Emerging Namibia uranium player Deep Yellow (ASX: DYL) has, after completing drilling at its Tumas 1 East (Tumas 1E) target, delivered what it calls an “impressive” 102% direct conversion of the existing inferred mineral resource to the higher indicated category.
“This conversion rate, along with the previous 113% [conversion rate] at the Tumas 3 deposit, again shows the value of the company’s mineral resource improvement strategy,” said Deep Yellow.
This development comes as the spot uranium price continues to edge upwards, on Tuesday being reported at US$33.75 per pound.
The company earlier this year completed a pre-feasibility study on its wholly owned Tumas project and then began a definitive feasibility study (DFS).
‘Confident’ life of mine greater than 20 years
The Tumas 1E indicated mineral resource now stands at 19.6 million pounds at 245 parts per million of uranium oxide.
However, Deep Yellow adds that “significant” upside potential remains as only 65% of the Tumas 1E mineral resource has been tested.
The measured and indicated resource at Tumas 1, 1E, 2 and 3 increased to 98.7Mlb at 266ppm.
Deep Yellow says the success of drilling as part of the DFS provided a high level of confidence of the company being able to establish a life of mine greater than 20 years.
Exploration since 2017 has increased the Tumas mineral resource base fourfold, including a 76% conversion to indicated status.
Last month the company completed a two month long, 556 hole and 6,982m upgrade and infill drilling program at Tumas 1E.
This deposit is an eastward extension of the Tumas 1 project.
‘Major’ risk milestone overcome
Managing director John Borshoff said the company had reached the end of a very successful DFS resource upgrade.
“We are delivering continued value and growth through targeted exploration and development.”
“A major risk milestone has been overcome by the emergence of this robust resources base, importantly also showing added potential to increase the resource even further,” Mr Borshoff added.
This will provide Deep Yellow with “exceptional” capacity to optimise the DFS, which is expected to be completed in the second half of 2022, he said.
The company has previously noted that its cornerstone suite of projects in Namibia is situated “within a top-ranked African mining destination in a jurisdiction that has a long, well-regarded history of safely and effectively developing and regulating its considerable uranium mining industry”.