While its legal fight over a denied license renewal continues, Deep-South Resources has successfully barred anyone else from exploring the Haib copper property in Namibia.
In July, the Canadian corporation moved for an immediate interdict to prevent the grant of a license over the same territory, as well as a reconsideration of the denial decision.
It stated the High Court of Namibia had issued an order prohibiting the ministry of mines and energy from issuing a license over Haib until the final result of the application to appeal the decision was made.
Orange River Exploration and Mining had applied for an Exclusive Prospecting Licence over Haib in November.
Deep-South was refused its licence renewal in June, an issue the company had initially believed was a misunderstanding, but was then told it was due to its inability to advance to pre feasibility and complete the proposed drilling programme as planned.
Deep-South maintains the ministry was kept well informed and had not objected to a proposed change to an upgraded preliminary economic assessment and a full feasibility study, which had commenced.
The matter will return to court on September 16.
The company had acquired the remainder of Haib in 2017 from Teck Resources, which is one of its major shareholders.
The updated PEA in December had put Haib’s after-tax NPV7.5 at US$957 million and IRR at 29.7% using a $3/lb copper price, envisaging a 24-year mine producing 35,332 tonnes per annum copper cathodes and 51,080tpa copper sulphate.
Deep-South shares (TSXV: DSM), which are trading near a one-year low, gained 11% or C0.5c yesterday to close at 5c and capitalise it at $7.3 million (US$5.8 million).