Pioneering in-situ recovery in Canada to capitalize on heightened uranium demand
Denison field staff sample ISR test wells at the Wheeler River Project site. supplied
Many discussions about the clean energy transition revolve around energy metals, the materials needed for a shift away from fossil fuels. While lithium, cobalt, copper and nickel are among the minerals often mentioned in this context, there is one element that more accurately fits the term – and that’s uranium, says David Cates, president and CEO of Denison Mines Corp. “What other people call energy metals are really battery or transmission metals. Uranium, on the other hand, is literally used to make electricity.”
There is heightened interest in integrating more nuclear energy, powered by uranium, into electricity grids in Canada and across the globe, says Mr. Cates. “In Ontario, 60 per cent of our power is currently coming from nuclear, which has played a big role in decarbonizing the province’s energy system.”
This fact alone illustrates that “nuclear energy and uranium mining are not at odds with our federal government’s climate change agenda,” he proposes. “On the contrary, they can bring enormous environmental benefits along with being significant drivers of our economy.”
“Whatever it is, the way you tell your story online can make all the difference.”
Beyond its use in domestic power generation, uranium also represents an important export commodity. When countries consider using nuclear power to reduce emissions while maintaining energy security, “they want to buy their uranium from a country that has a stable and responsible regulatory regime – and that is free of geopolitical concerns and tensions,” explains Mr. Cates, who also sits on the board of directors of the Canadian Nuclear Association.
Public sentiment regarding nuclear energy has shifted across the globe. At COP28, for example, Canada was among 22 nations committed to tripling the percentage of nuclear power in their energy mix by 2050. What will contribute to enabling countries to meet these targets are advancements in reactor technology, including small modular reactors (SMRs), he says. “Especially in areas that don’t require enough energy to make a large-scale reactor feasible, SMR modules represent a cost-efficient and attractive alternative.”
In Canada, plans to grow the nuclear power footprint include both expanding existing nuclear plants as well as building SMRs, notes Mr. Cates. “In Ontario, OPG is building the first SMR in the G8, and Bruce Power is looking to expand its nuclear power plant on the shore of Lake Huron. At the same time, Saskatchewan and Alberta are evaluating nuclear power plants to help decarbonize the West.”
All these efforts depend on a reliable and sufficient supply of uranium, which can be found in “northern Saskatchewan, a sparsely populated area that is protected by rigorous regulations,” he says. “There are, however, considerable hurdles related to the regulatory environment, which impact the timelines and costs associated with a project.”
Take Denison’s Wheeler River project, for example, for which the permitting process was initiated in 2019. Years of preparation included technical and environmental assessments, extensive Indigenous engagement and the development of project plans, Mr. Cates explains. “Now, our environmental assessment is well advanced in its review by the Canadian Nuclear Safety Commission. Since uranium projects are subject to federal oversight in addition to provincial regulation, it can take several years and tens of millions of dollars to meet the criteria required to ultimately be authorized.
“While it is an advantage to have a robust regulatory regime in Canada, the duplication of efforts means uranium projects can take significantly longer and cost much more to advance when compared to other mines, even though they are not materially different.”
Despite these challenges, Denison is “well positioned with a very strong balance sheet,” he says. “With permits expected to come through over the next two years, followed by about two years of construction, this would have us producing our first uranium from Wheeler River in 2027 or 2028.”
Contributing to the organization’s unique value proposition is Denison’s leadership role in applying in-situ recovery (ISR), a low-cost, low-impact mining method, in Canada. “Half the world’s uranium production is already using ISR, and we’ve spent the last few years de-risking this approach and applying it to the high-grade uranium deposits in the Athabasca region,” he says. “Field testing confirmed technical viability, and recent technical studies have demonstrated robust economics with low initial capital costs and a high rate of return.”
ISR relies on drilling wells into the ore body from the surface and then injecting a mining solution into the mineralized area. The solution dissolves the uranium in the ground, and then the uranium-bearing solution is pumped back up to the surface. The recovered solution is subsequently processed to create a salable product. ISR mining has a reduced environmental impact when compared to conventional mining and milling since it doesn’t require excavation of the host rock like open-pit or underground mining methods, and it doesn’t generate conventional mine tailings requiring long-term disposal and monitoring.
“We have a clear competitive advantage with ISR,” says Mr. Cates, who sees these efforts as positioning Denison at the forefront of uranium mining in Saskatchewan and Canada.
“With projected shortages of uranium supply and an upward trend in uranium price, it is a very exciting time for investors, our company and our country,” he says. “As Canada is one of the largest uranium-producing nations in the world – and our industry is committed to sustainable practices – we can play a significant role in global decarbonization efforts.”
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