Denison Mines Secures Grid Power for Phoenix Uranium Project
Denison Mines Corp. (TSX: DML) (NYSE American: DNN) has exciting news regarding the future of the Phoenix in-situ recovery uranium mine. The company has confirmed that a grid power supply is now available at the site, thanks to the completion of a new 138kV transmission line installed by Saskatchewan Power Corporation. This milestone is not just about power; it's a crucial step for de-risking the execution of the Project, as establishing a reliable power source is essential for executing construction activities and supporting the initial setup operations.
Impact of Grid Power Supply
According to David Cates, Denison's President & CEO, having access to grid electricity marks a significant Project milestone. It provides a competitive edge for the Phoenix mine due to the reliability and cost-effectiveness of Saskatchewan's power grid compared to options that involve generating power on-site. The newly installed transmission line is approximately 6 kilometers long, linking the Phoenix site to an existing power grid that supplies electricity across the northwestern area of Saskatchewan.
Details About the Transmission Line
This recent installation is expected to power various operations at the mine, including the planned freeze wall surrounding the initial mining area. The Project has outlined that, in addition to this grid power supply, all necessary electrical distribution infrastructure will be installed on-site during the first year of construction. The main site transformer and substation equipment, along with switchgear, are already procured and on schedule to be delivered.
Partnership with SaskPower
SaskPower is the major electrical utility in Saskatchewan, catering to over half a million customers. By securing a power supply agreement with Denison, the utility has ensured a steady flow of electricity to the Phoenix mine. Under this agreement, Denison has secured access to up to 8.8 MW of power while committing to a minimum purchase for five years starting from the installation of the transmission line. The Wheeler River Joint Venture has funded the line’s construction, emphasizing collaboration in this critical phase of the Project.
Moving Forward with Construction
The construction of the Phoenix mine site by Denison will commence once all final regulatory approvals are secured, alongside a conclusive investment decision. This step is vital, as it determines the timing and resources allocated to the development of the Project. Denison has been diligent in ensuring all aspects of the construction plan align with the required regulations.
A Sneak Peek at Wheeler River Developments
The Wheeler River project represents the largest undeveloped uranium resource in a region known for its rich infrastructure. This site hosts both the Phoenix and Gryphon uranium deposits, identified as high-grade resources. Denison’s exploration efforts have paid off significantly since the discovery of these deposits in 2008 and 2014. The company filed a technical report detailing advancements on the Phoenix Feasibility Study and updates to the Gryphon deposit, showcasing a clear progression toward operational readiness.
Upcoming Milestones and Commitments
Looking ahead, Denison's commitment remains firmly focused on meeting regulatory requirements, which have been progressing since the initiation of permitting efforts in 2019. In July, a significant Environment Assessment approval was achieved, with a subsequent Canadian Nuclear Safety Commission hearing concluding by the end of the year. These approvals pave the way for the anticipated construction developments planned at Phoenix.
Company Background
Denison Mines has carved out a notable position within uranium mining and exploration across the Athabasca Basin. Along with its substantial stake in the Wheeler River Project, Denison's portfolio includes interests in various joint ventures that further enhance its operational capacity in the region. With an eye always on innovation, Denison continues to adapt to the evolving dynamics of the mining sector while celebrating over 70 years of contributions to uranium mining since its inception in 1954.
Frequently Asked Questions
What is Denison Mines Corp. known for?
Denison Mines Corp. specializes in uranium mining, development, and exploration, particularly in the Athabasca Basin region.
What recent achievement has Denison Mines accomplished?
Denison has secured grid power supply at the Phoenix uranium mine site, a significant milestone for the Project's construction phase.
How does grid power benefit the Phoenix project?
Grid power provides a reliable and cost-effective energy source crucial for the construction and operation of the Phoenix mine.
What is the significance of the transmission line?
The new transmission line connects the Phoenix site to the existing power grid, enhancing energy reliability and supporting initial construction activities.
When is construction expected to commence?
Construction activities are contingent upon receiving final regulatory approvals and making a final investment decision by Denison.
