Impact: Positive
Deep-South announced the third batch of 2021 drill results from its Haib Cu deposit in southern Namibia. The program was planned for 10,000m, of which 4,800m (22 holes) was completed in 2021 before Haib’s licence was revoked. Results for six of the twelve pending holes have been released following the recent renewal of Haib’s licence (read note). Assays for the remaining six pending holes are anticipated to be released in a week, while the three final holes from the program are being prepared to be sent for assaying. We view the results from these six holes (~1,194m) positively, as they demonstrate that there are higher-grade zones of Cu and Mo mineralization which were missed with historical drilling. We expect results from this program to feed into an updated mineral resource estimate (MRE) that should help upgrade resources to the measured category in the higher-grade parts of the deposit. We continue to be of the view that Haib is a massive, near-surface, sulfide Cu porphyry deposit with excellent expansion potential. As a top pick in our Q2/23 Producer Preview (read note), Deep-South’s Haib remains among one of our favourite potential copper development assets today.
