DYL’s exposure to the highly prospective Tanami - Arunta uranium province in the Northern Territory comprises:

• The Napperby calcrete-hosted uranium deposit with an Inferred JORC Compliant resource of 9.34 Mt at 359 ppm U₃O₈ for 3,351 tonnes (7.39 Mlbs) which is part of a larger mineralised system.

• Defined projects covering 6,911 km².

• 100% rights to uranium within ABM Resources NL’s (ABM) tenements covering an additional 16,518 km².

• Ongoing CLC and Landowner negotiations for access to prospective areas.

• Significant upside potential to increase total uranium resources in conjunction with the Napperby uranium deposit.

• An operational base in Alice Springs.

The target within the majority of the tenement areas is near surface calcrete-hosted uranium mineralisation similar to the Napperby deposit.  Within the ABM tenements, Proterozoic basement hosted uranium mineralisation is also being targeted.

The Napperby Project includes a deposit originally discovered and explored by CRA Exploration and Uranerz in the late 1970’s and early 1980’s that defined a mineralised zone over some 20 kilometre in strike length (Figure 20).  The extensive mineralised zone occurs within 3 metre to 8 metre from surface in semi-consolidated and unconsolidated sediments along a palaeochannel.  The project is close to infrastructure, being 175 kilometres northwest of Alice Springs along the sealed section of the Tanami Highway, within 20 kilometres of the Alice Springs to Darwin gas pipeline and with access to the main north-south railway through Alice Springs.

The Napperby uranium deposit was vended into DYL by Paladin in 2004.  Following the completion of a drill out of a 1 kilometre zone of the 14 kilometres strike of the deposit by DYL in 2006 (confirming both tonnage and grade estimates for the area drilled), the Project was optioned to Toro Energy Ltd (Toro).  Toro had until May 2010 to complete a JORC resource drill out at which point they had an option to purchase the property from DYL.  In May 2010, Toro indicated that it would not be exercising its option.  As a result of this decision, the project is now a 100% owned project of DYL. 

Delineation work on the deposit resulted in an Inferred Resource under the JORC Code, totalling of 9.34 Mt at 359 ppm for 3,351 tonnes (7.39 Mlbs) U₃O₈ using a 200 ppm U₃O₈ cut-off grade.  The resource drillout covered approximately half of the historic mineralised area and correlates well with the results of previous work carried out on this portion of the deposit.  Additional drilling is required to complete the evaluation of the balance of the historic mineralised area to JORC standard.
 

Figure 2:  Extent of Historic Drilling by Uranez (yellow dots with outline of historic resource (6,200 tonnes U₃O₈) in pink) and JORC drilling by Deep Yellow and Toro (green shaded area (3,351 tonnes U₃O₈)

In 2005, DYL acquired the rights to uranium on certain tenements in the Northern Territory held by Tanami Gold NL and Tanami Exploration NL (referred to collectively as ‘Tanami’).

In December 2009, ABM Resources NL (ABM), became the beneficial owner of Tanami’s Northern Territory tenements with DYL retaining 100% of the uranium rights.  ABM also has the right to explore for gold and base metals on certain 100% held DYL tenements.

Targets within these tenements include calcrete-hosted uranium in palaeochannels and metasomatic style uranium deposits hosted by mid-Proterozoic basement terrane.