Denison says Wheeler River take a look at faucets low-cost ISR to high-grade Athabasca uranium for first time

Denison Mines (TSX: DML; NYSE: DNN) says it has obtained constructive take a look at outcomes from its in-situ uranium restoration course of on the Wheeler River challenge in northern Saskatchewan’s Athabasca basin, which it known as ‘historic.’

The profitable take a look at marks one of many first makes use of within the high-grade basin of the in-situ (ISR) leaching technique that separates uranium from ore underground and pumps the answer to the floor for extraction. It’s typically inexpensive than conventional laborious rock mining.

“The restoration of uranium bearing resolution at focused charges and grades is historical past within the making,” Kevin Himbeault, Denison’s vice-president of plant operations, stated in a press launch on Monday. “Preliminary evaluation signifies the hydrogeological system has responded as anticipated with pH developments, circulation traits and uranium restoration assembly expectations.”

Mining and funding corporations are jockeying for acquisitions within the nuclear business and to develop the Athabasca basin, one of many premier uranium zones in North America, as a confluence of local weather change considerations, inexperienced energy calls for and Russian aggression affecting fossil gas costs widens the attraction of nuclear vitality.

Uranium Power Corp. (NYSE: UEC) has spent US$570 million buying initiatives previously yr — together with outbidding Denison for UEX in August — whereas Brookfield Renewable Companions purchased Westinghouse’s reactor-building unit final week for US$7.9 billion.

“Denison continues to de-risk its Wheeler River challenge,” BMO Capital Markets wrote in a be aware on Monday, noting the Phoenix take a look at “may very well be the primary of its sort utilizing ISR within the Athabasca basin” and “the preliminary outcomes seem promising.”

Resolution samples recovered from about 400 metres beneath the floor through the feasibility subject take a look at began final month have been despatched for lab assays and evaluation, Denison stated. Preliminary outcomes present profitable acidification and restoration of uranium by the ISR technique, it stated.

Dension stated it’s accomplished the take a look at’s first part of leaching and plans to finish the second part of neutralization earlier than the top of the yr. The take a look at’s remaining part, involving the administration of the recovered resolution, is to start out subsequent spring.

Wheeler River, within the japanese a part of the Athabasca basin, has mixed indicated mineral assets of 132.1 million lb. uranium oxide in 1.8 million tonnes grading 3.3% uranium oxide.

A 2018 prefeasibility examine checked out growing the challenge’s Phoenix deposit with ISR and its Gryphon deposit as a standard underground mine. Collectively, manufacturing from the deposits may very well be 109.4 million lb. uranium oxide over a 14-year mine life, with a pre-tax internet current worth of $1.3 billion at an 8% low cost price. Preproduction capital prices are estimated at $322.5 million. Denison estimates the Phoenix ISR operation to have a pre-tax internet current worth of $930.4 million at an 8% low cost price with common working prices of US$3.33 per lb. uranium oxide.

“The profitable restoration of uranium-bearing resolution from Denison’s high-grade Phoenix deposit is a historic second for uranium mining in Canada,” Denison president and chief government officer David Cates stated within the launch. “Denison has really showcased its business management in bringing the low-cost ISR mining technique to the high-grade uranium deposits of the Athabasca basin.”

Denison’s different Athabasca initiatives embody a 23% stake within the McClean Lake three way partnership, which incorporates a number of uranium deposits and the McClean Lake uranium mill, a 25% curiosity within the Midwest Important and Midwest A deposits, and a 67% curiosity within the Tthe Heldeth Túé and Huskie deposits on the Waterbury Lake property.

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