Ann: Drilling Commences on High-Grade Uranium Targets at Nabarlek, page-5

Has been a bit quiet on the DEV front, but great news to finally see drilling start at Nabarlek. I feel like I've been hanging out for this for over a year...

I thought it might be worthwhile to revisit some notes I made from last year... when Brendan (BB) presented at the RRS conference. Hopefully some of you will find this refreshing and useful...

BB reiterated how exceptionally high grade the DEV U tenements are, historically mined 24m lbs of U at avg 1.84% grade. In terms of ppm... 1% grade is 10,000ppm grade. Nabarlek had intercepts of 19m @ 13% U... which is 130,000ppm. Very high grades relative to other known U deposits. But it's not just the yellowcake... the nearby Ranger, Jabiluka and Coronation Hill mines all had high grade and high volume copper & gold mineralisation. Re: Coronation Hill, initially started as a copper mine, then they found U, then a significant gold deposit under the U in open pit mining. Then Coronation Hill was banned for mining under the Kakadu NP re-zoning.

BB said Nabarlek & U40 has similar geological DNA to Coronation Hill. Strong potential for Cu, Au, U and even PGE. They had just finished reviewing 50yrs of exploration data, some of it was hard copy paper... all collated and input into a model which is what they have presented, mapping out the structures, corridors, fault related mineralisation and feeder conduits.

Prospects are as follows:

• Nabarlek: high grade U was found at surface and the pod was mined back in the 70s/80s. Radiometric survey data has shown the U mineralisation is controlled by the north fault structure, DEV suspect further high grade pods to be found along this fault leading to the NE, evidenced by gradiometric survey data - drilling to test this theory.
• Nabarlek South: data sets showing a 50m wide target of past high grade drill intercepts, vectoring into what could be another high grade pod, again plunging to the NE - drilling to test.
• Nabarlek East: this prospect is based on the 25,000 Radon Teck samples from late 80s. An enormous data set (would cost millions $ to do this today). Theory is as U decays it seeps up from the ground and can be picked up by RT sampling. The U40 deposit was discovered by drilling under high radon samples. Best intercept of 6m @ 7% U... also logged Cu, Au and PGE. The "KP prospect" is to be tested by drilling under the cap rock. Also a number of prospects to be drilled along the "Zeus to U40" corridor. All based on extensive radon sampling.

So... exploration has started... and with the 2nd drill rig to come on site end of July... that gives DEV a fair 3-4 months of drilling until the end of NT dry season which is Oct.

Other positives DEV has wrt to Nabarlek...

• All weather bitumen airstrip (no other explorer has this)
• All season camp enabling DEV to explore through-out wet season (no other explorer has this)
• Granted tenure over 4,500 sq km on land which is outside the Kakadu National Park
• Land access agreements in place with landowners and all activities strongly supported by the traditional landowners (have been past employees of Nabarlek mining so keen to get the $$ coming in again)
• If a discovery is made, commercial agreements are already in place for mining / offtakes etc.
• Existing mining lease in place until 2032, which can be extended.
• Environmental Impact Statement already in place
• Strong support from the NT govt and regulatory bodies.

Other points to note:

• Cash in bank currently sitting at $10m as of the June 22 preso. AFAIK $2m has been budgeted for the NT U campaign. Planning to drill all NT prospects back to back. Also there may be additional drill prospects added from the NT ground work done over the wet season (such as at Blackrim and Overload).
• BB referred about DEV's implied U asset value... specifically mentioned neighbours VMY & AGE... $200m and $150m MC respectively... he said DEV's U assets are to stay inside DEV for the time being... but TG & BB always thinking about how the SP would "properly" reflect the value of Nabarlek & U40. Plenty of upside ATM with DEV MC at ~$60m.
• Upcoming drilling will certainly be assaying for Cu, Au and PGEs. Referenced U40 which has past assays for over 1gt Pd & 1gt Pt. They know it is there.

As most of you will know, Uranium price has strengthened considerably and is sitting ~$50lb and the macro themes continue to be improving. I have also been sporadically reading some uranium companies PFS / DFS with project economics estimating U @ $65 lb. That seems to be the consensus for explorers mothballed mines to kick into gear.

Plenty of upside IMO with DEV. I think the next few months will see plenty more announcement catalysts to come out... and that includes news from Sovereign and Junee.

GLTA