Uranium explorer Deep Yellow (ASX:DYL) is ramping up exploration and sinking more cash into its Reptile uranium project so it can capitalise on the expected looming uranium shortage.
Exploration work has been successful, finding deposits containing uranium graded 300 parts per million (ppm) to 500 ppm.
And the company is now injecting another $1.1m to work out if the Reptile project is economically viable. A pre-feasibility study will be completed in the September quarter next year, although a scoping study is expected by December.
The company plans for the project to be ready for development by 2023-24, when it anticipates a uranium supply shortage will bolster prices.
It expects the operation would be 30km in radius and work in a grade range of 350-450ppm.
CEO John Borshoff said Deep Yellow was timing the progression of Reptile in harmony with the anticipated upturn in the uranium market.
“We will aim to have the project sufficiently prepared to take advantage when the uranium price provides sufficient incentivisation, making it imperative to commence and progress the Reptile project as outlined,” he said.
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In other ASX energy news:
Comet Ridge (ASX:COI) has announced its attempts to retrieve a logging tool stuck down the wellbore at its Albany 2 well in the Galilee basin are beginning to bear fruit. The tool has been partially recovered and the remainder will be left below production casing. Once the rig has been released from Albany 2 Comet plans to side-track Albany 1 and stimulate the well.
Strike Energy (ASX:STX) says all its drilling and completion activities at the West Erregulla well have been completed. It is now perforating the well and flow testing will occur from early next month. Activities will take two weeks to gather data. The well is operated as a joint venture with Warrego Energy (ASX:WGO).