ENERGY MINERALS

Denison initiates field test activities as uranium sentiment improves

Denison Mines has started field test activities at its 90%-owned Wheeler River uranium project in Saskatchewan, as the market experiences a shift in sentiment.

 Denison Mines is advancing the Phoenix deposit at the Wheeler River uranium project in Saskatchewan

Denison Mines is advancing the Phoenix deposit at the Wheeler River uranium project in Saskatchewan

Denison said it was installing a five-spot, in-situ recovery test pattern, with four of five commercial scale wells drilled to depth, cased and cemented into position and the fifth to be completed within a week.

It said installing the test pattern was the first step in an "ambitious" field programme, designed to further de-risk the proposed ISR mining method at the Phoenix deposit.

The developments come as industry players point to supply-side pressures and greater demand, while U2 guitarist The Edge - David Evans - last week drew attention to nuclear power, saying people should open their minds to third generation nuclear energy being a possible solution to help meet climate change targets.

Denison also this week noted Alberta's Jason Kenney became the fourth Canadian premier to sign an agreement supporting the development of small modular nuclear reactors in the country.

The company believes Wheeler River could be the country's first ISR uranium mine and recently restarted the formal environmental assessment process

It estimates 6.6 million pounds of U3O8 reserves are within the operating perimeter of its test pattern.

The company plans to install 11 more monitoring wells around the test pattern and conduct 25 hydrogeologic tests during the ISR field programme.

Denison raised US$86.3 million at $1.10 per unit a month ago to fund the strategic purchase of uranium concentrates, intended to support the potential future financing of the advancement and/or construction of Wheeler River.

JCU (Canada) Exploration owns 10% of the project.

Denison's US-listed shares (NYSE American: DNN) closed up 1% yesterday to $1.02, valuing the company at $814 million.

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