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Napperby resource next year

Ben Sharples
Tuesday, 29 August 2006


DEEP Yellow says drilling has confirmed the existence of near-surface mineralisation outlined by previous explorers at its Napperby uranium project in the Northern Territory, with a resource estimate expected in 2007 following a hiccup late last year.



Deep Yellow non-executive director Martin Kavanagh told MiningNews.net today the company still had about 12 months of drilling before a global resource on the entire project could be calculated.

"The area we've drilled out is about 50% of the total resource, so we're just trying to look at the drill density that is required to evaluate the entire deposit," Kavanagh said.

"The drill hole spacing is going to come out of this program, we drilled this current hole spacing on 50m by 50m and … we may able to remove lines and holes to arrive at a pattern that will allow us to drill out the rest of the deposit."

Deep Yellow said ongoing drilling had continued to return "highly encouraging positive chemical assay results" including 1m at 4320 parts per million (0.43%) uranium oxide from 4m and 4m at 1121ppm (0.11%) from 3m.

The company hit a bump last year when trying to calculate a JORC-compliant resource for the project, with data sets from the main mineralised zone not able to be included in the resource estimate due to low sample recoveries, and the original Uranerz data unable to be compared with Deep Yellow's data due to differential sampling.

The work by Uranerz was said to have identified a resource target of 5700-6200 tonnes grading 0.036-0.038% uranium oxide, with Deep Yellow aiming to verifying, to JORC status, some 4000t of contained uranium oxide at the time.

Shares in Deep Yellow gained 0.5c (3.8%) during morning trade to 13.5c, capitalising the company at $84 million.

Aspermont Limited (ABN 66 000 375 048)
Postal Address PO Box 78, Leederville, WA Australia 6902
Head Office Tel +61 8 6263 9100 Head Office Fax +61 8 6263 9148
e-mail [email protected] website www.aspermont.com

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