Deep-South Met with The Minister of Mines and Energy of Namibia on HAIB Copper Licence Renewal
Representatives of Deep-South Resources Inc. [TSXV:DSM, OTC:DSMTF] met with the Minister of Mines and Energy of Namibia and other Officials of the Ministry of Mines and Energy to voice the Company’s objections to the Minister’s refusal to renew its Haib Copper License. During the meeting, the Company’s representatives had the opportunity to inform the Minister of the work in progress on the project and discuss the reasons provided by the Minister for the refusal to renew the Exploration and Prospecting Licence covering the Haib Copper project.
As a result of the meeting, the Minister informed the Company that he will review all the information provided and reconsider his decision, which will be communicated to the Company in due course.
John Akwenye, Chairman of Deep-South stated, “It was a good meeting with the Honorable Minister and we are hopeful that our representations to the Minister will reach a positive outcome”.
The Company had previously announced a notice received from the Ministry informing Deep-South that its application for the renewal of its EPL has been denied citing the Company’s inability to advance the EPL to Pre-Feasibility and complete the proposed drilling program as planned.
The Company maintains that the Ministry was kept well apprised, with no objection on their part, of a proposed change from the Pre-Feasibility study to upgraded Preliminary Economic Assessment (PEA) and commencement of a full feasibility study. Moreover, the Ministry issued all permits required for the drilling program and are well aware that Deep-South has completed the drilling program.
In its application for renewal and subsequent representations made to the Ministry, the Company maintains that it has clearly demonstrated that it adequately meets the criteria under the Minerals (Prospecting and Mining) Act (Namibia) to justify the renewal of its EPL. Accordingly, the Company is of the opinion that the refusal is unreasonable and unjustified.
As a result of the Minister’s refusal to renew the Licence, the Company has suspended all work on site and hopes that the retrenchment of its employees will be avoided.
The Company has demonstrated to the Minister that during the past two tenures, it has invested CAD$ 2 million with the completion of among other things, a NI 43-101 resource estimation, a Preliminary Economic Assessment (PEA), a large two tons sampling and bio heap-leach test, geological mapping, modelling and an upgraded PEA. Furthermore, in its renewal application, the Company has proposed a Feasibility Study program with a budget of CAD$ 7.1 million.
The program was underway with 3 drills and 42 employees on site. METS and CSIRO of Australia have also begun metallurgical tests, bio-leaching, High Pressure Grinding Roller tests and a flow sheet optimization program in two laboratories in Australia. Knight Piesold also has 4 scoping studies underway covering water usage, alternative power solutions and leach pad assessment and environmental path to the ESIA. The Company has also informed the Ministry that at the completion of the Feasibility Study, it is planning to build a pilot plant on site for an estimated cost of CAD$ 25.5 million.
The Company shares closed at $0.13 cents.