Deep Yellow has intersected 1 meter at 110,500 ppm uranium from 288 meters at the MS7 deposit at the Omahola uranium project in Namibia its highest ever grade it has encountered in the country.

This result came from a hole that was drilled to undercut previous intercepts at depth that cut off shallow mineralization to the north, with the company saying it represented a narrow vein system that was not entirely representative of the usual MS7 mineralization.

Other significant results include 33 meters at 1,325ppm uranium from 50 meters, 3 meters at 1,723ppm uranium from 26 meters and 8 meters at 633ppm uranium from 48 meters. Further outstanding intercepts have been submitted for chemical assay with results anticipated at the end of September.

The consistent relatively shallow, frequently wide intersections with grades well above Deep Yellow’s 400ppm reporting threshold from the ongoing drill program confirm the MS7 deposit’s higher grade nature and continuity. The program is primarily designed to increase the size and confidence of existing resources as well as test for lateral and depth extensions.

The flagship Omahola project has a JORC Inferred and Indicated resource of 38.2 million tonnes at 441ppm uranium for 37 million pounds of uranium. This consists of the Ongolo Alaskite deposit of 20.5 MT at 400ppm uranium for 18 million pounds uranium, MS7 with 5.4 MT at 470ppm uranium for 5.6 million pounds uranium and the INCA deposit of 12.4 MT at 490ppm uranium for 13.4 million pounds uranium.

Ongoing exploration successes and the discovery of the Ongolo South satellite have boosted confidence that the project resource base can be substantially increased. Deep Yellow is targeting a nominal 50 million pound resource before it resumes a Pre feasibility Study it halted due to the discovery of high grade alaskite mineralization.

Interim results from the study had in early 2011 demonstrated the potential for a mine capable of producing 2.2 million pounds of uranium for 12 years. This would have a capital cost of about USD 340 million including a 10% contingency with operating costs of about US$32 per pound of uranium.

Source - Proactive Investors.com

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