Deep Yellow awaits more tests on doubtful dirt

Deep Yellow Ltd, one of Western Australia's uranium hopefuls, aims to have the results of more lab tests on Monday following bad news earlier this week.

On Wednesday the company confirmed that drilling data previously released to the Australian Stock Exchange which called into question the standard of its Napperby Northern Territory deposit is correct.

The company had undertaken further laboratory testing to confirm the results which disputed data from Uranerz drilling done between 1977 and 1981.

Mineral testing group Hellman and Schofield will now conduct a more detailed comparison against the historical data.

Deep Yellow acquired the Napperby deposit from Paladin Resources Ltd in December last year.

The full ASX announcement is below.

NAPPERBY ANALYTICAL DATA
Results for the check analyses on all 6 batches of samples have now been received and they confirm that the initial results reported by the laboratory are correct.

Mineral Resource evaluation specialists, Hellman and Schofield, have now been instructed to complete the resource estimation using that data. They will also rework all the historical Uranerz data to enable a direct comparison to be made. It is anticipated that this work will take about 3 days to complete and that a statement on the resource is expected to be released no later than Monday 28 November.

With reference to the erroneous results given by the laboratory for the OKA-2 standard, the laboratory states and Deep Yellow and ANSTO chemists agree the error was due to the unusual matrix of the standard causing the XRF machine to misread the uranium content. In technical terms it contains a large amount of elements with high atomic weights - lanthanide elements and thorium which are "heavy absorbers". Such a large difference in the Compton scatter for this standard relative to the other standards used in the calibration means that the matrix was not adequately corrected for.