Restart of the uranium mine at McClean Lake

SABRE at McLean Lake mining operation

Denison Mines Corp. has informed that it will restart the uranium operation in the uranium-rich Athabasca Basin at McClean Lake. The operation was previously suspended in 2008 due to the uranium prices.

The restart of the uranium operation Is possible due to the investment in a proprietary mining method named SABRE. As World Nuclear News provides SABRE is “a non-entry, surface-based mining method that uses a high-pressure water jet placed at the bottom of a drill hole to excavate a mining cavity. The cuttings from the excavation process are then air-lifted to the surface, separated, and stockpiled. This innovative mining method can potentially allow economic access to relatively small high-grade orebodies that are either too small or too deep to be mined economically by conventional open-pit and/or underground mining methods, the companies say.” A five-year SABRE test program was finished in 2021, excavating some 1,500 tonnes of ore.

Research and Innovation

The joint venture of Denison Mines Corp. and Orano Canada is planning to restart the mining operation in 2025. It is expected that a ca of 800000 pounds of uranium (U3O8, 308 tU, 100% basis) will be extracted that year. This year’s operation will focus on the preparation of the mining site, gathering the equipment, and installing the first eight pilot holes for the planned excavation.

David Cates, CPA, CA has indicated improving the project and economy had a major factor in the project re-start: “The successful mining test of the SABRE method in 2021 provided the MLJV with important information about the productivity and cost of the operation.” He has also indicated that:  the SABRE method „suggests an incentive price meaningfully lower than current uranium prices” which has provided „a strong basis” for the restart decision, he added.

Growth

Moreover, the JV informed that they identified ca 3 mln pounds of yellow cake from the McClean North and Caribou deposits. This is expected to be an additional production between 2026-2030. It should be highlighted that despite the suspended mining operation the McClean Lake mill was a continuous mining operation which was milling high-grade uranium ore transported from Cameco Corporation’s Cigar Lake mine. The output of the milling operation in 2018 was 18 million pounds U3O8 in 2022. The total capacity of milling operation is 24 mln pounds of yellowcake per year.
Jim Corman confirmed that McClean Lake mill will have sufficient capacity to process all present and future ore deliveries: Our current ability to capitalise on the strengthening uranium and nuclear markets is the result of a long-term investment in R&D within Orano and the MLJV to secure continued activities at the McClean Lake operation well into the future”