Tumas Project Engineering 60% Complete; S-Bend Drilling Reveals 1,217 ppm Uranium

Tumas Project Advances Toward Production

Deep Yellow Limited continues to make solid strides at its Tumas Project in Namibia, targeting first production in the third quarter of 2027. Detailed engineering for the process plant has surpassed 60% completion, with major equipment orders placed and bulk earthworks now underway. The company is simultaneously finalising critical off-site infrastructure agreements for power and water supply, although negotiations with NamPower and NamWater are taking longer than expected, posing a potential scheduling challenge.

Temporary site facilities, including roads and construction water, are fully established, setting the stage for the commencement of civil works early next year. Operational readiness planning is also well underway to ensure a smooth transition from construction to commissioning and ramp-up phases.

Exploration Success at S-Bend Prospect

Following the quarter, Deep Yellow completed an extensive shallow reverse circulation drilling program at the S-Bend prospect adjacent to Tumas. The 452-hole campaign, covering approximately 4 kilometres of prospective tributaries, revealed four distinct clusters of higher-grade uranium mineralisation. Noteworthy intersections include 8 metres at 332 ppm equivalent uranium oxide (eU3O8) and 2 metres at an impressive 1,217 ppm eU3O8 starting from surface.

This discovery is significant as it not only adds to the resource base but also enhances the potential to extend the Tumas Project’s current 30-year life of mine. Mineralisation was found both within the thin Tertiary valley fill sediments and the underlying fractured Proterozoic bedrock, indicating multiple extraction targets.

Progress at Mulga Rock and Alligator River Projects

In Western Australia, the Mulga Rock Project is advancing with encouraging mini-pilot resin testwork demonstrating successful recovery of uranium, base metals, and rare earth elements from the Ambassador and Princess deposits. The revised Definitive Feasibility Study is progressing on schedule, aiming for first production roughly two years after Tumas.

Meanwhile, the Alligator River Project in the Northern Territory has commenced fieldwork and drilling programs, including reverse circulation and diamond drilling supported by government co-funding. Results from these activities are awaited, with extensive geophysical surveys also underway to refine exploration targets.

Corporate and Market Outlook

Deep Yellow closed the quarter with a strong cash balance of A$203.5 million, underpinning its development and exploration activities. The company is actively working with Nedbank to finalise project debt financing for Tumas, with an updated technical report nearing completion.

Leadership changes were announced post-quarter, with Managing Director John Borshoff stepping down and CFO Craig Barnes appointed as Acting CEO. Non-Executive Chairman Chris Salisbury will support the transition in an Executive Chair role while a global search for a permanent replacement continues.

The uranium market outlook remains robust, driven by anticipated supply deficits extending to 2040 as highlighted in the recent World Nuclear Association report. Rising term contract prices and increased utility procurement activity suggest growing market recognition of uranium’s strategic importance, reinforcing Deep Yellow’s positioning as a future Tier-1 uranium producer.