Deep-South fighting for licence

By Staff reporter / September 02, 2021 / www.mining-journal.com / Article Link

The Canada-based company had sought an urgent interdict to prevent the grant of a licence over the same area in July, when it also applied for a review of the refusal decision.

It said yesterday the High Court of Namibia had rendered a decision to interdict and restrain the ministry of mines and energy from granting a licence over Haib, until the final determination of the application to review the decision.

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 prefeasibility 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).

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