Saturday , July 13 2024

Deep-South Resources CEO hails new development in Namibia

Canada’s Deep-South Resources (TSX-V: DSM) can finally resume work at its Haib copper project in Namibia as the country’s government has renewed the miner’s prospecting license for two years.

The awaited permit follows a long-dragged court battle with the country’s mining and energy ministry, which in 2021 declined to re-issue the project’s licence.

Minister Tom Alweendo said a the time that Deep-South had failed to advance to a prefeasibility stage and had not completed the proposed drilling program as planned either.

The Vancouver-based miner took the case to Namibia’s High Court, which in March this year ordered the Ministry to restart Deep-South’s licence renewal application procedure.

“This is a very good news,” president and chief executive officer Pierre Leveille said in the statement. “With the scarcity of major copper developments on the horizon, Haib [holds] promise as a significant undeveloped deposit.”

Deep-South said it had begun preparations to resume the project’s development of as soon as possible.

Shares in the company skyrocketed on Monday after the announcement. They climbed as much as 69% in early trading closing more than 38% higher than Friday’s close to C$0.090.

Haib Copper is a large copper-molybdenum deposit situated 40km from the southern boundary of Namibia. The license covers 370 sq. km (37,000 ha).

When the license renewal was denied, in June 2021, deep-South was underway to complete a 10,000 meters drilling program and reading further metallurgical test work. The company was also was starting an updated resource estimation for a a C$7.1 million ($5.4m) feasibility study and C$25.5 million ($19m) pilot plant.

From April 2017 to April 2021, Deep-South invested more than C$2 million ($1.6m) on the Haib project, including an updated preliminary economic assessment.

According to the PEA, the Haib copper mine has an estimated 24-year life and  production capacity of 35,332 tonnes of copper cathode and 51,080 tonnes of copper sulphate a year.

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