Published on Saturday October 06 2012 (AEST)
Australian Uranium Explorer Deep Yellow (DYL)has intersected 1 metre at 110,500ppm (11%) uranium from 288 metres at the MS7 deposit at the Omahola uranium project in Namibia, its highest ever grade it has encountered in the country.
This result came from a hole that was drilled to undercut previous intercepts at depth that cut off shallow mineralisation to the north, with the company saying it represented a narrow vein system that was not entirely representative of the usual MS7 mineralisation. Other significant results include 33 metres at 1,325ppm uranium from 50 Meters, 3 Metres at 1,723ppm uranium from 26 metres and 8 metres at 633ppm uranium from 48 metres. Further outstanding intercepts have been submitted for chemical assay with results anticipated at the end of September.
The consistent relatively shallow, frequently wide intersections with grades well above Deep Yellow’s 400ppm reporting threshold from the ongoing drill program confirm the MS7 deposit’s higher grade nature and continuity. The program is primarily designed to increase the size and confidence of existing resources as well as test for lateral and depth extensions. Deep Yellow is targeting a nominal 50 million pound resource before it resumes a Pre-feasibility Study it halted due to the discovery of high grade alaskite mineralisation. Interim results from the study had in early 2011 demonstrated the potential for a mine capable of producing 2.2 million pounds of uranium for 12 years.
This would have a capital cost of about US$340 million including a 10% contingency with operating costs of about US$32 per pound of uranium.
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