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ABN: 97 006 391 948

PROJECTS

NAMIBIA (June 2008)

REPTILE PROJECT

Activities in Namibia are carried out by Reptile Uranium Namibia (Pty) LTD (Reptile) a wholly owned subsidiary of DYL.

Key Points:

• Reptile holds 100% of four contiguous Exclusive Prospecting Licences (EPLs) covering ~3,000 km² that contains historical discoveries of gypcrete, calcrete and sand hosted secondary uranium mineralisation;

• Areas within the EPLs were prospected by major companies such as Anglo American, Falconbridge, Elf-Aquitaine and General Mining in 1970/80's;

• Extensive shallow secondary uranium mineralisation was delineated and three feasibility studies were completed in the 1970/80's including bulk sampling and metallurgical testwork;

• Reptile Tubas JORC Code Inferred Mineral Resource totals 77.3 Mt at 0.023% (228 ppm) U₃O₈ at a cut-off grade of 100 ppm U₃O₈ for 17,600 tonne or 38.8 million pounds U₃O₈ (ASX 21 November 2007);

• In addition to the Tubas JORC Code Inferred Mineral Resource historic drilled out mineralisation within the tenements totals 17,700 tonne or 39.0 million pounds U₃O₈;

• JORC resources plus historic mineralisation total 35,300 tonne or 77.8 million pounds U₃O₈;

• Inferred Resource target now 45,000 to 55,000 tonne or 100 to 120 million pounds U₃O₈ by end 2008; 

• Airborne electromagnetic survey over entire tenement area complete and delineating target channels for follow-up drilling. Airborne radiometric and magnetic survey over entire tenement are at 100 m line spacing delineating radiometric and magnetic targets for drilling

• Since January 2008, Reptile has increased its drilling activities from one to six RC percussion drill rigs and one diamond rig working on various prospect areas within its four EPLs.

• Without exception results from all prospect areas are either meeting expectations by confirming historic work and results, or in the case of the follow-up drilling programmes being conducted in areas of previously unknown mineralisation, the results are very encouraging given the grade and widths of numerous new intersections.

• Early data from the airborne electromagnetic (AEM) survey indicates the existence of potentially deeper channel sections that could indicate buried palaeochannels that were not tested by previous explorers. Reptile's drilling in the Tumas area on an indicated deeper section of buried channel is underway and numerous mineralised intersections have been made below 12 metre from surface.

• Exploration expenditure is A$1 million a month with a total of 6 RC percussion and 1 diamond drill rig operating and this has been approved by the DYL Board to end 2008;

• Reptile staff compliment now 57 personnel running the exploration programmes out of the Company's Swakopmund office. This excludes the drilling and rehabilitation contractors.

Previous Exploration: During the mid-1970s to early 1980s the companies referred to above undertook evaluation of airborne radiometric anomalies with follow-up ground exploration and drilling leading to the discovery of uranium mineralisation within near surface zones as depicted in the satellite image below. The mineralisation occurs in the form of carnotite (K₂(UO₂)₂(VO₄)₂3H₂O) which is the same as the mineralisation found in valley-fill sediments at Paladin Energy Limited's Langer Heinrich uranium deposit to the east/northeast of the various project areas. Mineralisation in Reptile's tenements is also secondary but occurs in wide shallow sheet wash sediments rather than true valley-fill material.

Above:  RUN EPLs showing surface projection 
of known uranium mineralisation

A total of approximately 37,500 m was drilled by the previous exploration companies during a number of campaigns. Some detail assay and radiometric data is available, but some has been lost although summary reports have been located for all. The table below summarises open file company report data on then estimated contained uranium oxide (U₃O₈) mineralisation.

Table 1: Historic Grade and Tonnage Estimates 
within Reptile Tenements EPL 3496, 3497 and 3498

Deposit	EPL	Tonnage	U3O8 in ppm	Tonne U3O8
TUBAS 433	3496	26,000,000	222	5,772
ORYX 430	3496/7	18,000,000	300	5,320
ORYX EXT 708	3496	2,900,000	250	725
TUMAS 738	3497	13,000,000	244	3,172
NAMIB PARK II 644	3497	8,600,000	352	3,027
AUSSINANSIS	3498	20,000,000	275	5,500
TOTAL		88,500,000	266	23,516
The estimates quoted in Table 1 for EPLs 3496, 3497 AND 3498 are based on data and reports obtained and prepared by the previous operators, as provided to the South African Nuclear Energy Corporation and the Namibian Ministry of Mines and Energy. DYL will complete the work necessary to independently verify the classification of the historic estimates and is not treating them as JORC defined resources verified by a qualified person. The tenements will require considerable further exploration which DYL's management and consultants intend to carry out in due course. In the meantime, the information provided should be treated with the appropriate caution. DYL intends to carry out staged exploration over the tenements which may result in JORC compliant resources estimates in due course.

 

Tubas JORC Code Inferred Mineral Resource

In November 2007 Geomine Consulting Namibia CC (Geomine) provided Reptile with an Inferred Mineral Resource estimate (reported to JORC Code standard) for the Tubas project based on the historical data reported by Anglo American Prospecting Services (Anglo) from their work on the deposit during the 1970's and early 1980's which ended in a feasibility study being undertaken.

The Inferred Mineral Resource totals 77.3 million tonne at 0.023% (228 ppm) U₃O₈ at a cut-off grade of 100 ppm U3O8 for 17,600 tonne or 38.8 million pounds of contained U₃O₈. (ASX 21 November 2007)

TUMAS PROSPECT

Reptile recovered and surveyed (by differential GPS) the majority of drill collars for the Falconbridge historic estimate, but decided against (radiometrically) re-logging the holes and/or using the scant chemical data available. The entire prospect area is being re-drilled on an offset 50 by 50 m grid pattern to ensure JORC Code compliance.

The U²/Th anomaly map (Figure 2) indicates potential mineralisation to the east and northeast of the Falconbridge project area and these extensions will be drill tested upon completion of the drill-out of the known Falconbridge area and present drilling campaign to the north and northwest of Tumas.

Figure 2: Airborne Radiometric Map depicting at or near surface 
uranium mineralisation. Outlined are the previously explored areas
indicating that the majority of the anomalies remain to be explored.

TUMAS (previously drilled), TUMAS WEST and NORTHWEST (previously untested)

The original Falconbridge delineated mineralisation was limited to the extent of their then tenement holding. As shown in Figure 2 a strong U²/Th anomaly extends west and northwest from the Tumas mineralised area. Reptile is completing a systematic RC percussion drilling programme.

Significant newly discovered (not yet drilled out) calcrete hosted mineralisation over at least 3 km in the Tumas West and Northwest Prospect area (see Figure 2) is contiguous with the main Tumas mineralisation outlined by Falconbridge for their historic estimate area deposit and will add significantly to it. (Better results are given in Table 2.)

Table 2: Tumas Significant Drill Intercepts

Drillhole	WGS84 East	WGS84 North	AZI (T)	INC	TD (m)	Depth (m)		Interval (m)	eU3O8 ppm
						From	To
B2.700 2.200	515204	7451307	0	-90	18	0	14	14	461
B2.500 1.100	514102	7451508	0	-90	18	1	12	11	296
B2.850 2.300	515304	7451157	0	-90	17	1	13	12	344
B3.100 2.600	515603	7450906	0	-90	12	3	12	9	403
B3.450 5.400	518403	7450556	0	-90	16	8	14	6	531
B3.875 6.150	519150	7450125	0	-90	18	1	12	11	410
B2.375 0.850	513847	7451628	0	-90	18	0	12	12	464
B2.475 0.850	513853	7451530	0	-90	20	0	10	10	902

 

TUMAS WEST PALAEOCHANNEL

Early AEM data and interpretation indicates the existence of potentially deeper channel section that could indicate buried palaeochannels that were not tested by previous explorers. Interestingly Anglo American reported 6 metre of 550 ppm U3O8 and 4 metre of 375 ppm U3O8 a few kilometre further to the northwest of this area within their Oryx tenement from widespread reconnaissance drilling that was not followed up. It would appear that these holes fall within the AEM indicated potential buried palaeochannel.

Chemical assays and radiometric logging data from vertical RC percussion grid drilling have been received for the buried palaeochannel confirming this channel's potential to host significant uranium mineralisation as indicated below:

Table 3: Chemical (XRF) Assays (U₃0₈)

Drillhole	WGS8 84		TD (m)	Depth (m)		Interval (m)	U3O8 (ppm)
	East	North		From	To
B2.275 0.250	513248	7451723	34	13.000	26.000	13	1,722

Table 4: Radiometric Logging Results (eU₃0₈): 

Drillhole	WGS8 84		TD (m)	Depth (m)		Interval (m)	U3O8 (ppm)
	East	North		From	To
B2.400 0.400	513399	7451600	25	8.155	19.405	11	241
B2.025 0.150	513149	7451974	32	12.073	22.973	11	261
B2.150 0.300	513299	7451848	19	9.560	15.360	6	494
B2.000 0.200	513200	7451997	28	10.788	23.188	12	236
B2.175 0.250	513249	7451822	25	11.443	19.493	8	434
B2.325 0.250	513250	7451675	32	14.405	23.655	9	457
B2.300 0.400	513399	7451702	22	10.245	18.345	8	550
B2.275 0.450	513450	7451723	28	10.798	26.848	16	343
B2.300 0.100	513098	7451702	35	14.335	26.185	12	529

The extent of drilling in the Tumas channel is shown in Figure 3.

Figure 3: Tumas West and Northwest Mineralised Palaeochannel

S-BEND (BA) PROSPECT (mostly untested)

Follow-up sampling of the airborne anomaly at the S-Bend palaeochannel location retrieved surface values of up to 5,735 ppm U₃O₈ (ASX 23 January 2008).

The S-Bend palaeochannel appears to mirror the breakthrough and valley formation as at the Langer Heinrich mine 18 km to the north (see Figure 4).

Results from the 463 holes for 3,075 metre completed to date from the nominally 100 x 50 m spaced drill sections are encouraging indicating widespread calcrete hosted mineralisation. Better results are given in Table 5.

Above:  Figure 4 - S-Bend Target BA Locality Plan

Table 5: S-Bend (BA) Prospect Significant Drill Intercepts

Drillhole	WGS 84		AZI (T)	INC	TD (m)	Depth (m)		Interval (m)	U3O8   ppm
	East	North				From	To
BA7.850 8.050	525050	7460150	0	-90	9	0	8	8	500
BA7.850 8.150	525150	7460150	0	-90	9	0	7	7	353
BA7.900 8.050	525050	7460100	0	-90	9	0	7	7	357
BA8.800 8.850	525850	7459200	0	-90	9	1	7	6	219
BA7.800 8.150	525157	7460202	0	-90	9	0	6	6	314
BA9.850 9.150	526150	7458150	0	-90	9	1	4	3	405
BA9.750 9.100	526100	7458250	0	-90	9	1	4	3	286
BA9.850 11.250	528250	7459150	0	-90	9	3	8	5	266

Above:  RC Drilling S Bend Prospect

 
AUSSINANIS NORTH PROSPECT (mostly untested)

The reconnaissance programme in the Aussinanis North area was drilled to provide targets for later systematic drillout prior to commencing the 50 x 50 metre grid drillout of the known mineralised Elf-Aquitaine project area in the south of the tenement.

As shown in Figure 2 the Aussinanis mineralised zone occurs over an area of 15 by 3 (to 4) km from the southern tenement boundary. A total of 779 holes for 8,979 metre completed to date. Better results are given in Table 6.

Table 6: Aussinanis North Significant Drill Intercepts

Drillhole	WGS 84		AZI (T)	INC	TD (m)	Depth (m)		Interval (m)	eU3O8   ppm
	East	North				From	To
D11.250 10.200	507199	7407251	0	-90	11	0	4	4	440
D17.050 18.900	515902	7413054	0	-90	23	8	12	4	935
D17.650 19.250	516248	7413653	0	-90	17	0	6	6	321
D17.950 19.250	516251	7413949	0	-90	17	0	2	2	1,399
D18.200 19.050	516052	7414201	0	-90	17	0	3	3	997
D19.200 19.050	516052	7415200	0	-90	11	0	3	3	488
D30.050 17.050	514063	7426061	0	-90	13	0	4	4	446
D30.100 17.200	514201	7426100	0	-90	13	0	5	5	729

 

TUBAS TRENCHING

Excavation of a trench on the Tubas secondary uranium mineralisation that was subject to JORC Code inferred resource evaluation late 2007 has commenced. The trench is designed to be 20 metre long and 10 metre wide and benched down to 10/12 metre pending ground conditions. The first cut to 2 metre depth has exposed extensive carnotite mineralisation as shown below in the photographs.

Primarily this trench will provide information on: -

• Mineralisation style and controls

• Grade distribution

• Geological controls

• Host rock characteristics (i.e. free-digging)

• Bulk density

• Disequilibrium

• Extraction tests

 

TUBAS TRENCH PHOTOS

Below:  Trench at 8m deep level

 Below:  Pervasive Carnotite Mineralisation

 

TUBAS NORTH ALASKITE PROSPECT

As previously reported (ASX 4 March 2008) Reptile has been evaluating the potential of alaskites within the Northern Tubas area. A total of five RC percussion drill holes for 744 metre and one diamond core hole for 500 metre have been completed to date.

The alaskite outcrop shown in the photograph below comprises of grey white alaskite bands intercalated with dark grey to black gneissic granite (the diamond driller's camp can be seen at the base of the hills). The drill core photograph shows wide alaskite zones and narrower dark interbanded gneissic granite zones.

Above:  Tubas North Alaskite Prospect

The diamond drill core is yet to be split, sampled and assayed. Down hole radiometric logging returned extensive +100 ppm eU₃O₈ values (see ASX 30 April 2008) typical for such alaskitic material in the area as reported by other explorers with adjoining tenements.

Importantly, secondary uranium mineralisation is developed in sands and calcrete within a broad plain south-southwest from the outcrop areas. Pending results of the AEM survey, either delineated channels will be drill tested or the area will be pattern RAB drilled testing both the alaskite potential beneath cover and palaeochannel potential southwest from the northern tenement boundary.

Above:  Drill Core Showing White Alaskite (Top Two Trays)
and Intercalated Gneissic Granite

MAGNETITE-URANIUM PROSPECTS

As previously reported to the ASX (4 March 2008) reconnaissance RC percussion and diamond drilling of the M1 prospect returned significant uranium mineralised intercepts within magnetite rich zones associated with domal structures in high grade metamorphosed sedimentary and granite terrane.

A total of 11 RC percussion drill holes for 1,328 metre and 2 diamond core holes for 287 metre were completed in the first pass review. (See ASX 30 April 2008).

 

Above:  M1 Prospect - Diamond Drilling

 Logging of drill core indicates a late stage metasomatic event within the basement Damara terrane. Mineralisation comprises both wide +100 ppm U₃O₈ zones with narrower higher grade (+1,000 ppm U₃O₈) zones.

Samples have been selected for petrographic and mineralogical sections and multi-element analysis ahead of a core splitting, sampling and assaying programme.

The significant results from the M1 prospect have lead to a decision to pattern RC percussion drill the M1 area on a 50 x 50 metre grid to depths of 100 to 150 metre and to drill a 500 metre deep vertical diamond hole at the M62 magnetite anomaly.

Airborne Electromagnetic (AEM) Survey

In Australia the uranium industry in general and Deep Yellow in particular has been flying AEM surveys and successfully delineating target palaeochannels at depth below surficial cover. Reptile has contracted Aeroquest to fly an AEM survey over its four EPLs to better define the known mineralised shallow channels and to test for new deeper channels (palaeochannels).

Early AEM data and interpretation indicates the existence of potentially deeper channel sections that could indicate buried palaeochannels that were not tested by previous explorers.

It is evident from preliminary images that the AEM survey worked well and will generate new deeper channel areas for follow-up drill testing. The discovery of extensive uranium mineralisation in calcrete below 12 metre of cover at Tumas bodes well for the prospectivity of other AEM indicated buried channels.

Reptile also made use of the opportunity to use the survey equipment to carry out detail surveys over the prospective uraniferous magnetite prospects.

Final verified data and images will be available for detail interpretation in July.

Above:  Aeroquest's AEM Helicopter Survey	Above  Close-up of AEM Survey Coil