Deep Yellow increases resource estimate

THE DRILL SERGEANT: ASX and NSX-listed uranium explorer Deep Yellow has completed a successful exploration program on its Queensland tenements that has outlined a new, increased Indicated and Inferred JORC Code Mineral Resource estimate.

The new estimate for the region has come in at 4.7 million tonnes at 460 parts per million for 4.8 million pounds uranium at a 300 ppm cut-off.

Deep Yellow developed and implemented a number of drilling programs in the area aimed at delineating additional mineralisation on the back of its maiden JORC Code Resource for the Mount Isa District that was released to the market in January 2010.

These programs largely focused on infill and deeper drilling to enhance the company’s understanding and confidence in these resources.

“The results from the programmes indicated zones of higher grade mineralisation and extended all of the prospects to depth leading to an overall increase in the tonnage and average grade which have now been included in the updated Resource,” Deep Yellow said in its announcement to the Australian Securities Exchange

“Drilling at all of the prospects also indicate that mineralisation remains open to depth providing further exploration upside potential.”

Deep Yellow managing director Greg Cochran said the exploration program’s success had resulted in the company including a new resource, the Citation prospect, into its Queensland portfolio.

“The Citation prospect, which is part of the Isa West project, had a few previous holes that intersected mineralisation,” Cochran said in the release.

“However the latest round of drilling has extended the mineralisation along strike and to depth, which has allowed the inclusion of Citation in the updated Resource estimate.”

As a result of the Resource upgrades Deep Yellow’s JORC Resource Mineral Estimate Summary has been updated and the company’s total Resource base has now grown to 176.4 million tonnes at 271 ppm for 105.5 million pounds uranium.