Deep Yellow Limited (ASX:DYL) Reports Significant Ore Reserve Upgrade
Updated Ore Reserve Estimate
Deep Yellow Limited (ASX:DYL) has announced an 18% increase in its Ore Reserve Estimate for the Tumas Project, now totalling 79.3 million pounds of U3O8 at an average grade of 298 ppm, using a 100 ppm cut-off. This substantial upgrade, sufficient for a 30-year Life of Mine (LOM), is backed by proved reserves of 28.4 million pounds at 287 ppm and probable reserves of 50.9 million pounds at 305 ppm.
Definitive Feasibility Study Success
The enhancement of the reserve estimate followed a successful Definitive Feasibility Study (DFS) and subsequent updates. The project is now positioned to support an anticipated production rate of up to 3.6 million pounds per year over the LOM—an increase achieved due to the previously announced increase in throughput to 4.2 million tonnes per annum.
Potential for Further Resource Expansion
Deep Yellow remains optimistic about expanding LOM further as significant portions of the Tumas Palaeochannel system are still untested. With approximately 30% of this highly prospective area left, further drilling could uncover additional resources, extending mine life by potentially 5 to 10 years.
Executive Comments
Commenting on the milestone, Managing Director/CEO Mr John Borshoff stated, “This major ore reserve upgrade continues to confirm the upside potential of the Tumas Project. We now have a reserve with a 30-year Life of Mine expectancy, with potential to increase this by a further 5 to 10 years with further work in the coming years. All of this augurs very well, positioning Tumas as a very important long-term supplier of uranium in a supply-constrained sector.”
Implications for Project Economics
The upgraded ore reserves are expected to have positive implications for the project’s economic and operational performance, potentially enhancing its Net Present Value (NPV) and Internal Rate of Return (IRR). Deep Yellow is now advancing towards a final investment decision (FID), further indicating the project’s viability within a growing uranium sector.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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