After completing 660 holes for 12,727m of drilling, Deep Yellow (ASX:DYL) has upgraded the resource estimates for the Tumas 1, 1 East, 2, and 3 deposits in the Erongo region of Namibia.
Overall, the updated resource for all deposits has a measured and indicated resource estimate total of 102.1 million pounds at 268ppm, and an inferred resource estimate of 16.1 million pounds at 196ppm equivalent uranium.
Deep Yellow, which has a market capitalisation of $964.61 million, reports the total resource estimate contains 118.2 million pounds at 255ppm equivalent uranium.
Tumas 3’s resource estimate has been upgraded to 22.5 million pounds at 300 parts per million (ppm) equivalent uranium.
As a result of completing the updated resource estimates, a reserve update is currently in progress.
This reserve update will be based on the Definitive Feasibility Study (DFS) metrics. It will include a DFS review impact and involve a re-optimisation of the ore reserve estimate.
Deep Yellow says this work will be conducted in preparation for the anticipated launch of mining operations in the pre-production phase of project execution next year.
The company says it is confident the reserve update will extend the operating life of Tumas to over 35 years. Detailed engineering work is also underway and will provide a control capital estimate and detailed execution schedule.
Managing Director John Borshoff says Tumas is a standout, tier one, long-life project, and the team continues ticking boxes as they progress with project financing and marketing ahead of a final investment decision later this year.
“Delivery of the Tumas mineral resource upgrade across the areas earmarked for the initial six years of mining highlights the potential of the mineralised system identified at Tumas to deliver quality uranium resources,” Borshoff says.
“Remarkably, even with the detailed infill drilling on the Tumas 3 deposit to convert resources from indicated to the more stringent measured category, the quantity and quality of the Tumas 3 resource has remained well within the acceptable range.”
Ongoing resource drilling is planned to the west of Tumas 3 during the 2025 financial year. The company will focus on identifying an additional 30 million pounds to achieve a more than 35 year mine life.
All of the Tumas deposits lie on mining licence 237 and are held through Deep Yellow’s wholly owned subsidiary Reptile Uranium Namibia.
Deep Yellow is a uranium-focused company that is building itself to be a global tier one uranium producer.
Write to Aaliyah Rogan at Mining.com.au
Images: Deep Yellow
