Australian-based, Deep Yellow Mining Limited (DYML) has upgraded its resource expectation at Ongolo Mine by 39%.
Resources upgrade for DYML is a result of increased drilling by the company for the past year which ascertained the actual resources and life-span of the mine.
The move will see the Australian Stock Exchange-listed mining company, which has also entered into a partnership with Government owned Epangelo Mining Company, inching closer to its target of 50 million pounds of uranium annually.
DYML is also listed on the Namibian Stock Exchange.
An improvement in the Namibian resource currently translates to actual resources of up to 29.6million tones at 384 parts per million tons of ore.
The company’s operations in Namibia are conducted by its subsidiary, Reptile Uranium Namibia.
DYML Group’s managing director, Greg Cochran said in his official statement that resources upgrade in Namibia could also improve the company’s focus in Southern Africa. Cochran said Namibia remains a strategic target for the company’s operations in this part of the world.
The increase in resources estimates at the Ongolo project takes the overall resource base of the DYML’s project 48.7million tones.
The move could spell well for the Namibian mining sector and revenues inflow to Government as it comes when the uranium spot price is expected to improve globally this year.
Last year uranium world prices maintained an up and down spiral movement and most companies in the uranium extraction business were forced to hold back on production due to inconsistency in uranium market prices.
DYML also highlighted that its strategic investments at Ongolo are a key to improving their investments worldwide.
In the past, five drill holes and one diamond core hole were drilled in the initial programme.
The discovery of a higher grade uranium mineralisation drilling in the Ongolo area was put on hold in early 2008.
Drilling recommenced at Ongolo in 2010 and was immediately successful.
An intensive drill campaign was completed in March 2011 to allow for a maiden mineral resource estimate to be completed by Coffey Mining.
Drilling continued through to mid-September 2011 with an updated resources estimate announced in early November 2011.
DYML first showed its interest in the Namibia uranium rush in 2008 and has been cementing its position in the country for the past three years.