Tag Archives: Phoenix

DenisonMines-core

Wood Canada to carry out detailed design engineering for Phoenix ISR uranium deposit

Energy minerals, Mineral project development, Mining services, , , , , ,

Denison Mines Corp has selected Wood Canada to complete the detailed design engineering for the in-situ recovery (ISR) mining project planned for Denison’s flagship Phoenix uranium deposit in the Athabasca Basin of Saskatchewan, Canada.

Part of the global consulting and engineering firm Wood PLC, Wood Canada previously completed an NI 43-101 feasibility study in 2023 to evaluate the use of the ISR mining method at Phoenix.

Phoenix and the nearby Gryphon uranium deposit are part of the Wheeler River uranium project, which is the largest undeveloped uranium mining project in the infrastructure-rich eastern portion of the Athabasca Basin region in northern Saskatchewan, Canada, according to Denison. Denison has an effective 95% ownership interest in Wheeler River and is the project operator.

The results of the Phoenix feasibility study reflected several years of technical de-risking efforts successfully completed by Denison and demonstrated a base-case after-tax (adjusted) economics – including a net present value of C$1.56 billion ($1.16 billion, 100% basis) and an internal rate of return of 90% assuming uranium selling prices in the range of $66.53-$70.11/Ib U3O8.

Following completion of this study, Denison’s Board of Directors approved the continuation of efforts to advance Phoenix towards a final investment decision and, in late 2023, the Management Committee of the Wheeler River joint venture approved a budget for the applicable 2024 expenditures. Detailed engineering design constitutes a significant portion of the work remaining to advance Phoenix to the point where a decision can be made to proceed to construction and, ultimately, production.

Kevin Himbeault, Denison’s Vice President of Operations, said: “In recognition of Wood’s performance leading the Phoenix feasibility study, competitive pricing and alignment with our bid evaluation process, we are pleased to announce the award of a detailed design engineering contract to Wood. Maintaining continuity through completion of the Phoenix feasibility study, front-end engineering design and detailed design allows us to build on our combined knowledge and working relationship to deliver an engineering package that will ultimately support the construction and operation of the first ISR uranium mining operation in the Athabasca Basin.”

The scope of the facilities to be designed by Wood under this contract includes (i) site civil earthworks and distribution of utility piping throughout the main project site, (ii) electrical power distribution on site, (iii) surface piping and services for the mine wellfield, (iv) the process plant and related infrastructure, (v) operations complex, (vi) maintenance and related buildings, (vii) metallurgical and analytical laboratories and (viii) site-wide communications systems.

Based on the currently anticipated scopes of work, the detailed design engineering contract with Wood is estimated to be up to approximately C$16 million in value, with the scope of work planned to commence in Q1’2024 and to potentially continue into H1’2025.

Wood to investigate ISR potential of Phoenix uranium deposit in Wheeler River JV FS

Energy minerals, Environmental, Mineral project development, Mining services, , , , , , ,

Denison Mines Corp says it has selected engineering firm Wood PLC to lead and author a feasibility study for the in-situ recovery (ISR) mining operation proposed for the Phoenix uranium deposit in the Athabasca Basin of Canada, part of the Wheeler River Joint Venture (WRJV) project.

The completion of the study is, Denison says, a critical step in the progression of the project and is intended to advance de-risking efforts to the point where the company and the WRJV will be able to make a definitive development decision.

Denison has an effective 95% ownership interest in Wheeler River (90% directly, and 5% indirectly through a 50% ownership in JCU), which has combined indicated mineral resources of 132.1 MIb of U3O8 (1.8 Mt at an average grade of 3.3% U3O8), plus combined inferred mineral resources of 3 MIb of U3O8 (82,000 t at an average grade of 1.7% U3O8).

Key objectives of the study are expected to include:

  • Environmental stewardship: extensive planning and technical work undertaken as part of the ongoing Environmental Assessment (EA), including applicable feedback from consultation efforts with various interested parties, is expected to be incorporated into the feasibility study project designs to support Denison’s aspiration of achieving a superior standard of environmental stewardship that meets and exceeds the anticipated environmental expectations of regulators and aligns with the interests of local Indigenous communities;
  • Updated estimate of mineral resources: mineral resources for Phoenix were last estimated in 2018. Since then, additional drilling has been completed in and around the Phoenix deposit as part of various ISR field tests, including drill hole GWR-045 (22% eU3O8 over 8.6 m), and exploration drilling. The updated mineral resource estimate will form the basis for mine planning in the study;
  • Mine design optimisation: feasibility study mine design is expected to reflect the decision to adopt a freeze wall configuration for containment of the ISR well field, as well as the results from multiple field test programs and extensive hydrogeological modelling exercises, which have provided various opportunities to optimise other elements of the project – including well pattern designs, permeability enhancement strategies, and both construction and production schedules;
  • Processing plant optimization: feasibility study process plant design is expected to reflect the decision to increase the ISR mining uranium head-grade to 15 g/L, as well as the results from extensive metallurgical laboratory studies designed to optimize the mineral processing aspects of the project; and
  • Class 3 capital cost estimate: the feasibility study is also intended to provide the level of engineering design necessary to support a Class 3 capital cost estimate (AACE international standard with an accuracy of -15% /+25%), which is expected to provide a basis to confirm the economic potential of the project highlighted in the prefeasibility study completed in 2018.

The 2018 prefeasibility study considered the potential economic merit of developing the Phoenix deposit as an ISR operation and the Gryphon deposit as a conventional underground mining operation. Taken together, the project was estimated to have mine production of 109.4 Mib of U3O8 over a 14-year mine life.

David Cates, Denison’s President & CEO, said: “The ISR de-risking activities we’ve completed since the publication of the prefeasibility study for Wheeler River in 2018 have been designed to support the completion of a future feasibility study, and the results to date have further confirmed the technical viability of the project – leading to the decision to advance the project and initiate the formal feasibility study process.

“During this de-risking phase, we have been able to verify orebody permeability and the leachability of high-grade uranium in conditions representative of an ISR mining setting. We’ve also engineered an improved containment design using a more conventional ground freezing approach. Based on the results of field programs and metallurgical lab testing completed over the last three years, we are confident that the project is ready to advance into a full feasibility study. Taken together with the selection of globally recognised engineering firm Wood, the decision to launch the formal feasibility study process for Phoenix represents another important step towards achieving our objective of bringing low-cost ISR mining to the high-grade uranium deposits of the Athabasca Basin.”

Seequent adds to cloud-based geoscience software base with Imago acquisition

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Bentley Systems’ Seequent business unit has acquired Imago Inc, a developer of cloud-based software for the capture and management of geoscientific imagery.

The acquisition, which comes only a month after announcing the purchase of Aarhus GeoSoftware, will expand Seequent’s technology solutions portfolio while boosting cloud capabilities to help geoscientists and engineers solve earth, environment and energy challenges, it said.

Imago’s cloud-based platform enables the capture, cataloguing and review of drilling core and chip images from any source, to support every aspect of the geological process from exploration to grade control. Continued development of Imago’s machine learning will lead to a step function in the interpretation of geological data, according to Seequent.

Seequent said: “Mining companies around the world apply Imago’s solution in conjunction with geology data management and modelling tools to enable teams to make more confident, profitable decisions using instantly available, high-quality images. Seequent already integrates its Leapfrog, Oasis montaj, Target, and Minalytix MX Deposit with Imago’s solution, making it easy for geologists, engineers and other stakeholders to extract knowledge and learn from geoscientific imagery. The goal is to unlock significant potential for mining and other industries, transforming image data into meaningful insights for geological activities.”

Imago establishes a consistent process for capturing high-quality images, which integrate with existing workflows and allow the application of machine learning

Graham Grant, CEO of Seequent, said: “It’s an exciting step to welcome the Imago team on board to help advance Seequent’s progression into the cloud. We’re continually exploring ways to provide new technologies and solutions to solve workflow challenges, improve operational efficiency and deliver greater value for our users who are working to solve some of the world’s major civil, environmental, and energy challenges. This acquisition demonstrates Seequent’s continued growth and our commitment to make a positive contribution to the industries we serve globally.”

Imago’s Co-Founder, Federico Arboleda, said: “As a small team in Phoenix and Perth, we’re excited to join forces with Seequent, as this will now allow us to substantially scale Imago’s solutions in mining and other markets. We founded Imago to help mining companies manage the high volume and size of geological images and unlock the great value in this geoscience imagery. Image data is an increasingly important source of data across the geosciences – and can come from potentially any source, including core photos, hyperspectral, aerial photos, drones, and handheld devices. It will become even more important to transform image data into knowledge as automation needs increase.”

TOMRA’s SRC ties to open new North America ore sorting markets

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TOMRA Sorting Solutions is gearing up for major sensor-based ore sorting orders from the North America mining market after signing a co-operation agreement with the Saskatchewan Research Council (SRC).

The company has won mining work across the globe over the last five or so years, moving from Africa diamond operations to a phosphate mine in Saudia Arabia – its largest installation to date (pictured) – to tin in South America and gold in Australia.

One of its more significant regional wins came in Canada, where it recently received a purchase order from Vital Metals’s Cheetah subsidiary to supply COM Tertiary X-ray Transmission (XRT) 1220/B ore sorting equipment to the Nechalacho rare earth project, in the Northwest Territories.

In announcing the order in January, Vital Metals said: “The ore sorting test work highlighted that the Nechalacho rare earth oxide (REO) project is one of the few and the first REO project to successfully use ore sorting to produce a high grade plus-35% REO concentrate without the use of reagents and water. This will substantially reduce the cost and the lead time to bring the Nechalacho REO project into production.”

Harold Cline, Area Sales Manager, Mining, TOMRA Sorting, said this win was significant as it was the first contract the company had sealed in North America following the agreement with the SRC.

SRC is now offering TOMRA clients sensor-based ore sorting process development work, testing and piloting as part of its full suite of SRC Mining and Energy services. The SRC also plans to expand these services further with the creation of the SRC Minerals Liberation Centre.

Up until recently, TOMRA had to send material from North America mining operations back to its test centre in Germany. While the TOMRA facilities in Europe are world-class, Cline said, having a location in North America could prove decisive when it comes to converting enquiries from miners to contracts.

“SRC was able to provide results to Cheetah in just four weeks,” he told IM on the side lines of the recent SME MineXchange Conference and Expo in Phoenix, Arizona.

This testing turnaround time could help TOMRA grow its mining sales in North America at a time when the region’s gold, industrial minerals, copper and lead-zinc mines are looking into sensor-based ore sorting solutions, according to Cline.

Phoenix and JMC team up to expand presence in rugged lighting sector

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Private equity firm JMC Capital Partners has agreed to acquire rugged lighting specialist Phoenix in a deal that should see the Milwaukee-based company further expand.

As part of the deal, George Wordingham, President and fourth generation owner of Phoenix, will retire and sell his stake in the company to JMC.

“I’m happy to be putting Phoenix in a position for long-term growth while also preserving the importance of its history in the industries we’ve served for decades,” he said.

This year, Phoenix is celebrating 75 years in the mining industry. Since 1943, it has been providing light, safety and productivity to mines worldwide. Its LED lights are used throughout the industry on earthmoving equipment, conveyors and elsewhere.

JMC will be investing in various growth opportunities for Phoenix and looking to increase its presence in the lighting industry, Phoenix said.

David Logan, Operating Partner at JMC, said: “We are pleased and excited to add Phoenix to the JMC portfolio as a new platform for rugged LED Lighting. Phoenix’s management team has done an excellent job at growing their business, and we look forward to continued success.”

Scott Fredrick, CEO of Phoenix, said the JMC deal presents great opportunities for the company’s future in this industry.

“As a 126-year-old manufacturer, we know the value of adaptability and perseverance. JMC’s strategy is a perfect fit for Phoenix and its plan for long-term growth.”

Phoenix will continue to operate out of its Milwaukee location. All employees will remain as will the commitment Phoenix has to its customers. JMC currently has 15 companies within its portfolio, according to its website.