Deep South Resources Advances Copper Projects in Namibia and Zambia

• Deep South Resources (DSM) is a Canadian exploration company listed on various stock exchanges.
• The company is focused on copper exploration projects in Namibia and Zambia.
• DSM has been involved in a legal dispute with the government of Namibia over a copper exploration license for the Haib Copper deposit.
• The legal dispute arose when the Ministry of Mines declined to renew DSM's exploration license in June 2021.
• After a legal battle, the High Court canceled the ministry's decision and ordered a review of the application procedure, taking into account DSM's significant investments and activities on the project. The court also revealed instances of alleged corruption involving the previous technical advisor and mining commissioner.

About Deep South Resources

Deep South Resources is a copper exploration company listed on the TSX Venture Exchange in Canada, OTCQB in the U.S., and in Frankfurt. The company is focused on advancing its copper projects in Namibia and Zambia.

Interview with President and CEO Pierre Léveillé

Namibia Copper Project Back on Track

Deep South's main project is the Haib copper project in Namibia. The project contains an estimated 850 million ton inferred and indicated resource with copper grades between 0.29-0.31%. Deep South sees potential to significantly expand the resource and improve grades.

In June 2021, Deep South's mining license renewal was denied by the Namibian Ministry of Mines and Energy. This forced Deep South to halt operations and pursue legal action. In March 2023, the court ruled in Deep South's favor, cancelling the ministry's decision and ordering them to reopen Deep South's license renewal application.

According to CEO Pierre Olivier, it will likely take 1-2 months to finalize the renewal. Once approved, it will take 2-3 months to mobilize equipment and staff to resume operations. Metallurgical sampling and environmental studies will restart immediately, followed by exploration drilling.

Potential to Unlock Higher Grade Zones

Deep South has identified high grade zones related to shear zones and faults that were previously unmapped. These structures trend vertically, which means historical vertical drilling likely missed them. Assaying for byproduct molybdenum could also boost copper equivalent grades by 10%. By targeting high grade zones and molybdenum, Deep South sees potential to increase average grades from 0.31% up to 0.40-0.45% copper equivalent.

Pre-Feasibility Study Targeted for 2024

Deep South plans to skip an updated Preliminary Economic Assessment and go directly to a Pre-Feasibility Study (PFS), which it aims to complete in 2024. This will be followed by a full Feasibility Study, likely in 2026. The PFS will incorporate updated cost estimates to reflect changes in the mining industry over the past few years.

Zambia Exploration Provides Diversification

Beyond the Namibia project, Deep South acquired prospective copper exploration licenses in Zambia in 2019. This provides asset diversification and upside potential from new discoveries.

Deep South commenced field programs on two Zambian licenses in January 2023. This work involves mapping, sampling, and geophysics to define drill targets. Drilling could begin later this year. Due to the early stage of exploration in Zambia, Deep South can advance both projects simultaneously at modest cost.

Legal Victory Sets Stage for ProgressThe court ruling was a major victory for Deep South after the turmoil of the past 18 months. With its Namibia mining license renewal imminent, Deep South is now poised to resume project development. In the near-term, investors can expect a return to exploration activities and studies. Longer-term, Deep South aims to outline a world-class copper resource and complete feasibility studies by the middle of the decade.

Conclusion

With copper fundamentals remaining strong but junior miners out of favor, Deep South offers a compelling risk/reward proposition for investors. For those with a long-term outlook on electric vehicle demand growth, Deep South provides leveraged exposure to rising copper prices. As the Namibia project progresses towards production, Deep South's value proposition will become difficult to ignore.