Deep Yellow Limited: Positive Results From Tumas 1 East Drilling

Perth, Australia - Deep Yellow Ltd. (ASX:DYL) (FRA:JMI) (OTCMKTS:DYLLF) is pleased to report the completion of the exploration and resource upgrade drilling in the Tumas 1 East palaeochannel. Resource drilling along Tributary 5 on EPL 3497 was completed where drill densities are now sufficient to undertake an Inferred Resource Estimation. Importantly, exploration drilling has delineated a new zone of high-grade uranium mineralisation at the confluence of Tributary 8 and the main Tumas channel. This EPL is held by Reptile Uranium Namibia (Pty) Ltd (RUN), part of the group of companies wholly owned by Deep Yellow.

As advised in the June 2019 Quarterly Report, the first phase of drilling for the 2019/20 program commenced in July with resource-focussed infill RC drilling at Tributary 5 (409m involving 40 holes) and concluded mid-August after completing exploration drilling of Tributaries 3, 6 and 8 (486m involving 78 holes). Total drilled in this program was 118 RC holes for 895m.

All tributaries in the Tumas 1 East area have now been explored with resources established in Tributaries 1, 2, 4; and Tributary 5 is now ready for resource estimation to begin. Figures 1 and 2 in link below show the prospective palaeochannel system outline and prospect locations.

Tumas 1 East Drilling

Resource upgrade drilling commenced early July 2019 at Tributary 5 continuing north of the Inferred Resource at Tumas 1 East as announced 27 March 2019. This work completed the infill drilling as required for resource estimation to be undertaken for Tributary 5. Drill spacings varied from 50m to 100m along lines 200m apart. The drilling at the Tributary 5, north of Tumas 1, has outlined an additional 3km of uraniferrous channel showing continuous calcrete uranium mineralisation. The mineralised channel ranges from 100m to 600m in width. The mineralisation is located at shallow depth between 2m to 15m below surface. In the Tributary 5 resource drilling area, uranium mineralisation >100ppm/m eU3O8 was, overall, identified in 82 (53%) of the 156 holes drilled in this zone. At >200ppm/m cut-off the average grade returned is 352ppm eU3O8. The mineralisation does not show any surface radiometric expression.

Drill hole locations from this program are shown in Figure 2. Figures 3 and 4 show a drill cross-section and long section, respectively highlighting the continuity and thickness of the mineralisation in Tributary 5.

Exploration drilling was carried out along Tributaries 3, 6 and 8. Thin low-grade mineralisation was encountered in Tributaries 3 and 6, however, high-grade mineralisation was encountered in Tributary 8 close to the confluence with the main Tumas channel. The best intersection was 1,514ppm U3O8 over 6m from surface. These positive results will be followed up in the near future.

The equivalent uranium values are based on down-hole radiometric gamma logging carried out by a fully calibrated Aus-Log gamma logging system.

Mineralised intersections that are above the 100ppm eU3O8 over 1m cut-off are tabulated in Table 1, Appendix 1. All drill hole locations are listed in Table 2, Appendix 1.

Analysis

The results of the ongoing exploration and resource drilling continue to define additional uranium mineralisation maintaining the highly encouraging prospectivity of these palaeochannels associated with the eastern extension of Tumas 1.

The exploration and resource upgrade drilling programs in Tumas 1 East area are now completed and succeeded in substantially extending the previous limits of mineralisation at Tumas 1. Drilling is also demonstrating the potential to further extend the mineralisation in this region at Tributary 8 and along other parts of the channel system. Testing for mineralisation in tributary channels has historically been neglected. These side channels are showing to be just as important as drilling the main channel targets for upgrade of the overall resource base associated with these highly fertile palaeochannels and significantly open up the prospectivity footprint associated with the Tumas channel system. The uranium mineralisation is obviously not confined to one simple, single channel but rather is associated with a complex palaeodrainage system containing several channels and tributaries.

Appendix 1, Table 1 lists the 24 exploration drill holes from the current drilling program at Tumas 1 East returning uranium intersections above cut-off and showing equivalent uranium values in ppm and thickness with hole depth and coordinates provided. Table 2 in Appendix 1 lists all 118 drill holes completed in July up to 16 August 2019 from the current drilling program, which are the subject of this release.

Conclusion

The first 895m of the 11,000m drilling program that will be carried out in FY20 has again produced successful results with a substantial 92% of overall drilling planned for the year yet to be carried out. Ongoing drilling is confirming that the previously discovered deposits can be expanded upon, showing the high potential to add to the current uranium resource base of this project. In addition, work continues to emphasise the strong exploration potential of the extensive, uranium-fertile palaeochannel system within which the new Tumas palaeochannel discoveries occur.

There are now 5 distinct mineralised zones (Tumas 1 & 2, Tumas 3, Tubas Sand/Calcrete deposits and Tumas 1 East) identified within the 125km of palaeochannels that occur within the Reptile Project tenements (see Figure1). Approximately 50% of these have now sufficiently been explored over the past two and a half years and, to date, the inferred uranium resource base in the Tumas channel system has been increased by 160%. Some 50%, or approximately 60km, of this palaeochannel system which deepens to the west remains to be properly tested.

These positive results from the current 2019/20 and previous 2018 and 2017 drilling, together with the correct re-interpretation of historic exploration data which outlined the regional palaeochannel target, confirm management's confidence that the existing uranium resource base for Langer Heinrich-style deposits within the Reptile Project area can be further increased.

It is planned that drilling will continue in the second half of 2019 with emphasis now changing towards testing both the east and west extensions of the Tumas 3 deposit and exploration at Tumas Central and Tubas Red Sand areas.

CEO Comment

John Borshoff commented: “The ongoing drilling results as reported herein are clearly revealing just how fertile and prospective the main Tumas palaeochannel and its associated tributaries in fact are. The latest work is verifying the importance of including all tributaries feeding into the main channel into our search model when hunting for additional pounds of uranium. All this is considerably expanding the opportunity for the operational team to further and additionally grow the uranium resource base of the Reptile Project for those targets associated with Langer Heinrich-style deposits”

To view tables and figures, please visit:
https://abnnewswire.net/lnk/XT80Y7WF

About Deep Yellow Limited:

Deep Yellow Ltd. (ASX:DYL) (OTCMKTS:DYLLF) (Namibian Stock Exchange:DYL) is a specialist differentiated uranium company implementing a new contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company's uranium projects in Namibia and the pursuit of accretive, counter-cyclical acquisitions to build a global, geographically diverse asset portfolio. The Company's cornerstone suite of projects in Namibia is situated within a top-ranked African mining destination in a jurisdiction that has a long, well regarded history of safely and effectively developing and regulating its considerable uranium mining industry.

Source:

Deep Yellow Ltd.

Contact:

John Borshoff Managing Director/CEO T: +61-8-9286-6999 Email: john.borshoff@deepyellow.com.au www.deepyellow.com.au