CNSC okays Denison amendment of McClean Lake tailings licence

The Canadian Nuclear Safety Commission (CNSC) has granted permission to expand the McClean Lake tailings management facility (TMF), reported Denison Mines (TSX: DML; HYSE: DNN). The uranium mine, mill and Jeb TMF are located within the eastern part of the Athabasca Basin in northern Saskatchewan.

Denison is planning in situ recovery at the Wheeler River uranium project. Credit: Denison Mines.

The public hearing on the application to amend the current mine and mill licence was held in October. The amended licence is valid until June 30, 2027.

The McClean Lake mill has a licenced capacity of 24 million lb. uranium oxide annually. The plant treats ore from the Cigar Lake mine under a toll millinh agreement of up to 18 million lb. uranium oxide each year. The mill is owned 22.5% by Denison and 77.5% by the operator, Orano Canada.

Denison is considering the use of the McClean Lake mill as a regional treatment for uranium ore from the Gryphon deposit on its 95% owned Wheeler River project and The Heldeth Tue (THT) deposit (formerly J zone) at Denison’s 67% owned Waterbury Lake property.

The prefeasibility study for Wheeler River suggests it would cost $623 million to develop the deposit with a production rate of 7.6 million lb. uranium oxide annually over a mine life of 6.5 years. The PFS for the Phoenix deposit, also at Wheeler River, estimated capex of $322.5 million for a mine with a ten-year life and output of 59.7 million lb. uranium oxide annually.

The Waterbury Lake PFS makes a capex estimate of $112 million to create a mine that supplies 1.6 million lb. uranium oxide yearly with about a six-year life.