Deep Yellow increases Mulga Rock East uranium mineral resource estimate by 26 per cent
Deep Yellow has boosted the mineral resource estimate at the Mulga Rock East uranium project 290km north-east of Kalgoorlie-Boulder by 26 per cent, saying this justifies a more expansive definitive feasibility study revision.
Deep Yellow told the ASX on Monday that total contained uranium in the Mulga Rock East project was now 71.2 million pounds of triuranium octoxide, up from from 56.7Mlb triuranium octoxide at a 100 parts per million cut-off grade.
The company said 86 per cent of the Mulga Rock East uranium resource — comprised of the Ambassador and Princess deposits — was now in the measured and indicated categories.
Initial investor reaction to the announcement was negative, with Deep Yellow’s share price down 2 per cent to $1.245 at 9am.
By the close it had recovered to $1.265, down about 0.4 per cent.
Deep Yellow also noted the critical minerals inventory — copper, nickel, cobalt and zinc — had increased by 200 per cent to 400 per cent depending on the element.
Mulga Rock’s total mineral resources was now 115.1 million tonnes at 420 parts per million for 104.8Mlb triuranium octoxide.
Triuranium octoxide, a compound of uranium, is an olive green to black, odourless solid.
It is one of the more popular forms of yellowcake and is shipped between mills and refineries in this form.
Managing director John Borshoff said when the company acquired Mulga Rock through the Vimy Resources merger in August 2022, it identified significant opportunity to uplift the value of the project by extracting critical minerals in addition to the uranium associated with the Ambassador and Princess deposits.
“In order to re-rate and grow this project we needed to undertake a considerable amount of preparatory drilling for essential metallurgical testwork to establish the leaching characteristics of the critical minerals and prepare an updated MRE focusing on both the uranium and non-uranium (critical minerals) components associated with the deposits,” he said.
“The results to date confirm our positive expectation for this exciting project, with results illustrating the potential value uplift that could be captured by the integrated development approach.
“The updated MRE has delivered an impressive 26 per cent increase in the uranium resource and more than doubled the critical minerals’ inventory.
“This fully justifies proceeding with the DFS revision, which will kick off in Q2 2024, to determine the overall viability of the polymetallic resource that has been delineated, with uranium still remaining the key value driver of the project.
“Importantly, through our successful work at Mulga Rock and the advanced stage of our flagship Tumas project in Namibia, where we will make a final investment decision in (the third quarter) this year, Deep Yellow is well-positioned to become a geographically diversified, multi-mine uranium producer in the coming years, with assets planned for production by 2026 at Tumas and 2028 at Mulga Rock.”
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