Denison highlights sale of 100,000 pounds of U308
Denison Mines Corp. [DML-TSX] has reported its financial and operational results for the first quarter of 2024 and highlighted a recent sale of 100,000 pounds of U308 from its physical uranium holdings at US$100 per pound.
The sale was agreed in January 2024, and is part of the company’s plan to sell approximately 300,000 pounds of U308 from its physical uranium holdings during 2024. Denison acquired its physical uranium position in 2021 at an average cost of US$29.65 per pound U308.
News of the sale comes as Denison prepares to commemorate its 70th year of uranium mining, exploration and development.
“Denison’s long history in uranium mining has been characterized by strategic vision, technological advancement, and an entrepreneurial drive to accomplish things others thought impossible,’’ said Denison President and CEO David Cates.
“Modern Denison’s defining moment can be traced to a decision from approximately 15-years ago, to reposition the company away from a high-cost global expansion program to focus on the exploration and development of high-grade uranium deposits in the Athabasca Basin region of northern Saskatchewan,’’ Cates said.
The strategy was built on Denison’s discovery of the Pheonix deposit in 2008 and demonstrated a steadfast conviction that uranium and nuclear energy would be recognized as an essential source of baseload power generation in the long run – offering an unrivaled combination of emission-free energy and energy security.
Entering its 70th year, Denison is developing the Pheonix deposit on the Wheeler River property. It is expected to rank as Canada’s first In-Situ Recovery (ISR) uranium mine and potentially one of the lowest-cost uranium mines in the world.
In January, 2024, Denison awarded a contract for approximately $16 million to Wood Canada Ltd. for the completion of design engineering for the ISR mining project planned for the Pheonix uranium deposit.
In 2023, Wood completed a feasibility study to evaluate the use of the ISR mining method and demonstrated robust economics. The project continues to move towards a final investment decision.
Denison’s interests in Saskatchewan include a 22.5% interest in the McClean Lake Joint Venture, which includes unmined uranium deposits and the McClean Lake mill (currently using a portion of its licensed capacity to process ore from the Cigar Lake mine under a toll milling agreement).
In January 2024, Orano Canada Inc. and Denison announced the planned restart of uranium mining operations at the McClean Lake property. Approximately 800,000 pounds of U308 (100% basis) are targeted for production from McClean North in 2025, with approximately 3.0 million pounds of U308 (100%) basis identified for potential additional from a combination of the McClean North and Caribou deposits during the years 2026 to 2030.
On Thursday, Denison shares eased 1.4% or $0.04 to $2.83. The shares trade in a 52-week range of $3.08 and $1.37.