Denison’s Q3 Results Highlight Increased Value of Wheeler Project

Canadian uranium explorer Denison Mines (TSX:DML,NYSEAMERICAN:DNN) has posted its Q3 2018 financial results, which included an operations update for the various projects Denison has underway.

During the quarter, the company conducted a prefeasibility study (PFS) on the Wheeler project, an uranium site located in the Saskatchewan Athabasca basin.

Dension recently acquired a 90-percent majority stake in Wheeler, when it purchased Cameco’s (TSX:CCO,NYSE:CCJ) 24-percent stake in the project in late October.

The completed PFS for Wheeler has pegged mine production at 109.4 million pounds U3O8 over a 14-year mine life. The net present value for the uranium site is C$1.31 billion with an initial pre-production capital expenditures of C$322.5 million.

“The PFS also features comparatively very low initial capital costs, for an Athabasca Basin development project, with only C$290 million attributable to Denison’s recently consolidated 90 percent interest in the project,” David Cates, president and CEO, said in the press release.

Denison has big plans for the Wheeler project, with the company expecting to perform the first in-situ recovery (ISR) mining operation in the Athabasca basin.

“In addition to the results from the Wheeler River PFS, the company also delivered exciting results on the exploration side — discovering a new area of uranium and base metals mineralization on the K West trend on the Wheeler River property, and a new area of uranium mineralization on the Waterbury Lake property,” added Cates.

Aside from the headway made at Wheeler during the third quarter of the year, Denison’s McClean Lake joint-venture mill processed 2.9 million pounds of U3O8 from the Cigar Lake site.

“As the uranium market continues to recover, Denison intends to continue to position itself as a ‘must own’ stock, offering investors a unique combination of exposure to both the future development of Wheeler River, an exceptionally low-cost and large-scale uranium mining operation,” said Cates.

Denison shares were down 1.33 percent on Tuesday (November 13), trading at C$0.76.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.