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Deep Yellow Ltd's Greg Cochran Brings Uranium To Proactive Q&A Sessions™

Deep Yellow Ltd (ASX:DYL) is focussed on rapidly developing its Tumas/Tubas calcrete uranium project in Namibia.

The project is the highest grade undeveloped calcretes located in the country that also hosts the world class Husab, Rössing and Langer Heinrich uranium mines - all within the same region.

To find out more, we are joined exclusively by Greg Cochran, managing director for Deep Yellow, in Proactive Q&A Sessions™.

PROACTIVE INVESTORS: Welcome Greg.

What have the initial metallurgical results delivered from Tumas to date, and how do the results compare against expectations?

Greg Cochran: Thank you John. Well, the results are definitely in line with and possibly even exceed our expectations.

We are getting good mass reject in the first scrubbing and screening phase and effective desliming and calcite removal in the following phases.

That also means that it is likely that the final stage, where the uranium (which is in the form of carnotite) is concentrated.

Can you outline what the U-pgradeTM process is, and how it will be relevant to Tumas?

Greg Cochran: We are under strict confidentiality as the process is patent pending, however I have in my previous answer outlined the basic steps.

It is relevant to Tumas because Tumas is a calcrete hosted uranium deposit, just like Marenica's.

Marenica did all its testwork on its deposit, which of course is very low-grade being about a third of the grade of Tumas.

How has U-pgradeTM impacted the beneficiation process for other company's flowsheets, and what do you expect it to deliver for Deep Yellow?

Greg Cochran: We know the process seems to work well on Namibian calcretes as they are geologically similar.

I'm not a geologist but Australian calcretes are very different, with different deleterious elements, and so I suspect quite a lot of research will still need to be done before one can claim success here.

You may recall that after testing a sample from our Napperby deposit located in the Northern Territory, Marenica specifically requested that we focus on our Namibian calcretes.

Is Deep Yellow currently in discussions for off-take, or cornerstone investors at either a project of company level?

Greg Cochran: We are engaging with potential offtakers and keeping them abreast of the progress we are making on our resource work and metallurgical tests but I cannot claim that these discussions are far advanced.

That said, there is a keen interest in what we are doing. Of course we regularly engage with potential investors and like offtakers, there is a lot of interest.

Typically, such discussions have a relatively long gestation period but it's the early adopter who captures the greatest upside naturally.

What news flow should investors look out from Tumas for the remainder of 2016?

Greg Cochran: The final results from this first phase of the testwork is the next milestone.

Whilst we envisage the testwork to be completed by the end of June, it'll probably take a month to compile the final results and do a detailed release.

A key component of that release will be aspects such as the overall mass balance which is crucial for equipment sizing and costing etc which feed into the feasibility studies.

I have already seen indicative numbers for the mass balance and once again, they are exactly where we had hoped they would be.

The market can also expect a resource update.

We are fortunate that the existing Tumas Zones 1 and 2 resources are over 95% in the indicated category, so we are not operating in the realm of dreams when it comes to pounds in the ground.

The existing resource is 2004 compliant so we are aiming to shortly release an updated 2012 compliant resource, which may see some resource move into the measured category.

Touching on Deep Yellow's Omahola Project, what are the next steps?

Greg Cochran: We released the results of our internal preliminary economic assessment last year and have had external consultants verify and even improve the conclusions we reached then.

We are now taking that even further and are moving to a point where we will be able to demonstrate how attractive Omahola really is as a comparatively small heap leach operation.

I sincerely hope this disclosure issue is resolved soon as it would be a shame to be barred from releasing such promising results.

For instance, it may well be possible for us to go down the offtake route with Omahola as well by taking the process just to the loaded resin stage and then trucking the resin to an existing operation to be stripped.

There are potentially a number of different development options, in fact it is my personal belief that Omahola has the potential to rank above some market favoured Australian projects and being in Namibia we know that pre-historic political beliefs will not put its future development at risk.

Finally, should an investor consider adding Deep Yellow to their portfolio?

Greg Cochran: John, we have only spoken about two projects in the Deep Yellow portfolio and yet we have almost 100 kilometres of palaeochannels prospective for surficial deposits and we also have considerable further alaskite prospectivity.

Then there are our two joint ventures, one with Toro and one with the state-owned mining company Epangelo, also on prospective ground.

No other Namibian uranium junior has the depth, diversity or optionality of the Deep Yellow portfolio

PROACTIVE INVESTORS: Thank-you Greg.

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