Deep Yellow shares (ASX:DYL) were a big gainer today on the ASX, with a 13.53% increase bringing total gains over the past 5 trading sessions up to 19.29%. This move brings DYL’s share price green through 2024, as the company recently reported a significant upgrade in their uranium resource estimates at the Tumas 1, 1 East, 2, and 3 deposits situated in Namibia. This development follows the completion of an extensive drilling program encompassing 660 holes for a total drilled distance of 12,727m.
The updated aggregate resource estimate for all four deposits now stands at a measured and indicated resource of 102.1 million pounds at 268 parts per million (ppm), complemented by an inferred resource of 16.1 million pounds at 196ppm of equivalent uranium. Notably, the Tumas 3 deposit has seen its resource estimate improved to 22.5 million pounds at a higher concentration of 300ppm. Altogether, the total resource estimate for the Tumas project comes to 118.2 million pounds at 255ppm equivalent uranium.
This substantial resource base underpins Deep Yellow’s preparation for an updated reserve, guided by the metrics of the Definitive Feasibility Study (DFS). Adjustments based on the DFS metrics are anticipated to extend the operating life of the Tumas uranium project to over 35 years.
The enthusiasm about the project’s potential was echoed by Deep Yellow’s Managing Director, John Borshoff. He emphasised the rising confidence in the project’s future viability, pointing out that detailed engineering work is shaping up the project’s financing and marketing strategies as the company approaches its final investment decision, expected later this year.
Moreover, Deep Yellow is already planning ahead with a resource drilling program set for the 2025 financial year. The focus of this program will be the exploration to the west of Tumas 3, aiming to uncover an additional 30 million pounds of uranium. Success in this venture would cement the aim of achieving a mine life of beyond 35 years.
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The Tumas deposits are located on mining licence 237 and are under the stewardship of Deep Yellow’s subsidiary, Reptile Uranium Namibia. This subsidiary plays a pivotal role in Deep Yellow’s strategic vision to elevate itself into the ranks of a global tier one uranium producer.
As the global demand for clean energy sources intensifies, developments such as those at Tumas by Deep Yellow are closely watched by the industry and markets alike. The upgraded resource estimates and the strategic moves by Deep Yellow are set to enhance the company’s portfolio and secure its long-term presence in the uranium market. The Tumas project, with its increasing resource base and extended projected mine life, is rapidly shaping up to be a cornerstone in meeting future uranium supply needs.
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