Name of the Project
Tumas uranium project.

Location
The Tumas palaeochannel system is located within Deep Yellow’s 100%-owned Reptile project, in Namibia.

Project Owner/s
Deep Yellow.

Project Description
The objective of the project is to develop a facility to treat ore from the Tumas 1, Tumas 2, Tumas 3, Tumas 1 East and Tubas ore resources.

Envisaged is an operation treating 4.15-million tonnes a year to produce up to 3.6-million pounds of uranium and 1.15-million pounds of vanadium by-product a year over a projected mine life of 22.25 years, based on existing ore reserves.

Additional resources will likely increase the life-of-mine to more than 30 years.

The mine will be a conventional, shallow opencut truck-and-shovel operation using contract mining.

The process route comprises a beneficiation process to reject barren material, leaching, solid liquid separation, pregnant leach solution concentration, vanadium recovery, uranium recovery and uranium barren liquor treatment.

The project also includes the construction of a 13.5 km site access road, a 45.1 km 132 kV powerline and a 65 km water supply pipeline.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
A definitive feasibility study (DFS) review completed in December 2023 found that the base case uranium price increased from $65/lb to $75/lb, owing to market-strengthening conditions, which results in a post-tax net present value (NPV) increase of the project by 68% to $570-million, or A$838-million, with an internal rate of return (IRR) of 27%.

In a more optimal scenario of the uranium price reaching $90/lb, the project’s NPV increases to $878-million and its IRR to 36.1%.

Capital Expenditure
The DFS review has validated a lower initial capital cost for Tumas of $360-million, or A$529-million, down 64% from the initial estimates in the DFS.

Recosting work has identified further potential gains to be made during the detailed engineering phase of the project, with more gains to be made across beneficiation, washing and concentration as demonstrated by metallurgical testwork not having been incorporated into the recosting effort.

Planned Start/End Date
Not stated.

Latest Developments
The Tumas DFS, published in February 2023, was undertaken during a period of significant inflationary and supply logistics volatility, which necessitated a review of cost estimates later on in the year.

The outcome of the review validates the commercial viability of the project as a long-term, high-margin and globally significant uranium operation.

The company aims to progress to a final investment decision in the third quarter of 2024. By January 2024, Deep Yellow plans to call for tenders for detailed engineering and project execution from selected third-party engineering services providers.

Additionally, Deep Yellow will advance project finance negotiations.

Key Contracts, Suppliers and Consultants
Ausenco Services (DFS).

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