DYL - Deep Yellow

[Sean K]

Under the cover of darkness, DYL made a sneaky offer to VMY for a 'merger of equals' with a script offer valuing VMY at a measly 15% ish premium to it's last price, except DYL were going to be the owners and managers with hardly a Vimy director in sight. LOL.

Even though Vimy has tripled in the past 3 months, 3c to 30c the past 2 years, and probably fully priced for an explorer, it's no deal!

On the surface of it, might have been a great merger with fantastic deposits in Australia and Namibia. Would have been quite a significant player. Come on JB, could have done better than that!

 

[Sean K]

DYL behaving like most other uranium juniors, heading into support levels and expect a bump here.

MC back down to $370m which is more realistic for this stage of development and POU still under $50. I think once POU gets back over $50 and looks more certain to head back into the re-start price for mothballed assets that they'll all be more significantly re-rated. Just a matter of time, unless, Fukushima 2.

 

[Sean K]

DYL is one of the few explorers who may get into production during the next next cycle due mainly to management experience. I'm not sure if many other explorers will get there as there's a number of closed mines getting ready to go and others can ramp up production. Unless there's another nuclear accident that stops Japan re-starting and China changes their energy mix trajectory.

This DFS update looks pretty positive, with LOM, Margin and NPV doubled.

 

[Sean K]

DYL obviously haven't given up on their M&A goals of taking over one or more of the other juniors, claiming they are the right crew to sail a much larger ship. From their latest preso out today. Committed a whole page to it.

 

[sptrawler]

@Sean K do Deep yellow actually produce anything, they have been around forever?

 

[Sean K]

@Sean K do Deep yellow actually produce anything, they have been around forever?

Nope, but Tumas is well advanced and DFS should be done this year. This management group built Langer Heinrich and Kayelekera in pretty short time during the last uranium bull. One of the only teams to go from exploration to production during that period. It's the major reason I'm on it.

I'm more confident in the past producers who are re-starting their mines - BOE and LOT.

I doubt junior explorers jumping on the bandwagon at this stage will ever get to mining. The other mines starting up should cover the supply demand gap in the mid term I think, depending on how many new reactors actually get built.

 

[finicky]

I'm going to follow you into these if there's a general crash @Sean K. At a superficial level I agree with your take - I know from the first uranium bull how uranium explorers can vaporise when it comes to development. I was in AGS. Deep Yellow is the most attractive one but haven't bothered about LOT yet. I don't like their ticker code, lol. I know the story on BOE.

 

[Sean K]

I'm going to follow you into these if there's a general crash @Sean K. At a superficial level I agree with your take - I know from the first uranium bull how uranium explorers can vaporise when it comes to development. I was in AGS. Deep Yellow is the most attractive one but haven't bothered about LOT yet. I don't like their ticker code, lol. I know the story on BOE.

I think the only risks are Kazatomprom miscalculating by bringing on too much additional supply (but that's not in their long term interest), another nuclear accident, or thorium suddenly being able to replace uranium. I was in just about every junior uranium company in the naughties and the only thing I got left without a chair with was BMN during the GFC. Ouch.

 

[Ann]

Nice volume spike, let's hope it keeps going after the 200dma bounce. Out under 79c.

 

[Sean K]

A combined DYL and VMY is going to be a significant uranium developer.

 

[finicky]

Volatility opportunities this last year for sharp traders I guess but for investors its gone nowhere.
Picking it up in March of the WuFlu offered a 13 bagger opportunity over a year and a half!
I'll try to remember that if there's a general crash.

Not Held

 

[Dona Ferentes]

DYL obviously haven't given up on their M&A goals of taking over one or more of the other juniors, claiming they are the right crew to sail a much larger ship. From their latest preso out today. Committed a whole page to it.

View attachment 137313

now VMY has been acquired, is there sufficient depth?

Three year chart:

 

[Sean K]

First presentation out on the merged DYL/VMY outfit. Pretty happy with the outcome but I'm a bit overweight DYL now. Interesting that they think there's more M&A to come out of the U sector. Perhaps they should now aim to pick something up that's nearer to production, like a re-start, or an operating mine. Maybe BOE or LOT would fit the bill.

 

[aus_trader]

Haven't been in this stock for a long time. Took a speculative position buying some shares in DYL for the Speculative Stock Portfolio.

 

[aus_trader]

If there is any Uranium upside, DYL would very likely participate in the rally. Has pulled back to a trendline support on the chart...

Tipped for the October stock picking competition.

 

[Telamelo]

Same here aus_trader jumped into DYL with recent uptick in share price to have some exposure to this ever increasing uranium/nuclear energy sector coming into the spotlight I feel during 2022/23 (given Europe & many other countries are re-starting nuclear reactor's etc.)

If there is any Uranium upside, DYL would very likely participate in the rally. Has pulled back to a trendline support on the chart...

View attachment 147590

Tipped for the October stock picking competition.

 

[Sean K]

DYL update.

Tumas DFS put back to early next year with increased costs identified and more efficiencies required.

Mulga Rock DFS being revised but sounds like it's going to be completely re-done and not finished till mid 2024. Cripes.

In addition, in H1 CY2023 a 600-hole air-core drilling program is planned to better define reserve/resource variability factors, upgrading of the resource base for uranium and critical minerals and provide additional material for metallurgical analysis. This drilling will be carried out in parallel with the revised DFS work which has now been fully scheduled and is anticipated to be completed by mid-2024.

I'm not sure why they're 'pleased' to provide that update. These guys are going to take years to get into production at this rate and might miss the boat.

 

[Sean K]

This might be a good deal, but it's not if they never actually get to mining MR which is a looooooong way off. I suppose it's a small dilution in the scheme of things.

 

[Sean K]

My faith in DYLs progression has been somewhat shot. I've invested in this trusting JB would take it to development on two fronts in relatively quick time, within the next uranium boom window, but I think I might be wrong.

Mulga Rock is an excellent pure uranium play in a friendly environment and only needs the POU to stay above $50 for it to be progressed IMO, but they've turned left instead of heading straight down the most obvious development path.

The re-evaluation of Mulga Rock makes it clear to me. After an initial evaluation they can see that it's not viable and have to look at meme minerals on top of the uranium. This is obvious trouble IMO.



Deep Yellow Limited (

ASXYL) (

FRA:JMI) (

OTCMKTSYLLF) is pleased to provide a progress update on the evaluation program undertaken on the Mulga Rock Project (MRP or Project), located in the Great Victoria Desert in Western Australia, 290km by road ENE of Kalgoorlie.

HIGHLIGHTS

- Completion of 63-hole, 4,099m aircore drilling program to support a geo-metallurgical study at the Mulga Rock Project (MRP).

- Geo-metallurgical test work will commence in Q1 2023 and inform an updated assessment of critical minerals and recovery options.

- Test work results will form the basis for the planned revised MRP Definitive Feasibility Study (DFS), to include potential uplift in project value due to recovery of critical minerals.

- A 600 to 800-hole aircore drill program is planned for H1 2023, to:

o Better define reserve/resource variability and distribution of critical minerals
o Upgrade resource classification for uranium and critical minerals
o Provide additional material for metallurgical analysis

John Borshoff, Managing Director/CEO commented: "The recovery of critical minerals from the Mulga Rock Project, if feasible, has the potential to materially enhance project value. This initial drill program will provide data to better define the distribution of these valuable elements and provide samples to evaluate recovery options. Further, the re-scheduling of the mining into a more non-selective approach has potential both to increase the available uranium resource and extend life of mine of this exciting project."

As advised on 25 November 2022, Deep Yellow initiated an evaluation program, following on from its pre-merger work, after identifying an opportunity for a significant potential uplift in Project value by increasing the focus on recovery of critical minerals located within the existing Mulga Rock resource shells. This work and the possible future recovery of critical minerals will be completed within the existing approvals framework for the Project, seeking to better utilise the resource base of the MRP.

The evaluation program is assessing the potential value of metals such as copper, nickel, cobalt, zinc, and rare earths (particularly neodymium and praseodymium), known to be present in these deposits.

Preliminary work already completed by the Company demonstrated that optimising the process flow sheet and mining schedules, within approved pit boundaries, by considering the full economic mineral endowment of these polymetallic deposits, rather than focusing solely on uranium, may add substantial value to the Project.

Drilling completed to date by Deep Yellow, associated with this program, has been restricted to the Mulga Rock East deposits (Ambassador and Princess) shown in Figure 1. These deposits are richer in critical minerals and uranium, represent the majority of the known mineral resources and consequently will be mined before the lower grade deposits to the west in MRP's mining schedule, providing up to 20-years operating life.

To help better define the assessment for value uplift at the MRP, a 63-hole, 4,099m geo-metallurgical aircore drill program was completed on 8 of December 2022. The program aimed to provide sample material for metallurgical analysis to determine ore variability and estimated process recoveries for critical minerals with 1,552 individual samples collected for metallurgical testing.

Additionally, 1,862 samples will be submitted for multi-element geochemical analysis to support the metallurgical test work and re-assessment. Results will be reported once they become available.

Next step

In support of the revised MRP DFS, a 600 to 800-hole aircore drill program is planned for completion in H1 CY23 to better define reserve/resource variability, upgrade the resource classification for uranium and critical minerals and provide additional material for metallurgical analysis.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/7N4KY0QB

 

[peter2]

@Sean K they didn't mention if they've seen any pegmatites on the site.

Agree, they're procrastinating while waiting for the POU to get higher.