Deep Yellow, Rio enter iron deal

Uranium play Deep Yellow could potentially enter into an offtake agreement with the Rio Tinto-backed Rossing Uranium to supply iron from its INCA deposit to the Namibian uranium operation.

Subiaco-based Deep Yellow said it has signed an agreement with Rossing Uranium, which is majority owned by Rio Tinto, to investigate the potential of supplying ferric iron to the Rossing uranium operation and enter into a commercial offtake agreement.

Portions of the INCA deposit in Namibia contain massive iron oxide that is either uranium poor or totally unmineralised and could be supplied to Rossing, which it will use in its processing plant, Deep Yellow said.

"If the iron product is suitable, early indications are that it is, then exploiting it will serve a number of purposes while detailed investigations into a uranium processing plant at INCA continue in conjunction with the required Stage Two environmental and other studies," the company said.

Deep Yellow has also applied for a mining licence for its Omahola project, which contains the INCA and the Tubas Red Sand uranium deposits, despite not having completed a definitive or bankable feasibility study.

Deep Yellow said it had presented a case for exemption to Namibia's Ministry of Mines and Energy based on a two stage environmental clearance procedure where no chemical processing would initially occur on site.

It said high-grade uranium bearing mineralised sand from Tubas Red Sand could be trucked to nearby uranium producers, like Rossing Uranium, for treatment.