Deep Yellow doing wellBy Kate SieperFriday, 15/09/2006Mention...

Deep Yellow doing well
By Kate Sieper

Friday, 15/09/2006

Mention uranium this week and chances are you'll be talking about South Australia. And why wouldn't you be with the Chinese Government-owned Sinosteel Corporation buying a controlling stake in the development of two South Australian uranium deposits, Crocker Well and Mt Victoria. And if the joint venture is approved by the Foreign Investment Review Board, it should net the Australian exploration company Pepinini over $30 million. So perhaps it's no surprise that no one was getting too excited about the results from Deep Yellow, a uranium exploration company working on Napperby Station, 140 kilometres north of Alice.

But as Jamie Myer from Baker Young Stockbroker explained, they're worth watching. "The latest 35 drilling holes have continued to confirm the expectations of very high grade channels down there at Napperby. They're coming up with some good grades, they're coming up with half a per cent uranium, pound per tonne, half a pound per tonne, pound per tonne, which is very good grades. If you're looking at getting one per cent then that's extremely good, so it all looks very promising for Deep Yellow down there and it looks like their exploration program will continue on."

In this report: Jamie Myer, Baker Young stockbrokers.