Deep Yellow (ASX:DYL) has completed an aircore (AC) drilling program as part of a greater evaluation program being undertaken at its Mulga Rock Project in Western Australia.
The drilling program, which comprised 63 AC holes for 4,099m of drilling, was designed to support a geo-metallurgical study at the Mulga Rock project, and has given way to the beginning of further geo-metallurgical test work that is set to commence in Q1 this year and inform an updated assessment of critical minerals and recovery options.
Deep Yellow says results from this testwork will form the basis for the planned revised Mulga Rock Project Definitive Feasibility Study (DFS) to include potential uplift in project value due to the recovery of critical minerals.
The evaluation program was initiated by the company to follow on from pre-merger work following its discovery of an opportunity to ‘significantly’ uplift project value by increasing its focus on recovery of critical minerals located in the existing Mulga Rock resource shells, as announced by the company on 25 November 2022.
Work being undertaken by the company, as well as possible future recovery of critical minerals is expected to be completed within the existing approvals framework for the project.
Addressing the evaluation program, Deep Yellow Chief Executive Officer (CEO) and Managing Director John Borshoff says: “The recovery of critical minerals from the Mulga Rock Project, if feasible, has the potential to materially enhance project value. This initial drill program will provide data to better define the distribution of these valuable elements and provide samples to evaluate recovery options.
“The recovery of critical minerals from the Mulga Rock Project, if feasible, has the potential to materially enhance project value.”
Further, the rescheduling of the mining into a more non-selective approach has potential both to increase the available uranium resource and extend life of mine of this exciting project.”
The company also notes preliminary work completed to date by Deep Yellow has demonstrated that optimising the process flow sheet and mining schedules, within approved pit boundaries, by considering the full economic mineral endowment of the project’s polymetallic deposits has the potential to add ‘substantial’ value to the project.
In addition, Deep Yellow reports drilling completed to date has been confined to the Mulga Rock East deposits, which are richer in critical minerals and uranium and represent the majority of the known mineral resources. These deposits will be mined before the lower-grade deposits to the west in the project’s mining schedule, providing up to 20-years operating life.
A 600-800 hole AC drill program has been planned to better define reserve/resource variability and distribution of critical minerals, upgrade resource classification for uranium and critical minerals, and provide additional material for metallurgical analysis. This drilling program is expected to be completed in H1 this year.
Deep Yellow is an ASX-listed uranium exploration company that is actively progressing its development through a combination of advancing its existing assets and expanding its opportunities for diversified growth through sector consolidation. The company’s Mulga Rock project represents one of Australia’s largest undeveloped uranium resources and is located in Western Australia’s Great Victoria Desert about 290km by road east-northeast of Kalgoorlie.
Other projects included within Deep Yellow’s arsenal include the Alligator River Project in the Northern Territory, as well as the Tumas Project, Omahola Project, and Nova Joint Venture Project in Namibia.
Images: Deep Yellow Limited
