How much has Deep Yellow increased the uranium resource at Mulga Rock Project?
Deep Yellow Limited
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How much has Deep Yellow increased the uranium resource at Mulga Rock Project?

Strong Resource Upgrade Bolsters Mulga Rock Project's Value

Deep Yellow Limited (ASX: DYL) has announced a significant update to the Mineral Resource Estimate (MRE) for the Ambassador and Princess deposits within its wholly owned Mulga Rock Project (MRP) in Western Australia. This upgrade has revealed a 26% increase in uranium resources and more than a doubling of critical minerals inventory, marking a substantial step forward in the project's development.

The company is set to embark on a revised Definitive Feasibility Study (DFS) in Q2 2024, aiming to assess the viability of this expanded resource base. Deep Yellow's strategic advancements at MRP, coupled with progress at its flagship Tumas Project in Namibia, position it as a potential major player in the uranium production sector by 2026-2028.

Strategic Resource Expansion

The MRP's total contained uranium in the Mulga Rock East deposits has increased by 26% to 71. 2 million pounds of U3O8.

The update has substantially upgraded the project's critical minerals inventory, including Copper (Cu), Nickel (Ni), Cobalt (Co), Zinc (Zn), and Rare Earth Oxides (REO), with increases between 200% and 400% for base metals.

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86% of the uranium resource at Mulga Rock East now falls within the Measured and Indicated classification, enhancing the project's overall resource confidence.

The forthcoming revised DFS will integrate these updates, focusing on a less selective mining approach that leverages both uranium and critical minerals within the current permitting framework.

Mulga Rock East Deposits: A Closer Look

The updated MRE for the Mulga Rock East deposits showcases a robust growth in resources:

Uranium Resources: Total Measured, Indicated, and Inferred resources have increased to 81. 2 million tonnes at 400 ppm U3O8, totaling 71. 2 million pounds of U3O8.

Critical Minerals Resources: Significant increases in critical minerals have been observed, with total resources including 41. 4 kt of Cu, 55. 9 kt of Ni, 32. 7 kt of Co, 47. 6 kt of REO, and 119. 1 kt of Zn.

Methodology and Impact

The MRE update, conducted in accordance with the 2012 JORC Code, reflects a comprehensive approach to resource estimation, incorporating lower grade uranium mineralization within the critical minerals envelope. This strategic inclusion has not only increased the uranium resource but also added substantial value through the integration of critical minerals, demonstrating the project's polymetallic potential.

Total MRP Uranium and Critical Minerals Resource Status

The total MRP now reports 104. 8 million pounds of U3O8 across all deposits, with the Mulga Rock East deposits significantly contributing to this figure with their enriched critical minerals content. This reevaluation highlights the project's expanded economic potential, emphasizing the strategic importance of critical minerals alongside uranium.

Forward-Looking Strategies

Deep Yellow's revised DFS will explore the operational and economic benefits of this resource upgrade, focusing on optimizing mining strategies to maximize value. The inclusion of critical minerals not only enhances the project's profitability but also aligns with global demand trends for these essential components in various high-tech applications.

Deep Yellow's strategic update to the MRE at the Mulga Rock Project underscores the company's proactive approach to unlocking value and diversifying its resource base. With an eye on future production and market demands, Deep Yellow is positioning itself as a key player in the uranium and critical minerals sectors, promising significant developments in the years to come.

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