Name of the Project
Tumas uranium project.

Location
The Tumas palaeochannel system is located within Deep Yellow’s 100%-owned Reptile project, in Namibia.

Project Owner/s
Deep Yellow.

Project Description
The objective of the project is to develop a facility to treat ore from the Tumas 1, Tumas 2, Tumas 3, Tumas 1 East and Tubas ore resources.

Envisaged is an operation treating 4.15-million tonnes a year to produce up to 3.6-million pounds of uranium and 1.15-million pounds of vanadium by-product a year over a projected mine life of 22.25 years, based on existing ore reserves.

Additional resources will likely increase the life-of-mine to more than 30 years.

The mine will be a conventional, shallow opencut truck-and-shovel operation using contract mining.

The process route comprises a beneficiation process to reject barren material, leaching, solid liquid separation, pregnant leach solution concentration, vanadium recovery, uranium recovery and uranium barren liquor treatment.

The project also includes the construction of a 13.5 km site access road, a 45.1 km 132 kV powerline and a 65 km water supply pipeline.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
A definitive feasibility study (DFS) review completed in December 2023 found that the base case uranium price had increased from $65/lb to $75/lb, owing to market-strengthening conditions, which resulted in a post-tax net present value (NPV) increase of the project by 68% to $570-million, or A$838-million, with an internal rate of return (IRR) of 27%.

In a more optimal scenario of the uranium price reaching $90/lb, the project’s NPV increases to $878-million and its IRR to 36.1%.

Capital Expenditure
The DFS review has validated a lower initial capital cost for Tumas of $360-million, or A$529-million, down 64% from the initial estimates in the DFS.

Recosting work has identified further potential gains to be made during the detailed engineering phase of the project, with more gains to be made across beneficiation, washing and concentration as demonstrated by metallurgical testwork not having been incorporated into the recosting effort.

Planned Start/End Date
Production startup is expected in 2026.

Latest Developments
Deep Yellow has appointed Nedbank as the mandated lead arranger and bookrunner to coordinate and arrange financing for the project.

The bank has an extensive track record in financing mining projects across Africa.

The proposed project financing is expected to deliver a competitively priced cost of funding for project development. The project finance process will run in junction with the detailed engineering under way. The final investment decision is expected before the end of the year.

“It is pleasing that our schedule is holding for production startup during third quarter of the 2026 calendar year,” MD and CEO John Borshoff has said.

Key Contracts, Suppliers and Consultants
Ausenco Services (DFS and engineering, procurement and construction management).

Contact Details for Project Information
Deep Yellow, tel +61 8 9286 6999 or email info@deepyellow.com.au.