Reptile Project

The Reptile Project includes EPLs 3496 and 3497 covering 1,131km2. Over the last 10 years DYL has drilled in excess of 750,000m and defined uranium resources of both the palaeochannel/calcrete and alaskite types in various scattered deposits (for details see Resource section). Under the new management (from October 2016), DYL started a new geological and geophysical evaluation of the historic project data and this is ongoing. Significant new targets of both target types have been defined and additional resources have been delineated.

The Project is held 100% by Reptile Uranium Namibia (Pty) Ltd (RUN) which, through RMR, is wholly owned by DYL. A Heads of Agreement has been signed which will allow 5% equity to be taken up by local company Oponona Investments (Pty) Ltd (Oponona) on any project that results in development within the project tenements. Of this, a 2% equity portion will be held via a trust to ensure that broad-based economic empowerment of disadvantaged community members occurs through educational grants and worthy community project funding.

Palaeochannel/Calcrete Type Target

Palaeochannels filled by Cretaceous, Tertiary and Quaternary sediments are the targets for the Langer Heinrich style of uranium mineralisation.

The current palaeochannel/calcrete-type uranium resource base includes the Tumas and Tubas deposits of 50.6Mlb at 370ppm U3O8 and the overlying Red Sands resource of 12.7Mlb at 170ppm U3O8. The resource base has been significantly increased over the past two years due to the new exploration approach that the Company has adopted.

Evaluation work in early 2017 defined several new priority targets and resulted in a new uranium discovery at Tumas 3. The initial drilling program has identified over 4km of continuously mineralised palaeochannel at Tumas 3, which was previously unknown and essentially blind in nature with no surface radiometric expression.

With this successful drilling program DYL has commenced methodical exploration of what is proving to be a very fertile, uraniferous calcrete system which extends in excess of 100km. To date, only 25km of this high priority target has been adequately explored.

This exploration is targeting 120Mt to 150Mt at grades in the range of 300ppm to 500ppm U3O8. Our experience of the known mineralisation in the fertile paleochannels of this region shows that they can contain between 2Mlb to 12Mlb U3O8/km. It is reasonable to assume 3 to 4 mineralised zones along the 100km of prospective channel system will be identified with the potential to contain 45Mlb to 80Mlb U3O8.

Definition of this prospective resource will be achieved by continuing systematic drilling of the underexplored regional channel system.

Basement/Alaskite Type Targets

The “Alaskite Alley” zone, which contains the bulk of the known basement resources in the region, cuts through the western part of EPL 3496. To date, a collective resource of 45.1Mlb at 420ppm U3O8 exists within this zone associated with the Inca, Ongolo and MS7 deposits. These deposits are located in the northern 10km of the 30km long Alaskite Alley prospective zone that has been isolated on EPL 34966.

The prospective zone is considered to be inadequately explored and still offers ample opportunities to find additional uranium resources of the Husab/Rössing style. Previously untried geophysical methods are being deployed to define blind drill targets over alluvial covered areas. It is expected targets will be isolated extending from the known mineralised trends and which previously could not be targeted in a cost-effective manner.