CHAMWE KAIRA
Deep Yellow Limited, which is developing Tumas project in the Erongo Region has said that in total 73.8 million pounds of uranium oxide will be produced over a total life of mine of 30 years.
Commenting on the milestone Deep Yellow Managing Director/CEO Mr John Borshoff commented: “This major ore reserve upgrade continues to confirm the upside potential of the Tumas project. We now have a reserve with a 30-year Life of Mine expectancy with potential to increase this by a further five to 10 years with further work in the coming years. All of this augers very well, positioning Tumas as a very important long-term supplier of uranium in what we believe will be a supply-constrained sector.”
Deep Yellow said the updated milestone successfully delivered an 18% increase to the previous Ore Reserve Estimate (ORE) for the Tumas Project on ML237.
The company aims at successfully progressing a dual-pillar growth strategy to establish a globally diversified.
The company’s portfolio provides geographic and development diversity with the company’s two advanced projects – flagship Tumas, Namibia and Mulga Rock, Western Australia, both located in Tier-1 uranium jurisdictions.
Deep Yellow believes that the uranium price used (US$75 per pound for the Definite Feasibility Study (DFS) financial analysis is based on a report obtained from an independent third-party uranium marketing expert.
The estimated capital costs for the development of the Tumas Project, and used in the DFS, was developed by a Ausenco Services Pty Ltd and have a stated accuracy of -10% + 15%, the company said.
Deep Yellow said the total capital cost determined in the DFS, including capital expenditure estimates for mining, process plant, infrastructure, spares, first fills, construction indirect, Engineering, Procurement, Construction Management (EPCM), commissioning, owner’s costs, capitalised pre-production costs and contingency, is US$411 million.
The company said a marketing report obtained from an independent third-party uranium marketing expert that considered current and forecast nuclear electricity production, installed commercial nuclear generating capacity, secondary uranium supplies, primary uranium production, the global uranium market balance and price outlook and marketing and logistics was commissioned to provide the basis for uranium price and volume forecasts.
