Interview with Pierre Léveillé, President & CEO of Deep-South Resources (TSX-V:DSM)

Deep-South Resource is a copper exploration company based in Namibia. The company is largely held by management and Namibian shareholders (24%) and by strategic partner, Teck Resources (23%). Deep-South is 'actively involved in the acquisition, exploration and development of major mineral properties in Africa.' The Deep-South growth strategy appears to be a focus on exploration and development of mineralised trends that are closer to infrastructure. Deep-South Resources claims to be 'committed to advancing its projects while operating in an environmentally responsible manner.'

Deep-South Resources holds 100% ownership of the Haib Copper deposit south Namibia (acquired in 2004). It is 'arguably' the oldest porphyry deposit in the world and one of the largest in Africa. Let's delve into this.

Deep-South Resources is down to its last C$200,000. The company needs around C$7M. What is the plan? In terms of track record, Léveillé is a stockbroker/investment banker by trade, but he has been involved in raising mineral exploration capital before. He has spent a lot of time in Namibia so knows the country well. The remainder of the team has vast mining and geological experience in Africa. What is the sort of company that Léveillé is building? He paints a favourable picture for the copper macro story. He claims copper supply is dwindling and demand is soon to grow.

The aim is to carry out some in-field drilling on the higher-grade zone of the deposit. Is Deep-South starting to get any traction in the market? Are investors interested in a low-grade bulk-tonnage copper operation? Léveillé claims the recent metallurgical test gave exciting results and the announcement of an announced PEA was creating positive share price movement before COVID-19. He claims there is interest from Europe in terms of potential financing, but these individuals are mostly on the sidelines at this moment in time.

Léveillé himself as personally invested C$200,000 before the company was listed. The total management investment before the company was listed looks like C$700,000.

What's the strategy going forward? It's to continue developing the high-grade zone at Haib while not forgetting about the potential of the scale of the copper deposit. As copper prices rise, Deep-South is hoping its path to capital becoming much clearer.

Deep-South Resources closed a private placement in April, raising c. C$600,000, and has already burnt through two-thirds of that. Deep-South has a low burn rate, but needs to go back to the market to raise at least C$2M to work on updating the PEA.  

Company Page: https://www.deepsouthresources.com/

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