Deep Yellow's Namibian uranium project Tumas can produce 2,4 million pounds per year


ASX-listed Deep Yellow says the Tumas project in Namibia can produce approximately 2.4 million pounds of uranium per annum over a 20-year mine life, with an average production cost of US$25.21/lb over the life of the mine.

Deep Yellow released its definitive feasibility study (DFS) on Feb. 2, estimating theTumas Project's pre-tax net present value at US$386 million and an internal rate return of 21.6%. 

The Definitive Feasibility Study (DFS) has improved upon the outcome of the Pre-Feasibility Study (PFS) by increasing the production capacity of the plant from 3 million pounds to 3.6 million pounds of U3O8 and the throughput from 3.75 million to 4.15 million, despite a 26% increase in initial capital due to inflation and COVID impacts.

An Environmental Impact Assessment (EIA) has been completed in compliance with Namibian government regulations by a third party and after consulting with government and community stakeholders. Further consultation with stakeholders in three towns will occur before final submission to the government.

This company plans to use solar farm technology to decrease dependence on grid power and decrease CO2 emissions. The use of the mine's produced uranium is expected to replace the use of black coal, further reducing CO2 emissions.

The Tumas Project's development is expected to positively affect the economy, including job creation in construction and operations, with an estimated total of 800-2550 jobs.

The company is now focused on advancing the Tumas 3 Project towards a final investment decision to commence construction in 2023.

John Borshoff, CEO and Managing Director of Deep Yellow, stated that the release of the Tumas DFS is a significant event for the company and highlights the potential of the project to become a world-class uranium operation. 

He emphasized the use of accurate costings and the commitment to sustainability initiatives, including a benign tailings stream, which will allow for the safe closure and rehabilitation of the project. 

Borshoff also mentioned that the company would commence Front End Engineering and Design and advance project financing and offtake discussions this year to make a Final Investment Decision in the first half of 2024 if conditions are favourable. 

He also mentioned that the development of Tumas is a cornerstone of the company's dual-pillar growth strategy and the belief in nuclear energy as a means to combat climate change and secure future electricity supply.

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