Deep Yellow Limited: Identifies High-Grade Subset In Existing JORC Resources At Tubas In Namibia

10:13 AEST Sept 30, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Deep Yellow Limited (ASX: DYL) (PINK: DYLLF) has completed a review of the November 2007 Mineral Resource estimate for its Tubas Palaeochannel Project in Namibia and is pleased to announce the existing resource estimate by Geomine Consulting Namibia (Geomine) includes a substantial high-grade subset within the total resource, which could warrant a scoping study.

On 21 November 2007 DYL announced the initial Inferred Mineral Resource in accordance with the JORC Code for Tubas totalling 77.3 million tonnes at 0.023% (228 ppm) U3O8 for 17,600 tonnes or 38.8 million pounds contained U3O8 at a cut-off grade of 100 ppm U3O8.

A cut-off grade of 100 ppm U3O8 was selected at the time (November 2007) as the uranium spot price had peaked earlier in 2007 at US$136 per pound U3O8 and was US$90-95 per pound when the Tubas resource was announced. However, given current uranium market prices at US$46-48 per pound, the economics of potential uranium production can be significantly improved with higher average grade as can result from using a higher cut-off grade.

Upon review of the existing resource estimate at Tubas, it was determined that by using a cut-off grade of 200 ppm U3O8, a substantial quantity of resources could be outlined as a subset of the current resource, but at a much higher average grade. At 200 ppm U3O8 cut-off grade, the Inferred Mineral Resource estimate at Tubas totals 22.8 million tonne at 0.046% (455 ppm) U3O8 for 10,369 tonne or 22.9 million pounds contained U3O8.

The quantity of resources in this high-grade subset of the original Mineral Resource estimate at Tubas are sufficient to justify further evaluation to determine if this high-grade resource warrants a scoping study.

In addition, DYL has previously indicated it is actively working on an update of the Mineral Resource estimate for the south-eastern and central sections of the 30-kilometre Tubas-Tumas palaeochannel for completion early in the December quarter 2010.

These additional resources could add to the significance of the Tubas high-grade resource subset outlined above, which is located in the western section of the Tubas-Tumas palaeochannel.

For the complete Deep Yellow Limited announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63856-ASX-DYL-507320.pdf


About Deep Yellow Limited:

Deep Yellow Limited (ASX:DYL) (PINK:DYLLF) is an Australian-based uranium focused exploration company with advanced exploration projects in Namibia and in Australia.

In Namibia the Company operates through its wholly-owned subsidiary Reptile Uranium Namibia P/L which is focusing on its mid to high grade INCA primary uraniferous magnetite and secondary Red Sand projects and the extensive secondary calcrete deposits contained in the Tumas-Oryx-Tubas palaeochannel and fluviatile sheetwash systems.

In Australia the Company is focused on resource delineation of mid to high grade discoveries in the Mt Isa district - Queensland, including the Queens Gift, Conquest, Slance, Eldorado, Thanksgiving, Bambino and Turpentine Prospects. The Company also owns the Napperby Uranium Project and numerous exploration tenements in the Northern Territory.

A pipeline of other projects and discoveries in both countries are continually being examined and there is extensive exploration potential for new, additional uranium discoveries in both Namibia and Australia.



Contact:

Patrick Mutz
Managing Director
Deep Yellow Limited
Ph: +61-8-9286-6999
Email: info@deepyellow.com.au
http://www.deepyellow.com.au