Uranium explorer Deep Yellow (ASX: DYL) has reported a busy September quarter as it pushes to complete a definitive feasibility study (DFS) on its Tumas uranium project in Namibia by the end of 2022.
In the three months to September 2021, the company completed an infill resource upgrade drilling program at the Tumas 3 and 1 East deposits with a total of 1,473 holes for 24,942 metres.
Measured and indicated resources were increased significantly at Tumas 1, 2 and 3 and 1 East to 98.7 million pounds at 266 parts per million uranium oxide then earlier this month, the explorer upgraded ore reserves to 89.8 million tonnes at 345ppm uranium oxide for 68.4Mlb of uranium oxide metal.
The increased reserves marked an important milestone in the ongoing Tumas DFS as it upgraded the proposed project’s life of mine operation from under 12 years to more than 26 years, including low-grade stockpiles.
The Tumas 3 deposit alone is now considered of sufficient size to feed the process plant for 15 years with a run of mine grade of 412ppm uranium oxide.
Deep Yellow believes further potential exists to further increase the life of mine at Tumas through the remaining inferred resources available for upgrade. In addition, about 40% of the highly prospective Tumas palaeochannel system remains to be tested.
Strong cash balance
The company ended the September quarter with $52.3 million cash at hand and a strong balance maintained by the exercise of $0.50 options.
It is expected that the majority of the 45.4 million options remaining to be converted will be exercised prior to their accelerated expiry date this Friday.
Expenditure during the quarter predominantly related to feasibility studies, environmental impact assessment activities and resource and reserve estimation drilling.
Post-quarter, the company entered an option agreement for the sale of shares in Shiyela Iron, which holds the Shiyela iron ore project in Namibia.
Recent exploration activity
Post-quarter, a shallow reverse circulation (RC) drilling program began targeting extensions of known deposits within the Omahola project.
The overall target associated with Omahola occupies a 35km by 14km northwest-southeast trending zone within the Alaskite Alley corridor.
At Deep Yellow’s Nova joint venture with Japan Oil Gas and Metals National Corporation (JOGMEC) and Toro Energy, a phase one RC drilling campaign was completed at Barking Gecko in early October with 13 out of 14 holes intersecting uranium mineralisation.
The highlight was 70m grading at 503ppm uranium oxide contained in four intersections over an 8m zone from 178m depth.