Engineering & Mining Journal

APR 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

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Page 74 of 91 E&MJ • APRIL 2018 73 MINING IN SASKATCHEWAN & MANITOBA million-per-year operation at Wheeler, Deni- son can follow the Lundin Group approach to being the lean, mean simple intermediate as the alternative to the complicated bureau- cratic majors… We have the MacLean Lake mill operating with a 24 million lb license capacity, and six million lb current excess as only 18 million is being processed. The risk for this project is much lower than a new greenfield project." Going forward, Denison also plans to le- verage its portfolio to develop a second flag- ship asset, most likely focusing exploration activity on the Waterbury Lake property fol- lowing the discovery of a new zone of miner- alization called Husky in the summer 2017. Seven of nine holes put in were mineralized, 9.1% over 3.7m, basement-hosted very close to the MacLean mill. Holding a 20% carried interest on the Hook-Carter project, ALX Uranium Corp was formed in 2015 through the union between two companies with properties on the Pat- terson Lake trend: Lakeland Resources and a previous competitor, Alpha Exploration. The company recently acquired 72 lapsed claims totaling around 58,763 ha across eight proj- ects: Argo, Sabre, Atlas, Luna, Vulcan, Echo, Apollo and Electra. Following data reinter- pretation, ALX will likely put some people on the ground in the summer of 2018 with scin- tillometers to look for anomalies that might previously have been missed. According to a PEA released in 2017, NexGen's Arrow mine is on track to become the biggest uranium mine in the world. The company holds 259,000 ha of land in the southwestern Athabasca Basin. Towards the end of 2017, NexGen reported radioactivity results for the final 40 holes of South Arrow and Arrow on its Rook I property, concluding its summer drilling program. Also proving itself to be an attractive in- vestment opportunity is ISO Energy, a com- pany spun out from NexGen Energy following the acquisition of the Radio property, which now sits within the ISO portfolio. Since its es- tablishment in 2012, ISO Energy has grown from a capitalization of about C$5 million into a billion-dollar company, with NexGen remaining its major shareholder. ISO Energy is well funded for 2018, with C$1.2 million in flow-through and over C$3 million in hard dollars. "One of the challenges for explor- ers, developers and miners is that a solid demand outlook is rare," commented Craig Parry, ISO Energy's president and CEO. "In the case of uranium, demand seems to be growing at about 2% a year. Last year, more reactors were commissioned worldwide than have ever been before, so demand is increas- ing positively. However, for the last year, for every single mine in the world, the spot price has been sitting below the cost of produc- tion. This is highly unusual. Most companies sell on long-term contracts, but most of these are expiring soon. Then all of the mines will be exposed to the spot price." Referencing an expectation to see more cuts in supply, Parry continued: "We are not far off being back in balance; a few more cuts and we will be in under-supply again, and prices will rise." ISO Energy's main focus is to drill its Geiger property, recently acquired from Ca- meco, Areva and JCU, and also plans to drill its Thorburn Lake property in 2018, which Craig Parry, president and CEO, ISO Energy

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