Denison collaborates on uranium exploration as Wheeler River environmental approval progresses

Friday, 29 November 2024

Wheeler River is the largest undeveloped uranium project in the eastern portion of the Athabasca Basin, in northern Saskatchewan, and is host to the high-grade Phoenix and Gryphon uranium deposits.

Denison said the final Environmental Impact Statement (EIS) reflects many years of "considerable" effort since it began the federal Environmental Assessment approval process in 2019. The final EIS incorporates feedback received from multiple interested parties, including Indigenous nations and the Canadian Nuclear Safety Commission's Federal Indigenous Review Team.

"The completion of the federal technical review and submission of the final EIS represents a notable milestone for Denison in our efforts to obtain regulatory approval for Wheeler River," Denison President and CEO David Cates said. "Owing, in large part, to the use of the In-Situ Recovery (ISR) mining method, the EIS evidences that the project can be constructed, operated, and decommissioned while achieving a superior standard of environmental sustainability when compared to conventional uranium mining operations … This accomplishment has brought us an important step closer to building Canada's next new uranium mine and first ISR uranium mining project."

In ISR - also known as in-situ leach, or ISL - minerals are recovered from ore in the ground by dissolving them in situ, using a mining solution injected into the orebody. The solution is then pumped to the surface, where the minerals are recovered from the uranium-bearing solution. More than half of the world's uranium production is now produced by such methods, although they have not yet been used in Canadian uranium mining operations.

Canadian Nuclear Safety Commission staff will now review the final EIS submission and prepare their recommendations ahead of a public hearing, the date of which has yet to be set.

Denison has also completed the requirements of the Canadian Nuclear Safety Commission application to obtain a licence to prepare and construct a uranium mine and mill, which allows for the commission to make a licensing decision concurrently with the Environmental Assessment approval process, the company said.

The project is also undergoing a provincial Environmental Assessment process, for which Denison submitted a final EIS to the Saskatchewan Ministry of Environment in October. Denison opted to delay finalisation of the provincial Environmental Assessment approval in order to incorporate modifications resulting from the Federal technical review process. A public review period, for the provincial assessement began earlier this month and is expected to conclude in December.

Wheeler River is a joint venture between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (10%).

Collaborative exploration
 

In a separate announcement, Denison said it has reached an agreement with Cosa Resources Corp to form three uranium exploration joint ventures in the eastern Athabasca Basin. The agreement will see Cosa acquire a 70% interest in Denison's 100%-owned Murphy Lake North, Darby and Packrat properties and commit to CAD6.5 million (USD4.6 million) of exploration expenditure at Murphy Lake North and Darby.

The transaction is structured to incentivise exploration activity, Denison said. Denison will retain a minimum 30% direct interest in the properties and will become Cosa's largest shareholder, while also securing strategic pre-emptive rights and a buydown right to increase its interest in the Darby property.

Cates said the "mutually beneficial" collaboration with Cosa "enhances our exposure to the potential discovery of a meaningful uranium deposit on the Properties and through Cosa's existing uranium exploration portfolio. With Denison focused on executing on our core mining and development-stage projects, we believe Cosa is an excellent partner to advance exploration of the Properties. The entire Cosa senior management team has worked with Denison previously, and have strong technical capabilities, plus a unique familiarity with the Properties and nearby discoveries."

Cosa President and CEO Keith Bodnarchuk described the announcement as "transformational" for the company, adding three strategically selected, discovery-ready exploration projects to Cosa's Athabasca Basin portfolio. "Opportunities to acquire these projects and bring in a supportive long-term shareholder of Denison’s quality are almost non-existent. This Transaction is expected to create a competitive advantage for Cosa and differentiate us from our peers," he said.