Deep Yellow releases Shiyela Resource

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THE DRILL SERGEANT: Deep Yellow has had a maiden JORC Mineral Resource estimate completed for its Shiyela iron project in Namibia.

The Shiyela project is located on an exploration licence which is held 100 per cent by Deep Yellow’s wholly-owned Namibian subsidiary, Reptile Uranium Namibia.

The new Inferred Resource estimate totals 78.7 million tonnes at 18.88 per cent iron at 10 per cent Davis tube Recovery (DTR) cut-off for the M62 and M63 magnetite deposits with an average DTR magnetite content of 16.17 per cent.

 

JORC Mineral Resource Estimate Shiyela – December 2011. Source: Company announcement

 

The company has previously told the market that chemical assays conducted on concentrates produced from DTR testwork confirmed that Shiyela could produce a quality magnetite with high iron and low impurity levels suitable as a Blast Furnace product.

“This is another solid step forward in our assessment of the Shiyela iron project,” Deep Yellow managing director Greg Cochran said in the company’s announcement to the Australian Securities Exchange.

“Whilst we are pleased with the result we recognise that more drilling and analysis must be done to enhance the resource base. In the meantime our consultants ProMet are currently finalising the Scoping Study and the market can expect an announcement in that regard next week.”

Deep Yellow completed an exploration program earlier this year, consisting 210 Reverse Circulation and Diamond Drilling holes for 38,473 metres of drilling.

The company said this drilling had confirmed strong mineralised zones in both the M62 and M63 deposits.

Deep Yellow has now commenced a large-diameter diamond drilling program to provide core for the company’s next phase of metallurgical testwork, as part of a planned Feasibility Study.

The program will comprise at least 3 holes at both M62 and M63 for approximately 1,000 metres of PQ core to generate some 16 tonnes of mineralised material.

Subject to the availability of funding for the project  a program of RC and diamond drilling to target  lateral and depth extensions to the M62 and M63 deposits will be conducted in 2012.