PERTH (miningweekly.com) – The board of ASX-listed Deep Yellow has green-lit a prefeasibility study (PFS) on the Tumas uranium project, in Namibia, following a positive scoping study.
The scoping study, which focused on the Reptile project’s Tumas palaeochannel calcrete deposits, focused on openpit mining and a purpose-built processing facility.
“The completion of the Tumas scoping study and the positive decision that has emanated from it, represents an important milestone in the corporate evolution of Deep Yellow,” said CEO and MD John Borshoff.
“We have developed a unique and bold dual-pillar growth strategy to establish a multi-platform, low-cost global uranium company and our stated strategic aim is to deliver a multi-mine, five- to ten-million-pound-a-year low-cost uranium production company with the expectation of each project achieving a minimum of two- to three-million-pound-a-year production capacity.
“Development of our Namibian project portfolio is a critical element of this strategy and we are extremely pleased with the ongoing success we are experiencing in advancing our highly prospective Reptile project.”
Borshoff said that the results from the scoping study clearly demonstrated that advancing the project to the prefeasibility stage was justified, appreciating that uranium prices were expected to improve strongly over the next two to three years.
“With this approach, the company has a significant opportunity to continue prudently advancing the Tumas palaeochannel deposits in a cost effective and timely manner, and assist in achieving our aim of establishing Deep Yellow as a tier one uranium producer.”
The PFS will likely be completed in the December quarter of this year.