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The Canadian Nuclear Safety Commission (CNSC) released the decision of its administrative tribunal approving the Environmental Assessment (EA) and issuing the Licence to Prepare Site & Construct a Mine and Mill for the Wheeler River Uranium Project. Denison Mines noted that with the Environmental Assessment having previously been approved by the Province of Saskatchewan, and other provincial approvals necessary to commence construction already received, federal approval of the Environmental Assessment and the issuance of the licence represent the final regulatory approvals required to commence construction of the Phoenix in-situ recovery uranium mine.
Phoenix - part of the Wheeler River project - is described by Denison as the largest undeveloped uranium project in the infrastructure-rich eastern portion of the Athabasca Basin region, in northern Saskatchewan. The project is host to the high-grade Phoenix and Gryphon uranium deposits, discovered by Denison in 2008 and 2014, respectively, and is a joint venture between Denison (90%) and JCU (Canada) Exploration Company Limited (10%). Denison is the operator. Permitting efforts for the planned Phoenix in-situ recovery (ISR) operation began in 2019.
In June 2023, the company reported an updated mineral resource estimate of 70.5 million pounds U3O8 (27,118 tU) for Phoenix, with 30.9 million pounds in the measured resources category and 39.7 million pounds of indicated resources.
In-situ recovery - also referred to as in-situ leach - is a method of recovering uranium minerals from ore in the ground by dissolving them in situ, using a mining solution injected into the orebody. The solution is then pumped to the surface, where the minerals are recovered from the uranium-bearing solution. More than half of the world's uranium production is now produced by such methods. The technique - which requires a geologically suitable orebody - has not so far been used in Canadian uranium operations, although in addition to the Phoenix deposit Denison has been investigating the potential for using ISR at other Canadian projects including the Heldeth Túé uranium deposit at Waterbury Lake and the Midwest Main project.
The licence granted by the CNSC is valid until the end of February 2031 and authorises site preparation and construction activities under the Nuclear Safety and Control Act. The licence does not authorise the operation of the facility to be constructed. Authorisation to operate the facility would be subject to a future CNSC licensing hearing and decision, should Denison submit a licence application to do so.
"The Commission decision to approve the EA and issue the Licence represents a landmark achievement for Denison, as well as our staff, shareholders, Indigenous partners, and other stakeholders in the project, said Denison President and CEO David Cates. "I'd like to recognise the efforts of Denison's talented teams, which have worked together tirelessly over a seven-year period to engage with Indigenous and non-Indigenous communities, comply with applicable laws and regulatory requirements, build trust with regulators and the public, and ultimately advocate for the approval of this ground-breaking project.
"Phoenix is the first uranium mine in Canada to be approved for ISR (In-situ recovery) mining and is the first large-scale Canadian uranium mine approved for construction in more than 20 years. It is a nation-building project that reflects the best of Canadian ingenuity and determination. Owing to the use of the ISR mining method, Phoenix has the potential to generate strong economics while also achieving a superior standard of sustainability when compared to conventional mining methods. With an approximately two-year construction timeline, the timing of this approval means that the project remains on track for first production by mid-2028."
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