSA Group of South Africa has been appointed
to provide an updated NI 43-101 resource estimation after the drilling program
completion.
Quality Control
All drill cores are logged, photographed, and cut in half with a diamond saw. Half of the
cores are bagged and sent to ALS Laboratories Ltd. in Johannesburg, South Africa for
analysis (SANAS Accredited Testing Laboratory, No. T0387), while the other half is
quartered with one quarter archived and stored on site for verification and reference
purposes while the other quarter will be used for metallurgical test work. 33 elements are
analyzed by Induced Coupled Plasma (ICP) utilizing a 4 -acid digestion and gold is
assayed using a 30g fire assay method. Duplicate samples, blanks, and certified
standards are included with every batch and are actively used to ensure proper quality
assurance and quality control.
About the Haib Copper deposit
The Haib Copper project hosts a porphyry copper deposit containing a NI 43-101
compliant indicated resource estimate of 457 MT @ 0.31% Cu for 3.12 billion lbs copper
and an inferred resource estimate of 342 MT @ 0.29% Cu for 2.19 billion lbs copper.
Deep-South disclosed a robust Preliminary Economic Assessment (PEA) on December
15, 2020. The press release disclosing the NI 43-101 resource estimation and the PEA
reports can be se en here: https://www.deepsouthresources.com/investors/news-
releases/deep-south-pea-update-returns-singnificantly-improved-economics/
Please note that: Mineral Resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for mineability, selectivity, mining
loss and dilution. These mineral resource estimates are based on Indicated Mineral Resources that
are considered too speculative geologically to have the economic considerations applied to them
that would enable them to be categorized as mineral reserves. However, there is no certainty that
these indicated mineral resources will be converted to measured categories through further drilling,
or into mineral reserves, once economic considerations are applied. There is no certainty that the
preliminary economic assessment will be realized.
Qualified Person
Mr. Dean Richards Pr.Sci.Nat. , MGSSA – BSc. (Hons.) Geology, is the Qualified Person
for the Haib Project as defined by National Instrument 43-101 and has approved the
technical disclosure contained in this news release.
About Deep-South Resources
Deep-South Resources is a mineral exploration and development company. Deep-South
holds 100% of the Haib Copper deposit in the south of Namibia. Haib is one of the largest
undeveloped copper deposits in Africa.
The recent preliminary economic assessment showed that at a price of copper of $3.00 /
lb, it generates an after-tax NPV of $950 million and an after-tax IRR of 30%. At $4.00 /
lb, it generates an after-tax NPV of $1,650 million and an after-tax IRR of 42%. (See the
press release here: https://www.deepsouthresources.com/investors/news-releases/deep-
south-pea-update-returns-singnificantly-improved-economics/ )
Deep-South growth strategy is to focus on the exploration and development of quality
assets in significant mineralized trends and close to infrastructures in stable countries. In
using and assessing environmental friendly technologies in the development of its copper
project, Deep-South embraces the green revolution.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
This press release contains certain "forward-looking statements," as identified in Deep- South’s periodic
filings with Canadian Securities Regulators that involve a number of risks and uncertainties.
There can be no assurance that such statementsl prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements.
This News Release contains forward-looking statements, which relate to future events. In some cases, you
can identify forward-looking statements by terminology such as "will", "may", "should", "expects", "plans", or
"anticipates" or the negative of these terms or other comparable terminology. All statements included herein,
other than statements of historical fact, are forward looking statements, including but not limited to the
Company’s plans regarding the Haib Copper project. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of
activity, performance or achievements to be materially different from any future results, levels of activity,
performance, or achievements expressed or implied by these forward-looking-statements. Such uncertainties
and risks may include, among others, actual results of the Company's exploration activities being different
than those expected by management, delays in obtaining or failure to obtain required government or other
regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a
timely basis, equipment breakdown and bad weather. While these forward -looking statements, and any
assumptions upon which they are based, are made in good faith and reflect the Company's current judgment
regarding the direction of its business, actual results will almost always vary, sometimes materially, from any
estimates, predictions, projections, assumptions or other future performance suggestions herein. Except as
required by applicable law, the Company does not intend to update any forward-looking statements to conform
these statements to actual results.
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.