Deep Yellow has tabled its much-anticipated pre-feasibility research over the Tumas uranium venture in Namibia, with the aspiring producer lodging a sturdy set of numbers green-lighting a fast-track path to manufacturing.
After the corporate’s pre-feasibility research, or PFS demonstrated some compelling financials, it signalled it will transfer instantly right into a definitive feasibility research on the venture.
The PFS on Deep Yellow’s Namibian venture showcased a gross income over an 11-year lifetime of mine at A$2.5 billion with an EBITA of greater than A$125 million each year. Compellingly, the payback interval on the preliminary capital prices is lower than four years with the PFS additionally presenting a Web Current Worth of A$276 million.
The completion of the Tumas Pre-Feasibility Examine marks a serious milestone for Deep Yellow as we advance our thrilling Namibian venture portfolio in the direction of manufacturing.
The spectacular outcomes from the Tumas PFS clearly justify advancing this venture to a DFS standing, appreciating that uranium costs are anticipated to enhance strongly over the subsequent two to 3 years. With this strategy, the Firm has a major alternative to proceed diligently advancing the Tumas Venture in a cheap and well timed method.
As beforehand indicated, our total intention is to ascertain a multi-platform, 5-10Mlb each year, low-cost uranium producer, with the expectation of every venture reaching a minimal 2-3Mlb each year manufacturing functionality. We stay on monitor with this strategic goal and stay up for commencing the DFS and persevering with to advance the Firm in the direction of establishing itself as a tier-one uranium producer.
Deep Yellow’s growing Tumas uranium venture is positioned on the famed Skeleton Coast of Namibia, simply 60 kilometres east of the southern African nation’s deep-water port at Walvis Bay. The Tumas deposits sit inside the renown Erongo uranium producing area which hosts plenty of world-class operations together with the Rossing, Husab and Langer Heinrich mines whose annual output underpins Namibia’s place because the fourth largest uranium producer on the planet.
The corporate’s uranium assets lie inside the shallow Tumas paleochannel system, which extends over greater than 60km of strike from Tumas 1 within the east by means of the Tumas Pink Sand deposits within the west. Within the wake of an intensive infill and extensional drilling program undertaken as a part of its PFS, Deep Yellow now boasts a useful resource of over 130 million tonnes grading near 300 components per million uranium oxide, utilising a 150ppm cut-off grade.
Nonetheless, as part of the PFS the corporate has additionally posted its maiden ore reserve from the Tumas 1, 2 and three deposits, with the mining areas internet hosting 40.9 million tonnes of ore grading 344ppm uranium oxide.
The corporate’s new ore reserve kinds the inspiration of Deep Yellow’s PFS, underpinning the venture’s 11.5 mine life and deliberate manufacturing of two.5 million kilos of uranium oxide each year, which may even embrace a high-value vanadium pentoxide by-product.
Uranium-vanadium mineralisation at Tumas is related to the calcrete deposits precipitated inside outdated river channels. The mineralisation additionally reveals robust geochemical similarities to the ores from the close by Langer Heinrich mine.
Deep Yellow’s proposed operation will encompass a shallow open pit mining with ore feed to be processed by way of easy beneficiation and traditional sodium carbonate leaching. Metallurgical take a look at work by ALS Metallurgy in Perth reveals round 93.eight per cent of the contained uranium oxide within the ores might be recovered by way of this course of.
Curiously, Deep Yellow says that work to this point has examined lower than 60 per cent of the mineralised Tumas paleochannel. Regardless of that, the corporate has managed to triple its useful resource stock over the previous 3-years demonstrating the continuing potential of the ore system and the wealthy endowment current within the dry river-beds of the Namibian Desert.
A report tabled by the World Nuclear Affiliation, or “WNA” in 2019 has warned of a looming uranium provide crunch, with modelling by the worldwide nuclear authority predicting demand to outstrip provide from 2023 onwards, with a major shortfall anticipated to final out to 2040. The uranium value in 2020 reacted accordingly, heading north of US$34 per pound in June earlier than settling again to round US$30 per pound at present.
Deep Yellow stays bullish in its perception there may be loads extra upside in uranium costs, pointing to persevering with consolidation throughout the sector and a rush by developed international locations to satisfy looming carbon emission targets, as additional value drivers for the metallic.
With the corporate having cleared the PFS hurdle and launching straight right into a definitive feasibility research, Deep Yellow appears to be like to be one firm properly positioned to satisfy the anticipated progress in world demand for uranium because it powers in the direction of to manufacturing.
Deep Yellow’s work program will now look to increase the Tumas mine life out to greater than 20 years, by means of ongoing improvement drilling and the optimisation of its proposed processing circuit and mining operation. Underpinned by a PFS that appears to help the case for a quick path to manufacturing, the cadre of skilled uranium campaigners behind the wheel at Deep Yellow might have additionally demonstrated an impeccable sense of timing.
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