Name of the Project
Tumas palaeochannel uranium project.

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

Project Owner/s
The deposit is held by Deep Yellow through its wholly owned subsidiary Reptile Uranium Namibia.

Project Description
The Tumas prefeasibility study (PFS) completed in February 2021 has confirmed the technical and economic viability of the project.

The PFS envisages a Langer Heinrich-style openpit mining operation using a purpose-built processing facility, with a design capacity of three-million pounds of uranium a year over a 11.5-year life-of-mine (LoM).

This development concept comprises conventional openpit mining, ore beneficiation through scrubbing and size classification, low-temperature (150 ºC) pressure leaching using carbonate/bicarbonate leachate, reagent recycle using membrane concentration of washed leachate, uranium and vanadium refining and packaging, as well as in-pit tailings deposition.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The PFS shows an initial after-tax net present value, at a nominal 8.6% discount, of $207-million and internal rate of return of 21.1%, with a payback of 3.8 years from the start of production.

Capital Expenditure
$265.7-million.

Planned Start/End Date
Not stated.

Latest Developments
The Supreme Court of Western Australia has called on ASX-listed Vimy Resources to call a shareholder meeting to vote on the proposed A$658-million merger agreement with fellow ASX-listed Deep Yellow.

The two companies announced the merger agreement in April, under which Deep Yellow would acquire all the shares in ASX-listed Vimy, with Vimy shareholders to receive 0.294 Deep Yellow shares for every Vimy share held.

The companies said in a joint statement that the merger transaction implied 28.5c a Vimy share, representing a premium of 35.3% to the 30-day volume weighted average price and a 18.8% premium to the closing Vimy share price on March 25.

Vimy shareholders are expected to meet on July 20 to vote on the transaction, before a second court date to approve the transaction on July 26. If approved, the deal could be implemented by August 4.

The merger is expected to create a new global uranium player of significant scale; cash resources of A$106-million; one of the biggest uranium mineral resource inventories globally of 389-million pounds; and two advanced, world-class assets in tier-one uranium-mining jurisdictions.

Key Contracts, Suppliers and Consultants
Ausenco Services (engineering and capital cost estimate).

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