Australia-listed uranium explorer Deep Yellow (ASX:DYL,OTCQX:DYLLF) has increased the mineral resource for its Reptile uranium project by 34 percent.
The updated inferred mineral resource for the Namibian project is the result of fall drilling at the Tumas East 1 section of the Reptile site.
The recently completed drill program produced a new inferred mineral resource estimate of 24.8 million pounds of U3O8 equivalent with a grading of 319 parts per million (ppm).
The increased estimate has also improved the company’s discovery cost, according to Deep Yellow’s press release.
“We are fortunate enough to have a proven and experienced management team that understand the requirements of building a successful uranium operation — a factor that will continue to contribute to the remarkable turnaround in improving the potential offered by the Reptile project,” stated John Borshoff, Deep Yellow CEO and managing director.
“This has already enabled us to triple the resource at Reptile in a short space of time, importantly at a discovery cost of around AU$0.11 per pound.”
Deep Yellow isn’t the only Australian company focused on uranium in the area.
Roughly 30 kilometres northeast is Paladin Energy’s (ASX:PDN,OTC Pink:PALAF) Langer Heinrich uranium mine, which was put on care and maintenance in 2017.
Earlier this year, Paladin approved a restart and has been progressing towards production since.
Borshoff has a connection to Paladin, having founded the company in 1993.
He stepped down as CEO of Paladin in 2015 and took a number of his team members with him to Deep Yellow, at which he was appointed managing director in 2016.
In addition to the Reptile project, the uranium explorer is also developing the Nova joint venture, as well as the Yellow Dune joint venture, both located in Namibia.
“Results to date strongly justify our increased effort both in exploration to further increase the resource base and in evaluating the economic potential of this project with the initiation of a scoping study due for completion in December 2019,” noted Borshoff. “We fully expect this to progress to commencement of a prefeasibility study in late January 2020.”
Shares of Deep Yellow were up 3.6 percent on Monday (November 18), trading at AU$0.28.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.