White Canyon Uranium Ltd
White Canyon Uranium is the newest uranium production company listed on the ASX and TSX-V, with production of development material at Daneros having commenced at the end of 2009 following the mine permit being granted in May 2009. Daneros is the first new uranium mine permitted in Utah in 30 years. The company has U3O8 upside of 10 million pounds within 3 years, and is well placed to establish a 10 year mine production schedule.
Aussie uranium junior White Canyon Uranium inks toll milling agreement with Denison Mines Corp.
US-focussed uranium producer White Canyon Uranium (ASX: WCU) has executed a toll milling agreement with Denison Mines Corp. (TSX:DML, NYSE AMEX:DNN).
Denison will process all material produced from White Canyon’s owned and operated Daneros uranium mine in Utah.
White Canyon has confirmed that based on the conditions in the toll milling agreement the Daneros mine is viable even at current spot prices.
The agreement has a three year term with an optional two year extension and commences in January 2010.
The earlier than expected execution of the Toll Treating Agreement concludes the Company’s participation in the Ore Purchase Programme with only the first ore lot sold to Denison.
Denison used samples from the first ore lot to conduct amenability tests and derive the processing variables necessary for the completion of a Toll Milling Agreement.
Under the terms of the agreement, White Canyon will transport material produced to Denison’s White Mesa Mill for processing of up to 55,000 tons per annum.
The Company will pay to Denison the costs to mill its ore, a capital charge plus a toll milling fee per ton of ore, which will be partly linked to the long-term uranium price.
Processing will be scheduled by Denison and first processing of Daneros ore is expected in H1 2011 allowing White Canyon to meet expected delivery dates in H2 2011.
Initial production is expected to be sourced from the Daneros mine, which is located approximately 100kms from the White Mesa complex and has been the source of material provided to date for analysis to derive critical processing parameters in determining this toll milling agreement.
Additional production is expected to be sourced from the Company’s Lark Royal, Geitus, Blue Jay, Marcy Look and Yellow Cat projects, which are also in close proximity to the White Mesa Mill.
The total tonnage will be negotiated at the completion of each 12 month production period for the subsequent full production year dependant on mill availability.
Other White Canyon Uranium Ltd articles
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08/12/09 Australian junior White Canyon Uranium begins mining uranium in USA
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04/12/09 White Canyon Uranium remains under the radar for now
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20/10/09 White Canyon Uranium to sell Daneros production to Denison Mines
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29/07/09 White Canyon Uranium progresses tolling agreement with Denison Mines - and Toronto listing
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03/07/09 White Canyon Uranium CEO to progress production at Daneros Uranium Mine in 2009
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09/06/09 White Canyon Uranium appoints Peter Batten as new CEO
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27/05/09 White Canyon Uranium to commence uranium mining in Utah, first in 30 years
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04/05/09 white Canyon Uranium receives environmental tick at Daneros Mine, Utah - way cleared for mining
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18/03/09 Daneros Mine permit likely in April for White Canyon Uranium - ticks another box
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16/03/09 White Canyon Uranium fast tracks Daneros in Utah - near-term cash flows beckon
Other White Canyon Uranium Ltd news
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03/03/10 Further share purchases by White Canyon Uranium interests
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17/02/10 White Canyon Uranium TSX-V listing sponsored by Canaccord Financial
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15/02/10 White Canyon Uranium to commence trading on Toronto Stock (Venture) Exchange
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29/01/10 White Canyon Uranium caps off most successful quarter, ASX uranium producer
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28/01/10 White Canyon Uranium directors increase shareholdings
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25/01/10 White Canyon Uranium director tops up holding
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11/01/10 White Canyon Uranium exceeds expectations of ore grading from Daneros Mine by 15%
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21/12/09 White Canyon Uranium delivers first ore to White Mesa Mill
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16/12/09 White Canyon Uranium enters option to acquire 74 mining claims
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11/12/09 White Canyon Uranium secures underwriter for listed options
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