Reptile Project (100% DYL)

The Reptile Project contains uranium resources from both target types – palaeochannel/calcrete and basement/alaskite.

The principal exploration and development target for the Reptile Project is the palaeochannel/calcrete style of mineralisation as exemplified by the Langer Heinrich deposit. Uranium mineralisation in this style of deposit occurs as the uranium vanadate carnotite 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.

The Reptile Project contains a Mineral Resource in the Tumas and Tubas palaeochannel/calcrete – type deposits of 96.2Mlb U₃O₈ at 292ppm.

In the three years since its involvement, management has delivered an impressive threefold increase in the Reptile project’s palaeochannel/calcrete Resource, mainly at the Tumas 3 and Tumas East discoveries, at a modest total cost of ~$7m equating to the extremely low discovery cost of 11.5c/lb.

Exploration during this period has been extremely successful and delineated 125km of highly prospective palaeochannels of which 50km remain to be tested. Ongoing exploration within this region is targeting an additional 30 – 60Mlb U₃O₈ in the grade range of 300-500ppm eU₃0₈ and, if successful, will assist the Company in increasing the total palaeochannel resource base to 125-150Mlb in that grade range.

The Deep Yellow team (majority ex Paladin Energy) has experienced significant exploration success in such palaeochannel deposits. Fertile paleochannels of 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.

The Company’s rapid success in advancing the palaeochannel-related uranium resource bases has resulted in advancing the Project to economic consideration.

A positive Scoping Study was completed at the end of 2019 on the Tumas deposits, with the results providing the Board with confidence to approve, proceeding immediately to a formal pre-feasibility study.

The study is due to be completed in the December quarter 2020 and has the following key objectives:

The second type of mineralisation at Reptile is basement/alaskite. Deep Yellow’s basement exploration is mainly focused on the 30km x 10km “Alaskite Alley”, which contains the bulk of the known basement resources in the region and cuts through the western part of EPL3496.

The Company has identified the Ongolo, MS7 and Inca deposits within EPL3496, which have a combined total Resource of 45.1Mlb U₃0₈ at 420ppm.

The prospective portion of Alaskite Alley within EPL3496 has been underexplored and represents a substantial opportunity to discover additional uranium resources of basement style.