Deep Yellow has revealed that it spent N$160 million on development activities at its flagship Tumas project in Namibia during the first quarter of the year.
The company’s latest optimisation work at the Tumas project has resulted in a uranium price of US$82.50 per pound (lb) of U3O8. According to Deep Yellow, this price further supports Tumas’ economic viability and reinforces its standing as a Tier-1, long-life uranium operation. The Net Present Value (NPV) post-tax is currently estimated at N$1.08 billion (US$577 million), while the internal rate of return (IRR) post-tax stands at 19%.
Initial Capital Expenditure (CAPEX) for the project is estimated at N$893 million (US$474 million), while the C1 operational expenditure (OPEX) for the first 20 years is reported at US$24.52 per tonne of ore treated, or US$35.02 per lb of U₃O₈.
Despite the significant expenditure, no mining production activities took place during the quarter. This was due to a delayed Final Investment Decision (FID), prompted by insufficient uranium price incentives to justify the development of a greenfield project. The Deep Yellow Board has, however, approved a staged development approach, with detailed engineering and early works continuing.
“The Tumas Project is ready to take the next step towards development, but as we have consistently stated, a healthy prevailing uranium market is a key prerequisite. The final project approval will therefore be delayed until uranium prices fully reflect a sustainable incentivisation environment essential to encourage the development of new projects for much-needed additional production,” said John Borshoff, Managing Director of Deep Yellow.
Borshoff said the company would focus on other aspects of the Tumas project, such as early works infrastructure and detailed engineering, but would not commit capital to the construction of the process plant until uranium prices improve.
By the end of the first quarter of 2025 (31 March), a pre-mining, grade control drilling programme, which began in August 2024 with three Reverse Circulation (RC) rigs operating at Tumas 3, had completed 2,802 holes for a total of 39,348 metres. This drilling covered the small open pits south of and near the proposed plant site.
“This work will prepare tailings deposition sites for utilisation and be in readiness for plant commissioning and the ramp-up phase of the operation. This drill programme is planned to continue until the end of April 2025,” the company said.
At present, two RC rigs are in operation, and the overall drilling programme is expected to require approximately 41,000 metres of drilling.
The construction schedule for the process plant has been extended from 18 to 24 months, with the production ramp-up period also increasing from six months to 15 months. The company estimates that wet commissioning will be completed within 24 months of the FID decision, with ore processing and production ramp-up following shortly thereafter.
“First product into drums is anticipated approximately two months after ore processing commences. The schedule estimated for Tumas is considered conservative and will be further refined during the ongoing detailed engineering,” Deep Yellow said.
