Positive PFS For Namibian Uranium Project
Deep Yellow Limited (ASX: DYL) has completed a “highly positive” Pre-Feasibility Study (PFS) for the Tumas Uranium Project and given approval to move straight to a Definitive Feasibility Study (DFS) for the Namibian development.
The PFS evaluated the potential of the calcrete-associated uranium deposits located within the Tumas palaeochannel in the company’s 100% owned Reptile Project (EPLs 3496 and 3497) and focused on a Langer Heinrich-style open pit mining operation utilising a purpose- built processing facility with a design capacity of 3Mlb U3O8 per annum
Managing Director and CEO, John Borshoff, said that importantly, the PFS has delivered encouraging results, in line with the assumptions determined and announced from the preceding Scoping Study (SS) that was completed in January 2020.
“The completion of the Tumas Pre-Feasibility Study marks a major milestone for Deep Yellow as we advance our exciting Namibian project portfolio towards production,” Mr Borshoff said.
“The highly positive outcomes of the PFS, underpinned by impressive economic numbers, has resulted in the Board approving the immediate commencement of a Definitive Feasibility Study, representing a significant step forward in the corporate evolution of Deep Yellow.
“Tumas is an exciting development opportunity and one of very few globally over the last 4 years that has progressed from brownfields exploration to completion of a PFS, now moving on to a DFS. This is testament to the entire Deep Yellow team, who have proven uranium credentials and understand what it takes to develop a world-class uranium operation.
“The company is managing the progression of the Tumas Project in line with forecasts highlighting significant improvements in the uranium price which are expected during 2022, following realisation by nuclear utilities of the looming uranium shortage expected from 2023/24.
“Development of the Tumas Project is a critical element in the execution of our stated dual-pillar growth strategy and we are extremely pleased with the ongoing success we are experiencing advancing this highly prospective project.
“The impressive results from the Tumas PFS clearly justify advancing this project to a DFS status, appreciating that uranium prices are expected to improve strongly over the next two to three years. With this approach, the Company has a significant opportunity to continue diligently advancing the Tumas Project in a cost-effective and timely manner.
“As previously indicated, our overall aim is to establish a multi-platform, 5-10Mlb per annum, low-cost uranium producer, with the expectation of each project achieving a minimum 2-3Mlb per annum production capability. We remain on track with this strategic objective and look forward to commencing the DFS and continuing to advance the Company towards establishing itself as a tier-one uranium producer.”
PFS highlights included:
- Minimum 20 years Life of Mine (LOM);
- 2-3Mlb U3O8 pa production;
- IRR hurdle rate of 20% (real, ungeared);
- Operating Costs in lower quartile at time of development (US$30/lb for Tumas); and
- CAPEX US$120M to US$130M per 1Mlb of design capacity.
