Deep Yellow completes resource upgrade drilling at Tumas uranium project
Deep Yellow has discovered uranium mineralisation in the untested Tumas 1 East tributary channel area, with 67% of drilling returning >100ppm uranium oxide over 1m.
Advanced explorer Deep Yellow (ASX: DYL) has completed resource upgrade drilling at the Tumas-3 and Tumas-1 East uranium deposits as part of definitive feasibility study works for its flagship Tumas project in Namibia.
The company is targeting an expansion of the life of mine defined in the Tumas pre-feasibility study from 11.5 years to more than 20 years.
It is also hoping to convert the project’s JORC resources from inferred to indicated.
Three rigs commenced work in February and completed 1,473 holes for a total 24,942m, including six holes for metallurgical sampling and 20 for optical downhole surveys.
Tumas-1 East
Infill drilling at Tumas-1 East comprised 556 reverse circulation holes for 6,982m with approximately 70% of holes intersecting mineralisation greater than 100 parts per million uranium oxide in concentrate (U3O8).
Activities concentrated on the Tributary 1 area, where mineralisation shows the width, continuity and thickness expected to allow for high percentage conversions from resources to reserves.
The mineralisation is located at depths of up to 15m, with an average thickness of 5.5m at a 100ppm U3O8 cut-off.
Best results were 15m at 628ppm U3O8 from 1m; 10m at 548ppm from 1m; 7m at 743ppm from 3m; 5m at 1016ppm from 0m; 7m at 681ppm from 1m; and 12m at 343ppm from 1m.
Deep Yellow said the results indicate that expectations for the conversion rate to indicated resource category are being met.
New resource estimate
A new mineral resource estimate for the Tumas project is expected in the near future and will become the basis for producing an updated reserve status for incorporation into the definitive feasibility study.
An intermediate upgraded estimate for Tumas-3 was announced in July, boosting the resource to 59.9 million pounds at 308ppm and delivering a 117% direct conversion of the existing inferred resource to indicated category.
High confidence
Managing Director Mr John Borshoff said the “impressive” drilling results provided the company with a high level of confidence in achieving the extended life of mine target.
“Completing the resource upgrade drilling program in six months with such success is a testament to our team’s commitment and what we are building in Namibia,” he said.
“It is clear that Tumas is becoming a tier-one asset with the key elements to support a successful uranium operation now evident.”