Deep-South Discloses a NI 43-101 Indicated Resource of 457 MT @ 0.31% Cu and an Inferred Resource of 342 MT @ 0.29% Cu and METS is Near to Completing a Preliminary Economic Assessment (PEA) on Haib Copper in Namibia

2018-01-16 / @thenewswire

(TheNewswire)

--Haib hosts an indicated resource containing 3.12 billion pounds and an inferred resource containing 2.19 billion pounds, at a cut-off grade of 0.25% Cu;

Vancouver, B.C., Canada / TheNewswire / January 16, 2018 – Deep-South Resources Inc. ("Deep-South" or “the Company") (TSX-V: DSM) has disclosed today its independent NI 43-101 Resource estimation on the Haib Copper project in Namibia. Deep-South has also announced that Midas Engineering and Technical Services of Australia (“METS”) has been appointed to complete a Preliminary Economic Assessment (“PEA”), that should be available by the end of February 2018.

Mr. Pierre Léveillé, President & CEO of Deep-South stated that: “With the initial resource estimation completed and the PEA nearly completed, we will now start to evaluate our options and start planning a pre-feasibility study, including further drilling and metallurgy test work.”

Highlights of the Haib Mineral Resource estimate, prepared for Deep-South by P & E Walker Consultancy and Obsidian Consulting Services, both of South Africa, in accordance with the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves:

Table-1: Classified mineral resources of the Haib Project at a 0.25% Cu cut-off grade:

------------------------------------------------------------- |Resource Class|xMillion Tonnes|Cu(%)|Contained Cu x billion| | | | |lbs | |-----------------------------------------------------------| |Indicated |456.9 |0.31 |3.12 | |-----------------------------------------------------------| |Inferred |342.4 |0.29 |2.19 | -------------------------------------------------------------

Notes:

1.Dean Richards of Obsidian Consulting Services, a Member of the Geological Society of South Africa and Professional Natural Scientist (Pr. Sci. Nat) with the South African Council for Natural Scientific Professions (SACNASP), estimated the Mineral Resources under the supervision of Peter Walker of P & E Walker Consultancy, both of whom are the Qualified Persons for the Mineral Resource Estimates. The effective date of the estimate is January 15, 2018. Mineral Resources are estimated using the CIM Definition Standards for Mineral Resources and Reserves (2014).
2.Reported Mineral Resources contain no allowances for hanging wall or footwall contact boundary loss and dilution. No mining recovery has been applied.
3.Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.

Table 2. Haib Copper Indicated Mineral Resources, Sensitivity Cases.

---------------------------------------------------------- |%Cu Cut-off|xMillion Tonnes|Cu(%)|Contained Cu x billion| | | | |lbs | |--------------------------------------------------------| |0.20% |904.8 |0.27 |5.39 | |--------------------------------------------------------| |0.25% |456.9 |0.31 |3.12 | |--------------------------------------------------------| |0.30% |219.8 |0.36 |1.74 | ----------------------------------------------------------

Table 3. Haib Copper Inferred Mineral Resources, Sensitivity Cases.

---------------------------------------------------------- |%Cu Cut-off|xMillion Tonnes|Cu(%)|Contained Cu x billion| | | | |lbs | |--------------------------------------------------------| |0.20% |686.2 |0.26 |3.93 | |--------------------------------------------------------| |0.25% |342.4 |0.29 |2.19 | |--------------------------------------------------------| |0.30% |109.8 |0.34 |0.82 | ----------------------------------------------------------

This Haib Copper Mineral Resource has been defined by diamond core drilling covering a total surface area of some 2.6 square kilometres. The mineral resource classification is closely related to data proximity. Topographic elevations within the mineral resource area vary from 320m to 640m above mean sea level and average 480m above mean sea level. Indicated resources are constrained between the variable topographic surface and a horizontal level which is 75m above mean sea level and within which the majority of the drill and assay data are constrained. Inferred resources are laterally constrained by the last line of drill holes and extend vertically from the horizontal surfaces defined by the +75m and -350m above mean sea level ( a block of 425m thickness) within which there is a lesser data set derived from drilling.

Mineralization is open near surface and at depth to at least 800 metres deep. The Mineral Resource estimate is based on the results from approximately 66,500 metres of drilling in 196 holes. The most recent drilling data comes from Teck Resources drilling programs totalling 14,500 metres (2010 & 2014) and from re-assaying a part of the 164 historical drill cores which are well preserved on site. Indicated Resources are defined by a drill grid of 150 metres by 150 metres, while Inferred Resources are defined by a drill grid of 300 metres by 150 metres.

The Haib Copper exploration licence provides significant potential for resource expansion, since there is known, but poorly drilled and assayed, mineralisation beyond the drill grid boundaries and below the main mineralised body (which covers some 2 square kilometres of surface area), where a few drillholes from 75m above mean sea level to -350m above mean sea level (i.e. a thickness of 425m) have shown that mineralisation is present. The deepest drillhole did not pass out of mineralised material. In addition (see map below), there are 5 satellite mineralised target areas surrounding the main Haib porphyry body which still require further evaluation.

Map 1 – The location of the Haib porphyry deposit and satellite targets within the exclusive prospecting licence area.

Click Image To View Full Size

Mr. Peter Walker of P & E Walker Consultancy is the main Qualified Person for the 43-101 resource estimation report, which has an effective date of January 15, 2018. A technical report will be filed on SEDAR at www.sedar.com and on the Deep-South website at www.deepsouthresources.com shortly after the issuance of this news release.

Preliminary Economic Assessment underway

With the Haib Copper resources estimate completed, Deep-South has retained Midas Engineering and Technical Services of Perth, Australia, to prepare a Preliminary Economic Assessment (PEA) for the further development of the Haib Copper deposit. The PEA, which is expected to be completed before the end of February 2018, concentrates on establishing the economic parameters of potential mining operations at Haib.

METS has examined the latest metallurgical process technology and reviewed the historical test work to develop conceptual ideas for processing options. METS is using the results of their processing study and the Resource Estimates completed by P & E Walker Consultancy and Obsidian Consulting Services.

The METS Engineering report will consider various mineral processing and metallurgical options that will include, amongst others:

- Comminution

- Heavy Liquid Separation

- Colorimetric Sorting

- Bio-Heap Amenability

- Flotation

Four recovery options are considered for economic evaluation:

- Option 1: Ore sorter upgrading, dense media upgrading, flotation and heap leaching of the tails.

- Option 2: Two-stage dense media upgrading, flotation and heap leaching of the tails.

- Option 3: Ore sorter upgrading and heap leaching of the upgraded material.

- Option 4: Whole ore heap leaching.

“The Haib Copper PEA will allow Deep-South’s technical team and consultants to maximize opportunities for project enhancements as we move the Haib Copper Project forward,” said Mr. Léveillé.

Quality Control and Assurance and data verification

The independent qualified persons for the Haib Copper Mineral Resource estimate are Mr. Peter Walker of P & E Walker Consultancy and Mr. Dean Richards of Obsidian Consulting Services.

Obsidian Consulting Services conducted a review of the QA/QC programme implemented by Teck using the certificates of analysis received from Acme Labs and provided by Teck. This review compared the results of field duplicates, blanks as well as the various standards utilised with respect to Cu and Mo.

The design of Teck's drilling programme, quality assurance / quality control programme and the interpretation of results were under the control of Teck's geological staff. The QA/QC programme is consistent with industry best practices. Drill core is logged and cut onsite, with half-core samples prepared at Analytical Laboratory Services, Windhoek, Namibia. Prepared samples are shipped to Acme Analytical Laboratories, Vancouver, Canada for appropriate base metal assaying and gold fire assaying techniques. All analytical batches contain appropriate blind standards, duplicates and blanks inserted at regular intervals to independently assess analytical accuracy and precision.

Mr. Walker and Mr. Richards reviewed the sample chain-of-custody, quality-assurance and quality-control (QA/QC) procedures, and the accreditations of analytical laboratories used by Teck. The QPs are of the opinion that the procedures and QA/QC are acceptable to support Mineral Resource estimation. Mr. Walker also audited the assay database, core logging and geological interpretations and found no material issues with the data as a result of these audits.

In the opinion of the QPs, the data verification programs undertaken on the geological and assay data collected from the Haib Copper support the geological interpretations and the analytical and database quality, and the data collected, can support Mineral Resource estimation.

Qualified Persons

Peter Walker B.Sc. (Hons.) MBA Pr.Sci.Nat. of P & E Walker Consultancy is the main author of the 43-101 resource estimation report and is responsible for the technical part of this press release, and is the designated Qualified Person under the terms of National Instrument 43-101.

Mr. Dean Richards Pr.Sci.Nat. , MGSSA – BSc. (Hons.) Geology, of Obsidian Consulting Services is the contributing author of the 43-101 resource estimation report and is a Qualified Person under the Terms of the National Instrument 43-101.

About Deep-South Resources Inc.

Deep-South Resources Inc. is a mineral exploration company largely held by Namibian shareholders and Teck Resources Ltd, which holds about 35% of Deep-South share capital. Deep-South is actively involved in the acquisition, exploration and development of major mineral properties. Deep-South currently holds 100% of the Haib Copper project in Namibia, one of the largest copper porphyries in Africa. Deep-South’s growth strategy is to focus on the exploration and development of quality assets, in significant mineralized trends, close to infrastructure, in politically stable countries.

More information is available by contacting Pierre Léveillé, President & CEO at

+1-819-340-0140 or at: info@deepsouthresources.com or

Paradox Public Relations at +1-514-341-0408.

Cautionary statement on forward-looking information

Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws.

Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the company’s current expectations regarding future events, performance and results and speak only as of the date of this release.

All such forward-looking information and statements are based on certain assumptions and analyses made by Deep-South’s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices, including the price of copper; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations, and the results of economic studies and evaluations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading “Risk Factors” in the company’s most recently filed MD&A filed by Deep-South. Readers are cautioned not to place undue reliance on forward-looking information or statements. The factors and assumptions used to develop the forward-looking information and statements, and the risks that could cause the actual results to differ materially are set forth in the “Risk Factors” section and elsewhere in the company’s most recent Management’s Discussion and Analysis report and Annual Information Form, available at www.sedar.com.

This news release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i) fluctuations in copper prices or other mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies; (iv) changes to proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licences, or changes to any such permits, approvals or licence.

Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.