Guest Contributor | Jul 29, 2020 | 0
Deep Yellow’s off-taker search continues
Uranium explorer, Deep Yellow has made considerable progress at its Omahola project but the search for an off-taker for its Tubas Sands project continues with only a few potential suitors having been identified. Releasing its quarterly report this week, Deep Yellow said that its search for an off-taker was in progress with no clear end in sight.
Speaking to Peter Christians, Country Manager for Deep Yellow, The Economist was able to establish that Deep Yellow was investigating a deferred strategy for the Tubas Project, anticipated to kick-off next year. The strategy seeks to support efforts to develop the Tubas Sands project. He said “We have looked at another bankable feasibility study for Tubas. The study will be initiated next year. We are currently looking at a new strategy for the development of Omahola.”
Deep Yellow Limited has to date been unable to secure an off-taker for the concentrate that could be produced by mining and physical beneficiation of the Tubas deposit. Another option up for consideration by Deep Yellow is the incorporation of the Tubas Sands project into its flagship Omahola project in the longer term. Deep Yellow reported that it had engaged all of its potential off-takers based in Namibia. The spanner in the works is Deep Yellow’s failure to secure a definitive agreement with potential suitors.
Work done on its Omahola project has sought to identify a more optimal rate of future production and an enhanced life of mine. An in-house preliminary economic analysis completed in June 2014 produced encouraging results. More work is anticipated to be completed in the next quarter. In the Preliminary Economic Analysis completed and announced in the previous quarter, rates of production [uranium output] between 2.5 Mlbs/a U3O8 and 3.5 Mlbs/a U3O8 were modelled which would require between 7 and10 Mtpa of ore to be mined and treated. These different production scenarios generated an estimated mine life of between 10 and 14 years. The Omahola project consists of three ore bodies made up of MS7, Inca and Ongolo. Further drilling is also anticipated to be conducted at the MS7 deposit while a review of the structural interpretation of the deposit has been completed. The study, according to Deep Yellow, was done to better understand the fundamental controls of the deposits’ geometry. Deep Yellow anticipates that the study will ensure an improved understanding that will enhance the chances of success of any future drill programme at MS7 with further hopes that it may also improve the chances of success for discovering similar deposits. Detailed work on the MS7 site is expected to commence in 2015.