High uranium prices have evidently led Orano Canada and Denison Mines (TSX: DML) to restart operations at the McClean Lake Joint Venture.
McClean Lake, found in the eastern portion of the Athabasca Basin in Saskatchewan, currently consists of a mill as well as several uranium deposits. The mill, as per Denison, is currently processing ore from the Cigar Lake mine under a tolling arrangement, and is licensed to produce 24 million pounds of U3O8, one of the largest uranium processing facilities globally.
Mining was suspended at McClean back in 2008 due to declining uranium prices.
The restart at McClean Lake is focused on mining operations, which will use what the joint venture refers to as Surface Access Borehole Resource Extraction, or SABRE. Mining will officially resume at the McClean North deposit in 2025, with the company this year focused on implementing eight pilot holes for the first cavities planned for extraction, as well as on readying the mining site for full scale operations.
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It’s estimated that 800,000 pounds of U3O8 will be pulled from the deposit next year, with 3.0 million pounds slated to be removed from McClean North and the Caribou deposits from 2026 through to 2030.
“It is anticipated that the McClean Lake mill will have sufficient capacity to process this ore, while continuing with committed planned production from Cigar Lake,” commented Jim Corman, CEO of Orano Canada.
McClean Lake is 77.5% owned by Orano Canada, while Denison Mines holds a 22.5% interest.
Denison Mines last traded at $2.64 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
