The intercept also included 30m at 0.81% Cu-eq, with another hole intersected 128m at 0.42% Cu-eq from 32m.

The drilling programme is aiming to further delineate and grow the higher-grade zone at Haib, where Deep-South had acquired the remainder of the project from Teck Resources in 2017.

Rising copper prices prompted an updated preliminary economic assessment for Haib in December, which put the after-tax NPV7.5 at US$957 million and IRR at 29.7% using a $3/lb copper price.

The copper price since reached an all-time high yesterday above $10,700 per tonne, or $4.76/lb.

Deep-South recently appointed South Africa's MSA Group to provide an updated resource once the current drilling programme is finished.

Deep-South president and CEO Pierre Leveille said the company was "extremely enthusiastic" about the assay results.

He said previous drilling had pointed to the presence of higher-grade zones of copper associated with near-vertical structures, but the use of vertical drilling in the past had potentially missed them.

The current programme was using inclined holes to redress this, he said.

"These first results seem to support this updated interpretation, showing substantial intersections of copper grades considered high for Haib," he said.

The PEA envisaged a 24-year openpit mine producing more than 90 million pounds Cu-eq per year at cash costs of $1.34/lb Cu-eq.

Deep-South had C$5.7 million in cash according to a March presentation, following a $4.6 million placement at 15c per unit in January.

Teck and insiders hold 30% of the company.

Its shares (TSXV: DSM) are trading near a one-year high, closing up 2% yesterday to 25c to capitalise it at $35 million (US$29 million).