Published: December 19, 2018 |

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Denison Mines’ board of directors and the Wheeler River Joint Venture (WRJV) have approved the advancement of the Wheeler River project, following a detailed assessment of the strong economic results produced by the recently filed pre-feasibility study (PFS) prepared for the project in accordance with NI 43-101.

In support of the decision to advance the Wheeler River project, the WRJV has approved a $10.3 million budget for 2019 (100 percent basis), which is highlighted by plans to initiate the environmental assessment (EA) process as well as engineering studies and related programs required to advance the high-grade Phoenix deposit as an in-situ recovery (ISR) mining operation. Denison’s share of the 2019 budget for Wheeler River is $9.3 million, which reflects Denison’s 90 percent ownership interest in the project.

HIGHLIGHTS FROM THE WHEELER RIVER 2019 BUDGET

• Initiation of environmental assessment process:
The submission of a project description (PD), to Federal and Provincial Regulatory Authorities is planned for early 2019, which is expected to initiate a multi-year EA, consultation, and permitting processes for the project.

• Commencement of ISR wellfield tests:
Field tests involving the drilling of ISR wells into the Phoenix deposit will be designed to assess permeability throughout the deposit by completing pump and other hydraulic tests within the orezone. The drilling of ISR wells will also allow for the collection of additional groundwater and ore samples, as well as provide assistance in refining the estimated cost of wellfield development.

• Initiation of metallurgical ISR pilot plant testing: 
Extensive laboratory studies replicating the ISR flowsheet are planned to test and optimize the mineral processing aspects of the Phoenix operation. Studies are expected to include the assessment of lixiviant chemistry and performance under a variety of permeability and grade conditions.

• Discovery focused exploration program:
Following years of delineation drilling for the Phoenix and Gryphon deposits, planned exploration activities in 2019 are designed to evaluate high priority regional target areas by focusing on initial testing of targets at the sub-Athabasca unconformity – which could lead to the discovery of further uranium deposits that may be amenable to ISR mining.

“With the potential for a Phoenix ISR operation to have the industry’s lowest operating cost per pound of U3O8, as outlined in the Wheeler River PFS, the board of directors unanimously approved the advancement of the project and the 2019 budget. The initiation of the EA process, as well as engineering and field studies designed to ultimately support a feasibility study, illustrates the company’s commitment to achieving the project development timeline outlined in the PFS and claiming the ‘pole-position’ amongst undeveloped uranium projects in the Athabasca Basin region,” said David Cates, president and CEO of Denison.

“With plans for 2019 including a discovery-oriented exploration program and various engineering programs designed to de-risk the mine plan for the Phoenix ISR operation, we have the potential for several meaningful catalysts to emerge during the year,” added Cates.

INITIATION OF METALLURGICAL ISR PILOT PLANT TESTING

The PFS results are based on metallurgical test work which was focused on proving the applicability of ISR mining (via column test) and leachability (via conventional leach tests) for the development of the Phoenix operation. As the project advances through the EA process and towards the initiation of a FS, additional metallurgical test work is required to both test and optimize the metallurgical processing elements of the Phoenix operation. A customized laboratory test program is expected to be developed to properly achieve the desired metallurgical test objectives – which are likely to include the following:

• Assess the performance of different lixiviants in a variety of permeability and grade conditions
• Evaluate the potential for build-up of contaminants in the lixiviant
• Evaluate opportunities to recover rare earth metals as a by-product
• Increase confidence in the concentration of the lixiviant for the process plant design
• Improve confidence in ground restoration abilities and cost estimates

A laboratory scale pilot plant is planned to run over a one-year period, starting during the second half of 2019, with approximately $0.5 million (100 percent basis) budgeted for the setup and initial operation of the pilot plant in 2019.

To read more details in the company’s press release, CLICK HERE

About Denison Mines
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to its 90 percent owned Wheeler River project, which ranks as the largest undeveloped high-grade uranium project in the infrastructure rich eastern portion of the Athabasca Basin region, Denison’s Athabasca Basin exploration portfolio consists of numerous projects covering approximately 320,000 hectares. Denison’s interests in the Athabasca Basin also include a 22.5 percent ownership interest in the McClean Lake joint venture (MLJV), which includes several uranium deposits and the McClean Lake uranium mill, which is currently processing ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17 percent interest in the Midwest and Midwest A deposits, and a 65.92 percent interest in the J Zone and Huskie deposits on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are located within 20 kilometres of the McClean Lake mill.

Denison is also engaged in mine decommissioning and environmental services through its Denison Environmental Services division and is the manager of Uranium Participation Corp.

To stop by Denison Mines’ website, CLICK HERE

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