DEEP YELLOW LIMITED
DYL - Africa Downunder Conference Presentation - Dr Leon Pretorius, MD
Fri, 5 Sep 2008 03:30PM
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DEEP YELLOW LIMITED (DYL)
ASX code: DYL
Website:
Industry: Energy
Principal Activities:
Uranium exploration company focussed on advancing its Australian and Namibian projects
Address:
, 329 Hay Street, Level 1,
SUBIACO
WA
Phone: (08) 9286 6999
Fax: (08) 9286 6969
Executives & Directors
Mr Mervyn Greene , Non Exec. Chairman
Dr Leon Pretorius , Managing Director
Mr Martin Kavanagh , Executive Director
Mr Rudolf Brunovs , Non Exec. Director
Mr Tony McDonald , Non Exec. Director
Ms Gillian Swaby , Non Exec. Director
Mr Mark Pitts , Company Secretary
Company Podcasts
Company ASX Announcements
Company ASX announcements can be viewed on the ASX website.
Announcements from the preceding six months are shown below.
Please refer to the relevant stock exchange if any of the above information is incorrect
DEEP YELLOW LIMITED (DYL) Events
Australia/NSW
DEEP YELLOW LIMITED (DYL)
| Appendix 3B Employee Options | Tue, 30 Jun 2009 |
| Appointment of Manager - Projects | Mon, 29 Jun 2009 |
| UNO: Uranio Limited acquires 100% of Ponton North Project | Thu, 25 Jun 2009 |
| Namibia - Renewal of EPLs | Mon, 22 Jun 2009 |
| Change in Directors Interest and Appendix 3B | Fri, 19 Jun 2009 |
| Namibia -Further Encouragement from Reconnaissance Drilling | Tue, 16 Jun 2009 |
| Namibia - Success from Reconnaissance Drilling | Tue, 9 Jun 2009 |
| Ceasing to be a substantial holder for UNO | Thu, 4 Jun 2009 |
| Toro and DYL Form a JV Exploring for Uranium in Namibia | Thu, 28 May 2009 |
| Toro and DYL form JV exploring for uranium in Namibia | Thu, 28 May 2009 |
Please note: This company appears on this website as a result of its listing on the Australian Securities Exchange. Boardroom Radio does not claim any association with any company listed on this site.
PRESENTATION BY LEON PRETORIUS, MANAGING DIRECTOR OF DEEP YELLOW LIMITED (DYL)
“Africa Downunder Conference Presentation”
http://www.brr.com.au/event/51053
FRIDAY, SEPTEMBER 5, 2008, 3:30 PM.
DYL Just going to run through Deep Yellow, really going to concentrate on what we’re doing in Namibia. Just for those who don’t know, we operate out of
10 Perth but roughly half the budget or used to be half the budget spent in Australia and half in Namibia. We have 6 or 7 rigs operating in Namibia almost round the clock, and 2 or 3 operating years, so you can see that the expenditures are obviously higher in Namibia at the moment.
15 We have approximately $60 million cash, so we raised enough money while we could. Market cap’s around $300 million, clearly also moves up and down by the day, nowadays. We have a JORC resource of about 18,000 tonnes which we put out last year. We’ve just completed extensive drilling in Namibia which we closed off on the 29th, last Friday, and have to get that information
20 to Hellman and Schofield in the next couple of weeks and then put another resource. Then after that one, we will probably, because we will slash three rigs drilling on that project, we will then continue putting out additional resources towards the end of the year.
25 Present Board has been there almost three years now, or we’ve existed as a company as we are now for the last three years. Paladin is our major shareholder. I’m not sure, it’s 15.5%, I think. The top 10 hold about 47% of the company, the top 20 hold about 60%. We do nothing other than uranium, so we’re at the moment obviously just exploring. We are building resource
30 bases, and the company is very technically strong on uranium. Few of us. Although we’re all aging, we’ve got a lot of experience.
Just to give you an idea of the tenements we hold, it is about 60,000 square kilometres. The yellow block at the top there is roughly 3,000 kilometres,
35 which is a Reptile project in Namibia. As you can see, we’ve got vast tenement holdings. Fortunately, for reasons most people understand, we don’t have access to most of the territory ground yet, so that’s not that daunting a task.
40 Just going to give you two slides on Australia and then move on to Namibia. We’re operating out of Mt. Isa. We’ve got vast tenement holdings there, and as you can see, decent intersections, decent grades, certainly some stuff here that will be mineable once the Queensland government change their minds. We see they deal with Xstrata on all the old MIM ground. It hadn’t
45 been looked at for uranium since the 1970’s, and very happy that we’re able to do that deal. We’ve got clearance now, we should start drilling there within the week.
Going to Namibia. Ground just south of Langer Heinrich, Rossing is there, Swakopmund is our base. As I said, 2,800 square kilometres, 6 or 7 rigs drilling on 3 or 4 different projects. The name of the talk was just to say the old and the new. We inherited three projects which had feasibility studies
5 done on them in the 1970s; one by Anglo, one by Falconbridge, and one by Elf-Aquitaine, so it wasn’t a virginal piece of ground. They had different tenements of course and worked up their tenement boundaries. We’ve consolidated all that old ground and looking at palaeochannel uranium mineralisation similar to Langer Heinrich, so it’s calcretized palaeochannels.
10 Also, within our ground, there’s potential for alaskite-hosted mineralisation and recently we’ve discovered (inaudible) (00:03:48), we have slides on these things anyway. We’ve also discovered the uraniferous magnetite in the (inaudible) (00:03:52) skarn-type mineralisation which wasn’t known.
15 At the same year, we owned 100% of Reptile. We got involved three years ago, but all the deals we did on uranium to access ground through mergers acquisitions, we either have 100% rights to the uranium or we can acquire it at different stages, in other words buying out royalties or whatever. So we have tended not to joint venture into ground, in that sense, where we don’t
20 have the ability to get to 100%.
We have 62 full-time employees now in Namibia. We started up in June last year, so we’ve come a long way in a year, roughly 60 contractors. We run a fully operational processing, wet chemical and XRF laboratory on site. We do
25 metallurgical work, so as I said, we’re fairly strong on the uranium side, chemistry and met. We do obviously send material off to third-party labs as well. With uranium, as most people know, if you don’t have disequilibrium problems, you can actually calibrate down our loggers and use that as well. We spend approximately A$1 million a month there producing between
30 15,000 metres and 20,000 metres of drilling a month, and most of it, as I said, are projects that have feasibility studies done on them. So the bulk of that drilling is actually into mineralisation, like I said, it’s not reconnaissance to our work. We are doing that as well, producing amazing amount of data.
35 We’ve flown very detailed airborne mag, radiometrics and also EM, and the EM is specifically for the channels. Fantastic data sets. We’ve got it up in the booth, you can come and have a look at it.
As you can see this year, down the bottom, moving onto the bottom there,
40 we’ve done 6,500 holes this year so far. We’ll definitely be over 10,000 by the end of the year, and 85,000 metres of drilling as of yesterday. A lot of it’s 50-metre JORC code orientated drillings so hopefully all that we indicated. We’re also doing some reconnaissance RC work. We’ve just contracted Wallace to bring 2 aircore rigs to us. We’re also doing 100-metre good drilling on this
45 uraniferous magnetite we got.
To show you what was then in the old days, this is just the image of the radiometrics, airborne radiometrics. The black in line outlined areas are the areas that we explored or looked at in the past. As I said, we’ve now put it together so there’s a complete channel system that’s seen up in the north end. Roughly 35 kilometres of the channels have been looked at, combined length of 80 kilometres. Just to say, it’s not all mineralised as well as Langer Heinrich is, but the Langer Heinrich channel as it is has a mining license of
5 about 15 kilometres long. There’s a lot of potential in this ground.
That’s the block that we….roughly 9 kilometres long. It’s a block we pulled out of this channel just south of Langer Heinrich. You can see the amount of drilling that has been done on it, and the little pink dot suggested drilling we
10 did in August. We decided we wanted to close off the mineralisation outside of the channel, and as you can see, the further we drill, the more we got, so we just stopped at the end of 29th. We just call it quits but there’s a lot more within that block, we’ll put out a lot more information and hopefully mineralisation.
15
That’s the…want to harp on this but it’s on the eastern side of the channel, you can see the channel going off to the northeast has not been touched yet, we started drilling them now.
20 EM-wise, the underlying image is the EM, early time. You can see the bulge on the left wasn’t known about. This is the old Falconbridge project, they got no mineralisation. Below 8 metres, I think, was the deepest mineralisation they got. The EM showed us that the channel, actually we ended down the south end.
25
If you look at these, I just separated the closest surface mineralisation to the deeper mineralisation. As I said, it wasn’t known. As you can clearly see, there is a close to surface mineralisation. Some are very thick, 20 to 25 metres, but down under cover of plus 10 metres, there’s a zone of high-grade
30 mineralisation and this stuff will have the same characteristics as Langer Heinrich. The surface material obviously might be different and appears to all be free digging.
The area we put out the announcement on last year, the JORC work we
35 decided to do a bulk sample pit. Look at the (inaudible) (00:8:51) and everything else. That’s what the trench looked like at the end, anomaly, 12-metre deep, 2-metre benches we sampled. We took about 5,000 samples out of it on meter square basis and we patent drilled all. We drilled down the centre of it as well. Amazing amount of information. As you can see, it’s
40 basically a red sand or buried sand dune. Never seen anything like this anywhere else in the world. That’s a trace of one of the boreholes. You can see the amount of mineralisation. I mean, with the percentage of the uranium in the sand and really, if you look at that one, it’s really just sand and it’s cemented by carnotite, so as you see all free digging. We have done leach
45 test on it, recovery is plus 94%, obviously alkaline. We will do further work there later this year. That is about 8-kilometre section of the channel, which I was talking about with too much further drilling. This is about 40 kilometres away from the area we are going to put out the JORC numbers on now. So it’s about 40 kilometres of the channel between the two. Wherever those channels have been looked at by anybody, it is mineralised. I’m not saying it’s economic, but it is mineralised. There’s a lot of uranium in the system.
Just the box cut that we did around one of the bore holes. You can see the
5 mineralisation sample down to 10 metres, the top 2 metres is the hard layer, it’s (inaudible) (00:10:20). If you take that out of the system it’s about 5,000ppm.
That’s what it looks like. It’s the top soil. As I said, all free digging. So, we
10 have taken bulk samples of this, we’re going to back fold the trench probably in the next month or so. It’s actually standing up very well, so you see not much (inaudible) (00:10:43). It leaches very easily. No crushing required, basically, just put it in and it falls apart as soon as you put in water.
15 Future prospects in the area. As I said, the channel system is 80 kilometres, 45 was left. We’ll probably start drilling on 200-metre lines, 50-metre centre holes in the next month. The magnetite, we’ve got numerous untested airborne radiometrics and outcropping carnotite targets there. Alaskite, I should have taken this out because it said the grade is possibly too low. A lot
20 of people ask us why we’re done drilling the alaskite. We have done some drilling there. We, at the moment, have better targets within our ground.
To show you how well the airborne EM works. Scale about the bottom is 10 kilometres. You can clearly see the channel, Tumas down the bottom end,
25 Tubas Trench in the upper end. As I said, about 40 kilometres between the two. There’s a channel up in north end coming off the alaskites, which we have not looked at, but there’s outcropping carnotite there, decent airborne anomaly as well.
30 This is the underlying magnetics. You can see at the top on the north-western corner the very active area, that’s the alaskites. You can see some of the down well structures there. Extract working off to just the north east of us and Bannerman to the northwest. There’s a lot of work to be done there.
35 The skarns, we located this altered iron magnetite. It was mined by German gentlemen in the past. When I say mined, that’s a very small pit. Some ride-on gas collected in the pit. It’s not radioactive on surface at all, but the material itself is very interesting.
40 That’s what the EM looks like on an (inaudible) (00:12:49). The patent drilling we’ve done at the bottom there is 100-metre spacing. We are tempted, but we have not gone and drilled the big anomaly to the north yet. We just started drilling down the southern end, and as you can see, most holes we’ve drilled so far we’ve got 1.5-kilometre worth. Now we’ve got 1 kilometre north/south,
45 most of them are mineralised. We are just normally drilling down to 100-metre vertical hole, and we’ve got some sections and stuff.
So that’s what the countryside looks like. All you can see on the surface is just this magnetite float, which is in the foreground. This is a national park, by the way, we are operating in. It comes with all kinds of drama of its own including 3 full-time environmentalists that we employ. We have to rehabilitate as we go, but really you can drive everywhere.
5 As you can see of these magnetite, there’s some decent mineralisation in it and we think you probably will be able to magnetically separate the uranium-bearing material from the rest. All these projects were called M for magnetite or magnetic things and we changed its name to INCA. Just to show you, if you got to Goggle, the image on the left hand side, it’s quite uncanny, it looks
10 like a guy’s head, and just perchance there’s a picture of an Inca so we changed the project’s name to INCA.
That’s the operating base in Swakopmund. We’ve just bought the building alongside us as well to shift the lab to. Just running out of space. That’s me. I
15 think I’m already done.
PRESENTATION CONCLUDED
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