Deep-South to acquire up to 80% of three copper exploration licences in the heart of the Zambia copper belt

Deep-South holds the option to acquire up to 80% of the Large Scale Exploration Licences  LEL 23246, LEL 23247 and LEL 23248 held by WCMV in Zambia

Deep-South to acquire up to 80% of three copper exploration licences in the heart of the Zambia copper belt. (Credit: Łukasz Klepaczewski from Pixabay)

Deep-South Resources Inc. (“Deep-South” or the Company) (TSX-V: DSM) announces the signature of a definitive earn-in agreement with Word Class Minerals Venture Ltd (“WCMV”) of Zambia to acquire up to 80% of three copper exploration licences in the center of the Zambian Copper belt, one of the most prolific copper belts in the world.

John Akwenye, Chairman of Deep-South stated that: “While reinstating the licence over the Haib Copper project in Namibia remains our number one priority, we are very enthusiastic about the option to acquire these strategicaly well situated licences in the heart of one of the most prolific copper belts in the world”.

The agreement:

Deep-South holds the option to acquire up to 80% of the Large Scale Exploration Licences  LEL 23246, LEL 23247 and LEL 23248 held by WCMV in Zambia.

The terms are as follows:

• Deep-South has paid to WCMV, US $ 15,000 on signature of the agreement and will pay an additional US $ 15,000 on approval of the transaction by the TSX Venture Exchange (“TSX-V”). Deep-South will also issue 500,000 of its common shares to WCMV  upon approval by the TSX-V.
• On the second anniversary of the agreement, Deep-South will pay US$ 30,000  and issue 250,000 of its common shares to WCMV.
• Before the end of the second anniversary of the agreement, Deep-South will also complete the collection and analysis of 100 soil samples over the identified anomalies on Licence LEL 23246 and 350 soil samples over the identified targets on each of Licences LEL 23247 and LEL 23248. Deep-South will then decide whether to proceed with more intensive sampling or to evaluate any drilling targets.
• Upon completion of the above, Deep-South will have acquired an undivided interest  in 51% of the licences.
• In order to acquire the remaining 29% of the licences, Deep-South, at the end of the third, fourth and fifth year of the agreement,will pay to WCMV US$ 30,000 every year for a total of US 90,000 and spend a minimum of US$ 1
  million in exploration programmes every year for a total of US $ 3 million in exploration expenditure.

Data Acquisition:

Upon approval of the transaction with WCMV by TSX-V, Deep-South will acquire all of the exploration data for the licences LEL 23246, LEL 23247 and LEL 23248 held by Mr. Nathan Sabao (“the geological consultant”). Upon approval of the TSX-V, Deep-South will issue 500,000 of its common shares to the geological consultant. Furthermore, on the first anniversary of the transaction, the geological consultant will transfer to Deep-South all of the exploration data for projects in the Luapula region in consideration for the issuance of a further 500,000 common shares of Deep-South.

The transaction is conditional to the approval of the TSX Venture Exchange. In terms of the Policy 5.3, the transaction is considered fundamental and the trading of the shares of Deep-South will remain on a halted until the TSX-V has reviewed the required documentation.

Luanshya West project (LEL 23247). The licence is situated in the center of the Zambian Copper belt which forms part of the Central African Copper belt, one of the most prolific copper belts in the world. The Large Exploration Licence covers 5,423.26 hectares (54.24 Sq. Km).

A NI 43-101 technical qualifying report is currently under review by the TSX-V.

The project prospectivity is based on the location of the subject property over the unconformable contact zone between basement granites and Lower Roan Group sediments where most copper belt mines in both Zambia and the Democratic Republic of Congo (the “DRC”) are located. This prospectivity is reinforced by a positive series of coincident soil geochemical anomalies over the contact zone.

The project area is close to established copper / cobalt mines with Chibuluma mine some 35Km to the north-east, Chambishi mine 41Km north-northeast, N’changa mine 53Km north-northwest and Luanshya mine some 40Km east-southeast from the centre of the project area.

Some 850 soil samples and some geophysical data were collected over the subject property by Teal (a subsidiary of African Rainbow Minerals Ltd) between 2007 and 2009. The airborne geophysical data was evaluated by the geophysical consultant K. P. Knupp on behalf of Teal. Knupp identified a total of 11 targets for strata- bound vein-hosted Cu, Pb, Zn, Co, Ni, Ag and Au mineralisation and 1 target for stratiform Cu-Co mineralisation over the larger exploration property then held by Teal.

Chililabombwe project (LEL 23247). The licence is situated in the north of the Zambia Copper belt near the DRC border. The Large Exploration Licence covers 2,200 hectares (22.5 Sq, Km).

The project prospectivity is based on the location of the subject property over the unconformable contact zone between basement granites and Lower Roan Group sediments where most copper belt mines in both Zambia and the Democratic Republic of Congo (the “DRC”) are located.

The project area is close to established copper / cobalt mines with Konkola mine 12 km west and the Lubambe mine 30 km to the north-west from the center of the project area.

Mpongwe project (LEL 23248). The licence is situated in the center of the Zambian Copper belt. The Large Exploration Licence covers 67,500 hectares (675 Sq. Km).

The project prospectivity is based on the location of the subject property over the unconformable contact zone between basement granites and Lower Roan Group sediments where most copper belt mines in both Zambia and the Democratic Republic of Congo (the “DRC”) are located.

Source: Company Press Release