Deep Yellow Limited (DYLLF)

[wzebra33]

DYL.AX ,DYLLF.PK

Mt Isa Exploration Update: High Grade Uranium Samples
http://www.deepyellow.com.au/news/asx/071005_mtisa.pdf
07-65 Mt Isa Exploration Update Page No. 1
DEEP YELLOW
LIMITED
ABN 97 006 391 948
Level 1 329 Hay Street Subiaco WA 6008
PO Box 1770 Subiaco WA 6904
Tel : [phone]
Fax : [phone]
Email: [e-mail]
Website: www.deepyellow.com.au
05 October 2007
MT ISA EXPLORATION UPDATE
HIGH GRADE URANIUM SAMPLES
HIGHLIGHTS
• Rockchip samples from helicopter supported ground checking of airborne
radiometric anomalies return high grade uranium assays (+ 0.2% U3O8) at 10
prospects on the following tenements:
• EPM 11025 1 prospect
• EPM 14281 1 prospect
• EPM 14622 1 prospect
• EPM 14916 6 prospects
• EPM 15070 1 prospect
• Tracks have been established into the prospect areas and geological mapping and
ground radiometric traversing completed ahead of scout drilling planned for
November 2007.
The Directors of Deep Yellow Limited (DYL) are pleased to announce that assay results received from
the ground truthing of uranium anomalies outlined by a recent airborne survey has greatly increased
the uranium prospectivity of EPM’s 14281 and 14916 which form part of the NW Queensland Joint
Venture with Matrix Metals Ltd (Matrix). As well as the planned drilling of a number of the prospects
this year, the reconnaissance program has developed targets for testing in the 2008 field season.
MT ISA REGIONAL PROGRAMME
In May 2007 DYL contracted UTS Geophysics to fly 5,470 line kilometre of low level radiometrics and
magnetics over nine selected target areas within its tenement holdings in the Mt Isa district.
The 100 metre line spaced data greatly enhanced the definition and delineation of uranium anomalous
zones within DYL’s original 400 metre line spaced data set. The newly acquired data was processed
in-house and a series of targets developed for ground checking/reconnaissance mapping. A total of
109 anomalies were identified on a first-pass review of the data.
Following the completion of surface mapping and sampling of the Queens Gift Prospect DYL’s
geologists and field assistants commenced a helicopter supported ‘anomaly validation programme’ in
August 2007. To date a total of 56 of the 109 anomalies generated within a 100 km radius north and
northeast of Mt Isa have been inspected, mapped and sampled as warranted.
Mt Isa Exploration Update
07-65 Mt Isa Exploration Update Page No. 2
Sampling Procedure
At each anomaly, the centre of the airborne uranium anomaly was targeted as an initial datum. Rapid
ground traversing with a hand held scintillometer was undertaken in order to identify peak values and
possible visible mineralisation. Samples for assay were collected at the peak uranium site. These
samples are positively biased and not representative of the entire outcrop/anomaly area however, they
are being used as a ‘driver’ to identify potential scout drill sections.
The field checking also provided information on the style of mineralisation, alteration, rock types and the
local extent of ‘mineralisation’ as indicated by ground scintillometer traversing. Within EPM 14916
located 85 km north of Mt Isa and 35 km northeast of DYL’s Queens Gift Prospect uranium
mineralisation at the various prospects is hosted by basalts and siltstones of the Eastern Creek
Volcanics sequence which hosts both the Queens Gift and the Valhalla uranium deposits.
Mineralisation is associated with intense haematite alteration with weak to intense breccia
development. All of the above features together with the assay values have been used to prioritise
anomalies for drilling in 2007.
Within EPM 14281 uranium mineralisation is hosted by chloritic shear zones developed through granite.
The Miranda North Prospect is located 450 metres north of the DYL’s Miranda Prospect. RC percussion
drilling will commence on the existing Miranda and Miranda Northwest Prospects within EPM 14281 in
mid-October and will then test the new Miranda North Prospect prior to moving to EPM 14916.
Crystal – 1 Prospect. Highly anomalous haematitic soils over siltstone.
Samples DH 017 and 018 site.
Mt Isa Exploration Update
07-65 Mt Isa Exploration Update Page No. 3
Of the 56 targets inspected, 12 were ranked as immediate drill targets; 12 requiring follow-up mapping
and prospecting in 2007; 11 follow-up targets for 2008, and 21 anomalies were down graded as being
due to lithological responses typical of the relatively high uranium background in the Mt Isa district.
The targets highlighted for immediate drill follow-up are highlighted in Table 1.
TABLE 1 – ROCK CHIP SAMPLING DATA FOR ASSAYS OVER 1,000 ppm U3O8
SAMPLE NO. EPM
HELICOPTER
ANOMALY NO.
PROSPECT
U3O8
PPM
%
DH_005 15070 * H105 Follow-up 2007 1,650 0.165
DH_009 14916 H020 Conquest North / Drill 1,950 0.195
DH_010 14916 H121 Conquest Central / Drill 2,200 0.22
DH_013 14916 H125 Conquest East / Drill 1,000 0.10
DH_015 14916 H007 Wahn / Drill 3,200 0.32
DH_016 14916 H005 Bluestone / Drill 5,200 0.52
DH_017 14916 H094 Crystal 1 / Drill 2,700 0.27
DH_018 14916 H094 Crystal 1 / Drill 2,850 0.285
DH_021 14916 H011 Follow-up 2007 1,150 0.115
DH_022 14916 H011 Follow-up 2007 1,500 0.15
DH_024 14916 H010 Crystal 6 / Drill 2,100 0.21
DH_025 14916 H112 Slance NW / Drill 1,900 0.19
DH_027 14916 H006 Slance / Drill 1,150 0.115
DH_028 14916 H111 Slance NE / Drill 4,850 0.485
DH_029 14281 H101 Miranda North / Drill 29,400 2.94
DH_031 14622 H030 Follow-up 2007/08 3,700 0.37
DH_033 15070 * H131 Batman South / Drill 4,700 0.47
DH_035 11025 H034 Follow-up 2007/08 2,650 0.265
* 100% DYL tenement. NB: 1,000 ppm = 0.1%, 10,000 ppm = 1%
In mid-October the helicopter supported reconnaissance programme will recommence with a focus on
targets developed to the south and southeast of Mt Isa/Cloncurry with the majority of targets falling
within tenements held through Agreement with Matrix Metals. Targets/prospects developed from this
programme will be followed up after the wet season break in March/April 2008.
The assay results together with geological mapping have clearly identified EPM’s 14916, 14281 held by
Matrix Metals as containing a number of priority drill targets. Under Agreement with Matrix Metals
through the NW Queensland Joint Venture, DYL is earning 80% interest in the uranium rights to these
tenements and has the right to 100% by buying out Matrix’s retained 20% on each individual deposit
(ASX 20 February 2006).
Mt Isa Exploration Update
07-65 Mt Isa Exploration Update Page No. 4
Miranda North Sample DH 029. Oxidised chlorite–haematite schist
with pale yellow uranophane (?) mineralisation
Dr Leon Pretorius Further Information: Martin Kavanagh
Managing Director Executive Director
Deep Yellow Limited [phone]
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Dr Leon Pretorius a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Pretorius
has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr Pretorius consents to the inclusion
in the report of the matters based on his information in the form and context in which it appears.