Deep Yellow Announces Drilling Update On Mount Isa Project, Australia

Published: 27-Aug-2009

Deep Yellow Limited (Deep Yellow) has updated on its drilling at Mount Isa Project, Australia. Initial XRF chemical assays (cU3O8) and downhole gamma results (eU3O8) from RC drilling at the Queens Gift Prospect are confirming and extending uranium mineralisation intersected in 2007-08 programmes. The first phase of reverse circulation (RC) drilling on the Bambino and Thanksgiving Prospects has been completed.

The current focussed drilling to delineate JORC Code mineral resources at various prospects in the Mount Isa district is achieving the primary objective by returning wide intercepts of ± 400 ppm U3O8 that are continuous to depth which the Company believes is required for a viable open-pit mining operation.

ISA North Project – Queens Gift Prospect

Significant chemical assay intercepts include:

27 meter at 569 ppm U3O8 from 79 meter;

51 meter at 422 ppm U3O8 from 9 meter;

58 meter at 449 ppm U3O8 from 72 meter and

28 meter at 608 ppm U3O8 from 69 meter.

ISA West Project

Of significance are the deep intercepts at the Bambino Prospect which have returned mineralisation at ± 200 meter vertical depth – the target depth for the current resource delineation programme.

Significant intercepts include:

17 meter at 433 ppm U3O8 from 201 meter;

25 meter at 375 ppm U3O8 from 170 meter and

10 meter at 477 ppm U3O8 from 202 meter.

EPM 15070 – Prospector

RC drilling commenced at the Queens Gift Prospect in mid-July with the objective of delineating a JORC compliant resource to approximately 200 meter vertical depth.

The 2009 drill programme is focussed on the drill out of the Northern and Central mineralized zones. An initial undercut (QGRC055) and scissor hole (QGRC056) on 2007 hole QGRC032 (50 meter at 400 ppm U3O8) returned 27 meter at 569 ppm U3O8 from 79 meter and 51 meter at 422 ppm U3O8 from 8 meter respectively from the Northern zone.

An undercut of 2007 hole QGRC047 (37 meter at 538 ppm U3O8) returned 28 meter at 608 ppm eU3O8 from 69 meter in the Central zone.

Isa West Project - Bambino Prospect

RC drilling has focused on the central and southern area of the prospect where mineralization appears to be the most intense. Holes BBRC043B, BBRC044 and BBRC045 are 50 meter step back holes aimed to test mineralisation at depth with all other drilling being completed on a 25 meter grid.

As a result of holes steepening (see earlier comment) the deep intersections returned in holes BBRC043B (200 meter vertical depth) and BBRC045 (180 meter vertical depth) are very encouraging with respect to the objective of outlining mineralisation to 200 meter vertical depth.

Hole BBR043B returned 13 meter at 304 ppm U3O8 from 179 meter and 17 meter at 433 ppm U3O8 from 201 meter and hole BBRC045 intersected 11 meter at 510 ppm U3O8 from 202 meter.