Deep Yellow Limited (ASX:DYL) March Quarterly Activities Report

Deep Yellow Limited (ASX:DYL) (FRA:JMI) (OTCMKTS:DYLLF) advises the successful completion of the Tumas PFS, which confirmed or improved on Scoping Study assumptions based on a uranium price of US$65/lb.

Key results:

o 11.5 years Life of Mine (LOM)

o post-tax, ungeared NPV8.6(nominal) of US$207M (A$276M)

o 2.5Mlb U3O8 pa average LOM production

o post tax, real, ungeared IRR 21.1%

o C1 cash costs US$27.3/lb after by-product vanadium credit

Following completion of positive Tumas PFS, the Board approved proceeding directly to a Definitive Feasibility Study, scheduled for completion by end CY2022. Infill resource upgrade drilling in support of the DFS continues at Tumas 3, with 156 RC holes for 2,742m drilled by end March.

Best intersections included:

o T3I547 9m at 481ppm eU3O8 from 4m
o T3I523 4m at 490ppm eU3O8 from 6m
o T3I459 8m at 892ppm eU3O8 from 4m
o T3I465 4m at 396ppm eU3O8 from 4m
o T3I547 10m at 449ppm eU3O8 from 3m

A resource upgrade drilling is ongoing with an updated Mineral Resource Estimate expected to be completed on schedule in June 2021.

Ausenco has confirmed to continue as project engineer for the early works phase of the DFS.

Drilling at the Nova Joint Venture Barking Gecko prospect has been completed. A total of 11 holes for 2,708m were drilled in the March Quarter.

Best intersections included:

TN253RC
- 35m at 244ppm eU3O8, from 120m
- with 11m at 444ppm eU3O8, from 82m

TN250RC
- 13m at 126ppm eU3O8, from 165m
- with 8m at 223ppm eU3O8, from 199m

TN254RC
- 9m at 177ppm eU3O8, from 170m

A highly successful $42.8M capital raising was completed during the period, increasing the overall cash position of the Company to $51.3M. The possibility of a further $30M to be added to the cash balance on exercise of outstanding 50c options, expiring in June 2022.

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https://abnnewswire.net/lnk/EBI2LA94


About Deep Yellow Limited

Deep Yellow Limited (ASX:DYL) (OTCMKTS:DYLLF) is successfully progressing a dual-pillar growth strategy to establish a globally diversified, Tier-1 uranium company to produce 10+Mlb p.a.

The Company's portfolio contains the largest uranium resource base of any ASX-listed company and its projects provide geographic and development diversity. Deep Yellow is the only ASX company with two advanced projects - flagship Tumas, Namibia (Final Investment Decision expected in 1H/CY24) and MRP, Western Australia (advancing through revised DFS), both located in Tier-1 uranium jurisdictions.

Deep Yellow is well-positioned for further growth through development of its highly prospective exploration portfolio - ARP, Northern Territory and Omahola, Namibia with ongoing M&A focused on high-quality assets should opportunities arise that best fit the Company's strategy.

Led by a best-in-class team, who are proven uranium mine builders and operators, the Company is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets.

Importantly, Deep Yellow is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity.

   

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