Denison approval for Midwest

Approval has been granted to Denison Mines (TSE) to begin a $17.5-million underground test program on the company’s Midwest Lake uranium deposit. Located in northern Saskatchewan’s Athabasca Basin, the Midwest deposit hosts reserves of 56 million lb of uranium in rock grading 1.25% uranium oxide per ton.

The 18-month program will enable the partners to determine the best mining method and provide data for a feasibility study. Partners in the project include Denison with 45%, Uranerz Exploration and Mining with 20%, Bow Valley Industries at 20% and PNC (Exploration) Canada holding 15%. Uranerz and PNC are respectively, German and Japanese mining companies.

Midwest is expected to be producing uranium by the early 1990s, Denison says.