Deep Yellow Limited (ASX: DYL) announced an expansion of Uranium Resources by 51% at Tumas 1, 2 and 3 deposits. These deposits at a 200 ppm eU3O8 cut-off now contain 67.4 Mlb of measured, indicated and inferred mineral resources at 352 ppm eU3O8.
A four-month resource extension RC drilling program at the testing areas with close proximity to the east of the Tumas 1 deposit and west of Tumas 3 deposit was completed in December 2018. This work also consisted of some limited infill drilling within the Tumas 1 and 2 deposits. Drilling extended the mineralized Tumas palaeochannel system in this area by 8.4 km and delineated extensive uranium mineralization therein. 221 holes turned positive out of the 346 RC holes drilled for 5,599 m during this campaign, with a success rate of 64%.
The company’s total surficial calcrete-related mineral resources in its Namibian projects increased by a significant 28% due to this resource’s addition to the Tumas palaeochannel uranium resource.
More importantly, since the new exploration approach was applied from November 2016, the overall palaeochannel-hosted resources have been doubled over its Namibian projects, totalling 104.2 Mlb U308. This is fully justifying the change of focus made to identify the extensive, regionally occurring prospective palaeochannel, thus expanding the exploration target significantly.
The uranium mineralization that has been defined to date in the Tumas palaeochannel system occurs as three distinct mineralized bodies. The Tumas 1 and 2 deposits now include the Tubas Red Sands/calcrete deposits, the Tumas 1 East tributary extensions, and the Tumas 3 deposit. All the three Tumas deposit expansions and the associated new MRE are the subjects of this announcement with the combined overall Tumas palaeochannel resource totalling 86.2 Mlb eU3O8 at 310 ppm over EPLs 3496/97.
The high prospectivity of the palaeochannels in the region is continuing to be strongly confirmed with each drilling episode that has been undertaken. The channels occurring outside the identified deposits have only in part, been sparsely drilled by previous workers using widely spaced regional lines and large sections remain completely untested, leaving many opportunities to continue increasing the uranium resource base with further drilling.
In its half-yearly financial report for FY 2019, the exploration expenditure was reported at $949,460, up by 68.6% as compared to the previous corresponding period. Its consolidated loss from continuing operations after income tax for the half-year was reported at $1,719,540, up by ~39% pcp. It was due to an increase in total expenses by 34.2% pcp to $1,930,228, including writing-off exploration costs of $2,507.
At the market close on March 27, 2019, the stock of Deep Yellow was trading at $0.390, down 2.5% during the day’s trade, with the market capitalization of ~$80.52 million. It made day’s high at $0.41 and day’s low at $0.39 with a daily volume of 172,814. Its 52 weeks high was at $0.58 and 52 weeks low at $0.235 with an average volume of 129,109. Its absolute return for five years, one year and six months are -34.39%, 53.85%, and -20%, respectively.
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