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Denison completes PEA

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(Kitco News) - Denison Mines (TSX:DML) said Tuesday it settled on an in-situ recovery mining method at the Tthe Heldeth Túé deposit after the completion of a preliminary economic assessment. 

The PEA was prepared by Engcomp Engineering & Computing Professionals. 

Mine life is estimated at ~ 6 years and an average of ~1.6 million lbs U3O8 per year. Projected mine production is 9.7 million lbs U3O8 (177,664 tonnes at 2.49%). 

Average cash operating costs are USD$12.23 ($16.27) per lb U3O8.

Initial capital costs are $112 million. The base case pre-tax IRR is 39.1%, and the base case pre-tax NPV is 8% or $177 million. 

"The Waterbury PEA further demonstrates the potential for the ISR mining method to change Canada's global competitiveness in the uranium mining sector – without requiring the discovery and development of massive-scale uranium mines," said David Bronkhorst, VP Operations of Denison, in a news release. "The selection of the ISR mining method for the Tthe Heldeth Túé deposit has transformed our expectations for the Project – generating robust preliminary financial results with comparatively modest upfront capital costs and positioning the Project as Denison's second ISR amenable development asset with a cost profile that is highly competitive amongst undeveloped uranium mining assets globally."

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