The Deep Yellow Limited (ASX: DYL) share price has surged more than 24% in today’s session.
Shares in the uranium explorer have fired to record highs as the uranium sector heats up.
Let’s take a closer look at the Deep Yellow share price.
What’s propelling the Deep Yellow share price higher?
Deep Yellow has not released any price-sensitive news to explain today’s eccentric price action.
Instead, shares in the uranium explorer have propelled higher thanks to a single catalyst.
The uranium sector as a whole has been on fire recently as spot uranium prices soar to 7-year highs.
Following a prolonged bear market, the uranium spot price has bolted in the past month to hit highs of approximately US$35/lb.
A major driver has been the aggressive buying of the world’s largest uranium fund, Sprott Physical Uranium Trust.
As a result, the resurgence of spot prices has initiated a buying frenzy for ASX shares in the uranium sector such as Deep Yellow.
More Deep Yellow
Deep Yellow explores uranium mineral properties and has pre-development activities in Namibia and the states and territories of Australia.
The company has various exploration prospects, in particular its cornerstone Tumas Project in Namibia.
Deep Yellow recently completed drilling at its Tumas 1 East site. The company reported an impressive conversion rate of inferred mineral resources to indicated mineral resources of 102%.
In addition, the company noted that the drilling program could see the project achieve its Life of Mine (LOM) object of 20 years.
Deep Yellow also noted that its robust resource base will help support its upcoming definitive feasibility study.
Snapshot of the Deep Yellow share price
The Deep Yellow share price has been bordering on vertical in the past month.
In addition to today’s stellar price action, shares in the uranium explorer have surged more than 50% since the start of September.
At the time of writing, shares in Deep Yellow are trading just shy of their intra-day and record high of $1.215.