ASX 200 uranium stock Deep Yellow Ltd (ASX: DYL) is falling today after the company posted its quarterly update for the three months ended September 30, 2024.
Shares in the uranium miner are more than 3.77% in the red at $1.48 apiece shortly after the open as investors react to the company's update.
Here's what the uranium miner posted.
ASX 200 uranium stock slides on quarterly update
Deep Yellow's September 2024 quarterly report showcased several key milestones for the company's Tumas Project.
The company increased the measured mineral resource at the Tumas 1, 2, and 3 assets, which now stands at 106.2 million pounds at 264 parts per million uranium.
Meanwhile, it advanced detailed engineering work at Tumas, finalising the process flowsheet and plant layout.
It also obtained a new, more efficient power supply point with NamPower, roughly half the distance from the previous point. This is set to deliver power more effectively to the site.
Deep Yellow says it is on track to deliver a final investment decision (FID) for the Tumas project by "late Q4 2024", with pre-mining activities already started.
Pre-mine planning and setup have already begun at the site. The ASX 200 uranium stock says this current pre-drilling program will run until March next year.
Initial estimates project that "close to 40,000 metres" of drilling will be required in this phase of the project's life. By the end of September, it had drilled nearly 650 holes for a total of 9,557 metres.
This drilling doesn't mine ore from the ground, but it is essential for plant commissioning and getting the operation underway.
Management is also bullish on Tumas' prospects following the updated MRE, with a promising view on the early stages of the mine's life.
Together with Tumas 1, 1-East, Tumas 2 and Tubas deposits, the palaeodrainage contains total surficial Measured, Indicated, and Inferred Mineral Resources at a 100 ppm eU3O8 cut-off (excluding the Aussinanis deposit on MDRL3498) of 136.8 Mlb at 248 ppm eU3O8.
Using the upgraded Tumas MRE, open pit optimisation and mine scheduling work is currently underway to define an updated Ore Reserve estimation including Reserves for +20 years Life of Mine (LOM) and sufficient Proven Reserves for the initial 6 years of mining for the Tumas Project.
What's next?
In addition to progress at Tumas, the ASX 200 uranium stock advanced its Mulga Rock Project. To get the bulk samples needed for metallurgical tests, a large core drilling program was commenced.
A total of 33 water bores were drilled as part of hydrogeological assessments. Preliminary tests on the site's sample assays also incorporate base metals and rare earth elements alongside uranium.
Looking forward, Deep Yellow aims to complete pre-mining grade control drilling at Tumas by March 2025, setting the stage for plant commissioning.
Detailed engineering work for Tumas will also continue in the December 2024 quarter, as will the
establishment of Project execution and cost control systems.The next major milestone for the Project is completing a revised capital cost and operating cost estimate in order to support a Final Investment Decision (FID).
This work will also incorporate a revised Ore Reserve Estimate (ORE), based on the recent infill drilling campaign results and upgraded MRE, plus a revision of the Project financial analysis, based on the revised ORE, optimised flowsheet, updated capital and operating cost estimates (underpinned by more engineering work), and current uranium price models.
The company is also working on revising capital and operating cost estimates, which will support the upcoming final investment decision.
ASX 200 uranium stock takeout
Investors have sold Deep Yellow shares today following the company's quarterly results.
In the last year, the ASX 200 uranium stock is up more than 16%, and has climbed more than 26% in the past month of trade.
