Denison completes PEA
(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."