In November 2016, Deep Yellow entered into a joint venture agreement with JOGMEC (a Japanese Government Agency) covering exploration and development at the Nova Project. JOGMEC completed its earn-in of A$4.5M over 4 years earning the right to a 39.5% interest in Nova.
The joint venture includes two EPLs prospective for both basement and palaeochannel-type uranium mineralisation.
The joint venture is applying innovative exploration tools including geophysical methods, analysis of the structural geological setting, and systematic drilling to the discovery of buried mineralisation. Previously unknown mineralisation has so far been discovered at the Namaqua palaeochannel, and the Iguana and Barking Gecko basement prospects.
The promising Barking Gecko prospect is a basement/alaskite style prospect on EPL3669. Exploration to date has identified mineralisation over a 300m by 200m zone, however further drilling is required to test the continuation of the mineralisation to the north and south as well as at depth. Recent diamond core drilling showed thick, high-grade mineralisation is associated with pegmatitic alaskites contain smoky quartz. Primary uranium mineralisation coincides with subsequent hydrothermal uranium mineralisation.
Nova Joint Venture Equity Interests
Whilst JOGMEC has not yet exercised its option, the JV parties are contributing in those proportions as though the interest had been exercised as indicated below:
|Reptile Mineral Resources & Exploration (Pty) Ltd – Manager
(Subsidiary of Deep Yellow Limited)
|Reducing to 39.5%|
|Japan Oil, Gas and Metals National Corporation (JOGMEC)||39.5% (Right to equity)|
|Nova Energy (Africa) Pty Ltd
(Subsidiary of Toro Energy Ltd)
|Sixzone Investments (Pty) Ltd
|6% (Carried interest)|