Deep Yellow (ASX: DYL) has posted a “significant” resource upgrade for the Tumas 3 uranium deposit in Namibia, which managing director John Borshoff says is “nothing short of astounding” and that the company was only just “scratching the surface”.
Infill drilling at the deposit boosted the Tumas 3 resource to 59.9 million pounds at 308 parts per million uranium.
The upgrade delivered a 117% direct conversion of existing inferred resources to the indicated category.
Indicated resources now total 54.9Mlb at 320ppm uranium.
Mr Borshoff said the resource upgrade from the recently completed infill drilling program at Tumas 3 had exceeded the company’s expectations.
“In simple terms, we have achieved a 124% conversion rate from inferred resource status to indicated, improving both the quality and quantity of the resource base while also growing the size of Tumas 3 through the identification of a further 5Mlb of inferred resources,” Mr Borshoff explained.
Total measured and indicated resources for Tumas 1, Tumas 2 and Tumas 3 deposits stand at 79.1Mlb at 271ppm.
Mr Borshoff said the confirmed resources along with the anticipated updated estimate from Tumas 1E “provide great confidence” the company has the resource base to support the minimum 20-year mine life target of the current definitive feasibility study.
Since 2017, Deep Yellow noted it had increased the mineral resource base across the Tumas paleochannel by fourfold at a discovery cost of 9.3 cents per pound of uranium.
“As we move forward, we are focused on successful delivery of the Tumas definitive feasibility study and, importantly, continue to tick the boxes as we progress workstreams,” Mr Borshoff said.
“What excites me, and the team, is that we are only just scratching the surface at Tumas, with only 60% of the known Tumas paleochannel system drilled and a further 50km remaining to be tested,” he added.