Deep Yellow Limited: Drilling Update for Nova JV EPL3669

Perth, Australia - Deep Yellow Ltd. (ASX:DYL) (FRA:JMI) (OTCMKTS:DYLLF) advises the 2019 exploration drilling program on its Nova Joint Venture Project (Nova JV) over EPL3669 Namibia where JOGMEC is earning a 39.5% interest on expenditure of A$4.5M within four years. This earn-in will complete in the following budget year. The drilling program started on 27 August and is estimated to be completed on 1 November. Results to 23 October are included in this announcement.

HIGHLIGHTS

- JOGMEC earn in continues with 60 RC Holes and 3,472m completed on EPL3669 targeting uranium in calcretes within palaeochannels and alaskites in basement rocks.

- At the Namaqua Prospect drilling encountered further encouraging results in palaeochannels.

- At Barking Gecko two drill holes testing alaskite intrusions intersected uranium mineralisation including:

o TN173RC 3m at 307ppm eU3O8 from 43m.

o TN171RC 2m at 344ppm eU3O8 from 36m.

The overall drilling campaign was designed to follow up encouraging drilling results from 2018 at the Namaqua palaeochannel and to test other channels in addition to testing various basement targets defined by the 2018 airborne spectrometric and magnetic survey. On EPL3669 three basement targets and two palaeochannels (including Namaqua) were targeted for this investigation.

This exploration drilling totalled 3,472m and involved 60 RC holes. Figure 1* shows the Nova JV tenements - EPLs 3669 and 3670. Figure 2* shows the exploration target and drill hole locations.

Results of drilling at the Goanna palaeochannel target and basement targets at Berger's and Turtle's Neck recorded little or no mineralisation. Those targets where notable uranium mineralisation was encountered are the Namaqua palaeochannel and the Barking Gecko basement areas as referred to in Figures 3 to 4*. Appendix 1 lists all drill hole information.

Palaeochannel Target

The reinterpretation of an earlier flown VTEM survey identified palaeochannels not previously known to occur on either of the tenements showing geophysical similarities to other mineralised palaeochannels in the region. The identification of uranium mineralisation at Namaqua in 2017 required follow-on testing for calcrete-associated uranium mineralisation in these channels.

Namaqua Prospect:

13 holes were completed at Namaqua on four lines for 415m. The objective was to close off the palaeochannel calcrete-hosted mineralisation located in 2017 and 2018 where 6 drill holes had intercepted uranium mineralisation.

This year's drilling identified above cut-off uranium mineralisation in one drill hole (TN158RC) on a drill line to the north of the 2017 discovery and extended the SSW-NE trending mineralisation over a strike length of approximately 600m.

RC drilling was carried out at Namaqua late August testing along three lines, one north-south and two east-west, targeting calcrete and basement mineralisation. Drill hole locations are shown on Figure 2*.

Uranium mineralisation was encountered with only a single hole returning above 100ppm over 1m (TN158RC; Table 1). The mineralisation is hosted in calcareous matrix-cemented gravel sediments. Figure 3* shows a cross-section including the mineralisation.

The mineralisation remains open to the north-east. Some follow-up RC drilling is planned to fully test the extent of the Namaqua prospect.

Goanna Target:

Ten vertical holes for 790m were drilled at 100m holes spacing targeting both alaskite-type and calcrete-type uranium mineralisation. No mineralisation was encountered.

All drill holes testing palaeochannel targets are detailed in Appendix 1 Tables 1 and 2*.

Basement Targets

Basement targets within the prospective Kahn and Rossing stratigraphy associated within dome, fold and/or shear structures were defined by interpreting the 2018 airborne magnetic and spectrometric survey data and follow-up ground exploration. On EPL3669, three target areas were identified.

Barking Gecko Target:

Seven inclined holes (70deg) for 379m were drilled at Barking Gecko at 100m holes spacing along a south-west/north-east line targeting basement type mineralisation. Figure 2 shows the drill hole locations. Two holes intersected uranium mineralisation above 100ppm eU3O8 over 1m within granite (TN171RCand TN173RC). Details are listed on Table 2. The holes directly southeast and north-west of TN171RC were barren implying that mineralisation is not continuous along section. The area south-west of TN173RC however remains open and will be tested in follow up programs. Lithological units in the area consist of quartzites, mica biotite schist and gneiss with intruding sheets of leucogranites. Figure 4 shows the results as a cross-section.

Berger and Turtle Neck Targets:

One drill line each was targeted at the intersection of the prospective SE (Turtle's Neck) and SW Domes (Berger's) targets. No significant uranium mineralisation was encountered. Drilling involved 30 RC holes for 1,888m. 12 holes remain to be completed at Turtle's Neck to complete the current drilling program on EPL3669.

Conclusions

Although the follow-up drilling at Namaqua did not extend the uranium mineralisation, it still remains open and the indication that previously unexplored (and unknown) palaeochannels are fertile and carry uranium mineralisation in the Nova JV area is considered important as this has confirmed the prospectivity of the system of palaeochannels that have been identified. Further drilling is planned in this current drilling program to explore previously untested palaeochannels on EPL3670 and follow-up the open-ended Namaqua mineralisation.

The exploration of the basement targets identified promising leucogranite related uranium mineralisation at Barking Gecko. Although grade and thickness of the mineralisation encountered is of a low level it indicates a mineralising event has occurred. This mineralisation system may extend to the south-west and further toward the north and south where the prospective zone is blanketed by alluvium cover.

The next stage of basement exploration involving testing blind targets on EPL3670 delineated by geophysical methods has commenced.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/GHJ6WH10

About Deep Yellow Limited:

Deep Yellow Ltd. (ASX:DYL) (OTCMKTS:DYLLF) (Namibian Stock Exchange:DYL) is a specialist differentiated uranium company implementing a new contrarian strategy to grow shareholder wealth. This strategy is founded upon growing the existing uranium resources across the Company's uranium projects in Namibia 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.

Source:

Deep Yellow Ltd.

Contact:

John Borshoff Managing Director/CEO T: +61-8-9286-6999 Email: john.borshoff@deepyellow.com.au www.deepyellow.com.au