Deep Yellow Limited has selected Ausenco Services Pty Ltd as the preferred contractor to deliver the detailed engineering and the engineering, procurement and construction management (EPCM) services for the company’s flagship Tumas Project located in the Erongo Region.
Ausenco is a market leading engineering and consulting firm and brings extensive knowledge of the Tumas Project, through the work they completed on the February 2023 definitive feasibility study together with the December 2023 re-costing.
The scope of work to be completed includes finalising detailed engineering with an EPCM contract opportunity for project execution
Deep Yellow said tendered price is commensurate with the capital cost estimates defined in the December 2023 re-costing addendum.
Deep Yellow said commercial agreements and contracts award for detailed engineering to be finalised over the coming months, as Deep Yellow progresses Tumas towards a Final Investment Decision (FID).
Deep Yellow said it will work toward commencing operations in 2026 and establish Tumas as the 4th uranium mine in Namibia.
The company’s projects provide geographic and development diversity with two advanced projects, flagship, the Tumas and the Mulga Rock in Western Australia.
Tumas has a resource of 121 million pounds of uranium oxide, a reserve of 67 million pounds of uranium and Inferred resources of 16,5 million pounds available to further expand the ore reserve base, with potential to add a further 10 years to the current 22-year Life-of-Mine.
The Tumas Definitive Feasibility Study (DFS) completed in February 2023 was undertaken during a period of significant inflationary and supply logistical volatility.
The company expects to make a Final Investment Decision (FID) on the Tumas in the third quarter of 2024 while the Mulga Rock will advance to a definite feasibility study.
Deep Yellow plans further growth through development of its highly prospective exploration portfolio, the Alligator River in Northern Territory, Australia and the Omahola in Namibia.
Deep Yellow believes it is advancing its growth strategy at a time when the need for nuclear energy is becoming the only viable option in the mid-to-long term to provide baseload power supply and achieve zero emission targets.
Deep Yellow says it is on track to becoming a reliable and long-term uranium producer, able to provide production optionality, security of supply and geographic diversity. Deep Yellow has said the surge in government support for nuclear power growth faces constraints in the nuclear fuel cycle as natural uranium production struggles to meet the accelerating global reactor requirements not just for the existing operating reactors but also newly emerging uranium needs.
