WELCOME TO DEEP YELLOW LIMITED

ABN: 97 006 391 948

PROJECTS

SOUTH AUSTRALIA (September 2008)

Above: Location of Western Gawler Project. Click to enlarge

Western Gawler Project (DYL 50% can earn 100% of uranium rights)

In February 2006 DYL reached agreement with Dominion Gold Operations Pty Ltd, a wholly owned subsidiary of Dominion Mining Limited (Dominion) to acquire the uranium rights (100%) to seven exploration licences covering 5,706 km² in the Western Gawler Province.

Despite being relatively unexplored, the Tertiary palaeochannel systems in the district are known to host several uranium deposits including the Yarranna 1-4 Deposits (Narlaby Palaeochannel) and the Wynbring, Ealbara and Warrior Deposits (Kingoonya Palaeochannel). Indications of anomalous radioactivity are widespread within the region with uranium mineralisation believed to have been derived from the weathering of crystalline Proterozoic rocks and emplaced at suitable redox boundaries within the overlying sedimentary cover. In general, palaeochannel and mineralisation style resembles that seen at Honeymoon (Curnamona Province) where mineralisation is hosted by carbonaceous Eocene sands and blanketed by Miocene clays.

In September 2006 DYL flew an airborne electromagnetic (AEM) survey over the main tenement block south of the Challenger Mine. The AEM survey data provided excellent definition of palaeochannels ahead of a planned aircore drilling programme.

Following clearance for its drilling programme from the Antakirinja Matu - Yankunytjatjara Native Title Claimants in early June, Deep Yellow commenced an initial pass of Aircore drilling with 145 holes for 9,856 m being drilled. These holes were sited along existing lines of access or where natural access permitted. Hole spacing varied from 500 m to 1 km, with hole depths ranging from 80 to 110 m.

Drill Traverses

Lithologies intersected included surficial channel sands; carbonaceous-lignitic clays; basinal clays, claystones and various metamorphic basement rocks. Most holes were radiometrically logged downhole and drill cuttings scanned with a hand-held scintillometer.

All of the targeted paleodrainages received some drill coverage, with the Mulgathing tributary of the Anthony Paleochannel receiving most attention. Only low order radiometric anomalism was detected. Assay results returned best values of 2 m at 43 ppm U₃O₈ (Challenger Channel) 4 m at 22 ppm U₃O₈ (Lake Anthony South Channel) and 2 m at 26 ppm U₃O₈ (Mulgathing Trough area). Whilst these values are low, the associated host rocks are considered prospective and worthy of further drilling in order to try and locate lignite hosted mineralisation and/or sandstone hosted roll front uranium mineralisation.

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Target carbonaceous sediments 35 m depth. Anthony Channel

In June 2008 a meeting was held with the Maralinga-Tjaruta Council with respect to access for drilling to EL's 3092 and 3093. Negotiations are still progressing.