Haib copper

History

coreshackThe Haib deposit has a distinct surface expression with abundant copper staining on fractures and joint planes, particularly in and around the dry river bed of the Volstruis River. This led to German prospectors identifying the deposit around the late 1800s or early 1900s. Small tonnages of high grade copper carbonate ore were mined at this time.

After World War II, the prospect was pegged as claims by prospector Mr. George Swanson who carried out small scale mining and tank leaching operations. Over 6,000 tons of hand sorted high-grade copper ore were sold to the O’okiep Copper Mines, across the border at Nababeep in South Africa, reportedly at grades of up to 18% Copper.

In 1963 - 1964 Falconbridge completed a moredetailed exploration programme looking at the higher grade zones within the Haibdeposit. They drilled some eleven diamond drillholes totalling 1,012 metres of drilling. The average grade of the drillhole intersections was given as 0.33% Cu.

During 1968 - 1969 King Resources of South Africa Pty Ltd conducted a diamond drilling programme of 21 holes totalling 3,485 metres. They examined both lower and higher grade sulphide zones, as well as the higher gradeoxide shear zones.

During 1972 – 1975 Rio Tinto Zinc (“RTZ”) conducted the first extensive and systematic investigation of the Haib deposit. Geochemical and chip sampling surveys were conducted along with IP and Resistivity surveys. They drilled one 120 diamond drillholes totalling 45,903 metres. The cores from this programme are still intact and stored in a core shed on site. RTZ sampled by compositing half cores over 2 metre intervals and submitted these for determination of total copper and where appropriate, oxide copper (acid soluble copper). Composite samples from each drillhole were also tested metallurgically to determine recoverable copper and were assayed for molybdenum, silver and gold indicating average contents of 25 g/t Mo, 0.01 g/t Au, and 0.9 g/t Ag. Tonnage and grade estimates at various cut-offs were made and a conceptual pit design was proposed.

In November, 1993 Rand Merchant Bank Ltd of South Africa acquired an option over the Haib property. Venmyn Rand Pty Ltd., produced a study of the project including compilation ofall the available drillhole and assay records from previous investigations and set up a computerised drillhole database. It was concluded that the increase in the copper price since the 1970’s, development of low cost / high tonnage mining systems and new and refined technologies such as bacterial leaching, solvent extraction and electro-winning combined to create a situation where development of the Haib deposit could represent an economic project; however, no further exploration work was done and work terminated in 1995.

In March 1995, Great Fitzroy Mines NL (“GFM”) and RMB  Mr. George Swanson signed a joint venture called Namibian Copper Joint Venture (“NCJV”). From 1995 to 1999, NCJV drilled a 12 infill holes, drilled 5 geotechnical investigation holes, completed 126 metres of excavation in an adit and two crosscuts for bulk sampling and metallurgical testing and carried out various test works including mining cost audits, bio-leaching studies, and milling and grinding studies. NCJV ran into financial difficulties and work was stopped at the Haib deposit in early 1999.

In 2004, Deep-South Mining Company (Pty) Ltd (Deep-South) was granted the Exclusive Prospecting licence 3140 (EPL) was granted over an area of 74,563.0 ha covering the deposit and a very large surrounding area. This was subsequently renewed in April 2007, 2009, 2011, 2013 and 2015 with the area reduced to 37,000ha after the 2007 renewal.

From 2008, Teck under the option Agreement with DSM has completed a comprehensive exploration programme at the Haib and immediate surroundings. (results discussed in the other sections below).

Location
carte-namibia-title_edit

The Haib copper deposit is in the extreme south of Namibia close to the border with South Africa, which is defined by the course of the Orange River. The deposit lies some 12 – 15 kilometres east of the main tarred interstate highway connecting South Africa and Namibia and the nearest railway station is at Grunau, some 120km north on the main highway. This rail connection could provide access to either the port of Luderitz or to Walvis Bay via Windhoek or to South African ports or facilities via Upington.

 

 

 

Regional Geology

The Haib deposit is located within part of the Namaqua-Natal Province called the Richtersveld geological sub-province which is further subdivided into a volcanosedimentary sequence (locally, the Haib Subgroup), the Orange River Group and the intrusive Vioolsdrift suite which are closely related in space and time. The Orange River Group is composed of sub-aerial volcanic rocks and reworked volcaniclastic sediments; deformation caused displacements along stratigraphic contacts before intrusion of the Vioolsdrift suite. The predominance of andesitic and calc-alkaline magmatic rocks with tectonic compression prevailing throughout the magmatic episode has led to an interpretation of an island-arc model for the region. Recent mass spectrography indicated an age of 1,880 Ma for the volcanics.

The principal mineralised hosts at the Haib are a Quartz Feldspar Porphyry (QFP) and a Feldspar Porphyry (FP) – see Figures 4 and 5 below. The QFP is interpreted as a quartz diorite body which intruded the feldspar porphyry some 1,868 ± 7Ma . The FP is generally interpreted as being part of the suite of andesitic rocks although some workers have suggested that it too, may be partially of intrusive origin. The QFP is elongated along the orientation of the Volstruis Valley, largely coincident with the location and orientation of many of the higher grade intersections within the deposit. The sequence has undergone low grade regional metamorphism to greenschist facies which event has been dated at 1,100Ma. Most of the rock exhibits typical porphyry copper type alteration zones associated with mineralisation. A potassic hydrothermal alteration zone coincides with the main mineralised area surrounded by phyllic and propylitic alteration haloes. Propylitic and sericitic alteration appears to overprint the earlier potassic zones. Silicification, sericitisation, chloritisation and epidotisation are widespread.

location-geology

Historical Estimates

A report from Behre Dolbear, completed in 1996, has estimated the Historical Estimates at Haib in a range presented in the table below:

Behre Dolbear models used the Kriging method as the basis for their estimate calculations. Kriging is a statistical estimation technique widely used for porphyry deposits. The other methods used by Behre Dolbear were used for validation of the estimates. Behre Dolbear report was produced from a geostatistical block model completed 1996 by Great Fitzroy Mineral by (“GFM”).

The Historical Estimate comprised principally the compilation and verification of the all drillhole data incorporating all available data to the end of the Rio Tinto Zinc programme completed in 1975 and comprising over 50,000 metres of drilling.

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.

P & E Walker Consultancy, hired to prepare a technical review of all the historical data and reports and acting as Qualified Person has not completed sufficient work to classify the Historical Estimate as current mineral resource under NI 43-101. Deep-South is not treating the Historical Resource as a current mineral resource under NI 43-101.

Haib Historical Estimate - Behre Dolbear / GSM
Cut-off
(%Cu)
GFM ModelBehre Dolbear’s Model
KrigingInverse Distance SquaredNearest Neighbour
Million TonnesGrade % Cu
Million TonnesGrade % Cu
Million TonnesGrade % Cu
Million TonnesGrade % Cu
0.113500.2313530.2313310.2311840.25
0.27300.287390.297260.296300.34
0.32300.372440.372620.382920.46

Teck's Programs and Results

Teck took a more regional view of the project than previous operators. Their exploration objective was to provide the required data to show that the deposit had potential for large-scale mining, particularly if the tonnage or grade, or both, could be improved and that early stage mining could exploit sufficient high-grade mineralization to improve the economics of mining. They started a new exploration program both to investigate the open ended parts of the deposit (deep drilling and extension drilling) and to explore for new, undiscovered outlying mineralization. This had not been previously attempted.

Following this model, from 2008 to date, Teck have completed the following work:

  • A regional stream sediment sampling program collected 276 samples aiming to sample all first and second-order streams every 300m-500m over an area of 320sq.km. This led to the discovery of four adjacent anomalous zones spaced some 2km from the main Haib mineralization;
  • A total of 32 diamond drillholes totaling 14,252 metres. These were drilled within the historically defined main mineralization and on the Eastern, Southern and Western anomalies;
  • Using the Anaconda mapping method, which maps in detail the lithology, alteration, vein type, orientation and intensity on separate overlays, they have mapped about 75% (205 ha) of the area around the 275 ha. Main deposit (at a scale of 1:10,000) and all (90 ha.) of the main deposit at 1:2,000 scale;
  • They have re-logged all of the available (108 out of 120) old RTZ drillholes in detail, again using the Anaconda method. These were all located within the Main Haib deposit.
  • They have re-sampled 14 of the old RTZ drillholes to compare the assay results obtained by RTZ for copper and also to determine the grade of gold, silver and molybdenum.
  • They completed some 83 line kms. of pole-dipole Reconnaissance Induced Polarization (RIP); and another 6 line km. of Audio Magnetotellurics (AMT).
  • They have taken 636 soil samples on grid lines 150m apart with sample spacing of 50m covering an area of 400 hectare across three of the satellite targets.
  • They have constructed a 3-D geological model of the Main Haib zone. This model combines all the surface and down hole geology, assays and geochemistry to constrain the grade envelope in a future resource estimate.

Recent Drilling Results

2010201120122014
121m @ 0.5% Cu &
0.027% mo
39m @ 0.53% Cu &
0.02% Mo
32m @ 0.79% Cu &
0.01% Mo
25m @ 0.66% Cu &
0.019% Mo
494m @ 0.36% Cu &
0.018% Mo
45m @ 0.53% Cu &
0.002% Mo
30m @ 0.81% Cu &
0.007% Mo
53m @ 0.41% Cu &
0.012% Mo

Current Exploration Focus

The main exploration goal on Haib is to define properly the four higher grade areas (+0.50% Cu) delineated within the main deposit in order to define an economic resource that will enable the development of the deposit. The second goal is to proceed with process technology testing in order to define the best and most economical extraction technology for Haib ore. The third goal is to explore the five satellite bodies recently discovered in order to see what tonnage and grade they can add to the main deposit.

We have an extensive data base, which includes most of the past exploration work data and reports. Our data base also comprises 108 well preserved drilling cores from 45,000 meters of drilling carried out by Rio Tinto Zinc in the 1970’s.

The work currently currently in progress will enable to finalize the 3D model, re-estimate the resource and validate the economics. Our most recent focus is:

  • to complete new resource estimate using the geological controls of the 3D model;
  • understand the economic parameters for potential development options;
  • to complete metallurgical test work of samples collected in 2014 in order to define the recoveries of the ore types from the geological model;
  • to finalize a new economic assessment once all the above parameters are understood.


In the past 5 years, Teck has completed the following exploration work:

  • Using the Anaconda mapping method, has mapped the deposit at 1:2,000 scale and surrounding prospects at 1:10,000 scale (total of 70km²)
  • Regional stream sediment, soil and rock chip sampling defining several satellite targets;
  • 85 line km of IP (RIP, PDP and AMT) further defining the satellite targets;
  • Re-logged all of the historic RTZ drillholes in detail (108 total);
  • Re-assayed 14 historic RTZ holes for Mo, and also concluded that the Cu results correlated well with the original RTZ assays;
  • 32 diamond drillholes (14,252m);Drilled within the historically defined orebody, eastern IP anomaly, Haib South and Haib West satellite targets;
  • Combined drilling and surface geological information into new 3D geological model.