Name of the Project
Mulga Rock uranium project.

Location
In the Shire of Menzies, in Western Australia.

Project Owner/s
The merger agreement between uranium developer Deep Yellow Resources and ASX-listed Vimy Resources was implemented in August 2022, creating a global uranium player.

Under the merger agreement, Deep Yellow will acquire all the shares in Vimy, with Vimy shareholders receiving 0.294 Deep Yellow shares for every Vimy share held.

Project Description
An updated definitive feasibility study (DFS) has reinforced the global importance of the project, the biggest advanced uranium project in Australia.

The mineral resources and reserves estimate, mine plan and schedule, as well as the technical design and metallurgical flowsheet, are unchanged from the 2018 DFS.

The project has an expected mine life of 15 years, with yearly production estimated at 3.4-million pounds of uranium and life-of-mine production estimated at 47.1-million pounds of uranium.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project’s pretax net present value has increased from A$530-million, at an 8% discount rate in the 2018 DFS, to A$605-million in the updated DFS. The internal rate of return has increased from 25.3% in the 2018 DFS to 31.1% in the updated DFS. Payback from the start of production has decreased from 3.1 years in the 2018 DFS to 2.4 years in the updated DFS.

Capital Expenditure
Total capital expenditure has decreased from A$493-million in the 2018 DFS to an estimated  A$393-million in the updated DFS.

Planned Start/End Date
Production is expected to start in the third quarter of 2023.

Latest Developments
Deep Yellow is reconsidering its approach to the uranium project, which is to  include all minerals that could have economic potential.

Prior to its merger with Deep Yellow, Mulga Rock owner Vimy Resources had considered only the uranium resources at the project area, but planned to include some base metals in an updated bankable feasibility study at the end of 2023.

Deep Yellow has indicated that assessment work has focused on incorporating all the base metals and rare-earth elements within the expanded uranium resource concentrating on the Mulga Rock East deposits. The work indicates potential for significant increase in project value and the strong likelihood that the project life beyond 20 years can be achieved from these deposits alone.

In addition, the re-evaluation work completed to date also identifies the potential to increase the overall uranium resource within these deposits, owing to the inclusion of peripheral lower-grade uranium associated with base metals dominated zones.

This work has demonstrated the need to reconsider the project approach and consider all minerals that could have economic potential in the revised DFS being undertaken.

The DFS work, along with a 600-hole air core drilling programme to better define the resource, is scheduled for completion by mid-2024. 

Key Contracts, Suppliers and Consultants
GR Engineering Services (updated DFS), including Piacentini & Son (earthmoving); and Thinking Human Resources and OfficeSolutions IT (information technology and communications).

Contact Details for Project Information
Deep Yellow, tel +61 8 9286 6999 or email info@deepyellow.com.au.
Vimy Resources, tel +61 8 9389 2700 or email info@vimyresources.com.au.