Deep Yellow Limited has confirmed that uranium production at its Tumas Project is scheduled to commence in the second half of 2026, contingent on favourable uranium term prices.
The announcement follows the company’s successful capital raising of N$2.7 billion in March last year through a placement to fund the project’s development.
The Tumas Project, held under Licence 237 and fully owned by Deep Yellow, is poised to become Namibia’s fourth uranium mine, joining Rossing, Husab, and Langer Heinrich.
According to the company’s latest half-year financial report, the Final Investment Decision (FID) for the project has been pushed to March 2025 due to delays in cost assessments and equipment procurement.
“Tumas FID consideration has been deferred until March 2025 due to delayed costings and quotes for equipment and construction, and further project optimization,” the report stated.
Despite the delay, Deep Yellow remains confident that the timeline for production commencement remains intact.
“The overall project schedule is also being refined and optimized as part of FID preparation; however, the Board remains of the view that this relatively small delay will not have a material impact on the project’s overall timeline and objective of commencing production in the second half of 2026, subject to the overriding factor of a sufficient uranium term price incentivization,” the report added.
The Tumas Project’s total measured, indicated, and inferred mineral resource stands at 118.2 million pounds (Mlb), grading 255 parts per million (ppm) of uranium oxide (eU3O8). Following an infill drilling program in September 2024, the measured resource for the Tumas 1, 2, and 3 deposits was estimated at 38.5 Mlb at 278 ppm eU3O8.
“The aim was to define an additional 20 Mlb U3O8 in measured resources, which can be converted to a proven ore reserve and be sufficient for the first six years of production,” the report noted.
Over the projected 30-year life of the mine (LOM), Deep Yellow anticipates an average uranium oxide production of approximately 2.46 Mlb per annum, based on an average head grade of 298 ppm U3O8. The mining schedule includes a six-month ramp-up phase before the commissioning of the ore processing plant, with early production expected to reach an annual rate of 3.6 Mlb.
The company also highlighted the potential to extend the mine’s lifespan by upgrading the remaining inferred mineral resources. Currently, approximately 30% of the Tumas palaeochannel system remains untested.
Deep Yellow has secured firm volume and price agreements with NamWater and NamPower to ensure a stable supply of water and electricity for the project.
