worth reading, page-3

re: worth reading/ramping lol I don't hold, but thought this may be of interest

"IT'S possible lightning may have struck twice at Deep Yellow after the
latest incarnation of the mineral explorer yesterday said retesting of its
new Napperby uranium project had failed to confirm previous resource
indications.

The company, which got new management following a re-structure and
recapitalisation that took place when a previous asset (Mikado) was found to
be short of gold - causing it to slide into voluntary administration - said
testing of the assays was now being checked at another lab.

The company said assays from recent drilling at Napperby were vastly
different to those reported based on information supplied by 2004 project
vendor Paladin Resources - which in turn had been based on work conducted by
Uranez between 1977 and 1981.

According to Deep Yellow executive chairman Leon Pretorius, when the company
sat down with mineral resource evaluation specialists Hellman and Schofield
on Monday it was almost like looking at two different data sets.

"Even though the mineralised envelope exists, the grade is a lot lower .
it's a known deposit, all we were trying to do was not prove the size of the
deposit, but how much we could prove up to JORC status," Pretorius told
MiningNews.net.

"So you can imagine our surprise when you find out you've lost it."

The work by Uranez was said to have identified a resource target of
5700-6200t grading 0.036-0.038% uranium oxide.

Deep Yellow said its drilling had been aimed at verifying, to JORC status,
some 4000t of contained uranium oxide.

In March, prior to the drilling, Deep Yellow warned the market that "the
potential quantity and grade of the [target mineralisation] is conceptual in
nature and to date there has been insufficient exploration to define a
mineral resource and it is uncertain if further exploration will result in
the determination of a mineral resource".

Yesterday, Deep Yellow said assay values for the certified standard (used to
verify the correctness of the laboratory's analytical methods and equipment)
were well below 258ppm uranium oxide, and when re-analysed, the laboratory
confirmed the uranium content was correct for the standard.

Deep Yellow said the standard, which was purchased from the Australian
Nuclear Sciene and Technology Organisation and had a quoted value of 258ppm,
was routinely analysed between the drill samples sent for analyses.

The company said "it was at a loss at this stage to explain this quantum
discrepancy". To resolve the issue, all facets of Deep Yellow's work were
being audited.

Pretorius said assay samples had been submitted to another laboratory for
re-assaying but it would be some time before an outcome was known.

Deep Yellow picked up Napperby, along with another project, from Paladin
Resources in December 2004, for $100,000 cash, 15 million shares and 25
million options.

Earlier that year the company, then led by Alistair Cowden, had gone into
voluntary administration after its Mikado gold mining operation near
Laverton was hampered by "poor continuity and highly variable gold
distribution".

Deep Yellow was recapitalised by Ascent Capital - comprising David and Gary
Steinepreis plus Hugh Warner - and subsequently positioned in the emerging
uranium sector.

The company quickly established itself as one of the darlings of the uranium
fever that swept the ASX this year, rising from around 1.5 cents last
December to 20c in late September.

Deep Yellow has entered a voluntary trading halt and withdrawn an $8 million
equity raising in light of the current situation. Shares in the company last
traded at 11.5c.


C 2005 MiningNews.net - www.miningnews.net