Uranium developer Deep Yellow Limited (ASX: DYL) (Deep Yellow) is pleased to announce a significant milestone successfully delivering an impressive 121% increase to the updated Ore Reserve Estimate (ORE) for the Tumas Project on EPL3496 and 3497.
Deep Yellow completed a successful Pre-Feasibility Study (PFS) on the Tumas Project and commenced the Definitive Feasibility Study (DFS) as announced to ASX on 10 February 2021.
SIGNIFICANT INCREASE IN INDICATED MINERAL RESOURCES
In August 2021, Deep Yellow successfully completed a five-month, resource-upgrade drilling program, focused on the Tumas 3 and 1 East deposits. This program completed 1,473 holes, for 24,942m and results (reported to the ASX on 13 July and 19 August 2021) led to an updated Mineral Resource Estimate (MRE), with Indicated Mineral Resources of 98.7Mlb U3O8 at 266ppm for the combined Tumas 1, 1-East, 2 and 3 deposits, at a 100ppm U3O8 cut off (announced to ASX 29 July and 2 September 2021). In addition, a further 15.3Mlb U3O8 at 215ppm of Inferred Mineral Resources remains within these deposits and may be upgraded at a future date. Overall, at a 100 ppm U3O8 cut off, these deposits now contain total Mineral Resources of 114Mlb U3O8 at 258ppm.
UPDATED ORE RESERVES DELIVER A 20+YEAR DFS LOM
The significant increase in Indicated Mineral Resources announced for both Tumas 3 and 1 East have proved sufficient to achieve the first key milestone of the DFS, which is to establish sufficient Ore Reserves to support a 20+ year LOM. Using the economic parameters and other modifying factors reported in the PFS, the Ore Reserves available at Tumas have now been updated and, as a consequence, have been substantially increased.
The updated ORE for the Tumas Project totals Probable Ore Reserves of 68.4Mlb U3O8 at 345ppm, using a 150ppm U3O8 cut-off for Tumas 1,2, 3 and 1 East, with a waste to ore ratio of 2.6:1. This updated ORE represents a 121% increase from the maiden Tumas ORE announced in the PFS. This substantial increase in Ore Reserves confirms that Tumas will support a +20-year LOM at production rates assumed for the PFS (a maximum of either 3.75Mtpa or 3.0Mlb U3O8 pa)
The pit production and process feed schedule developed for the ORE ramps up mining to the designed production rates in the first year and continues over 20 years at an average head grade of 398ppm U3O8, allowing average production of approximately 2.8Mlbpa U3O8 for 20 years (compared to an average of 2.56Mlbpa U3O8 in the PFS for 11.5 years). Mining will commence at Tumas 3 and transition into Tumas 1 and 1 East after 7 years, continuing to produce from all three orebodies until cessation of mining after 20 years. Recovery from stockpiles will continue for an additional 5.75 years at lower production rates. In total 64.1Mlb U3O8 will be produced from 89.8Mt of ore, at an average grade of 345 ppm U3O8, containing 68.4Mlb U3O8 over a total LOM of 27.5 years (25.75 production years). Significant upside remains for optimisation of annual Run-of Mine (ROM) throughputs, which will be a key ongoing focus for DFS work.
Commenting on the major DFS milestone Deep Yellow Managing Director Mr John Borshoff commented: 'We continue to deliver on what we set out to achieve for the Tumas DFS. We have achieved a very important milestone with the substantial Ore Reserve upgrade that has been announced confirming a long Life of Mine operation that is now possible for the Tumas Project.
'We are delivering continued value and growth through targeted exploration and development and growth of the Tumas Ore Reserves provide the team with great confidence to proceed with evaluation of a 20+ year LOM operation in the Tumas DFS. 'A major risk milestone for Tumas has been overcome and we are very pleased with the results, which have confirmed Tumas as a long life of mine operation and demonstrated great potential to develop the Project into a tier-one uranium deposit.
'Importantly, significant potential remains to grow Tumas through upgrading remaining Inferred Resources and further exploration of Tumas Palaeochannel, with approximately 40% yet to be fully tested, providing Deep Yellow with exceptional, additional optionality for optimisation of the DFS, which is expected to be completed in the latter part of CY2022'
Contact:
John Borshoff
Tel: +61 8 9286 6999
Email: john.borshoff@deepyellow.com.au
About Deep Yellow Limited
Deep Yellow Limited is a differentiated, advanced uranium exploration company, in pre-development phase, implementing a contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company's uranium projects in Namibia and the pursuit of accretive, counter-cyclical acquisitions to build a global, geographically diverse asset portfolio. A PFS was completed in early 2021 on its Tumas Project in Namibia and a Definitive Feasibility Study commenced February 2021. 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 LIMITED 
