Tumas Project (100% DYL)

Tumas is comprised of a series of palaeochannel/calcrete-type uranium deposits totalling 132.9Mlb U308.

Uranium mineralisation in palaeochannel/calcrete-type deposits occur as carnotite (uranium-vanadium mineral), hosted by Tertiary and Quaternary fluvial sediments occupying narrow and steep-sided palaeochannels. Host-rocks vary from hard, carbonate-cemented sandstones and conglomerates (calcrete) to poorly consolidated and friable sands.

Exploration since 2016 has been extremely successful, highlighted by the more than fourfold increase in the Project’s palaeochannel/calcrete resource since 2016 (mainly at the Tumas 3 and Tumas 1 East discoveries), at an extremely low and impressive discovery cost of 9.4c/lb.

The Project also includes 125km of highly prospective palaeochannels. Importantly, only 50% of the total mineral resource base and 50% of the 125km Tumas palaeochannel system has been tested, providing the Company with significant exploration upside. Fertile paleochannels in this region can contain between 2Mlb to 12Mlb U308/km and it is reasonable to assume that an additional 2 to 3 mineralised zones will be discovered.

Scoping Study and Pre-Feasibility Study

A positive Scoping Study (SS) was completed at the end of 2019 on the Tumas deposits, with results providing the Board with confidence to proceed immediately to a formal Pre-Feasibility Study (PFS).

The PFS was completed in early 2021 and delivered robust results in line with, and in some cases better, than assumptions from the SS highlighting a strong economic case for Tumas and justifying immediate commencement of a Definitive Feasibility Study (DFS), for the future development of Tumas.

Definitive Feasibility Study

The DFS will pursue an expanded Project target to achieve the stated goal of a minimum 20-year Life of Mine operation and is due for completion by the end of CY22.

The first phase of DFS work, consisting of Ore Reserve expansion, Mining Licence Application (MLA), Environmental Impact Assessment (EIA), trade-off studies and detailed metallurgical test work, has been largely completed. The MLA was lodged in July 2021 and the EIA is well underway. The Tumas Probable Ore Reserves increased by 121% during the first phase of the DFS work.

Importantly, results from the first phase of work improved on PFS assumptions and through inclusion of the updated Ore Reserves, the forecast NPV for the Project increased the operating mine life from 11.5 years to over 20 years and almost doubled the PFS NPV forecast to US$412M.

The Company is now in the second and final phase of DFS work which includes further detailed process design, operating and capital cost estimates, detailed mine planning, detailed Ore Reserve optimisation and negotiation of material contracts in preparation for Project implementation.

Tumas is being advanced in alignment with forecasts of an increasing uranium price, in reaction to the looming uranium shortage expected post 2023. Deep Yellow requires a minimum uranium price of US$65/lb U308 to bring Tumas online.

Tumas Project Map