Deep Yellow says it’s still pursuing plans to develop a uranium mine in the Erongo region, 12 years after its founding, amid concerns that the company is just speculating on the Australian Stock Exchange, with no mining intentions.
The company has since appointed John Borshoff as Chief Executive Officer and Managing Director, replacing Greg Cochran who was at the helm since 2011.
Borshoff was one of the brains behind the establishment of Paladin Energy’s Langer Heinrich mine 10 years ago.
“I take exception to the inference you make that Deep Yellow is just a stock exchange speculative company. Knowing my track record in Paladin, which I founded and created a phenomenon in terms of developing a leading global uranium company in the pre-Fukushima period (2002- 2011) and my standing in the uranium industry generally, I am surprised at the suspicion you show with regard to Deep Yellow,” Borshoff said when quizzed by the Windhoek Observer why a mine has not been developed up to now.
He said since his appointment late last year, he has started the revitalisation of the company.
“Deep Yellow is pursuing a contrarian strategy taking the opportunity to build the company into a global platform while the uranium industry remains highly depressed, which I expect will remain so for at least the next two or three years.
“In this time, we are also spending money exploring on our cornerstone projects in Namibia, which we are achieving much success. We are the only uranium company carrying out active exploration in Namibia, showing our genuine commitment to what we are doing,” he said.
According to Borshof, the company is implementing a new growth strategy, which has already begun delivering tangible early results.
He said the company is targeting major discoveries of Rössing and Langer Heinrich-style deposits.
“This realignment is designed firstly, to establish the true potential of the Namibian projects and secondly, to take advantage of prevailing depressed uranium market conditions to opportunistically acquire value adding projects and it has already delivered tangible results.
“The new strategy is to grow resources across Deep Yellow’s existing uranium assets in Namibia and a number of significant achievements have been made in this respect. This includes a landmark US$4,5 million earn-in joint venture by the Japanese group JOGMEC and importantly, the discovery of a new uranium deposit (Tumas 3) in April.”