Live Currency Rates
 
  Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Deep Yellow assays confirm Ongolo high grade uranium intercepts  Join our daily free Newsletter

MENAFN - ProactiveInvestors - Australia - 20/02/2013

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - ProactiveInvestors - Australia) Deep Yellow (ASX: DYL) has confirmed high grade equivalent uranium intercepts made during its drilling in December and January at the Ongolo Alaskite uranium deposit in Namibia after carrying out Fusion XRF chemical assays.

The eU results obtained during drilling operations were used in the recent resource update of the Ongolo deposit to 29.6 million tonnes at 384ppm U3O8 for 25.1 million pounds of U3O8 at a 250ppm cut-off.

Notable assay results include 5 metres at 480ppm U3O8 from 49 metres and 9 metres at 3,158ppm U3O8 from 96 metres; 6 metres at 849ppm U3O8 from 70 metres; 17 metres at 677 ppm U3O8 from 101 metres; and 12 metres at 2,214 ppm U3O8 from 207 metres.

Managing director Greg Cochran was pleased the chemical assay results confirmed the eU readings.

"We are cautious in our approach to using eU numbers in resource estimation, but these results demonstrate once again that at Ongolo this information is reliable which may in future allow us to reduce our reliance on chemical assays.

"With the completion of the Ongolo program we are now drilling in the Ongolo South area whilst we review all available information in our exploration database as we look to generate new high grade targets to rapidly grow the Omahola Project resource base."

Ongolo

The Ongolo deposit is key part of Deep Yellow's Omahola project, the last independently held alaskite project in Namibia.

Mineralisation at the project comes to within 20 metres of surface and underlies a broad, flat gently sloping sheetwash plain, thinly veneered by gravelly alluvial and aeolian sands.

The uranium mineral is primarily uraninite, and where present at grades of greater than 500 ppm, is marked by the presence of significant visible smokey quartz and frequently, biotite.

Resources had recently been increased by 39% to 25.1 million pound of U3O8, bringing the company closer towards its short term project resource target of 50 million pounds.

Once this is reached, the company will progress the project towards a Pre-Feasibility Study.

Besides Ongolo deposit, the Omahola project also includes the high grade MS7 deposit that is located about 2 kilometres west of Ongolo with a mineralised zone of about 600 metres along strike and is up to 400 metres wide and the INCA deposit that hosts unique high grade uranium, magnetite and pyrite mineralisation.

MS7 i has a resource of 6.8 million tonnes at 442ppm U3O8 for 6.6 million pounds of U3O8 while INCA has a contained resource of 13.4 million pounds of U3O8.

This brings the total resource at Omahola to 45.1 million pounds.

Most of these resources will be mineable through open pit methods.

These will all feed into a mine that Deep Yellow envisions as capable of producing at least 2.2 million pounds of U3O8 from 2016 from a processing plant located close to the Ongolo Alaskite deposit.

Interim Pre-Feasibility results released in 2011 based on the INCA and Tubas Sand deposits had demonstrated the potential for an operation with competitive capital costs of less than US340 million and operating costs of around US32 per pound of U3O8.

Omahola is located within Namibia's 'Alaskite Alley', which includes the Rossing uranium mine and Husab uranium project. Structures along this trend are associated with higher grade alaskites.

Due to the proximity of the project to the coastal towns of Swakopmund and Walvis Bay and ready access via a sealed, black-top road there will be no need for on-site housing for construction and operation personnel.

Uranium renaissance

Deep Yellow is set to be a beneficiary from the expected resurgence in uranium demand.

Japan is planning to steadily restore nuclear power capacity between 2013 and 2015 while China has committed to increasing its nuclear power capacity at least fivefold to an installed capacity of between 70 and 80 GWe by 2020.

These factors will likely fuel the anticipated near-medium term appreciation in the uranium price.

Analysis

They say grade is king and Ongolo has it in spades. The deposit ranks more highly on average grade of uranium than almost all of its Namibian peers.

There is also a growing resource base at flagship Omahola Project which promises to provide the critical mass and tonnage for development options to increase. Omahola is also Namibia's last independently held high grade alaskite project.

There are some significant catalysts for Deep Yellow to be re-rated including:

- Achieving its short term exploration objective of 50 million pounds of U3O8;
- Further growth of its resource base through exploration;
- Starting its Pre-Feasibility Study;
- Carrying out Scoping level metallurgical testwork;
- Completing the Pre-Feasibility Study in 2014;

With an EV/Resource of just 0.57 per pound of U3O8 - based on an EV of 68.99 million and a total resource base in Namibia and Australia of 121.7 million pounds of U3O8, there is scope for re-rating relative to its peers as it meets upcoming milestones.

The company is also well funded with 7.2 million in cash as of the end of December 2012 quarter.

 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014President Salva Kiir Relieves his Chief of the General Staff ,Qatar News Agency
(MENAFN - Qatar News Agency) Juba April 24 -South Sudanese President Salva Kiir relieved Chief of the General Staff of south sudan army James Hoth Mai. This came in a presidential decree aired ...

Apr 24 2014Omani non-oil exports to enter African markets ,MENAFN
(MENAFN) A senior official at the Oman Chamber of Commerce and Industry (OCCI) said that the Sultanate is seeking expansion in new African markets, in a time it is looking forward to reduce its ...

Apr 24 2014US Secretary of State Meets Egyptian Intelligence Chief ,Qatar News Agency
(MENAFN - Qatar News Agency) shington April 24 - US Secretary of State John Kerry has met with the Egyptian Intelligence Chief Major General Mohammed Ahmed Fareed al-Tohami who is currently ...

Apr 24 2014Egypt's Interim President Receives Phone Call from South African President ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egypt's Interim President Adly Mansour has received a telephone call from President of the Republic of South Africa Jacob Zuma in which they discussed ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Dubai SME ties up with Taylor Wessing to raise awareness on Intellectual Property and fund-raising among SME100 firms ,MENAFN Press
(MENAFN Press) Dubai SME, the agency of the Department for Economic Development in Dubai mandated to develop the SME sector, have signed a memorandum of understanding (MoU) with the international law ...

Apr 24 2014Sharjah Ladies Club organizes "Sharjah Ladies run" at the University City ,MENAFN Press
(MENAFN Press) Sharjah Ladies Club gears up to launch "Sharjah Ladies run" at the Sharjah University City. With over 250 participants, the activity aims to encourage women and enable them to ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

Apr 24 2014Mannai Corporation net profit soars 73 percent in Q1 ,MENAFN
(MENAFN) Qatar's Mannai Corporation said that its net profit in the first quarter of this year increased significantly, the Peninsula Qatar reported. The group said that net profit in the period ...

more...


 
Live Currency Rates






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help