Enlarged Deep Yellow sets out to transform Mulga Rock to multi-commodity project

Having bedded down its merger with fellow uranium play Vimy Resources, Namibia-oriented Deep Yellow (ASX: DYL) is undertaking a review to maximise value at its recently acquired Mulga Rock project in Western Australia.

The merger with Vimy was completed on 4 August, which gave Deep Yellow Mulga Rock.

A detailed review of Mulga Rock is now underway with the target of turning what for Vimy had been primarily a uranium project into one with potential for other critical minerals including copper, nickel, cobalt and rare earths, as well as extending the present estimated mine life.

Meanwhile, Deep Yellow’s definitive feasibility study at its Tumas project in Namibia remains on schedule to be completed in the current quarter.

‘Unique’ situation with nuclear future

Deep Yellow managing director John Borshoff pointed out the September quarter was  Deep Yellow’s first quarter as a ‘significantly’ larger uranium company.

The merger has brought together two advanced, geographically diverse uranium projects, placing Deep Yellow in a rare position as a multi-jurisdiction and multi-asset company.

“We are in a unique situation to benefit from a rapidly expanding nuclear sector and contribute to global decarbonisation efforts,” Mr Borshoff added.

Also noted in the company’s most recent quarterly report is the start of phase two of the drilling of the Omahola basement project in Namibia, with 30 holes remaining to be drilled.

In Australia, the company has begun drilling its Alligator River uranium project in the Northern Territory.

Integration of Vimy project ‘progressing well’

Deep Yellow reported the integration of Mulga Rock was progressing well with site visits undertaken by technical and management teams.

While Vimy had begun assessing other mineral potential at Mulga Rock, since the merger, the process has been enlarged due the role of critical minerals in a net-zero world.

An extensive drilling program is planned, which will include a mineral resource upgrade. This is expected to better define the critical minerals, along with additional uranium, existing within the planned open pits.

Drilling will begin early this month with 80 aircore holes at the Ambassador deposit.

Namibian utilities will continue to service projects

Project team members were able to visit Tumas in July and August for the first time since Namibia relaxed COVID-19 restrictions.

“It was also the first opportunity for the project team to meet face-to-face with the company’s Namibian team and further develop a positive and productive working relationship,” the company noted.

Meetings were also held with major utilities, including NamWater and NamPower.

Deep Yellow says it expects that “Namibia’s well-deserved” reputation as a stable destination will be maintained, including reliable public utilities to service the needs of major projects, including Tumas.

As of 30 September, Deep Yellow’s cash position stood at $66.5 million.