napperby deposit jorc reported resource

ABN 97 006 391 948
Level 1, 329 Hay Street Subiaco WA 6008
PO Box 1770 Subiaco WA 6904
Tel : 08 9286 6999
Fax : 08 9286 6969
Email: [email protected]
Website: www.deepyellow.com.au
13 December 2006
NAPPERBY DEPOSIT – JORC REPORTED RESOURCE
Deep Yellow Limited (DYL) advises that FinOre Mining Consultants (FinOre) have provided the
Company with an Inferred Mineral Resource (reported to JORC standard) for that part of the Napperby
uranium deposit drilled out during June-September 2006.
The Inferred Mineral Resource totals 1.9 million tonnes at 0.036% (360ppm) U3O8 for 670 tonnes
or 1.5 million pounds of contained U3O8.
DYL has previously announced an historic estimate for the Napperby deposit by Uranerz (1979) which
reported to contain between 5,700 and 6,200 tonnes of contained U3O8 within a range of 0.036 –
0.038% (360 – 380ppm) U3O8. This historic estimate refers to mineralisation occurring over 14
kilometres ‘strike’ of the mineralised palaeochannel system.
The current (FinOre) Mineral Resource estimate of 670 tonnes of U3O8 occurring over 1 kilometre
‘strike’ of the mineralised channel system is similar to the tonnage outlined by Uranerz over the same
area. The FinOre resource was estimated using an inverse distance squared grade model with a lower
cut-off grade of 200ppm U3O8 and a top-cut of 1,800ppm U3O8 (without a top cut it contains 690 tonnes
of U3O8). Work is in progress to upgrade the Mineral Resource to an Indicated category. The work
includes detailed drill collar survey measurements and additional specific gravity measurements.
The DYL Directors are confident that further detail drilling at Napperby over the 14 kilometres ‘strike’ of
the mineralised palaeochannel system will likely produce a Mineral Resource (to JORC reporting
standard) of a similar order of magnitude to that of between 5,700 and 6,200 tonnes of contained U3O8
within a range of 0.036 – 0.038% (360 – 380ppm) U3O8 estimated by Uranerz in 1979.
The current Mineral Resource estimate containing 670 tonnes of U3O8 at an average grade of 360 ppm
is about 20% more than that estimated by Uranerz for the same area and is in keeping with Uranerz’s
prediction model that closer spaced drilling enhances the amount of uranium present.
A US$2.50 rise in the price of uranium (U3O8) to US$65.50 pound has seen the uranium price rise
by US$22.50 (50%) since resource drilling commenced in June 2006.
Dr Leon Pretorius
Executive Chairman
Further Information
Mr Martin Kavanagh
(08) 9286 6999
The information in this report that relates to Mineral Resources is based on information compiled by Mr. Malcolm Titley who is a Member
of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Titley is a Director and Principal Consultant of FinOre Mining
Consultants. Mr Titley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration
and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Titley consents to the inclusion in this release of the
matters based on his information in the form and context in which it appears.
The information in this report that relates to Exploration Results, is based on data compiled by Mr Geoffrey Gee a Member of the
Australian Institute of Geoscientists. Mr Gee has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Gee consents to the inclusion in the
report of the matters based on his information in the form and context in which it appears.