Deep Yellow spent N$15.4 million (A$1.268 million) exploring and evaluating the Tumas, Omahola and Nova JV projects in Namibia and the Alligator River Project in Australia in the quarter ended March 31, 2024.
According to the Quarterly Activities Report released on Wednesday, Deep Yellow is advancing the marketing and project finance components necessary for the Tumas’ planned future development.
Given the substantial progress made in these necessary pre-development initiatives, the company remains committed to a final investment decision to develop the Tumas Project in time to allow production to commence during the latter part of 2026.
The ASX-listed company owns the Tumas project that shelters the Omahola project, the Nova JV with the Japanese agency JOGMEC, and the Yellow Dune JV.
The Tumas Project hosts one of the country’s largest known paleochannel-hosted calcrete uranium deposits, with an indicated mineral resource of 108.5Mlb at 265ppm eU3O8.
Deep Yellow wants to produce 3.6Mlb of U3O8 per annum, with an anticipated life of over 30 years.
Together with the Tumas 1, 1 East, Tumas 2 and Tubas deposits, the palaeodrainage contains about 139 million pounds of U3O8 inferred and indicated resources, of which 67.3 million pounds are currently held in a probable ore reserve.
Deep Yellow says a tender process is underway to select the detailed engineering and EPCM service provider, while discussions have commenced with financiers for the debt financing component.
At the end of March 2024, the company’s cash position was about N$1.9 billion (A$155.614 million) compared to December 2023’s cash position of N$307 million (A$25.248 million).
Deep Yellow is expecting receipts of about N$60.8 million (A$5 million) during 2024 relating to claims lodged for the research and development reimbursement for 2023.
The company recently raised A$250 million to advance the Tumas Project towards production and progress the Mulga Rock Project in Australia.
Another A$220 million came from a placement, while a share purchase plan raised A$30 million.
