#Canada #Toronto #Denison Mines #Midwest Project #ISR Mining

Denison Mines Corp. Reports Significant Results for Midwest ISR Project

Denison Mines Corp., a prominent player in uranium mining, has recently shared pivotal findings from its Preliminary Economic Assessment (PEA) pertaining to the In-Situ Recovery (ISR) operations of its Midwest project. This assessment not only highlights the financial viability of the project but firmly establishes the technical prowess of ISR mining in the high-grade uranium landscape of the Athabasca Basin.

Overview of the Preliminary Economic Assessment

The PEA reveals remarkable projections, including an after-tax Net Present Value (NPV) of $965 million based on the project’s 100% stake, translating to approximately $243 million for Denison's 25.17% ownership. The expected annual production is slated at 6.1 million pounds of U3O8 over a projected mine life of around six years, bringing the total output to 37.4 million pounds. The Internal Rate of Return (IRR) stands at an impressive 82.7%, further underscoring the project's robust potential.

Strategic Partnership and Operational Insights

Denison Mines, in collaboration with Orano Canada Inc., who holds a 74.83% stake in the Midwest joint venture, has emphasized the strategic location of the Midwest project, situated just 25 kilometers from the McClean Lake uranium mill. This proximity allows for efficient processing of uranium-bearing materials, which is pivotal for maximizing operational efficiencies and minimizing transportation costs.

The CEO of Denison, David Cates, expressed confidence in the ISR method's capability to unlock significant uranium production from the Midwest deposit. "The results from our field test programs indicate a promising future for ISR mining in this region, showcasing a blend of low capital expenses and operating costs, which together set a strong foundation for profitable mining operations," he stated.

Financial Highlights and Projected Costs

Based on the data from the PEA, the all-in cost of production is among the lowest in the industry, approximating $34.80 per pound of U3O8. This competitive pricing strategy enhances the project's appeal in the current uranium market, where price fluctuations can significantly impact profitability. Key operating parameters indicate an annual average production with an estimated recovery rate of 81%, positioning Midwest's ISR mining initiative as a critical player in the global uranium supply chain.

Mineral Resource Estimates

Recent updates to the Midwest mineral resource estimates reveal impressive figures, with 38.7 million pounds classified as Indicated resources and an additional 12.6 million pounds categorized as Inferred resources. The ongoing exploration and testing are expected to continue refining these estimates, potentially uncovering more uranium deposits and enhancing project viability.

Future Endeavors and Recommendations

The PEA recommends advancing to a more comprehensive Pre-Feasibility Study stage to further explore the opportunities presented by the ISR mining method. Denison aims to fine-tune its mining operations through additional classification of permeability characteristics, cost verification, and infrastructure design reviews.

Moreover, Denison is simultaneously evaluating the Surface Access Borehole Resource Extraction (SABRE) mining method as an alternative extraction technique for the Midwest Main deposit. This diversification may provide additional avenues for resource extraction and economic optimization.

Commitment to Sustainable Practices

A critical aspect of Denison’s operations is its commitment to environmental stewardship. The ISR method is designed to minimize ecological disturbances, contrasting sharply with traditional mining methods that often generate significant waste and pollutants. As such, Denison aims to implement effective reclamation strategies and ensure compliance with regulatory standards.

Closing Thoughts

In conclusion, Denison Mines Corp. stands at the forefront of uranium mining innovation. The positive results from the Midwest PEA not only reaffirm the economic potential of the project but also signify Denison’s commitment to responsible and sustainable mining practices. Stakeholders and investors can look forward to further developments in the coming months as Denison works diligently to bring its Midwest ISR project to fruition.