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Deep Yellow Lodges Environmental Reports For Uranium Projects In Namibia

Deep Yellow (ASX: DYL) has advanced the permitting process for two of its Namibian uranium projects with the lodging of separate Environmental Scoping Reports with the Department of Environment and Tourism of Namibia.

The reports were lodged by wholly owned Namibian subsidiary Reptile Uranium Namibia for the broader Ongolo Alaskite area of the Omahola Uranium Project and the Tumas Palaeochannel Project.

In Namibia, environmental approval is required prior to the award of a mining licence and can typically take up to two years to complete.

The Environmental Scoping Reports confirm the framework and process to be undertaken for the Environmental Impact Assessment for both projects.

Impact assessments have already begun on the ground and interested and affected parties and public notifications have already been posted.

Reptile Uranium has obtained three separate environmental approvals in the last two years.

Omahola

Greg Cochran, managing director, commented: "This is an important step in the permitting process of the Omahola Project.

"As before, we will follow a rigorous process to ensure that the environmental impact of the project is fully assessed and that the public is kept informed of our plans and progress.

"The assessment will run in parallel with our project evaluation activities so that we maintain our momentum to deliver a successful project."

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.

During the March quarter the project saw an increase in total resource base to 48.7 million tonnes at 420 parts per million U3O8 for a contained resource of 45.1 million pounds of U3O8 at the 250 parts per million cut-off.

The last independently held alaskite project in Namibia, Omahola consists of a number of deposits including Ongolo, INCA and the high grade MS7 deposit.

Ongolo mineralisation - primarily uraninite - comes to within 20 metres of surface and underlies a broad, flat gently sloping sheetwash plain, thinly veneered by gravelly alluvial and aeolian sands.

MS7 is a mineralised zone of about 600 metres along strike and up to 400 metres wide about 2 kilometres west of Ongolo while INCA hosts unique high grade uranium, magnetite and pyrite mineralisation.

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.

Reptile Uranium received environmental approval for the INCA area of the Omahola Project in February 2012.

Tumas

The Tumas Project consists of Zone 1 and Zone 2 Resources located in the southern and western parts of the project area.

It also includes two exploration areas for which mineral resources are yet to be delineated.

The S-Bend anomaly is located in the northern part of the project area and Tumas Zone 3, which represents the westerly extension of Tumas Zones 1 and 2.

Uranium occurs almost exclusively in the form of secondary carnotite hosted in palaeochannel fill and sheetwash sediments.

Mineralisation occurs near surface in calcretised fluviatile sediments and is overlain by modern river sediments with sparse vegetation cover.

In addition, mineralised red and brown sands and gravel have been intercepted in Tumas Zone 3 that are very similar to the Tubas Sand Project material.

A shallow open pit mining operation with minimal blasting is envisaged followed by physical beneficiation to produce a uranium rich sand concentrate product which could be transported to an existing processing facility such as the nearby Langer Heinrich Mine.

Cochran said: "Despite the fact that we are not currently progressing technical studies on the project, we feel that it is important to capture the benefit of having the environmental consultants that are conducting the Ongolo Assessment complete the Tumas assessment simultaneously.

"There is naturally some overlap that is beneficial because it means that both assessments will be undertaken to the same rigorous standards.

"As with Ongolo, we will ensure that the environmental impact of this project is fully assessed and that the public is kept informed of our plans and progress."

Reptile Uranium received environmental approval for the Tubas Sand Project, which is contiguous to the west of the Tumas Palaeochannel Project, in February 2012.

Divestment

During the March quarter, it was announced that the Australian exploration portfolio would be divested.

Deep Yellow remains well-funded with around A$5.4 million in cash at the end of the March 2013 quarter.

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