Deep Yellow (ASX:DYL) optimistic about Omahola Exploration

ASX-listed Australia-based advanced uranium exploration and development company Deep Yellow Limited (ASX:DYL) shared its quarterly activities report for the period ending 31 December 2021. The company revealed that the major ore reserve upgrade delivery increased 121% to 68.4Mlb at 345ppm on a 150ppm cut-off.

Deep Yellow stated that the December quarter activities were extensive. These activities primarily focused on developing the Tumas Project Definitive Feasibility Study (DFS), delivering a new ore reserve and mining study to achieve a 20+ year Life Of Mine (LOM), and drilling 14 triple-tube diamond holes for geotechnical purposes together with three water bores. The exploration activities focused on the Omaha and Barking Gecko basement targets during the quarter, where ~15,000m of shallow and deep RC drilling was completed. Both programs returned highly positive results.

Notable points from the quarterly activities report for the period ending 31 December 2021 include:

• Tumas DFS continued to be developed and is on schedule for completion in the 2022 December quarter.
• Completion of a detailed review of the Omahola Basement Project resources resulting in upgrading resources to JORC (2012).
• Omahola basement exploration summarised three favourably prospective targets to follow up.
• Ten holes for 2,549m were finished at Barking Gecko, concluding the Phase 1 drill program of 14 holes for 3,561m.
• Strong cash balance of AU$72 million, additional AU$22.2 million raised through options.

Omahola Exploration

Results from Omahola Exploration indicated that solid potential exists to discover new deposits within the Omahola Project area. The company has planned follow-up drilling in early 2022 to target these priority zones, following geophysical and geological data review to help define optimal drilling locations.  

DYL was spotted trading 7.143% lower at AU$0.845 per share on ASX at 12:00 PM AEDT.