The McClean Lake Joint Venture, owned by both Orano (77.5%) and Denison Mines (TSX: DML) (22.5%) is once again officially producing uranium, after operations were halted initially back in 2008.
Production has resumed on a small scale after the duo jointly developed what is referred to as Surface Access Borehole Resource Extraction, or SABRE, which is a form of in-situ recovery. The tech, which was developed from 2004 to 2021, involves the drilling of access holes from the surface to a uranium deposit, with the ore then extracted using a high pressure water jet and air lifting the slurry to surface. The tech effectively has been designed to allow for small or overly deep deposits to be economically mined.
Mining at the McClean North deposit began in June, with 250 tonnes of ore with uranium grades in excess of 10% U3O8 having already been extracted. This first cavity has already been backfilled, with the SABRE rig already working on the second such mining cavity. The ore meanwhile is currently being processed at the McClean Lake mill.
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“Our long-term investment in R&D within Orano and the MLJV has culminated in the safe mining, milling and packaging of ore that in the past would have been deemed economically challenging to develop,” commented Orano president and CEO Jim Corman.
Production guidance from the joint venture has yet to be provided for 2025.
Denison Mines last traded at $2.77 on the TSX.
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