Deep Yellow’s Tumas definitive feasibility study on track for completion in late 2022

Deep Yellow’s (ASX: DYL) definitive feasibility study for its flagship Tumas project in Namibia remains on track for completion at the end of this year, while exploration continues at its other uranium projects.

During the December quarter, Deep Yellow unveiled a 121% increase in ore reserves for Tumas, which was a “critical milestone” for the definitive feasibility study.

The updated estimate now totals 89.8 million tonnes at 345 parts per million uranium oxide (using a 150ppm cut-off grade) for 68.4 million pounds of uranium oxide metal.

These reserves are now anticipated to support a mine life exceeding 20 years at a production rate of 3Mlb per annum.

Deep Yellow noted it was focused on progressing Tumas to a development decision, with the timing to line up with an anticipated uranium price increase in late 2022/mid-2023.

Omahola Namibian uranium project

In parallel with advancing Tumas, Deep Yellow is also actively exploring its other promising uranium projects in Namibia.

A review of previous exploration data from the Omahola project resulted in a new mineral resource estimate.

In November, Deep Yellow revealed a resource of 125.3Mlb at 190ppm uranium oxide with a 100ppm cut-off across the measured, inferred and indicated categories.

A shallow drilling program was undertaken and in late December, three priority targets were identified at Omahola for further drilling early this year.

Deep Yellow says there is potential to expand Omahola resources due to the project’s underexplored nature, location and “substantial accumulation of uranium”.

Barking Gecko

Over at the Barking Gecko, which is part of the Nova joint venture in Namibia, thick high-grade uranium has been unearthed during a phase two drilling program.

A phase one program was completed in October and comprised 14 holes for 3,561m.

Better intervals were 8m at 561ppm uranium oxide from 90m, 17m at 465ppm uranium oxide from 178m, and 21m at 886ppm oxide from 199m.

During the phase two program, a hole completed in December returned cumulative intersections of 188m at 352ppm uranium oxide from eight intercepts between 75m and 265m.

Within this, best individual intervals were 9m at 954ppm uranium oxide from 88m, 60m at 304ppm from 150m and 30m at 382ppm from 235m.

Deep Yellow will integrate results from both programs to plan the next stage of drilling, which will comprise 10 reverse circulation holes for 2,500m.

The company has a 39.5% interest in Barking Gecko, with Japan Oil, Gas and Metals Corporation owns 39.5% and Toro Energy’s (ASX: TOE) subsidiary Nova Energy has 15%.

Namibian entity Sixzone Investments holds a 6% carried interest in the prospect.