Deep Yellow completes phase one of Tumas drilling ahead of resource update and DFS

Deep Yellow ASX DYL drilling uranium Tumas 3 DFS resource upgrade
Deep Yellow plans to reveal an intermediate, updated mineral resource estimate for the Tumas 3 East deposit in late May.

Uranium explorer Deep Yellow (ASX: DYL) has completed the first phase of an infill drilling program at its Tumas project in Namibia with results set to contribute to an upgraded mineral resource estimate later this month.

The company today reported the completion of 445 holes for 6,987m at the Tumas 3 East deposit with phase two of the 16,000m reverse circulation infill drilling program now starting at the Tumas 3 Central and Tumas 3 West deposits.

The program is focused on supporting key objectives of a definitive feasibility study (DFS), including the conversion of inferred resources to indicated status, defining the periphery of the Tumas 3 deposit, and expanding the DFS mine life to more than 20 years.

According to the company, almost half of the holes drilled at Tumas 3 East intersected mineralisation greater than 100 parts per million equivalent uranium over 1m and 25% showed uranium mineralisation greater than 200ppm over the same length.

Importantly, it said this means expectations for the conversion rate to indicated resource category are being met.

The best intersections included 7m at 997ppm equivalent uranium from 4m; 9m at 481ppm from 4m; 6m at 688ppm from 17m; 8m at 502ppm from 7m; and 4m at 754ppm from 17m.

Phase two commenced at Tumas 3 Central

Deep Yellow’s second phase of drilling will aim to expand the mine life from 11.5 years as defined in the recently completed pre-feasibility study to more than 20 years.

The third and final phase of the drilling program will focus on resource upgrade drilling of Tumas 1 East.

Following completion of drilling, Deep Yellow intends to produce a new mineral resource estimate for incorporation in the Tumas DFS to enable a 20-plus year life of mine.

An intermediate, updated mineral resource estimate for the Tumas 3 East deposit is expected to be announced in late May.

Upside potential from 50km of untested channels

Deep Yellow’s Tumas deposit is located on EPL3496, which is held by the company’s wholly-owned subsidiary Reptile Uranium Namibia (Pty) Ltd.

The company has noted that the probable reserves (totalling 40.9 million tonnes at 344ppm for 31 million pounds of contained uranium metal), remaining indicated and inferred resources on the project, and target resource upgrade drilling for the expanded DFS, have all derived from testing only 60% of the known regional Tumas paleochannel system.

“Significant upside potential remains to further increase the resource base that is associated with this highly prospective target, with 50km of channels remaining to be tested,” it said.

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