Orano Canada and Denison announce JV approval to restart McClean Lake uranium mining operations
The McClean Lake Joint Venture (“MLJV”), a joint company between Orano Canada and Denison Mines Corp., announced its decision to restart uranium mining operations using the joint venture’s patented Surface Access Borehole Resource Extraction (“SABRE”) mining method. Orano Canada owns a 77.5% interest and is the operator of the MLJV and Denison owns a 22.5% interest.
Mining is planned to commence at the McClean North deposit in 2025, with 2024 activities expected to focus on preparations necessary to ready the existing SABRE mining site and equipment for continuous commercial operations, as well as the installation of eight pilot holes for the first mining cavities planned for excavation. The approved budget for this work in 2024 is $7 million (100% basis).
Approximately 800,000 lbs U3O8 or 300 tU (100% basis) are targeted for production from McClean North in 2025, with approximately 3,000,000 lbs U3O8 or 1200 tU (100% basis) identified for potential additional production from a combination of the McClean North and Caribou deposits during the years 2026 to 2030.
Jim Corman, Orano Canada’s President and Chief Executive Officer, said, “Our current ability to capitalize on the strengthening uranium and nuclear markets is the result of a long-term investment in R&D within Orano and the MLJV to secure continued activities at the McClean Lake operation well into the future. The groundwork we do over the course of 2024, is expected to put the MLJV in position to see SABRE in action and to commence production in 2025. It is anticipated that the McClean Lake mill will have sufficient capacity to process this ore, while continuing with committed planned production from Cigar Lake. It’s an exciting time for employees, partners, and the industry as we return to a focus on growth.”
David Cates, Denison’s President and Chief Executive Officer, commented, “The restart of uranium mining at McClean Lake is a notable milestone for the MLJV and Denison. Mining at McClean Lake was suspended in 2008 in response to declining uranium prices. During the interim 15 years, the MLJV invested in the development of a proprietary mining method designed to selectively extract high-grade Athabasca Basin uranium ores from surface. The successful mining test of the SABRE method in 2021 provided the MLJV with important information about the productivity and cost of SABRE operations. This information suggests an incentive price meaningfully lower than current uranium prices, which has provided the JV with a strong basis to make a restart decision for mining at McClean Lake.”
Approximately 800,000 lbs U3O8 or 300 tU (100% basis) are targeted for production from McClean North in 2025, with approximately 3,000,000 lbs U3O8 or 1200 tU (100% basis) identified for potential additional production from a combination of the McClean North and Caribou deposits during the years 2026 to 2030.
Jim Corman, Orano Canada’s President and Chief Executive Officer, said, “Our current ability to capitalize on the strengthening uranium and nuclear markets is the result of a long-term investment in R&D within Orano and the MLJV to secure continued activities at the McClean Lake operation well into the future. The groundwork we do over the course of 2024, is expected to put the MLJV in position to see SABRE in action and to commence production in 2025. It is anticipated that the McClean Lake mill will have sufficient capacity to process this ore, while continuing with committed planned production from Cigar Lake. It’s an exciting time for employees, partners, and the industry as we return to a focus on growth.”
David Cates, Denison’s President and Chief Executive Officer, commented, “The restart of uranium mining at McClean Lake is a notable milestone for the MLJV and Denison. Mining at McClean Lake was suspended in 2008 in response to declining uranium prices. During the interim 15 years, the MLJV invested in the development of a proprietary mining method designed to selectively extract high-grade Athabasca Basin uranium ores from surface. The successful mining test of the SABRE method in 2021 provided the MLJV with important information about the productivity and cost of SABRE operations. This information suggests an incentive price meaningfully lower than current uranium prices, which has provided the JV with a strong basis to make a restart decision for mining at McClean Lake.”