unofficial jorc estimate

For those that have been shareholders of Deep Yellow for as long as I have (since 2006), you will remember that the company was forced by the ASX to retract an announcement regarding historical JORC numbers calculated by the previous operators in Namibia some time ago. They were forced to retract the announcement because they could only find summaries of historical JORC numbers and some details were missing.

A copy of this historical JORC can actually be actually be found on their new website at:

http://www.deepyellow.com.au/contents/projects/namibia/reptile-jorc-statement.htm?id=12

Since some additional exploration has been carried out after the historical JORC numbers were calculated by previous operators, I have combined all the information available to derive an 'unofficial' updated JORC estimate as follows:

TUBAS 228ppm 17620t Inferred (DYL Official)
TUMAS 343ppm 3087t Indicated (DYL Official)
TUMAS 360ppm 360t Inferred (DYL Official)
ORYX 300ppm 5320t ?? (Unofficial)
ORYX 250ppm 725t ?? (Unofficial)
Namib Park 352ppm 3027t ?? (Unofficial)
Aussinanis 275ppm 5500t ?? (Unofficial)
RS & Inca 400+ppm 10000t ?? (Based on recent report)

TOTAL JORC EST. 45,639t (approx 100million pounds U308)

The actual JORC numbers will definitely be higher because more drilling has been carried out at Aussinanis, Ripnes, S-Bend and Tumas Extension since the historical numbers were produced.

While the grades may not look exceptional at first glance(except for RS & Inca), it is important to note that the uranium mineralisation is close to surface and the style of mineralisation is mostly calcrete(more economical to extract).

As i've mentioned in an earlier post, Areva are currently trial mining uranium at their Trekkopje mine just west of Deep Yellow's Namibian ground and the grades there are only 150ppm. In fact, if their process is proven to be successful, then Deep Yellow's economically mineable 'Unofficial' JORC estimate would increase by 10270t to 55,909t (approx. 123 million lbs U308). This is because a lower cut-off could then be used to extract any mineralisation at and above 150ppm.

Important to also note that the above JORC does not include Deep Yellow's Australian prospects which actually look quite promising as well.

With the uranium price expected to rise IMO with increased nuclear reactors being built and planned around the world, the economics will only get better. I assume that is why management have decided to take a staged approach in developing their discoveries, concentrating first on the higher grade and more profitable discoveries like Inca and Red Sands and then waiting for improvements in the price of uranium before proceeding with the rest. This will also ensure that they can start earning some revenue from Inca/ Red Sands first to fund further exploration and development elsewhere.

Very happy with how everything is progressing so far and very excited about the future of the company.