Australia-based uranium developer Deep Yellow has selected Ausenco Services as the preferred contractor to manage the detailed engineering and EPCM services for its Tumas project in Namibia.

This development marks a significant step towards the establishment of the Tumas site as the fourth uranium mine in the country.

Ausenco is well-acquainted with the project having completed the definitive feasibility study in February 2023 and a re-costing addendum in December 2023.

Its extensive knowledge is expected to be a valuable asset in the project's progression.

The parties will reach a detailed engineering agreement to progress essential workstreams in anticipation of the FID.

The full EPCM contract will be finalised post-FID, laying the groundwork for the commencement of operations in 2026.

Deep Yellow expects the successful delivery of the Tumas project by Ausenco to not only mark the company's first mining operation but also to be a flagship development that will contribute significantly to Namibia's mining sector.

The company’s Tumas project has 132.9mlb of U308 in uranium deposits of the calcrete/palaeochannel type.

Tertiary and Quaternary fluvial sediments that occupy narrow, steep-sided palaeochannels host carnotite, the kind of uranium mineralisation seen in calcrete-type deposits and palaeochannels.

The host rocks range in texture from poorly consolidated and friable sands to strong, carbonate-cemented sandstones and conglomerates (calcrete).

Deep Yellow managing director and CEO John Borshoff said: “The selection of Ausenco as the preferred EPCM contractor for the Tumas project is a significant project milestone.

“Ausenco is a market-leading engineering firm, highly regarded within the industry for their technical ability and track record of project delivery.

“Having Ausenco on board will complement the project delivery team to add significant value to the exciting Tumas project, in a period of extended positive outlook in the uranium supply sector.”