Denison steps up ISR game with acquisition of MaxPERF tool systems

Denison Mines (TSX: DML; NYSE: DNN)  has completed an acquisition of fixed and mobile MaxPERF tool systems from Penetrators Canada. Significantly, Penetrators […]
The Phoenix deposit will be the first ISR uranium project in the Athabasca Basin. Credit: Denison Mines

Denison Mines (TSX: DML; NYSE: DNN)  has completed an acquisition of fixed and mobile MaxPERF tool systems from Penetrators Canada. Significantly, Penetrators has also agreed to work exclusively with Denison with respect to the use of the MaxPERF tool systems for uranium mining applications, and related services, in Saskatchewan for a 10-year period.

"With Denison on track to operate the first ISR (in-situ recovery) uranium mine in the Athabasca Basin region, the acquisition of the MaxPERF Tool Systems represents another important step in our preparations for project execution and commercial ISR mining,” said Chad Sorba, Denison's VP technical services and project evaluation. “

“MaxPERF has historically been used in the oil and gas sector and was identified by Denison as a potentially useful tool for permeability enhancement to support ISR mining. In 2023, Denison completed a ground-breaking multi-year technical de-risking program at the company's Phoenix deposit, which rigorously assessed and successfully applied the MaxPERF system to enhance deposit permeability – including its deployment as part of the highly successful feasibility field test program,” added Sorba. “Given the demonstrated success of the technology, we look forward to continuing to work together with the team at Penetrators to use MaxPERF in this new commercial application."

The Phoenix uranium deposit is one of two included in the Wheeler River project (95% Denison). The project is located on the eastern edge of the Athabasca Basin in Saskatchewan, about 35 km northeast of the Key Lake mill and 35 km southwest of the McArthur River uranium mine. Gryphon, the second deposit, is in the prefeasibility stage.

The Phoenix feasibility study completed last year gave the ISR project at pre-tax net present value with an 8% discount of $2.34 billion (all numbers are on a 100% basis) and an internal rate of return of 106%. Estimated pre-production capital expenses are  under $420 million, and payback would occur after 10  months. The all-in sustaining cost will be $21.73 (US$16.04) per lb. uranium oxide (U3O8).

The updated measured and indicated resources are 280,200 tonnes with an average grade of 11.4% U3O8 and containing 39.7 million lb. U3O8. Within the resources are proven and probable reserves of 220,000 tonnes at 11.6% U3O8 containing 56.7 million lb. U3O8, sufficient for a 10-year mine life.

The inferred resource contains 5,600 tonnes at 2.6% U3O8 containing 300,000 lb. of uranium oxide.

Additional information is posted on www.DenisonMines.com.

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