Deep-South will complete a 43-101 Resource estimation of Haib Copper and will proceed with a private placement
Vancouver, B.C., Canada – September 6, 2017 – Deep-South Resources Inc. ("DeepSouth" or “the Company") (TSX-V: DSM) announces a corporate update.
Haib Copper project, Namibia:
Since the closing of the acquisition of a 100% interest in the Haib Copper project in Namibia, the Company has completed a full revision of all the data available on the project. Further to this revision, the Company has hired P&E Walker Consultancy and Obsidian Consulting Services of South Africa to undertake a resource estimation report in compliance with the National Instrument 43-101.
The Haib project is a large copper-molybdenum porphyry deposit located in the Karas region of southern Namibia, 8 km from the Orange River and the South African border.
The deposit, discovered in the 1950’s, has seen over 50,000 metres of drilling in the 1970’s by companies such as Rio Tinto and Falconbridge Ltd. A report from Behre Dolbear, completed in 1996, estimated the Historical Estimates at Haib as follows:
|Cut-off (%Cu)||GFM Model (Kriging method)|
|Million Tonnes||Grade % Cu|
Since 2010, Teck Namibia (a subsidiary of Teck Resources Ltd.) has completed over 14,000 metres of core drilling with results such as: 121 m @ 0.5% Cu, 494 m @ 0.36% Cu and 30 m @ 0.81% Cu. This drilling data was not included in the Historical Estimate. In order to comply with the National Instrument 43-101 rule and regulation, the new 43-101 resource estimate will incorporate the historical data and the results from the drilling completed by Teck and results from the re-assaying of many drill cores from Rio Tinto drilling programs. Further details are available on our corporate presentation.
The estimates of tonnages and grades quoted in this report were prepared prior to publication of National Instrument 43-101 in 2001 and are considered as Historical Estimates. The historical grades and resources terminology from the original historical reports are to be used only as a reference and should not be considered as a current mineral resource under NI 43-101 but are to be considered as Historical Estimates as per the NI 43-101 Rules and Policies.
No qualified person has done sufficient work to classify the historical estimate as current mineral resources and Deep-South is not treating the historical estimate as current mineral resources or mineral reserves.
P & E Walker Consultancy has prepared a technical review of all the historical data and reports. This NI 43-101 qualification report can be consulted on Sedar at www.sedar.com or on our web site at: https://www.deepsouthresources.com/wp-content/uploads/Haib_NI43-101_May-2016_FINAL.pdf.
Peter Walker B.Sc. (Hons.) MBA Pr.Sci.Nat. is the author of the 43-101 qualifying 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.
INAL project, Mauritania:
The Company has started its due diligence of the project and has begun the revision of all available data. The Company expects to complete the due diligence by mid October 2017 and to propose a complete work program of the delineated targets using the available satellite imagery as well as regional magnetics, gravity and radiometric data and some local and regional geochemistry data.
The Company will proceed with a non-brokered private placement for gross proceeds of up to $750,000 (“the Offering”).
The non-brokered private placement will comprise up to 3,409,091 units (the “Units”) of Deep-South, at a subscription price of $0.22 per Unit. Each Unit will consist of one (1) common share and one half (1/2) of one common share purchase warrant (“Warrant”) of Deep-South. Each full Warrant will entitle the holder thereof to purchase one (1) Deep-South common share at an exercise price of $0.30 during a period of thirty-six (36) months from the date of closing of the placement. Each security issued pursuant to the placement has a mandatory four (4) months holding period from the date of closing of the placement.
The private placement is subject to the approval of the TSX Venture Exchange.
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 porphyry 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 stable countries.
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 statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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.
More information is available by contacting:
Paradox Public Relations at +1-514-341-0408 or Pierre Léveillé, President & CEO at: +1-819-340-0140 or at firstname.lastname@example.org.
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.