Deep Yellow Limited Successful Pilot Plant Testwork Upgrades Tubas Red Sand Deposit

09:44 AEST Apr 6, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Advanced stage uranium explorer Deep Yellow Limited (ASX: DYL) (PINK: DYLLF) is pleased to announce the completion of highly successful pilot plant testwork to upgrade the Tubas Red Sand Deposit (TRS), which is an important ore source for the Company's flagship Omahola Uranium Project in Namibia.

Managing Director, Greg Cochran said the testwork demonstrates that the TRS low grade deposit can be beneficiated, in an economical and chemical free process, to produce a low carbonate, uranium rich concentrate with the use of hydrocyclones; effectively upgrading the material to suitable feedstock for the proposed Omahola Metallurgical Plant.

'These outstanding testwork results mean that a full scale hydrocyclone plant designed and supplied by Schauenburg MAB GmbH, Germany (Schauenburg), together with a scrubbing and a de-watering circuit, can likely be used to cost-effectively upgrade the TRS deposit,' he said.

'As indicated in our Omahola release (10 January 2011), the success of this test will allow us to add significant resources to the TRS deposit; as similar mineralised red sands occur adjacent to and may flank the mineralised Tubas-Tumas palaeochannel system over some 30 kilometres.'


Advantages of the hydrocyclone method include:

- Recovery of over 80% of the uranium in less than 20% of the TRS deposit mass,

- Relatively simple, non-chemical processing with benign tailings disposal, and

- Major carbonate reduction giving lower acid consumption in the leach process.

'Whilst the immediate benefit is specifically relevant to the TRS deposit and our flagship Omahola Project, it is possible that with further testwork the technology may have wider application on DYL's others surficial calcrete deposits,' Mr Cochran said. 'This would enhance the overall economics and attractiveness of deposits such as the Tubas-Tumas palaeochannel and Aussinanis which together contain a major portion of DYL's current JORC resource base in Namibia.'

Schauenburg has specialist expertise in the classification and dewatering of different types of materials in a wide range of industrial applications including coal processing. As a result of the success of this testwork the Schauenburg-supplied plant would have a process guarantee.


Summary of Actual Testwork Conclusions

Based on the results obtained from bulk sample separation testwork, we can be confident that a full scale commercial separation and dewatering plant designed and fabricated by Schauenburg will likely achieve a similar level of performance, given the same starting material and particle size distribution following the scrubbing process. Actual beneficiation performance of the pilot plant was:

- 12% mass pull (e.g. 100 tonnes feed produced 12 tonnes of product),

- a carbonate reduction of approximately 86%,

- 84% uranium recovery, and

- Uranium upgrade factor of 6.9 (e.g. 322 ppm in feed resulted in 2,218 ppm in product).


About Deep Yellow Limited:

Deep Yellow Limited (ASX: DYL) (PINK: DYLLF) is an Australian-based uranium focused exploration company with advanced exploration projects in Namibia and in Australia.

In Namibia the Company operates through its wholly-owned subsidiary Reptile Uranium Namibia P/L which is focusing on its mid to high grade INCA primary uraniferous magnetite and secondary Red Sand projects and the extensive secondary calcrete deposits contained in the Tumas-Oryx-Tubas palaeochannel and fluviatile sheetwash systems.

In Australia the Company is focused on resource delineation of mid to high grade discoveries in the Mt Isa district - Queensland, including the Queens Gift, Conquest, Slance, Eldorado, Thanksgiving, Bambino and Turpentine Prospects. The Company also owns the Napperby Uranium Project and numerous exploration tenements in the Northern Territory.

A pipeline of other projects and discoveries in both countries are continually being examined and there is extensive exploration potential for new, additional uranium discoveries in both Namibia and Australia.



Contact:

Greg Cochran
Managing Director
Email: Deep Yellow Limited
Ph: +61-8-9286-6999
Email: info@deepyellow.com.au
http://www.deepyellow.com.au