In January 2012, Coffey Mining Pty Ltd (Perth) (Coffey) provided the Company with an updated JORC Mineral Resource estimate for INCA deposit totalling 12.4 Mt at 490 ppm U3O8 for 13.4 Mlbs U3O8 at a 250 ppm cut-off.
Mineralisation at INCA is best described as metasomatic introduction of uranium and iron into a north-east plunging syncline. Although the footwall to the syncline is competent crystalline marble, skarn formation is limited and mostly occurs within other calc-silicate strata within the syncline. A long section view of the mineralised system is given in Figure 2.
It is envisaged that the INCA deposit will be mined initially by open pit methods to 150 to 200 metres vertical depth, then by underground methods to access the high grade INCA Deeps mineralisation.
The full extent of mineralisation at the INCA deposit has not been determined and further drilling will be required to fully delineate the high grade INCA Deeps mineralisation (Figure 2).
The updated Indicated and Inferred Mineral Resource estimate completed by Coffey (ASX 27 January 2012) totals 12.4 Mt at 490 ppm U3O8 for 13.4 Mlbs U3O8 at a 250 ppm cut-off. DYL requested Coffey to undertake re-estimate of their original Ordinary Kriged estimated using the Multiple Indicator Kriging (MIK) method to bring the deposit into line with the Ongolo and MS7 Resource estimates. Approximately 54% of the resource is classified as Indicated. The high grade Inferred Resource (520 ppm U3O8) (Figure 3) reflects deep high grade intersections open to depth which will be targeted by future drilling.
The drillhole database in the vicinity of the estimation consists of 345 RC drill holes totalling 52,118 metres, 37 diamond drillholes totalling 5,322 metres and 34 diamond drillholes with RC precollars totalling 10,591 metres. The drillholes were drilled typically vertically with 33 drilled at 60° to the various bearings (UTM grid) with a drill spacing ranging from 25 metres by 25 metres to 100 metres by 100 metres. Only RC and diamond drilling and sampling undertaken by Reptile Uranium Namibia (‘RUN’) were used in the estimate.