DYL’s activities in Queensland are focussed on the Mount Isa District where it has both 100% owned and joint venture tenements.

• Diamond drilling at Isa West and the other prospects proved continuity of existing JORC Resources to depth.

• The Mount Isa JORC Compliant Resource increased by 1.4 Mlbs to 4.8 Mlbs U₃O₈ at grade of 460 ppm U₃O₈.

• DYL and Syndicated Metals Ltd (SMD) entered into a farm-in joint venture whereby SMD has the right to earn 80% equity in all non-uranium metals on four of DYL’s Mount Isa tenements.

• Reinterpretation of aeromagnetic data from DYL’s extensive geophysical database was undertaken with under cover and deep targets being developed for future drilling.

Coffey Mining Pty Ltd provided a new, increased Indicated and Inferred JORC compliant Mineral Resource estimate for the region of 4.7 million tonnes at 460 ppm U₃O₈ for 2,170 tonnes (4.8Mlbs) U₃O₈ at a 300 ppm cut-off.

The maiden JORC Resource for the Mount Isa District was announced in January 2010, after which DYL developed and implemented a number of drilling programmes in the area aimed at defining additional mineralisation. In 2010-2011, these programmes focused on deeper drilling to enhance the understanding of and confidence in these resources.

The results from the programmes indicated zones of higher grade mineralisation and extended all of the prospects to depth (400 metres), leading to an overall increase in tonnage and average grade. Drilling at all of the prospects also indicates that mineralisation remains open to depth providing further exploration upside potential.

DYL’s short to medium term strategic objective is to outline mineralisation amenable to open pit mining and aggregating 5,000 to 8,000 tonne (11 Mlb to 18 Mlb) of U₃O₈ as satellites to feed a future central plant in the Mount Isa area.

The medium to long term target is to define 12,000 to 15,000 tonne U₃O₈ based on this model from combined open pit and underground operations at grades exceeding 400 ppm U₃O₈.
 

DYL can ultimately acquire 100% of the uranium rights over a project area immediately west of the Mount Isa mine in accordance with a joint venture agreement with Mount Isa Mines Ltd.  Exploration programmes commenced in March 2008 with first maiden JORC Resources announced in January 2010.  During the 2010-2011 year, exploration was focussed on testing the depth (400 metres) of the Bambino and Thanksgiving Prospects.  The diamond drill programme successfully increased the tonnage and grade at the Isa West region by 0.7 Mlbs to 2.9 Mt at 440 ppm U₃O₈ for 1,280 tonnes (2.8 Mlbs) U₃O₈ at 300 ppm U₃O₈ cut-off.

DYL has earned an 80% interest in uranium and related minerals on Altona Mining Ltd’s EPM 14367 (Leichhardt JV).  Exploration is ongoing on the property.