Annual Report and Financial Statements
Perth, Sep 9, 2016 AEST (ABN Newswire) - Deep Yellow Limited (
ASX:DYL) (DYLLF:OTCMKTS) are pleased to provide the Company's Annual Report and Financial Statements for 2016.
SUMMARY INFORMATION
CORPORATE STRATEGY
DYL's strategy is to successfully make the transition from advanced uranium explorer to developer and producer by single-mindedly focussing on advancing its Namibian projects. Specifically, DYL believes that its Tumas Project, allied to a novel yet relatively simple beneficiation process, has the potential to be Namibia's next uranium mine within the next three to four years. This is considered to be ideal timing as it would coincide with the forecast recovery in the uranium market.
HIGHLIGHTS OF THE 2016 FINANCIAL YEAR
TUMAS PROJECT
- A bulk sample metallurgical testwork program, supervised by Marenica Energy Ltd ("MEY"), was conducted and completed on schedule.
- The objective of the testwork program was to confirm the amenability of Tumas ore to MEY's U-pgradeTM beneficiation process, purported to be capable of achieving high levels of uranium recovery in a low mass pull.
- The program was conducted at laboratories in Perth on two bulk samples with combined mass in excess of 1 tonne of Tumas ore generated from an excavation started in December 2015 and completed in January 2016.
- Whilst still awaiting the final report at year-end, DYL released interim results during the testwork program which were largely in line with, and in some cases even exceeded expectations.
- The results indicated that processing Tumas ore through the U-pgradeTM process had the potential to reject up to 98% of the mass whilst recovering over 82% of the uranium, which implies that the project could produce a high grade concentrate in excess of 13,000 ppm U3O8 from ore with a resource grade of some 350 ppm U3O8.
- A project incorporating the U-pgradeTM beneficiation process as an integral part of the overall flowsheet has the potential to have comparatively low capital and operating costs and an accelerated development timeline.
NAMIBIAN LICENCE APPLICATIONS
- Renewal confirmations for Exclusive Prospecting Licences (EPLs) 3496 and 3497 were received during the March 2016 quarter.
- This is the fourth renewal for these two EPLs and allows DYL to continue to progress its attractive Projects.
- The Namibian Ministry of Mines and Energy declined the Mining Licence Applications lodged in 2011 for the INCA and the Tubas Red Sands Projects on economic grounds.
- Realistically this had no impact on DYL because the INCA Project has been superseded by the much larger Omahola Heap Leach Project and the Tubas Sand Project is, at current prices, clearly uneconomic.
- The Tubas Sand Project was placed on hold by the Company in 2014 specifically for economic reasons.
To view the Annual Report, please visit:
http://abnnewswire.net/lnk/W8TEA079
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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