Deep Yellow Limited says it has identified three highly promising targets for further exploration at its Omahola Basement Project in Namibia.
The ASX-listed company’s Managing Director/CEO John Borshoff said the finding comes as part of a shallow drilling programme, comprising approximately 200 holes over a distance of 7,100 metres.
He revealed a substantial measured, indicated, and inferred resource base of 125 million pounds (Mlb) at 190 parts per million (ppm) U3O8 across Ongolo, MS7, and Inca deposits.
Additionally, the project boasts a sprawling 35-kilometre prospective zone, “with strong potential for additional discoveries.”
The CEO shared these remarks during the Bell Potter Unearthed 2024 Virtual Conference Investor Presentation this week.
Situated within the highly prospective Alaskite Alley corridor, Omahola is strategically positioned alongside major uranium deposits such as Rössing, Husab, Etango, and Valencia.
The deposits collectively contain over 800Mlb of U3O8, with Rössing alone contributing over 200Mlb U3O8 through its production history.
The project’s mineral resource base comprises 45Mlb U3O8 at 420ppm, adhering to the JORC (2004) Code, and occurs at depths ranging from 20 meters to 250 meters—a typical characteristic of similar deposits.
Notably, this mineral resource estimate has been upgraded to the JORC (2012) Code, revealing a significant resource of 125.3Mlb U3O8 at 190ppm U3O8 with a 100ppm U3O8 cut-off.
This comes as the company is currently focused on its flagship project Tumas project which is expected to cost N$6 billion (US$360.5 million) according to re-costing study findings from N$7.3 billion (US$385.1 million) projected from the definitive feasibility study (DFS).
The re-costing study’s findings show that this will result in cost savings of N$458 million (US$24.6 million).
Borshoff highlighted the significance of the adjustment, noting that “in total, 71% of project capital expenditure was re-costed. First fills, spares, EPCM, and contingency were also re-costed.”
The company began with ore reserve upgrade drilling at Tumas 3 earlier this month.
