Haib Copper Project 2020 Updated Preliminary Economic Assessment
Total Page:16
File Type:pdf, Size:1020Kb
METS Engineering Group Pty Ltd (METS) Haib Copper Project 2020 Preliminary Economic Assessment For Deep-South Resources Inc. 2906 West Broadway, Suite 162, Vancouver, BC. Canada V6K 2G8 Prepared by Qualified Persons: – Principal Author – DAMIAN CONNELLY B.App.Sc. FAusIMM. (CP) Met. FIEAust. Contributing Authors – PETER W.A. WALKER B.Sc. (Hons.) MBA Pr.Sci.Nat. F.S.E.G. M.G.S.S.A. Walker Consultancy cc DEAN S. RICHARDS B.Sc. (Hons.) Geol. Pr.Sci.Nat. M.G.S.S.A. Effective Date: 28th May 2020 Report Date: 30th April 2020 CONFIDENTIALITY This document and its contents, including work scope, methodology and commercial terms will be treated in strict confidence by Deep-South Resources Inc. and the contents will be used by Deep-South Resources Inc. only for their own use. Passing of this document to a third party, duplication or re-use of this document, in whole or part, electronically or otherwise, is not permitted without the expressed written consent of METS Engineering Group Pty Ltd. DISCLAIMER With respect to all the information contained herein, neither METS Engineering Group Pty Ltd, nor any officer, servant, employee, agent or consultant thereof make any representations or give any warranties, expressed or implied, as to the accuracy, reliability or completeness of the information contained herein, including but not limited to opinions, information or advice which may be provided to users of the document. No responsibility is accepted to users of this document for any consequence of relying on the contents hereof. J5329 – DEEP-SOUTH RESOURCES INC. CLIENT REV DESCRIPTION ORIG REVIEW APPROVAL DATE DATE APPROVAL A Issued for Internal Review LZ DC 01/02/2020 B Issued for Internal Review LZ DC 17/03/2020 C Issued for Client Review LZ DC DC 18/03/2020 D Issued for Internal Review LZ DY 20/03/2020 Updated based on Internal E LZ DC 25/03/2020 and Client Review Updated based on client F LZ DC 30/04/2020 review Updated based on client G LZ DC DC 27/05/2020 review IMPORTANT NOTICE This notice is an integral component of the Haib Copper Project 2020 Preliminary Economic Assessment and should be read in its entirety and must accompany every copy made of the Haib Copper Project 2020 Preliminary Economic Assessment. The Haib Copper Project 2020 Preliminary Economic Assessment has been prepared using the Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Haib Copper Project 2020 Preliminary Economic Assessment has been prepared for Deep-South Resources Inc. (Deep-South) by Mineral Engineering Technical Services (METS); and P&E Walker Consultancy and Obsidian Consulting Services as the Report Contributors. The Haib Copper Project 2020 Preliminary Economic Assessment is based on information and data supplied to the Report Contributors by Deep-South and other parties. The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in the services of the Report Contributors, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. Each portion of the report is intended for use by Deep-South subject to the terms and conditions of its contracts with the Report Contributors. Except for the purposes legislated under Canadian provincial and territorial securities law, any other uses of the report, by any third party, is at that party’s sole risk. The conclusions and estimates stated in the Haib Copper Project 2020 Preliminary Economic Assessment are to the accuracy stated in the Haib Copper Project 2020 Preliminary Economic Assessment Update only and rely on assumptions stated in the Haib Copper Project 2020 Preliminary Economic Assessment. The results of further work may indicate that the conclusions, estimates and assumptions in the Haib Copper Project 2020 Preliminary Economic Assessment need to be revised or reviewed. The Report Contributors have used their experience and industry expertise to produce the estimates and approximations in the Haib Copper Project 2020 Preliminary Economic Assessment. Where the Report Contributors have made those estimates and approximations, they are subject to qualifications and assumptions and it should also be noted that all estimates and approximations contained in the Haib Copper Project 2020 Preliminary Economic Assessment will be prone to fluctuations with time and changing industry circumstances. The Haib Copper Project 2020 Preliminary Economic Assessment should be construed in light of the methodology, procedures and techniques used to prepare the Haib Copper Project 2020 Preliminary Economic Assessment. Sections or parts of the Haib Copper Project 2020 Preliminary Economic Assessment should not be read or removed from their original context. The Haib Copper Project 2020 Preliminary Economic Assessment is intended to be used by Deep-South, subject to the terms and conditions of its contract with the Report Contributors. Recognizing that Deep-South has legal and regulatory obligations, the Report Contributors have consented to the filing of the Haib Copper Project 2020 Preliminary Economic Assessment with Canadian Securities Administrators and its System for Electronic Document Analysis and Retrieval ("SEDAR"). TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ................................................................................................................ 1 1.1 Introduction ............................................................................................................... 1 1.2 Location .................................................................................................................... 1 1.3 Geology and Mineralisation ...................................................................................... 2 1.4 Exploration/Drilling ................................................................................................... 2 1.5 Mineral Processing and Metallurgical Testing.......................................................... 2 1.6 Mining Methods ........................................................................................................ 3 1.7 Metallurgical Testwork .............................................................................................. 3 1.8 Recovery Methods ................................................................................................... 3 1.9 Marketing .................................................................................................................. 4 1.10 Environmental and Permitting .................................................................................. 4 1.11 Capital and Operating Costs .................................................................................... 5 1.12 Economic Analysis ................................................................................................... 5 1.13 Recommendations ................................................................................................... 6 2. INTRODUCTION ............................................................................................................................. 8 2.1 Purpose .................................................................................................................... 8 2.2 Sources of Information ............................................................................................. 8 2.3 Site Visit.................................................................................................................... 8 2.4 References ............................................................................................................... 9 3. COUNTRY AND REGIONAL SETTINGS ..................................................................................... 10 3.1 General ................................................................................................................... 10 3.2 Accessibility ............................................................................................................ 10 3.3 Local Resources and Infrastructure ....................................................................... 10 3.4 Economy and Taxation ........................................................................................... 11 3.5 Climate and Geography ......................................................................................... 11 3.6 Physiography .......................................................................................................... 12 3.7 Seismic Zone and Risk ........................................................................................... 12 3.8 Demographics and Labour ..................................................................................... 12 3.9 Cultural Issues ........................................................................................................ 13 3.10 Sovereign/Country Risk .......................................................................................... 14 3.11 Political / Legal / Judicial System ........................................................................... 14 3.12 Mining Journal Investment Risk ............................................................................. 15 4. HISTORY ...................................................................................................................................... 16 5. GEOLOGICAL SETTINGS ...........................................................................................................