Deep Yellow Limited · ASX:DYL
Deep Yellow — Shareholder Meeting (November 2012)
31 slides from Deep Yellow's shareholder meeting presentation, Nov 8, 2012
Slide 1: Annual General Meeting
For personal use only Deep Yellow Limited A Annual l General G l Meeting M ti Perth 8 November 2012 Greg Cochran – Managing Director ASX: DYL www.deepyellow.com.au
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by Deep Yellow Limited (Deep Yellow, DYL or the Company) in connection with providing an overview to interested analysts and investors. This presentation is being provided for the sole purpose of providing information to enable recipie
Slide 3: Presentation Overview
Presentation Overview For personal use only Corporate Profile Market Overview Uranium in Namibia Deep Yellow’s Portfolio Omahola Project Tubas Sand Project Shiyela Iron Project Conclusion 3
Slide 4: Corporate Profile
Corporate Profile For personal use only The Board Capital Structure – as at 6 Nov 2012 Mervyn Greene – Chairman Shares on Issue 1 424 174 M 1,424.174 Greg Cochran – Managing Director Unlisted Performance Rights 12.258 M Martin Kavanagh – Executive Director Market Cap (@ 7.3c) ~ 104 M Gilli SSwaby Gi
Slide 5: Economic Climate and Environment
Economic Climate and Environment For personal use only Financial Risk and volatility to continue Capital availability remains the biggest challenge Increasing competition for capital Softening commodity prices Increasingg costs Resource nationalism D l d recovery off uranium Delayed i market k t 5
Slide 6: Demand Projections
Demand Projections For personal use only 6 Source : WNA
Slide 7: Supply Projections
Supply Projections For personal use only Consistently optimistic forecasting leads to industry complacency 7 Source : WNA
Slide 8: Demand & Supply Issues
Demand & Supply Issues Demand remains strong, underpinned by: For personal use only • Growth in China, Russia, India and Korea • New entrants, primary in the Middle East • Sustained demand from existing players (USA, UK) S Supply l constrained t i db by: • Inadequate incentive price for new projects
Slide 9: Industry Valuations & Incentive Prices
Industry Valuations & Incentive Prices Date Target Acquirer EV US$/lb $/ For personal use only Aug – 12 Yeelirrie Uranium Project Cameco 3.48 Mar – 12 Millenium Project (AREVA 27.9% Stake) Cameco 8.00 Feb – 12 Extract CGNPC 7.10 Dec – 11 Kalahari CGNPC 7.10 Nov – 11 Hathor Exploration Rio Tinto 10.1
Slide 10: Namibian Uranium Mines and Projects
Namibian Uranium Mines and Projects Trekkopje – Areva For personal use only (100 ppm cut‐off) 335 Mt @ 149 ppm: 110 Mlbs Valenica – Forsys Metals (67 ppm cut‐off) 176 Mt @ 156 ppm: 61 Mlbs Marenica – Marenica Energy Limited (100 ppm cut‐off) 196 Mt @ 169 ppm: 73 Mlbs Etango – Bannerman Resources Lim
Slide 11: Namibian Uranium Mines and Projects
Namibian Uranium Mines and Projects For personal use only Grade counts, not just size… 11
Slide 12: DYL's Namibian Portfolio
DYL’s Namibian Portfolio For personal use only 4,195 km2 exploration area: 101.4 Mlbs in resources Note: Exploration in Namibia is conducted by DYL’s wholly‐owned subsidiary Reptile Uranium Namibia (RUN)
Slide 13: Omahola: Flagship Project
Omahola: Flagship Project For personal use only Located in Namibia’s “Alaskite Alley” Alaskite alley Trend includes Rossing Uranium Mine (Rio Tinto) and the Husab Project (Formerly Extract Resources) Three Deposits to feed one plant: • Ongolo – high grade alaskite hosted uranium mineralisation • MS7
Slide 14: Omahola Project: Resource Base
Omahola Project: Resource Base For personal use only Ongolo O l & MS7 (250 ppm cut‐off) 25.8 Mt @ 416 ppm: 23.6 Mlbs EIA Commencing 2012 Typically 2 Year Process INCA (250 ppm cut‐off) 12.4 Mt @ 492 ppm: 13.4 Mlbs Environmental i l Clearance l achieved hi d Mining Licence Application submitted Tubas
Slide 15: Omahola Project: Status
Omahola Project: Status Interim PFS results on INCA/TRS Deposits (SNC‐Lavalin – Jan 2011) For personal use only • 2.2 Mlbs pa design capacity, assumed 12 year mine life • Open pit mining, conventional acid leach processing plant • Capex: ~US$330m and Opex: ~US$30/lb Obj ti finalise Objective: fi li
Slide 16: Omahola Project: Exploration Success
Omahola Project: Exploration Success… For personal use only …is rapidly growing the resource base…
Slide 17: Omahola Project: MS7 Section
Omahola Project: MS7 Section For personal use only Typical section showing shallow high grade mineralisation 17 in lower grade alaskite envelope
Slide 18: Tubas Sand Project: Location
Tubas Sand Project: Location For personal use only Tubas Sand Deposit showing area with known red sand
Slide 19: Tubas Sand Project: Overview
Tubas Sand Project: Overview Strategy: For personal use only Develop a small low capex standalone operation initially supplying loaded resin to an existing producer Deposit Characteristics: Large area of well‐sorted windblown sands Free flowing/weakly consolidated Low ggrade byy DYL standards (econo
Slide 20: Tubas Sand Project: Schauenburg
Tubas Sand Project: Schauenburg For personal use only Process: Hydrosort®‐ II Scrubbing Hydrosort®‐ I 3 X Hydrocyclones Successful Pilot Plant Test: Simple process Uranium Recovery >80% Carbonate reduction >80% Hydrocyclone Mass pull between 10% ~ 20% Schematic Uranium upgrade factor 7.9 (at 10% mas
Slide 21: Tubas Sand Project: Potential
Tubas Sand Project: Potential For personal use only Developp sand miningg operation p with Schauenburgg Plant Construct Resin‐In‐Leach Circuit on the INCA MLA Produce loaded resin for sale to existing producers Schauenburg plants are modular, ~ 250 tpa U3O8 per module All Allows gradual d l up scali
Slide 22: Tubas Sand Project: Next Steps
Tubas Sand Project: Next Steps For personal use only Accelerate pproject j progress: p g Additional bulk sample testwork (underway) Drill programme to increase resource confidence Mining studies Feasibility study Negotiate offtake agreement and project funding Offtake arrangement with an existing pr
Slide 23: Tubas Sand Project: 2012 Drilling
Tubas Sand Project: 2012 Drilling For personal use only RC Programme to infill and upgrade existing inferred resource
Slide 24: Tubas Sand Project: Leach Testwork
Tubas Sand Project: Leach Testwork For personal use only Successfully Loaded IX Resin @ pH 2.5
Slide 25: Shiyela Iron Project - Location
Shiyela Iron Project ‐ Location For personal use only Clear Infrastructure advantage – power and 45 kilometres by road from Walvis Bay
Slide 26: Shiyela Iron Project - Overview
Shiyela Iron Project ‐ Overview For personal use only Infrastructure Low strip ratio Fast Track development Exploration upside Quality product Updated p Resource and Scoping Study Imminent Shiyela has clear competitive advantages
Slide 27: Summary – clearly defined strategy
Summary – clearly defined strategy For personal use only Two advanced stage uranium projects in one of the world’s most prominent uranium mining districts in Namibia • Omahola is the only independent high grade Namibian uranium project and it has a rapidly growing resource base • Tubas Sand Project,
Slide 28: Contact Details
Contact Details For personal use only Greg Cochran Managing Director Deep Yellow D Y ll Limited Li it d Level 1, 329 Hay Street Subiaco,, Western Australia 6008 T +61 8 9286 6999 M +61 409 938‐784 F +61 8 9286 6969 Email: greg.cochran@deepyellow.com.au Email: info@deepyellow.com.au Website: www.deep
Slide 29: Appendices
For personal use only Appendices
Slide 30: JORC Resource Summary – June 2012
JORC Resource Summary – June 2012 Cut-off Tonnes U3O8 U3O8 U3O8 For personal use only Deposit Category (ppm U3O8) (M) (ppm) (t) (Mlb) NAMIBIA Omahola Project INCA Indicated 250 7.0 470 3,300 7.2 INCA Inferred 250 5.4 520 2,800 6.2 Ongolo # Indicated 250 14.7 410 6,027 13.2 Ongolo # Inferred 250
Slide 31: JORC Compliance Statements
JORC Compliance Statements Namibia For personal use only The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Leon Pretorius, a Fellow of the Australasian Institute of Mining and Metallurgy. Dr Pretorius, Managin