Deep South Resources

Discussion in 'Penny Stocks' started by rickydi, Mar 14, 2021.

  1. rickydi

    rickydi Senior Investor

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    https://www.kitco.com/news/2021-05-...es-to-13-000-or-even-20K-Bank-of-America.html

    Copper's supply crunch will drive prices to $13,000 or even $20K - Bank of America

    Copper's unprecedented run to a 10-year high of $10,000 per tonne on the London Metals Exchange (LME) could just be the start of a much larger uptrend, according analysts at Bank of America.

    In a report Monday, the bank's analysts said that they could see copper prices rallying to $13,000 a tonne as the market continues to see a significant supply crunch and growing demand. Copper prices on the LME are currently trading at $9,932.50 a tonne , down 0.32% on the day.

    The analysts noted that the copper supply, as measured by inventories in LME warehouses, is at its lowest level in 15 years. They added that stocks could currently cover 3.3 weeks of demand.

    "The fundamental backdrop is so concerning because the global economy is just now starting to open up and reflate," the analysts said. "With LME inventories close to the pinch-point at which time spreads can move violently, there is a risk backwardation, driven by a rally in nearby prices, may increase."

    Bank of America said that the copper market is in a similar situation as nickel prices in 2006 and 2007.

    "A lack of nickel in LME warehouses pushed nickel prices up by +300%," the analysts said.

    But the growing supply imbalance in the marketplace isn't just a short-term problem. Bank of America said that it expects the supply crunch to get even worse in 2022. Analysts see the copper deficit growing to 185 tonnes this year and doubling to 369 tonnes by next year. Bank of America sees the market being balanced in 2023 with a surplus of 252 tonnes.

    While mine supply of copper is expected to remain constrained in the next few years, BofA said that they expect to see a significant increase in recycled supply. They noted that secondary copper markets are smaller and more volatile, but they account for 25% of the market. The analysts added that the scrap copper supply could increase to 6,700 tonnes by 2025.

    However, they added if this doesn't materialize, then prices could be on their way to $20,000 per tonne.

    "If our expectation of increased supply in secondary material, traditionally a non-transparent market, was wrong, inventories could deplete within the next three years, giving rise to even more violent price swings that could take the red metal above $20,000/t ($9.07/lb)."

    Although copper prices are expected to continue their upward trajectory, Bank of America does not expect that higher prices will impact global economic growth.

    "Copper constitutes a relatively small share in the global economy," the analysts said. "Indeed, even if copper traded at $12,000/t ($5.44/lb) this year, its usage measured as a percentage of the global nominal economy would not exceed previous peak levels seen in 1970."
     
  2. rickydi

    rickydi Senior Investor

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    https://www.barchart.com/stocks/quotes/DSM.VN/overview

    Barchart Technical Opinion
    STRONG BUY

    The Barchart Technical Opinion rating is a 100% Buy with a Strongest short term outlook on maintaining the current direction.

    Long term indicators fully support a continuation of the trend.

    3rd level resistance 0.268¢

    52 weeks high 0.30¢

    14 day RSI @ 80% 0.362¢


    New High With Cu price in a Bull Run, highly probable

    upload_2021-5-6_12-57-31.png
     
  3. rickydi

    rickydi Senior Investor

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    What Bloomberg says:

    Apr.29 -- "Bloomberg Commodities Edge" talks to the smartest voices in the commodity world about the companies, the physical assets and the trading behind the hottest commodities. This week Bloomberg's Alix Steel discusses copper's rally to $10,000, the gain in agricultural prices and Glencore's sustainability strategy.


     
  4. rickydi

    rickydi Senior Investor

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  5. rickydi

    rickydi Senior Investor

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  6. rickydi

    rickydi Senior Investor

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    DEEP SOUTH RESOURCES TSX.V: DSM OTCQB: DSMTF

    The surge in copper futures is a clear sign of the structural deficit for the conductive metal. Look around your home or office and you’ll quickly see how our society is plugged in to so many devices and tools which didn’t exist ten years ago.

    Bank of America forecasts global copper consumption to rise 6% to 24.76 million tonnes in 2021.


    McKinsey & Co. estimates global electricity consumption will double by 2050, led by the electrification of transport and buildings.


    Want to understand the momentum behind surging copper prices?

    Copper is central to the development of a clean energy infrastructure and the massive build out of electric vehicles.

    Without copper, there is no clean future.

    upload_2021-5-8_8-43-6.png

    Renewable energy is a powerful trend around the world.

    Communities build new windmills, solar farms and industrial-scale batteries every single day.

    And with every windmill, solar panel, and battery installed… the world is building a supply-demand imbalance in one critical metal: copper.

    Solar panels use 5.5 tons of copper per megawatt. Wind turbines on land use 3.9 tons of copper per megawatt. Offshore wind turbines use a whopping 10.5 tons of copper.

    According to ABB Velocity Suite research, the U.S. installed 3.5 gigawatts of new wind farms in the first half of 2020, and has another 21 gigawatts under construction. That works out to more than 95,000 tons of copper.

    And according to the Solar Energy Industries Association, there are 115 gigawatts of new solar projects under construction or development. Those will require another 728,000 tons of copper.

    The U.S. consumed 1.8 million tons of copper in 2019.

    So, these energy projects alone equal 40% of that demand. The copper demand from just the wind and solar projects in the U.S. is equal to about 3% of global copper mine output.

    That’s a huge increase in demand. But supply isn’t keeping up.

    That’s why copper prices are on the rise. Just look at this chart of the copper price:

    upload_2021-5-8_8-43-53.png

    As copper prices rise in response to rising demand for copper assets, mines and deposits will go up in value.

    We saw this play out from 2002 to 2011, when the copper price rose from $0.65 per pound to $4.63 per pound. That was a 612% climb for the copper price…and it could be happening again now.

    Deep South Resources (TSX.V:DSM OTCQB:DSMTF)is advancing its wholly-owned, world-class Haib copper project in low-risk, mining-friendly Namibia to feasibility stage.

    The copper porphyry deposit, which sits within a 37,000 hectare (ha) property, is arguably the oldest of its type in the world and one of the largest in Africa.

    The project already boasts an Indicated resource of 3.1 billion pounds of the red metal, while 2.2 billion is classed as Inferred and there is potential to expand the size and grade.

    The deposit defined so far covers a surface area of 2.6 square kilometres (sq km) and a depth of around 350 metres (m). There is a high-grade area containing 140 million tonnes.

    In February, Deep-South revealed it had appointed MSA Group of South Africa to lead work on an updated NI 43-101 resource estimate for its Haib copper project.

    The updated resource estimate will follow the completion of Deep-South’s current drilling program, which is focused mainly on growing the higher-grade zone of the deposit uncovered by the company in 2019.

    The company has also identified five new potential satellite targets at Haib, which could further boost the resource tonnage when drilled out.

    The company aims to sink up to 10,000 metres (m), with a first phase of 5,000m, mainly focused on growing the higher-grade zone of the deposit

    Late last year, Deep-South unveiled the results of an update to its May PEA for the Haib copper project, which showed a dramatic improvement to the numbers, when using a higher copper price.

    Updated PEA for Haib that shows an after-tax NPV of US 1.3 Billion and an after tax IRR of 42.1% at a copper price of $3.50 per lb.
     
  7. rickydi

    rickydi Senior Investor

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    Deep-South Resources (CVE: DSM) CEO Pierre Leveille joined Steve Darling from Proactive with news the company has picked the team that will produce an updated resource estimation for their Haib copper project located in the south of Namibia. Leveille telling Proactive the report will follow the completion of the current drilling program. The contract includes site visits to verify data collection, quality assurance and controls.

     
  8. rickydi

    rickydi Senior Investor

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    https://www.stockwatch.com/News/Item/Z-C!DSM-3078012/C/DSM

    ORIGINAL: Deep-South Intersects 152 Metres of 0.47% CuEq, Including 30 Metres of 0.81% CuEq from Surface

    2021-05-10 08:15 ET - News Release

    Vancouver, B.C., Canada – TheNewswire - May 10, 2021 – Deep-South Resources Inc. (" Deep-South " or “ the Company ") (TSXV:DSM) (OTC:DSMTF) announced today the first assay results from its current drilling program at its Haib Copper project in southern Namibia.

    Significant copper and molybdenum intersections include:

    · - HM06 : 0.47% CuEq over 152 metres, including 30 metres at 0.81% CuEq

    - HM07 : 0.42% CuEq over 128 metres, including 14 metres at 0.57% CuEq

    - HM10 : 0.65% CuEq over 36 metres, including 12 metres at 1.04% CuEq

    Pierre Leveille, President & CEO of Deep-South stated that: " We are extremely enthusiastic by the first results from our active drill program. Previous drilling programmes point to the presence of higher grade zones of Cu, probably associated with near vertical structures within the broader mineralised areas of the project. The use of vertical drilling in the past potentially missed those structures during those programs resulting in an underestimation of overall grade. This current drilling program is looking to redress this through the use of inclined holes to identify and delineate these structures and test the association with higher Cu grade zones. These first results seem to support this updated interpretation, showing substantial intersections at Cu grades considered high for Haib. Additionally the presence of molydenum has been confirmed with high Mo grades obtained in association with structures and alterations. Furthermore, three holes have expanded the size of Pit 2 in the higher-grade area.

    The first five holes for which assay results have been received cover some 800.60 metres and were drilled on central mineralised portion of the deposit to better delineate the extension of this zone to other mineralised areas located to the northwest and southwest. The holes have successfully encountered intercepts of mineralization from bedrock or near bedrock surface. Assay results for the holes are tabulated below:

    |Significant | |Cu | |Intersections |

    |-------------------------------------------------------|

    |Hole#| Zone |From | To (m)| Width | CuEq| Cu (%)| Mo (%)|

    | | | (m) | |(m)1 | (%)2| | |

    |-------------------------------------------------------|

    |HM01 |Main |28,00 | 34,00 | 6,00 | 0,38|0,38 |0,001 |

    |-------------------------------------------------------|

    |HM06 |Main |0,00 |152,34|152,34 |0,47|0,45 |0,006 |

    | |-------------------------------------------------|

    | |Including|4,00 |42,00 | 38,00 |0,66|0,64 |0,005 |

    | |-------------------------------------------------|

    | |Including|54,00 |84,00 |30,00 |0,81|0,79 |0,007 |

    |-------------------------------------------------------|

    |HM07 |Main |32,00 |160,00 |128,00| 0,42|0,38 | 0,011 |

    | |-------------------------------------------------|

    | |Including|38,00 |52,00 | 14,00 | 0,57|0,53 |0,011 |

    | |-------------------------------------------------|

    | |Including|92,00 |104,00 |12,00 | 0,49|0,43 | 0,019 |

    | |-------------------------------------------------|

    | |Including|136,00|152,00| 16,00 |0,53|0,49 0,012 |

    |-------------------------------------------------------|

    |HM08 |Main |10,00 |28,00 | 18,00 |0,26|0,22 |0,011 |

    | |-------------------------------------------------|

    | |Main |44,00 |94,00 |50,00 |0,59|0,53 |0,017 |

    | |-------------------------------------------------|

    | |Including|48,00 |64,00 | 16,00 |0,88|0,84 |0,012 |

    |-------------------------------------------------------|

    |HM10 |Main |66,00 |102,00 |36,00 |0,65|0,60 |0,016 |

    | |-------------------------------------------------|

    | |Including|68,00 |80,00 | 12,00 |1,04|0,90 ,043 |

    | |-------------------------------------------------|

    | |Including|82,00 |86,00 4,00 |0,72|0,72 |0,001 |

    | |-------------------------------------------------|

    | |Main |114,00|120,00 |6,00 |0,46|0,45 |0,002 |



    1. Width refers to intersection width; true widths have not been determined.
    1. 2. CuEq (copper equivalent) has been used to express the combined value of copper and molybdenum and is provided for illustrative purposes only. No allowances have been made of recovery losses that may occur should mining eventually result. Calculations use metal prices of US$3.00/lb copper, US$10/lb molybdenum using the formula: CuEq% = Cu% + (Mo% [$10/$3])


    Holes HM06 and HM08

    Both were on the central mineralised zone (Pit2) and HM08 was positioned to test the westward extension of this zone. Another zone (Pit3) is located to the northwest of Pit2 and HM06 was located to delineate the continuity of Cu grade between these two zones. HM08 encountered a high Cu intersection over 50m, extending high grades in Pit2 both southwards and westwards. High Mo grades were also returned from the upper portions of this hole. HM06 encountered significant Cu grades from surface for its entire length. Not only has it extended high grades to surface but indicates that high grade continuity between Pit2 and Pit3 is more extensive than previously demonstrated , A section cross these two holes is show below in Figure 1.

    Figure 1: Vertical section looking west showing results for HM06 and HM08. The outline of the 0.4% Cu contour previously derived from LeapFrog TM is shown.

    upload_2021-5-10_9-25-40.png


    Holes HM07 and HM10

    Also drilled on the central high grade zone, Pit2, HM06 was planned as an infill hole to confirm the high grade extrapolated between relatively widely space holes, while HM10 tested to extension of the Pit2 high grades towards the northeast. Both holes encountered significant Cu intersections with HM07 confirming the presence of the high grade zone. HM10 shows the mineralization potentially extends significantly further north than previously shown. A vertical section for these two holes is shown in Figure 2.

    upload_2021-5-10_9-26-58.png

    Figure 2: Vertical section looking northwest showing results for HM07 and HM010. The outline of the 0.4% Cu contour previously derived from LeapFrog TM is shown.

    Drill Program Update

    Two drill rigs are active on the property, fourteen holes have been completed, and two holes are currently in progress. Results for five holes have been received and released. A further six holes have been completed, processed, and submitted to the lab for assay with results pending. The program is planned for 10,000 metres, of which 25% has been completed to date. The Haib Copper Deposit is one of the oldest porphyry deposits in the world at 1.8 billion years old (archean). Over time, it has seen several transformations resulting in shearing and faulting events. Those events have re-mobilized and concentrated the mineralization along the shears and faults.


    The specific focus of this drilling campaign is to further delineate and grow the higher-grade zone(s) of the Haib deposit uncovered by Deep-South in 2019 with the ultimate goal of establishing a measured resource over that higher-grade section of the deposit . The Company also plans to drill a number of holes to depths greater than 350 meters to test the vertical extent of the deposit. The MSA Group of South Africa has been appointed to provide an updated NI 43-101 resource estimation after the drilling program completion.


    About the Haib Copper deposit

    The Haib Copper project hosts a porphyry copper deposit containing a NI 43-101 compliant indicated resource estimate of 457 MT @ 0.31% Cu for 3.12 billion lbs copper and an inferred resource estimate of 342 MT @ 0.29% Cu for 2.19 billion lbs copper. Deep-South disclosed a robust Preliminary Economic Assessment (PEA) on December 15, 2020. The press release disclosing the NI 43-101 resource estimation and the PEA reports can be seen here: https://www.deepsouthresources.com/...te-returns-singnificantly-improved-economics/


    The recent preliminary economic assessment showed that at a price of copper of $3.00 / lb, it generates an after-tax NPV of $950 million and an after-tax IRR of 30%. At $4.00 / lb, it generates an after-tax NPV of $1,650 million and an after-tax IRR of 42%. (See the press release here: https://www.deepsouthresources.com/investors/news-releases/deep-south-pea-update-returns-singnificantly-improved-economics/
     
  9. rickydi

    rickydi Senior Investor

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    Deep-South Resources (CVE: DSM-OTC: DSMTF) CEO Pierre Leveille joined Steve Darling from Proactive to bring news the company has released their first drill results from their current program at the Haib Copper project in southern Namibia. Leveille telling Proactive they saw significant copper and molybdenum intersections with numbers like 0.47% CuEq over 152 metres, including 30 metres at 0.81% CuE and 0.65% CuEq over 36 metres, Leveille also told Proactive a change in the way drilling has been done in the past is being proven successful with these first results


     
  10. rickydi

    rickydi Senior Investor

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    https://www.stockwatch.com/News/Item/Z-C!DSM-3080933/C/DSM


    ORIGINAL: Deep-South Appoints Knight Piesold to Produce Scoping Studies on the Haib Copper Project in Namibia

    2021-05-13 08:50 ET - News Release

    Vancouver, B.C., Canada – TheNewswire - May 13, 2021 – Deep-South Resources Inc. ("Deep-South" or “the Company") (TSXV:DSM) (OTC:DSMTF) today announced that it has appointed Knight Piésold Consulting to conduct scoping studies and assessments on the Haib Copper Project in Namibia. Knight Piésold has extensive experience in environmental, bulk water supply, power, and heap leaching projects in Namibia and Southern Africa.

    The scoping studies include:

    Water Supply Scoping Study: Knight Piésold will undertake a high level assessment of the various water options available to the Haib project from surface and groundwater sources. Aspects to consider will include costs, reliability and environmental processes required, with a special focus on gaps and recommendations for future studies.

    Alternative Power Supply Scoping Study: Knight Piésold will undertake an assessment of the various power options available to the Haib project including renewable power, and will preliminary size the required infrastructures. Aspects to consider will include technical requirements, costs, reliability, environmental and permitting processes required.

    Environmental reconnaissance and road map to the Environmental and Social Impact Assessment (ESIA): Knight Piésold will undertake an assessment of the various parameters and conditions needed to complete an ESIA and will deliver a roadmap to ESIA and recommendations particularly in terms of project schedule and key milestones to be achieved.

    Heap leach pad conceptual assessment: Knight Piésold will undertake a review of previously completed work, conceptual sizing and design of the heap leach pad, ponds and irrigation system and recommendations for future studies. Project information review will include leach column tests, conceptual sizing of the heap leach pad and ponds, dynamic water balance, review of alternatives, gap analysis, project risks identification and recommendations.

    Pierre Leveille, President & CEO of Deep-South stated, "We are delighted to initiate a collaboration with Knight Piésold, a leader in mining engineering, which has a vast experience in Namibia. We are confident that their studies will provide strong guidance and will add value to the project.”

    About Knight Piésold

    Founded in South Africa 100 years ago, Knight Piésold operates in over 15 countries around the world and has an office established in Namibia since 2008. Knight Piésold is an engineering and environmental consulting firm offering core services for the mining, power, environment, water resources, and infrastructure industries. Their interdisciplinary teams have worked on over 400 mining projects globally and have participated in the design and construction management of large scale national infrastructures in Southern Namibia such as the Neckartal Dam. Vis it Knight Piésold here: https://www.knightpiesold.com/en/

    About Deep-South Resources Inc

    Deep-South Resources is a mineral exploration and development company. Deep-South holds 100% of the Haib Copper deposit in the south of Namibia. Haib is one of the largest undeveloped copper deposits in Africa.

    The recent preliminary economic assessment showed that at a price of copper of $3.00 / lb, it generates an after-tax NPV of $950 million and an after-tax IRR of 30%.

    At $4.00 / lb, it generates an after-tax NPV of $1,650 million and an after-tax IRR of 42%. (See the press release here: https://www.deepsouthresources.com/investors/news-releases/deep-south-pea-update-returns-singnificantly-improved-economics/ )

    Deep-South growth strategy is to focus on the exploration and development of quality assets in significant mineralized trends and close to infrastructures in stable countries. In using and assessing environmental friendly technologies in the development of its copper project, Deep-South embraces the green revolution.

    This press release contains certain "forward-looking statements," as identified in Deep- South’s periodic filings with Canadian Securities Regulators that involve a number of risks and uncertainties.

    There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
     

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