Deep Yellow wraps up first-stage exploration at Mulga Rock uranium play for rare earths

Long time ASX resident Deep Yellow (ASX:DYL) has revealed its completion of an aircore drilling campaign to test its Mulga Rock uranium acreage for critical minerals. 

Included in the possible mineral systems its exploration team could encounter on-site are rare earths neodymium and praseodymium, as well as cobalt, zinc, copper, and nickel.

The company is now moving to metallurgical tests to determine what it can get out of the ground. Over 1,800 samples are pending assay results. 

Throughout the first half of 2023, the company will complete another aircore drilling program consisting of up to 800 holes to continue defining the resource profile of other minerals on-site.

Other minerals known, feasibility the question 

The Mulga Rock play is located in WA 290km east-north-east of Kalgoorlie CBD. Deep Yellow first announced its intention to assess the Mulga acreage for critical minerals back in November last year. 

Drilling completed so far was restricted to the Mulga Rock East target deposits (called “Ambassador” and “Princess”). 

Those targets landed on the company’s radar due to previously known higher concentrations of minerals which, in the not too recent past, Deep Yellow wasn’t targeting.

But its attention is drifting from uranium to other materials, now, as rare earth prices continue to rise. 

Boosting value as uranium falls 

The ultimate ambition behind the aircore drill run is to boost the project as critical minerals demand thematics prevail over that of uranium energy. 

Uranium futures prices have fallen from its US$60/lb highs last year, though still remains not too far down at US$48/lb. 

“Preliminary work demonstrated that…polymetallic deposits…may add substantial value to the project,” the company said. 

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