Deep Yellow Ltd (ASX:DYL) continues to explore and develop its 3 uranium projects based in Namibia with ore testwork currently underway at the Tumas Zone, within the Paleochannels project.
A proprietary process technology, U-pgradeTM owned by Marenica Energy (ASX:MEY) began being used on uranium ore samples at Tumas in February, 2016.
The program is expected to be completed by June, 2016, although interim milestone results are expected to be released to the market as they become available.
Marenica Energy have been able to use their U-pgradeTM technology to demonstrate the increase in concentration of uranium by a factor of 50, a reduction in operating costs by 50-70% and capital costs by 30-50% compared to conventional processing.
If the testwork is successful the Company’s ultimate objective is to develop an operation capable of cost effectively producing a high grade intermediate product for satellite supply to any one of the existing Namibian uranium mines.
Namibian projects
Deep Yellow's three Namibian projects are Paleochannels, the Omahola Project and the Tubas Sand Project.
These 3 projects account for an estimated 3,109 square kilometres in exploration area and 93.8Mlbs at 306ppm in uranium resources.
Paleochannels is Deep Yellow's focus with 2015-16 work demonstrating deep and extensive untapped potential.
Uranium market
Although there has been a move away from nuclear in parts of Western Europe and the USA, countries in South East Asia alongside China and India are embracing the technology as they look to reduce their emissions profile.
According to the World Nuclear Agency, China has 30 existing nuclear power stations, 24 under construction and additional reactors in the planning stages.
Furthermore, industry professionals understand the spot market to be very small and dominated by traders with 70% of sales in 2015 said to be traders.
While uranium prices are still recovering from Japanese nuclear disaster, Asian markets see nuclear power generation as a necessity to meet their energy requirements.
Corporate
Overheads have decreased with the recent departures and non-replacement of the previous chairman, Mr Tim Netscher and the Namibian Country Manager, Mr Peter Christians.
Further cost reductions have been implemented including a 10% reduction in non-executive director fees and the issuance of 12,481,513 shares in relation to shareholder approved payments in lieu of salaries and director fees.
At the end of the December quarter Deep Yellow reported a balance of $2.8 million of cash and liquid assets.
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