Deep Yellow (ASX:DYL) said its board decided to provide a three-phase staged approval for its flagship Tumas uranium project in Namibia and deferred a final investment decision on the project, determining that the "current uranium pricing does not provide sufficient incentive for developing a greenfield project," according to a Tuesday Australian bourse filing.

The firm is delaying the construction of a processing plant which involves the majority of estimated capital expenditure.

It will continue to move ahead with early works infrastructure development and detailed engineering, however full-scale project development will be delayed as the board expects improvements in global uranium prices, caused by "increasing demand and the precarious nature of the supply outlook."

The firm is currently assisting an independent technical expert with information to conclude their due diligence work on the project. Once completed, it will be in a position to go to market to secure lenders for funding.