Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Denison Mines (TSE: DML) says the test results of in situ recovery of uranium from the Wheeler River project are positive. Denison is the 90% owner and operator of the project located in the eastern part of Saskatchewan’s Athabasca Basin, and JCU (Canada) Exploration Co. holds the remaining 10%.
The tests used water to evaluate the hydraulic conditions and to assess how the mining solution will flow between pairs of test wells. The work was done to increase confidence in the ISR method, as recommended in the 2018 pre-feasibility study.
Denison said the initial test results confirm hydraulic connectivity between multiple test wells in test area No. 1 of the Phoenix deposit. Additional results from area No. 1 are expected as are results from test area No. 2. Two large diameter commercial scale wells are planned for these test areas later this summer.
A hydrogeological model will be made based on the quantitative analysis and integration of data from the planned tests. The model will be used to simulate groundwater flow and to evaluate system sensitivity to key parameters as part of the feasibility study.
The Wheeler River project has probable resources of 109.4 million lb. of uranium dioxide.
(This article first appeared in the Canadian Mining Journal)
