what is happening in namibia., page-4

Ewere, you are spot on once again.

For the benefit of chris_vasil, here is a little bit of Acient History:- Pratt was running Deep Yellow Limited before Dr Leon Pretorious came on board and took over. Pratt instigated the first lot of drilling at Napperby which was a complete stuff up because they used the incorrect drilling method

25 July 2005 Pratt instigates Napperby drilling
http://sa.iguana2.com/cache/6dde67553c36ca6b5b46760c65ccf380/ASX-DYL-294622.pdf -

18 August 2005 1st lot of drilling completed at Napperby under Pratt’s guidance http://sa.iguana2.com/cache/a41be93e46d7372b352279fdcbaa5dc6/ASX-DYL-296927.pdf

11 October 2005 Dr Pretorious comes on board and takes over the running of the Depp Yellow – (Pratt gone before the results of his handy work is known) http://sa.iguana2.com/cache/3c820da77bf4bf7687f26e47b7d1405d/ASX-DYL-301559.pdf -

29 November 2005 Company announces unable to complete resource calculations for Napperby that comply with JORC
http://sa.iguana2.com/cache/b436497f43ef2e56f1432c0f3d29ddbb/ASX-DYL-307366.pdf

In a nut shell Pratt stuffed the drilling up he instigated and left Dr Pretorious and his team the mess to clean up - which they now have, having had to re-drilled Napperby using the correct method – we got the initial results yesterday.

It don't take much to out-fox Pratt - Pratt drilled Napperby and found nothing - Pretorius drilled Napperby and found Uranium

I'll put my money on the good Doctor Leon any day

And given Pratt's efforts at Napperby I am willing to wager he comes off second best to the good Doctor once again.

Now chris_vasil consider the following:-

DYL is still grossly under-valued based on my rough assessment as follows:-

SMM has about 18,000 t of U308 in the ground and a market cap exceeding $500M

DYL with the Reptile deposit alone in Namibia has a NON-JORC resource of about 18,000 t of U308, add Napperby’s 6,000 t of U308 = 24,000 t of U308 so DYL should be valued at around 25% more than SMM (because DYL has about 25% more U308 than SMM).

Now $500M + 25% = $625M. DYL will have about 900M shares on issue, to have a market cap of $625M, a fair price on this basis is around 69 cents - that's now, before adding in the value of further U308

This price is conservative because as a fellow poster pointed out the Reptile deposit in Namibia has very high potential as there has been no drilling for 20 yrs. When Paladin bought Langer Heinrich in 2002 with 1970 - 80's drillings the Mineable Resource was 11,155 tones U(3)O(8). http://stocknessmonster.com/news-item?S=PDN&E=ASX&N=233026

Now Paladin have drilled out Langer Hendrick (40 km away from DYL’s Reptile deposit) and increased the U308 to about 50,000 tons. If DYL can also achieve a 5 times increase in U308 resource estimate from their Reptile deposit imagine the huge upside potential from here. Wake up all you traders – this stock has the potential to be the next Paladin, biggest gains will be made by buy and hold imo.

One of DYL’s other Australian tenements is Lockness - Miranda located just N.N/E of Valhalla.......it could well be very similar to Valhalla....... and also in same locality as the Mary Kathleen mine. Previous drilling 30 years ago hit 18 meters at 810 ppm from 30 meters – see page 8 of the Annual Report. http://sa.iguana2.com/cache/c228ee516566caaedf22b72b0f14e40c/ASX-DYL-339572.pdf These tenements now have priority drilling.

18 meters at 810 ppm from only 30 meters using 30 year old exploration techniques – they could be sitting on the next major discovery – the drill rigs went in last month – so we will soon know before too long

In addition there are DYL’s extensive tenements in N.T. and S.A. where you can mine Uranium now.

DYL’s acquisition program has been very robust and shows no signs of abating just yet – with the latest capital raising they could end up with around $25M in the bank – yet have only earmarked to spend $9M over the next 3 years. Will they spend the remainder on another major acquisition or accelerate the advancement of one of their tenements? – which ever it is, it’s all good

DYL Management is fully experienced in uranium. Doctor Leon has had 35 yrs in the industry, been director with J.B. at PDN, still director of Langer Heinrick P/L ...the first new mine to produce in 25 yrs. Gillian has been director and secretary at PDN since the early 1990's.

Don’t let this point go over your head – Doctor Leon in his role as a director of Langer Hendrick P/L got Paladin’s Langer Hendrick deposit into production – so it stands to reason – he knows all the right people in Namabia – and is well positioned to fast track DLY’s Reptile deposit in Namibia which is located about 40 km of Langer Hendrick

Both directors have truck loads of shares and plenty bought on market. That is they have invested their own hurt money in Deep Yellow shares.

In addition the June 2006 Annual Report reveals both directors received around 90% of their remuneration in options. Yes they are backing themselves and the future of Deep Yellow

Outside of PDN I don't see directors with this much uranium experience amongst any other uranium hopefuls in Australia.

Namibia is where it’s happening, Doctor Leon has opened offices and depot and able to progress these tenements to production as soon he wants; Unlike SMM and many other Australian only uranium hopefuls (excluding NT and SA tenement holders).

RIO's Rossing mine has been in production for about 25 yrs in Namibia, and Namibia is now the 3rd largest uranium producer in the world. There won’t be any road blocks in Namibia where DYL has their "under-rated" Reptile deposit.

Put DYL near the top of the 5% who are most likely to produce and you won’t be far off the mark imo.

There are no certainties in this game Chris, but Deep Yellow looks like a very good thing to me.

Cheers to all the long term holders, imo traders will never do a quarter as well as those putting this stock in the draw for a couple of years – Deep Yellow the next Paladin imo.