March 2023 Quarterly Activities Report
Perth, April 20, 2023 AEST (ABN Newswire) - Deep Yellow Limited (
ASX:DYL) (JMI:FRA) (DYLLF:OTCMKTS) is pleased to provide a summary of key activities completed in the March 2023 quarter.
HIGHLIGHTS
TUMAS PROJECT
- Strong Results from Definitive Feasibility Study (DFS)
o World-class uranium project
- Treating 4.15 Mt per annum to produce up to 3.6Mlb U3O8 (uranium) per annum and 1.15 Mlb V2O5 (vanadium by-product)
- Project Life of Mine (LOM) of 22.25 years based on existing ore reserves, with additional resources likely to increase life to a +30-year operation
o Robust economics
- Key assumptions - uranium price US$65/lb, vanadium price US$7/lb, 90% vanadium payability, discount rate of 8%
- Initial estimated capital cost (CAPEX) US$372M
- Pre-production costs US$48M
- C1 costs of US$34.68 per lb
- After-tax project net present value (NPV8) of US$341M
- Internal rate of return (IRR), ungeared, of 19.2%
o Moderate to low sensitivity to most project elements and highest sensitivity to uranium price and USD:NAD exchange rate, both of which may be mitigated
- A 9,500m reverse circulation resource drilling program commenced West of Tumas 3 to expand the current resource into Tumas 3 West and Tumas Central to confirm a +30- year LOM
MULGA ROCK
- Department of Climate Change, Energy, the Environment and Water approved Mulga Rock Project (MRP) Sandhill Dunnart Conservation Plan
o Approval of the Conservation Plan allows for the construction of the MRP operational airstrip
- A 50,000m air core resource drilling program commenced to convert current Inferred Mineral Resource to Indicated Mineral Resource status and define the grade variability within the Ambassador and Princess Deposits
OTHER PROJECTS
- Thorough review of the Aussinanis Resource base resulted in an upgrade of identified resources to JORC (2012) classification with an Indicated and Inferred Resource base of 28.1Mlb at 171ppm U3O8, reporting at a 100ppm U3O8 cut off
- Follow-up of Phase 3 RC drill program with 14 holes and 1,597m completed with positive results at Barking Gecko North and East, Iguana and Turtle's Neck
- Assay results from 2022 Angularli Resource drilling program expected shortly
CORPORATE
- Strong balance sheet with cash of $ 48.478M
- Vimy Resources integration now complete
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/Z1E85JOW
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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