Deep-South Resources Inc (CVE:DSM) (OTCMKTS:DSMTF) has reported more encouraging results from the current 10,000 metre (m) drill program at its Haib copper project in southern Namibia.
The latest assays come from three holes (for over 684m) sunk in the central mineralized portion of the deposit at the Pit 2 target, and all hit mineralization from bedrock or near bedrock surface.
"We continue to have success with our active drill program identifying thick, higher-grade zones. We are consistently intercepting significantly higher grades than the average grade of our NI 43-101 indicated resource that stands at 0.31% copper," said Pierre Léveillé, the CEO of Deep-South in a statement.
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Léveillé added: "The higher-grade zone in Pit 2 extends significantly further west and at depth than previously demonstrated. It’s increasingly apparent that the use of vertical drilling in the past missed many of the near-vertical structures contained within the broader mineralization of the project.
"Those near-vertical structures so far are proving to be associated with a higher grade of copper than contained within the current resource. Additionally, the presence of molybdenum has been confirmed with high Mo grades obtained in association with structures and alterations."
Highlights from the three holes included 0.46% copper equivalent (CuEq) over 156m, including 24 metres at 0.65% CuEq in one, and 0.43% CuEq over 26 metres, including 4 metres at 0.87% CuEq in another.
Around 40% of the 10,000m drill program has been completed, said Deep South, with 19 holes completed and two currently in progress.
Deep-South Resources holds 100% of the Haib deposit, which is one of the largest undeveloped copper deposits in Africa.
A recent preliminary economic assessment (PEA) showed that at a price of copper of US$3 per pound, the project generates an after-tax net present value (NPV) of US$950 million and an after-tax internal rate of return (IRR) of 30%.
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