The overall results from a diamond drilling programme Orano Canada completed this year, comprising 23 drill holes totalling 5,682m, have expanded the footprint of the new mineralised zone to nearly 180m in strike length

zac-edmonds-N1LBcqLP9ec-unsplash (2)

McClean Lake is a joint venture between Denison and Orano Canada (Credit: Zac Edmonds on Unsplash)

Denison Mines announced that results from a recent exploration drilling significantly expand the high-grade uranium mineralisation at the McClean South property, discovered last year.

McClean Lake is a joint venture project (MLJV) between the Canadian uranium mining company with a 22.5% stake, and Orano Canada with the remaining 77.5%, which is also the operator.

Orano Canada has completed a diamond drilling program this year, comprising 23 drill holes totalling 5,682m.

The program was intended to test the potential expansion of high-grade mineralisation between the 8W and 8E pods along the McClean South conductor.

According to the latest assay results, ten drill holes showed notable uranium mineralisation, including the MCS-58 returned 2.96% U3O8 over 15.5m, including 24.49% U3O8 over 1.5m.

The drill hole MCS-58 is located around 54m to the southeast of drill hole MCS-34, which returned a mineralized interval of 8.67% U3O8 over 13.5m.

Denison said that the overall results from this year’s drilling have expanded the footprint of the new mineralised zone to nearly 180m in strike length.

Denison exploration director Andy Yackulic said: “We are pleased with the exploration success produced by Orano Canada as operator of the MLJV, including a significant expansion of the footprint of high-grade uranium mineralization discovered in 2021 between the McClean South 8W and 8E pods.

Based on the results of the 14 mineralised holes drilled in this area during 2021 and 2022, a third mineralized pod with a strike length of roughly 180 metres has now been interpreted in the McClean South area.

“Given the complex structural framework controlling the mineralization of this “new” pod, and the fact that mineralisation remains open across strike on several fences, additional exploration drilling is warranted.”

The McClean Lake property is located on the eastern edge of the Athabasca Basin in northern Saskatchewan, around 750km north of Saskatoon.

In addition to the MLJV, Denison also owns a minority stake in the McClean Lake uranium mill, which is among the world’s largest uranium processing facilities.

The mill has a licensed annual production capacity of 24 million pounds of U3O8 and is currently operating under a 10-year license expiring in 2027.

The mill is contracted to process the ore from the Cigar Lake mine under a toll milling agreement for up to 18 million pounds U3O8 per annum.

Denison president and CEO David Cates said: “The emergence of a ‘new’ mineralized pod in the McClean Lake South area is quite encouraging for the MLJV.

“The delineation of meaningful new uranium mineralisation on the McClean Lake property has the potential to translate into an important source of future mill feed and ultimately considerable value for the MLJV and its owners.”