Denison forecasts lower output in 2011

02 February 2011

Denison Mines announced uranium production of 1.4 million pounds U3O8 (540 tU) in 2010 from its US operations and its 22.5% share of output from the McClean Lake mine in Canada. However, it expects output to drop by almost 17% in 2011. 


In an announcement of its 2010 production and sales performance, the Canada-based uranium mining company said that it expects production in 2011 to total some 1.2 million pounds U3O8 (462 tU). This will come from ore from its Beaver, Pandora and Arizona 1 mines, as well as from the alternate feed circuit at the White Mesa Mill in the USA.


White Mesa (Denison) 
The White Mesa Mill (Image: Denison) 



Denison said that uranium sales in 2010 totalled 1.8 million pounds U3O8 (695 tU), compared with 1.1 million pounds U3O8 (423 tU) in 2009. The company expects sales in 2011 to total some 1.3 million pounds U3O8 (500 tU), of which just over 500,000 pounds (195 tU) will be sold into long term contracts and the remainder to be sold on the spot market.


Denison said that its business development activities include advancement of its existing development stage projects and exploration projects and the search for new potential acquisitions. These activities are part of the company's five-year business development plan, aimed at increasing Denison's uranium output to at least 10 million pounds U3O8 (3850 tU) per year by 2020.


In 2011, Denison will participate in exploration programs in the USA and Canada. The Wheeler River program, the company said, "represents the most significant of these." Development of the previously exploited Pinenut mine in Arizona, which has been on standby since 1989, "is moving forward with initial production anticipated in early 2012," Denison said.


Denison also plans an exploration and development program in Mongolia. However, it said that the implementation of that program "is contingent upon resolution of outstanding issues with the Mongolian government regarding the Nuclear Energy Law and the structure of the Gurvan Saihan joint venture."


Researched and written 

by World Nuclear News