Name of the Project
Wheeler River uranium project.

Location
The project is located in northern Saskatchewan, Canada.

Project Owner/s
The project is a joint venture (JV) between Denison (90%) and JCU (Canada) Exploration Company (10%).

Project Description
The project is the largest undeveloped uranium project in the eastern portion of the Athabasca basin.

A prefeasibility study on the project has evaluated the potential economic merit of co-developing the Phoenix and Gryphon deposits.

The Phoenix high-grade deposit has been designed as an in situ recovery (ISR) mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River. The Gryphon deposit has been designed as an underground mining operation using a conventional longhole mining approach, with mine production processed at the McClean Lake mill.

The Phoenix ISR and Gryphon underground operations have combined probable mineral reserves of 109.4-million pounds of uranium from 1.39-million tonnes, comprising 59.7-million pounds of uranium from 141 000 t at 19.1% uranium for Phoenix and 49.7-million pounds of uranium from 1.26-million tonnes at 1.8% uranium for Gryphon.

The project has a mine life estimated at about 14 years, with average yearly production estimated at 7.8-million pounds of uranium.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Wheeler River has a pretax net present value (NPV), at an 8% discount rate, of $1.31-billion and an internal rate of return (IRR) of 38.7%, with a payback of about 24 months.

Phoenix has a pretax NPV, at an 8% discount rate, of $930.4-million and an IRR of 43.3%.

Gryphon has a pretax NPV, at an 8% discount rate, of $560.6-million and an IRR of 23.2%.

Capital Expenditure
Initial capital costs are estimated at $322.5-million.

Planned Start/End Date
Preproduction activities are estimated to begin in 2021, assuming receipt of required regulatory approvals, with first production from the Phoenix deposit expected in 2024.

Initial construction at Gryphon is expected to start by 2026, with first production expected to be achieved in 2030.

Latest Developments
Denison Mines has announced that engineering consultant Petrotek has developed a hydrogeologic model for the high-grade Phoenix uranium deposit, which has demonstrated “proof of concept” for the application of ISR mining at Wheeler River.

The hydrogeologic model was developed based on the data collected from the ISR field test completed in 2019. 

Based on the positive results from the hydrogeologic model, Denison has also announced plans for the continuation of ISR field testing within Phoenix in 2020.

Denison VP for operations David Bronkhorst has said that the hydrogeologic model is a “significant milestone” in the ongoing derisking of the ISR mining method at Phoenix. 

The additional field testing in 2020 aims to further confirm the hydrogeological model completed by Petrotek, and prepare for field tests in future years, which are expected to support a feasibility study.

The company previously indicated that field activities in 2020 could include the expansion of ISR field testwork into Test Area 3 and Test Area 4 of Phoenix Zone A, but the company now plans to focus its testing efforts on Test Area 1 and Test Area 2, with the potential to conduct, in future years, an in-ground lixiviant test or ISR demonstration within the existing test areas.

Denison selected the ISR mining method for Phoenix in the prefeasibility study for Wheeler River in 2018.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Denison Mines, tel +1416 979 1991, fax +1416 979 5893 or email info@denisonmines.com.