Denison Mines has reported the results of a preliminary economic assessment (PEA) of its 60% owned Wheeler River uranium project on the eastern edge of the Athabasca basin in northern Saskatchewan. The project is a joint venture between Denison (60%), Cameco (30%), and JCU (Canada) Exploration (10%).

The Wheeler River property hosts two deposits—Phoenix and Gryphon—which would be developed sequentially for underground mining. The Gryphon deposit would produce 40.7 million lb of contained U3O8 over a seven-year mine life at a cash operating cost of $14.28/lb U3O8, followed by the Phoenix deposit, which would produce 64 million lb over a nine-year mine life at a cash operating cost of $22.15/lb.

Capital expenditures to develop the project are estimated at C$560 million.

Wheeler River ore would be processed at the McClean Lake mill 35 km south-southwest of the project. The mill is owned 70% by Areva Resources Canada, 22.5% by Denison and 7.5% by OURD Canada.

Denison plans to initiate a prefeasibility study and associated environmental studies of the Wheeler River project before year-end 2016. The current project timeline calls for preproduction activities to begin in 2021, with first production from the Gryphon deposit in 2025.

Resource Center Whitepapers, Videos, Case Studies

Let's stay in touch!

All of the latest mining news and our digital edition sent to your inbox once a week.

We'll never share your email address, and you can opt out at any time, we promise.