Our tireless efforts to advance the Company's strategy, and complete technical evaluations of our flagship
Denison's portfolio of uranium reserves, resources, and physical holdings has greatly appreciated in value through late 2023 and into early 2024, as positive sentiment in the uranium and nuclear energy markets has sustained and uranium prices have rapidly increased. As Denison has avoided entering low-priced uranium supply contracts in recent years and has held its physical uranium investment to support future project financing efforts for
As we celebrate Denison's legacy of uranium mining in 2024, we look forward to marking this year with several additional notable milestones from our exciting portfolio of
- Transition to Detailed Design Engineering for
Flagship Phoenix ISR Project with Award of$16 Million Contract to Wood
InJanuary 2024 , Denison awarded a contract for approximately$16 million toWood Canada Limited ('Wood'), for the completion of detailed design engineering for the In-Situ Recovery ('ISR') mining project planned for thePhoenix uranium deposit ('Phoenix ').
Wood completed a Feasibility Study ('Phoenix FS') in 2023 to evaluate the use of the ISR mining method atPhoenix , the results of which reflected several years of technical de-risking efforts successfully completed by Denison and demonstrated robust economics. Following completion of the Phoenix FS, Denison's Board of Directors approved the continuation of efforts to advancePhoenix towards a final investment decision ('FID') and, in late 2023, theManagement Committee of the Wheeler River Joint Venture approved a budget for the applicable 2024 expenditures, including detailed engineering design.
The scope of the facilities to be designed by Wood under the contract is extensive, with work commencing in the first quarter of 2024 and potentially extending into the first half of 2025. - Announcement of Planned Restart of McClean Lake Mining Operations
InJanuary 2024 ,Orano Canada Inc. ('Orano Canada ') and Denison announced the planned restart of uranium mining operations on theMcClean Lake property. Mining is expected to be carried out using the joint venture's patented Surface Access Borehole Resource Extraction ('SABRE') mining method and is planned to commence at the McClean North deposit in 2025. Activities in 2024 are intended to be focused on completing the 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$7.0 million (100% basis). Approximately 800,000 lbs U3O8 (100% basis) are targeted for production fromMcClean North in 2025, with approximately 3,000,000 lbs U3O8 (100% basis) identified for potential additional production from a combination of the McClean North and Caribou deposits during the years 2026 to 2030. - Signing of Sustainable Communities Investment Agreement
InMarch 2024 , Denison signed a Sustainable Communities Investment Agreement with the municipalities of theNorthern Village of Beauval , theNorthern Village of Île-à-la Crosse, the Northern Hamlet ofJans Bay , and the Northern Hamlet ofCole Bay (the 'Communities').
The agreement with the Communities establishes commitments of Denison in support of community development initiatives, with consideration towards contributing to the current and future economic prosperity and sustainability of the Communities by promoting economic development and investments in capital projects, job creation and training, housing, education, and other initiatives.
As part of the agreement, the Communities have provided their consent and support for the Wheeler River project and have committed, amongst other things, to support all regulatory approvals issued for the project related to exploration, evaluation, development, operation, reclamation, and closure activities. - Acquisition of MaxPERF Tool Systems
InFebruary 2024 , the Company announced an acquisition of fixed and mobile MaxPERF Tool Systems fromPenetrators Canada Inc. ('Penetrators'). The MaxPERF Tool Systems have been successfully deployed several times as a method of permeability enhancement in ISR field studies conducted on the Company's potential ISR mining projects, including atPhoenix . Penetrators has also agreed to work exclusively with Denison for a 10-year period with respect to the use of the MaxPERF Tool Systems for uranium mining applications, and related services, inSaskatchewan . - Sale of Uranium
InApril 2024 , Denison completed the sale of 100,000 pounds of U3O8 from its physical uranium holdings, at a price ofUS$100.00 per pound. The sale was agreed inJanuary 2024 , and is part of the Company's plans (see Outlook 2024) to sell approximately 300,000 pounds U3O8 from its physical uranium holdings during 2024. Denison acquired its physical uranium position in 2021 at an average cost ofUS$29.65 per pound U3O8. - Earn-In Agreement with Grounded Lithium Corp.
InJanuary 2024 , Denison entered into an agreement with Grounded Lithium Corp. ('Grounded Lithium') to acquire up to a 75% interest in theKindersley Lithium Project ('KLP') inSaskatchewan . The agreement includes a series of earn-in options, with each earn-in option requiring a cash payment to Grounded Lithium as well as work expenditures to advance the KLP. Should Denison complete all three earn-in options, it will have made cumulative cash payments to Grounded Lithium of$3.2 million and have funded$12.0 million in project expenditures to earn a 75% interest in the KLP. The Company is currently evaluating its 2024 plans and will update its outlook for the year once the plan has been finalized.
Denison is a uranium mining, exploration and development company with interests focused in the
Denison's interests in
Additionally, through its 50% ownership of
In 2024, Denison is celebrating its 70th year in uranium mining, exploration, and development, which began in 1954 with Denison's first acquisition of mining claims in the
The technical information contained in this press release has been reviewed and approved by
Certain information contained in this press release constitutes 'forward-looking information', within the meaning of the applicable
In particular, this press release contains forward-looking information pertaining to the following: projections with respect to exploration, development and expansion plans and objectives, including the scope, objectives and interpretations of FS, PFS and the Wheeler River technical de-risking process for the proposed ISR operation for the
Forward looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Denison to be materially different from those expressed or implied by such forward-looking statements. For example, the results and underlying assumptions and interpretations of the FS and PFS may not be maintained after further testing or be representative of actual conditions within the applicable deposits. In addition, Denison may decide or otherwise be required to discontinue testing, evaluation, engineering, and development work if it is unable to maintain or otherwise secure the necessary approvals or resources (such as testing facilities, capital funding, etc.). Denison believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be accurate and results may differ materially from those anticipated in this forward-looking information. For a discussion in respect of risks and other factors that could influence forward-looking events, please refer to the factors discussed in the Company's Annual Information Form dated
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Any forward-looking information and the assumptions made with respect thereto speaks only as of the date of this press release. Denison does not undertake any obligation to publicly update or revise any forward-looking information after the date of this press release to conform such information to actual results or to changes in Denison's expectations except as otherwise required by applicable legislation.
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