Denison Mines Corp. announced that grid power supply from SaskPower is available at the site of the future Phoenix in-situ recovery uranium mine following the recent installation of a new 138kV transmission line.
The availability of grid power at the Phoenix site represents a significant step in de-risking the execution of the project, as the electrification of the site is on the critical path of activities planned for the first year of construction and supports the establishment of the freeze wall planned to surround the initial mining area.
“We thank SaskPower for the safe installation of the new high-voltage transmission line, on schedule and on budget,” said David Cates, president and CEO of Denison. “As power is a crucial component of planned site infrastructure for project construction and future operation, the availability of grid power supply at the site represents a major project milestone. Access to grid electricity is a notable competitive advantage for Phoenix, as the grid in Saskatchewan is reliable and cost-effective compared to on-site power generation.”
The new transmission line is approximately six kilometres in length and connects the Phoenix site to the existing 138kV transmission line east of Phoenix that runs proximal to Highway 914 near Russell Lake. This portion of the Saskatchewan grid provides power from the Saskatchewan-Manitoba border to Uranium City in northwestern Saskatchewan and currently supplies power to each of the operating uranium mine and mill sites in the eastern portion of the Athabasca Basin.
Completion of the high-voltage transmission line represents a major Project milestone.
Phoenix has been designed to be powered by electricity from the SaskPower grid. Accordingly, the installation and electrification of the new 138kV transmission line to the Phoenix site represents a significant de-risking event, as the electrification of the Phoenix site will now only require the installation of on-site electrical distribution infrastructure, including the main site transformer, substation high-voltage equipment, switchgear and substation e-house – all of which are long-lead items that have been procured and are on schedule for delivery to site and installation during the first year of construction.
SaskPower is Saskatchewan’s principal electrical utility, reliably servicing over a half million customers across an extensive geographic area, including connections to the grids in Manitoba, Alberta and North Dakota. SaskPower obtained applicable approvals and installed their transmission line to support a power supply agreement with Denison, whereby Denison has obtained access to up to 8.8 MW of power and agreed to purchase a minimum amount of power for a five-year period from the in-service date of the new transmission line. The cost of the new transmission line was funded by the Wheeler River Joint Venture.
The commencement of Phoenix construction activities by Denison, including the installation of on-site electrical distribution equipment, remains subject to receipt of final regulatory approvals and a final investment decision by Denison.