Deep Yellow (ASX:DYL) has upgraded the Mineral Resource Estimate (MRE) of the Tumas 3 deposit as part of its flagship Tumas Project in Namibia to 66.8 million pounds at 300 parts per million eU3O8.
The $864.59 million market capitalisation company says the update represents an 11% increase in the indicated category without loss of grade.
The indicated category now sits at 60.6Mlb at 325ppm eU3O8 using a 100ppm cut-off grade.
The upgraded resource brings the total indicated MRE of Tumas to 108.5Mlb at 265ppm eU3O8.
Deep Yellow Managing Director John Borshoff says the increase in resources, coupled with results from drilling, provides the company with ‘great’ confidence that it can deliver its long-term 30-year life of mine (LOM) target.
Resource drilling is now being planned to the west of Tumas 3 during FY 2025 to identify a further 30Mlbs and achieve the targeted LOM.
A two-phase reverse circulation (RC) resource expansion and infill drilling program has already been completed at targeted areas west of Tumas 3 and was designed to identify additional resources.
As previously reported, results from the drilling confirm Tumas 3 as the largest uranium deposit along the Tumas palaeodrainage.
Drilling was completed on 18 August and comprised 235 holes, of which 109 holes were aimed at expanding the uranium resources to the west of Tumas 3 and Tumas Central.
Deep Yellow is focused on progressing a dual-pillar growth strategy to establish a globally diversified, tier-one uranium company.
The company’s portfolio contains the largest uranium resource base of any ASX-listed company. The Tumas Project is held by Deep Yellow through its wholly owned subsidiary Reptile Uranium Namibia.
As of 30 September 2023, Deep Yellow had $27.258 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Deep Yellow