Denison commences McClean uranium production
Denison Mines Ltd DEN
Shares issued 317,871,201 Jun 22 close $0.16
Wed 23 Jun 99 News Release
Mr. E. Peter Farmer reports
The production of uranium concentrates has now commenced at the McClean
Lake project, following receipt of final approvals from the Saskatchewan
authorities.
It is anticipated that the facility will achieve commercial production in
October or November this year and be able to operate at above the
six-million pound design capacity for the following 12 months. Denison's
share of production is 2.1 million pounds of the first 4.54 million pounds,
after which Denison will receive its pro rata share of product.
The McClean ore reserves, together with those at the adjacent Midwest
property, total 85 million pounds of uranium, of which Denison's share is
over 19 million pounds. These high-grade reserves are sufficient for a
14-year project life at design production rates and the potential for
further discoveries is good.
The McClean Lake project is owned 22.5 per cent by Denison, 70 per cent by
Cogema Resources Inc., which is the operator, and 7.5 per cent by OURD
(Canada) Co. Ltd.
Oil production has also commenced at the Villano field in Ecuador, where
Denison holds a royalty interest equal to 3 per cent of cash flow up to a
maximum of $7.8-million. Royalty payments are expected to commence in the
third quarter of 1999.
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