Haib Copper Porphyry Potential Attracts High Profile Advisors and Consultants to Assist with Development
Deep-South Resources Inc. (CA:DSM – $0.25 & US:DSMTF – $0.20 & GER:DSD – €0.15) presented an updated Preliminary Economic Assessment (PEA) for Haib in 2020. The report considered various economic parameters as part of the evaluation for the economic potential for the project.
Among the options investigated, the amenability of a bio heap leaching processing circuit was considered. This is a processing technology that activates bacteria as part of a chemical process to break down chalcopyrite mineralization. In effect, bioleaching accelerates the natural oxidation of certain minerals such that copper may be more efficiently recovered. Preliminary testing indicated the potential to achieve greater than 82% copper recovery using the process. The report recommended that more detailed metallurgical testing be completed, along with further evaluation using different bacterial strains to optimize performance.
While the PEA documented robust potential economics for Haib, the importance to achieve optimum processing efficiency is a priority. Deep-South recognizes the technical challenges involved in the development of this highly specialized processing solution. The Company made the strategic decision to recruit experienced personnel to lead the process. This week, Deep-South reported that Dr. Martinez Bellange has been appointed to serve as a Special Advisor. This role will enable Bellange to contribute technical and operational experience towards the design of a bioleaching circuit for Haib.
Dr. Martinez Bellange Appointed Special Advisor to Enhance Development of Processing Technology
Bellange is the ideal candidate for this position given his previous experience with Codelco Tech, a subsidiary of senior copper mining conglomerate Codelco. Codelco is a state owned enterprise based in Chile and is the largest copper mining company in the world. Codelco Tech was established as a division to advance innovation and technology development. Bellange served as Director of Hydrometallurgical and Biotechnological Processes at Codelco Tech. He was involved in the development of bioleaching technology that was operated by Codelco to achieve greater processing efficiency.
Bellange formerly participated with BioSigma S.A. as Industrial Researcher and Project Manager. BioSigma was also a subsidiary of Codelco that amalgamated into the new corporate structure with the formation of Codelco Tech. This was in order to streamline and centralize technology development into one operating subsidiary.
During his tenure with the technology development divisions of Codelco, Bellange contributed to advance bioleaching technology. Codelco achieved improved economic performance from its recovery operations using these solutions. His background and expertise will be called upon to lead development of an optimized recovery circuit for the Haib project.
Australian National Science Agency CSIRO Selected for Metallurgical Test Work of Bioleaching Circuit
The design of a processing plant is both a technical and theoretical challenge. A flow sheet must optimize all of the known variables for a mineral deposit is based on precise and accurate test data. Recall that METS Engineering Group was recently chosen to supervise a metallurgical testing program for sample material representative of the Haib copper deposit.
METS is leading the overall metallurgical evaluation process for the project. Included in this full suite of testing is a program to evaluate bioleaching circuit performance. This week, Deep-South confirmed that the national science agency of Australia, Commonwealth Scientific and Industrial Research Organization (CSIRO), has been appointed to manage that portion of the metallurgical testing regime. CSIRO will provide expertise directly focused on recovery options using sample material from the Haib porphyry deposit.
Among the largest and most diverse scientific agencies worldwide, CSIRO is considered to be a specialist in bio-assisted heap leaching technology. The test work will include evaluating the performance of bacterial strains to optimize ore processing efficiency. Solvent extraction and processing reagents will also be investigated for the recovery of copper and molybdenum.
Positive Trend for Copper Price Provides Additional Economic Incentive for Development of Haib Project
In addition to the robust economic potential that is identified in the PEA, the rising copper price is contributing another tailwind to support development of the project. Deep-South is engaged to determine the most economic mining scenario and optimum recovery efficiency to produce copper and molybdenum. With the establishment of a mine at Haib, the continued strength in the price of copper would contribute to higher profit margins for the operation and even stronger fundamental economic performance.
There are few large new copper development prospects in the pipeline. The copper mining sector has been dealing with gradual depletion problems for more than a decade. Existing mines have gradually exhausted the most productive resource zones and the average grade of remaining copper resources is also declining.
While the price of copper recently hit an all-time high, many analysts are convinced that the bull market will continue for several more years. This fundamental set up is extremely favorable for emerging development stories like Deep-South. As studies continue towards the advancement of Haib, the stronger outlook for copper will be a driving force.
Note that on Monday May 24th, at 2pm ET you are invited to join an online webinar in which Deep-South Resources will give a presentation and corporate overview. Make sure to tune in.
Deep-South has made the commitment towards establishing a producing mine at the Haib project. This is demonstrated by the caliber of the various individuals and consulting firms that have been chosen to participate. The selection of the best people in each field to complete the studies will provide a measure of confidence in the reports that are issued thereafter. This is particularly important in the development of the processing and recovery circuits. The appointment of Dr. Martinez Bellange is a big step forward to achieve a process design that delivers optimum performance.
Steady progress continues on all fronts. The ongoing drilling program at Haib is on schedule with two drills currently in operation. Assay results from this drilling will provide additional news flow of interest to investors. Meanwhile, the various tests and studies are advancing towards completion. The results may then enable the Haib project to advance further along the value curve.
This favorable trend for the project, aligned with a steady bull market for copper, is contributing to a higher market value for the Company. Haib is one of the most exciting copper development candidates. In a sector where most of the action is limited to a handful of very large mining companies, this junior explorer is walking in the footprints of giants. Smallcaps Recommendation: BUY.
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