The Canadian Nuclear Safety Commission (CNSC) has approved Denison Mines’ (TSX: DML) environmental assessment and other permits, opening a pathway for the company to begin construction of its Phoenix/Wheeler River in-situ recovery (ISR) uranium mine in northern Saskatchewan. Shares rose.
In addition to the assessment approval, the CNSC issued Denison a licence to prepare the site and construct a mine and mill for the project in the southeast Athabasca basin, about 550 km north of Regina. The company targets production to start in mid-2028.
“The Commission decision to approve the EA and issue the licence represents a landmark achievement for Denison, as well as our staff, shareholders, Indigenous partners, and other stakeholders in the project,” Denison CEO David Cates said in a release. “Phoenix is the first uranium mine in Canada to be approved for ISR mining and is the first large-scale Canadian uranium mine approved for construction in more than 20 years. It is a nation building project that reflects the best of Canadian ingenuity and determination.”
In-situ pioneer
The approvals mark Denison as a pioneer for ISR mining in Canada, a method using a solution that is injected into underground wells, separating uranium from the ore and pumping it to the surface for extraction. It’s less expensive than hard rock mining, doesn’t require the digging of large pits and leaves fewer tailings. Most currently producing uranium operations in the United States use ISR mining.
Denison shares rose 4% to $5.59 apiece on Thursday afternoon in Toronto, valuing the company at $4.9 billion. The stock has traded in a 12-month range of $1.58 to $5.97.
Two-year build
The company estimates the construction period would take about two years, a shorter timeline than conventional mines because ISR removes the need for ore handling, crushing and grinding infrastructure. The mid-2028 production target is still subject to a final investment decision.
Wheeler River is relatively low cost for a uranium project, with a 2023 feasibility study estimating its capital costs at $419 million, with a post-tax net present value of $1.16 billion and an internal rate of return of 90%. Its mine life is estimated at 10 years.
Phoenix hosts proven reserves of 6,300 tonnes grading 24.5% uranium oxide (U3O8) for 3.4 million lb. of U3O8, and probable reserves of 212,700 tonnes at 11.4% U3O8 for 53.3 million lb. U3O8.
Denison owns 90% of the project and serves as the operator, with JCU (Canada) Exploration Company Limited holding the remaining 10%.
Wheeler River also comprises the adjacent Gryphon project, which is intended as a conventional underground mine.
Be the first to comment on "Denison’s Phoenix uranium project lands final permit"