Deep Yellow Limited says it expects to start production at its flagship Tumas project by late 2026, with a Final Investment Decision anticipated in late fourth quarter of 2024.
This comes as the company appointed mining executive Jim Morgan as Head of Project Delivery to bolster its leadership team as it moves forward with the development of the project.
“Jim brings a huge range of mine construction expertise to the Company and fully understands what is required to build a successful, long-term and reliable uranium operation. Jim’s first priority will be the delivery of our flagship Tumas Project and ensure this important project is established according to its defined scope, budget and schedule,” said Deep Yellow Managing Director & CEO John Borshoff.
Morgan brings over 35 years of experience in the uranium and resource sectors, having previously worked with Borshoff, during his tenure at Paladin Energy.
At Paladin, Morgan played a key role in the successful construction of the Langer Heinrich uranium mine in Namibia and the Kayelekera uranium mine in Malawi.
The company is currently conducting a thorough review of the Tumas Project, focusing on optimising mining sequences and the Tailings Storage Facility (TSF) schedule.
The review includes revising the Ore Reserve Estimate to reduce pre-development costs and improve the project’s economic efficiency.
With the upgrade of some Mineral Resources to measured status, the company expects to base the first six years of production on Proven Ore Reserves.
The company has also made strides in securing project financing by appointing Nedbank Limited, through its Corporate and Investment Banking Division, as the Mandated Lead Arranger and Bookrunner.
Significant progress continues on the Tumas Project, which remains a key priority for the company.
Ausenco Services Pty Ltd has been selected as the preferred Engineering, Procurement, and Construction Management contractor for the project, which will be carried out in two phases.
The final phases of metallurgical test work support detailed engineering and process design, confirming previous results without any material changes to the process design criteria.
In terms of resource upgrade drilling, operations at Tumas 3 have been completed. Six diamond core holes were drilled to determine the density required for the Mineral Resource Estimate, which is critical for defining sufficient
Proven Mineral Reserves for the first six years of operations. The drilling program aims to improve drill spacing at Tumas 3 to 50m by 50m, converting approximately 20 million pounds of uranium (U3O8) from Indicated to Measured JORC Mineral Resource status.
Reverse Circulation resource drilling has covered the pit locations designated for the first six years of operations, as outlined in the project’s Definitive Feasibility Study.
