Licensing milestone for Tumas uranium project

18 December 2023

Namibia's Ministry of Mines and Energy has issued a mining licence to Deep Yellow Ltd for the Tumas uranium project. The company says it is aiming to make a final investment decision on the project in the third quarter of 2024.

The Tumas project location: the area covered by ML 237 is shown in grey (Image: Deep Yellow)

Licence ML 237 has been issued to Perth, Western Australia-based Deep Yellow's 100% owned subsidiary, Reptile Uranium Namibia (Pty) Ltd and is valid for 20 years from date of issue. Deep Yellow plans to develop Tumas to produce 3.6 million pounds U3O8 (1285 tU) per year, with an anticipated life of more than 30 years.

Deep Yellow CEO and Managing Director John Borshoff said the mining licence "represents another key accomplishment in the progress to develop this significant uranium asset and our overall objective of building Deep Yellow into a reliable, geographically diverse and long-term uranium producer" and ensures the company can move forward on its stated development schedule.

Tumas hosts one of the largest known paleochannel-hosted calcrete uranium deposits in Namibia, with a contained indicated mineral resource of 108.5 million pounds U3O8 (41,734 tU). Earlier in November, the company announced updated costs and forecast financial outcome for the project following completion of a reassessment of capital expenditures and operating expenses from the definitive feasibility study released in January. It also included a market reappraisal, with the base case uranium price increased "conservatively" to USD75 per pound U3O8 from the previously used value of USD65 per pound in recognition of "continued strengthening uranium market conditions".

The company said the recent work provides a "strong platform" for it proceed with project financing, product marketing and detailed engineering work ahead of a final investment decision.

This is the second Namibian uranium mining licence to be issued in recent days: Bannerman Energy announced on 15 December that it had received a mining licence for its Etango uranium project, for which it has now awarded early works contracts with a combined value of about NAD36 million (USD2 million) to a Namibian construction firm.

Researched and written by World Nuclear News