Emerging Namibia uranium developer Deep Yellow (ASX: DYL) reports that all four holes so far completed at the Nova joint venture have intersected mineralisation.
One of the holes, TN258RC, has been described as a “standout” with five uranium intervals and with the drill bit ending in mineralisation.
The other key element is the state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) is expected to take a full equity position in Nova as it has completed its earn-in obligation by spending $4.5 million.
The participation of JOGMEC is especially significant as it comes against a backdrop of a more positive attitude in Japan toward nuclear power after the reactor closures following the Fukushima disaster in 2011.
In fact, some uranium sector analysts are now commenting that Japan is showing renewed interest in nuclear and may, like China and India, push forward with new plants.
JOGMEC expected to take up equity
Deep Yellow says JOGMEC currently holds a right-to-equity of 39.5% which, if exercised, would adjust the joint venture parties’ interests.
While JOGMEC has not yet exercised its option, the joint venture parties are contributing in those proportions as though the interest had been exercised.
That would mean 39.5% each for Deep Yellow and the Japanese agency, 15% for Toro Energy (ASX: TOE) and 6% (free-carried) for Namibia’s Sixzone Investments.
The drilling results from the Barking Gecko prospect included TN258RC which returned 8m at 561 parts per million uranium oxide, 17m at 465ppm, 21m at 901ppm, 5m at 332ppm and 19m 254ppm.
“Drilling continues to highlight the highly prospective nature of Barking Gecko North, with mineralisation open to the southeast/east and at depth,” the company says.
‘Highly encouraged’ by drilling results
Deep Yellow noted it and the joint venture partners are highly encouraged by the early results of the program.
The size of the prospective area is estimated to be 2km by 1km and, the company adds, results indicate the potential for continuation of the mineralisation to the southeast and at depth.
Phase one of the drilling program is expected to completed by mid-September.
Also in Namibia, Deep Yellow this year completed a pre-feasibility study on its wholly-owned Tumas project, and then began a definitive feasibility study there.
“The company’s 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,” Deep Yellow stated.