Deep Yellow Reports Breakthrough Results From Nova Uranium JV Drilling

Good potential for the discovery of a deposit similar to the Rossing and Husab mineralization style

Highlights include:

  • Follow-up RC drilling at Barking Gecko on EPL3669 intersects zones of thick uranium mineralisation in basement targets
  • Best intersections include:
    • TN236RC:
      2m at 385ppm eU3O8 from 32m,
      10m at 326ppm eU3O8 from 63m,
      24m at 297ppm eU3O8 from 139m; and
      8m at 216ppm eU3O8 from 164m
    • TN237RC:
      10m at 305ppm eU3O8 from 64m,
      2m at 339ppm eU3O8 from 113m
  • Results to date have substantially upgraded the prospectivity for alaskite-type basement deposits similar to the Rössing and Husab uranium orebodies, at the 4km by 1km Barking Gecko prospect
    • Through successful exploration, results have highlighted that the Barking Gecko prospect could be part of a larger mineralised system, which include basementrelated deposits in the adjacent 100% owned Reptile Project, defining a distinct 18km zone of very high uranium prospectivity
  • Completion of the drilling program and data evaluation expected by the end of July

Deep Yellow Limited (Deep Yellow) is pleased to advise that exploration drilling at the Barking Gecko prospect (EPL3669) has encountered encouraging uranium mineralisation.

Barking Gecko is part of the Nova Joint Venture project (NJV) in Namibia. JOGMEC is earning a 39.5% interest in the NJV through expenditure of A$4.5M within 4 years from the end 2016.

Upon completion of the earn-in, the joint venture parties will hold the following equity positions39.5% Deep Yellow, 39.5% Joint Venture agreement with Japan Oil Gas and Metals National
Corporation (JOGMEC), 15% Toro Energy Limited and 6% Sixzone Investments (Pty) Ltd.

As announced in the March Quarterly Report, exploration drilling completed during 2019 on the NJV identified consistent, but narrow (circa 1 to 2m thick), mineralised intersections over a broad area, in a number of sub-vertical alaskite sheets intruding basement rocks. This exploration campaign successfully defined a zone of interest approximately 4km long and 1km wide, in a geologically favourable setting wrapping around a prominent domal feature.

This target zone is referred to as Barking Gecko (see figure 1) and is the focus of the current drilling program.

In April 2020, JOGMEC agreed to proceed with a budget of A$392,300 to fulfill the balance of its A$4.5M earn-in obligation. This five-month program concentrates primarily on Barking
Gecko, with some preparatory groundwork included for defining specific sites for follow-up drilling. It was also agreed that any continued JV activity beyond this earn-in phase would be
based on the results achieved from the NJV, after which all the JV partners would be presented with the overall project status to decide whether to contribute or dilute.

A 2,000m RC drilling program commenced at Barking Gecko on 12 June, focused on further testing of this large anomaly, on three regional lines spaced 1 to 1.2km apart with holes spaced at 200m. The objective was to determine whether the extensive, but isolated uranium mineralisation could manifest into intersections of much greater thickness and frequency to signify the possible presence of a Rössing or Husab style deposit.

Seven holes had been completed by 1 July for a total of 1,237m of the 2,000m program.

Conclusion
The exploration results from the first seven holes of the ongoing drill campaign on the NJV Barking Gecko Prospect are very encouraging. The 200m wide drill spacing leaves the
mineralisation intersected open both laterally and at depth, allowing ample space to identify further mineralisation of significant size.

The discovery of notably thicker uranium intersections from this drilling campaign is of great significance for Deep Yellow, as the Company holds a highly underexplored grouping of three
basement-related deposits (Ongolo, MS7 and Inca), that occur 10km to 18km to the East/North East of the Barking Gecko discovery in its adjacent EPL3496. These deposits occur on the 100% owned Reptile Project containing 45.1Mlb grading 420ppm U3O8.

When combining these underexplored deposits and associated exploration targets, the significant potential of Barking Gecko is evident. It is becoming clear to the Company that a large mineralising system is present and there is a distinct opportunity to substantially improve on the basement-related uranium resources already identified within this highly-prospective area that can be defined within a 10km radius.

The upside potential at Barking Gecko is in addition to the palaeochannel-related deposits and targets that also occur on the Reptile Project (EPLs 3496 and 3497) where the Tumas PreFeasibility Study is currently undergoing completion and where the Company has stated exploration targets exist that are considered able to increase the existing palaeochannel
resource base by 30% to 125Mlb to 150Mlb in the 300 to 500ppm U3O8 grade range.

With regard to the alaskite-type basement targets, the combination of EPL3669 (part of the NJV project) and the adjacent EPL3496 (100% owned Reptile Project), forms a highly prospective land package that has already delivered substantial uranium resources. The exploration results from the first seven holes of the drilling campaign at Barking Gecko reaffirm management’s positive expectation for additional discoveries on these projects.

About Deep Yellow Limited
Deep Yellow Limited is a differentiated, advanced uranium exploration company, in predevelopment phase, implementing a contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company’s uranium projects in Namibia (on which a Pre-Feasibility Study is currently being conducted on its Reptile Project) 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.

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