Deep Yellow (ASX:DYL) is expecting to release a new Mineral Resource Estimate (MRE) for its Mulga Rock Project in Western Australia in Q4 2023 following the completion of an ‘extensive’ drill program.
Subsequently, a revised Mulga Rock Project Definitive Feasibility Study (DFS) is expected to begin during Q2 2024. This will require the availability of all exploration results, which are expected in late Q3 or early Q4 2023.
Deep Yellow, which has a market capitalisation of $644.16 million, says these upcoming results will underpin an expected uranium and critical minerals resource classification upgrade and support the new MRE.
Further, the drill programs completed so far will provide data to better define the distribution of the uranium and critical minerals under construction, provide samples to refine metallurgical recovery options, and help finalise a grade control strategy for the project.
The recently completed drill programs encompass 656 holes for 36,647m of drilling.
Commenting on the completion of drilling and the company’s next steps, Deep Yellow Managing Director and Chief Executive Officer (CEO) John Borshoff says: “An exciting part of the Mulga Rock MRE upgrade will be gaining a better understanding of the critical minerals’ component of the project, which includes metals such as copper, nickel, cobalt, zinc, and rare earths, particularly neodymium and praseodymium.
If it is feasible for us to recover these critical minerals, in parallel with the uranium, it presents a strong opportunity to materially enhance project value. Mulga Rock is an integral project in the growth of Deep Yellow and, combined with our Tumas Project in Namibia, places the company in a very strong position for future success.”
Deep Yellow is a uranium-focused junior exploration company with a portfolio that contains the ‘largest’ uranium resource base of any ASX-listed business. The company’s portfolio includes the Tumas Project in Namibia and the Mulga Rock Project in Western Australia.
As of 30 June 2023, the company had $40.770 million cash and cash equivalents at hand, according to its latest quarterly report published on 24 July.
Images: Deep Yellow
