Deep Yellow says it spent N$15.4 million (A$1.268 million) on exploration and evaluation activities for its Namibian projects – Tumas, Omahola, and Nova JV – and the Alligator River Project in Australia during the quarter ending 31 March 2024.
The company said it is making significant progress on the Tumas Project with marketing and project finance plans in its final process for production to begin in late 2026.
“During the quarter, the tender process to select an engineering services provider to work with the Company to complete detailed engineering and provide EPCM services commenced with preferred bidders. This process is ongoing, and the Company expects to appoint the successful bidder and commence detailed engineering in Q2 CY2024. Detailed engineering is expected to take approximately six months,” the company said in its quarterly activities report.
The report further says the Tumas project, which includes the Omahola project, the Nova JV with JOGMEC, and the Yellow Dune JV holds one of Namibia’s largest calcrete uranium deposits, with an estimated resource of 108.5 million pounds of yellowcake at 265ppm.
Deep Yellow aims to produce 3.6 million pounds of yellowcake annually for over 30 years. The combined Tumas deposits hold an estimated 139 million pounds of yellowcake in inferred and indicated resources, with 67.3 million pounds classified as probable ore reserve.
In addition, the company’s cash position was N$1.9 billion (A$155.614 million) at the end of March 2024, compared to N$307 million (A$25.248 million) in December 2023.
The company said it is expected to receive approximately N$60.8 million (A$5 million) in 2024 from research and development reimbursements for 2023.
Meanwhile, the company recently raised N$3 billion (A$250 million) to fund the development of the Tumas Project and further exploration of their Mulga Rock Project in Australia. This included N$2 billion (A$220 million) from a placement and 366 million (A$30 million) from a share purchase plan.
