Deep Yellow Limited is undertaking a comprehensive review of the Tumas Project, including optimising mining sequences and the Tailings Storage Facility (TSF) schedule.
The company’s Managing Director/CEO John Borshoff said the revision includes a re-estimation of the Ore Reserve Estimate to reduce pre-development costs and enhance the project’s economic efficiency.
“The re-scheduling and re-optimisation of the mining and TSF schedule, including a re-estimation of the Ore Reserve Estimate, aims to reduce pre-development costs and improve project economics,” Borshoff said.
The company anticipates completing project financing and marketing and establishing a control capital cost estimate and schedule during the second half of CY2024.
“Major mechanical equipment will be ordered, and the site will be prepared for major site works early in CY2025, following the Final Investment Decision (FID),” Borshoff added.
With some Mineral Resources upgraded to measured status, the first six years of production are expected to be based on Proven Ore Reserves.
Significant progress has been made on the Tumas Project, which remains the company’s primary focus.
Ausenco Services Pty Ltd has been chosen as the preferred EPCM contractor for the project, tasked with Engineering, Procurement, and Construction Management (EPCM) services in two phases.
“The first phase involves completing detailed engineering to allow the Board to make a Final Investment Decision (FID), along with early works and major equipment ordering prior to FID,” Borshoff said.
The second phase involves completing design and project execution, with ore commissioning planned for August 2026.
The company has also advanced project financing by appointing Nedbank Limited (through its Nedbank Corporate and Investment Banking Division) as the Mandated Lead Arranger and Bookrunner.
“Product marketing for the uranium product has started, and the recent rise in uranium term and spot markets creates a favourable environment for completing this critical aspect of project development,” Borshoff said.
Final phases of metallurgical test work continue to support Detailed Engineering and final process design, with results confirming earlier work and no material changes needed to the process design criteria.
Resource upgrade drilling at Tumas 3 has been completed, with final results expected in early Q3 CY2024. Six diamond core holes were drilled for density determinations required for the Mineral Resource Estimate (MRE).
The resource upgrade is necessary to define sufficient Proven Mineral Reserves for the first six years of operation. The program aims to improve drill spacing in parts of Tumas 3 to 50mx50m, converting approximately 20Mlb U3O8 from Indicated to Measured JORC Mineral Resource status.
RC resource drilling has covered the pit locations planned for the initial six years of operations as outlined in the Definitive Feasibility Study (DFS) for Tumas.
“By the end of June 2024, 100% of the program was completed, including 660 RC holes for 12,727m and six diamond core holes for 144.1m. Once all data is received and validated, the MRE will be updated for mine scheduling and Proven Ore Reserve estimation,” Borshoff said.
