Denison Studies a 12 months of Vital Challenge and Firm De-Risking


TORONTO, ON, March 4, 2021 /PRNewswire/ – Denison Mines Corp. (“Denison” or the “Firm”) (TSX: DML)  (NYSE American: DNN) at present filed its Audited Consolidated Monetary Statements and Administration’s Dialogue & Evaluation (“MD&A”) for the yr ended December 31, 2020.  Each paperwork might be discovered on the Firm’s web site at www.denisonmines.com  or on SEDAR (at www.sedar.com) and EDGAR (at www.sec.gov/edgar.shtml). The highlights supplied under are derived from these paperwork and ought to be learn at the side of them. All quantities on this launch are in Canadian {dollars} until in any other case acknowledged. View PDF model

David Cates, President and CEO of Denison commented, “Confronted with the various challenges of the worldwide COVID-19 pandemic, Denison’s resilient groups excelled in 2020 and early 2021 – engaging in a big de-risking of our flagship Wheeler River venture and the Firm’s steadiness sheet.

At Wheeler River, our technical workforce achieved a key milestone, receiving an unbiased affirmation of ‘Proof of Idea’ for the appliance of the In-Situ Restoration (‘ISR’) mining technique on the high-grade Phoenix deposit.  We additionally accomplished an vital trade-off examine resulting in the adoption of a freeze ‘wall’ design for containment of the ISR operation at Phoenix – a call that’s anticipated to be beneficial from an environmental standpoint, cut back technical complexity and operational dangers, enable for a phased mining strategy with decrease up-front capital prices, and strengthen venture sustainability.  With the Environmental Evaluation course of totally resumed and a $21.8 million finances (Denison’s share $19.4 million) authorized and funded for analysis and environmental evaluation work at Wheeler River in 2021, all the workforce is now centered on advancing Phoenix by way of the regulatory and group session course of to help a future Feasibility Examine (“FS”), with the target of pairing Phoenix, the world’s highest grade undeveloped uranium deposit, with ISR mining, the world’s lowest value uranium mining technique.

In 2020, the technical workforce additionally delivered optimistic outcomes from the Waterbury Lake Preliminary Financial Evaluation (‘PEA’), which thought-about the potential future growth of the Tthe Heldeth Túé (‘THT’) uranium deposit as Denison’s second ISR amendable venture within the Athabasca Basin area.  The outcomes have been highlighted by low preliminary capital prices and globally aggressive working prices.  Including to Wheeler River’s Phoenix and Gryphon deposits, THT represents Denison’s third growth asset with totally loaded prices (together with preliminary capital prices, sustaining capital prices, and working prices) estimated at beneath US$25 per pound U3O8.    

On the Company aspect, the Firm’s monetary scenario has additionally been considerably de-risked, having accomplished a spherical of vital capital elevating during the last 12 months that has positioned the corporate with roughly $85 million in money and investments, whereas remaining debt-free.  Taken collectively, Denison is uniquely positioned as a well-capitalized uranium developer, with a number of low-cost property, at a time when the uranium market is exhibiting indicators of incremental enchancment underpinned by rising requires nuclear power to re-emerge as a number one expertise vital to a sustainable world power transition.”

HIGHLIGHTS 

  • Vital progress de-risking the Wheeler River venture in 2020

    In 2020, the Firm made vital progress on systematically de-risking the technical dangers recognized for the ISR mining operation deliberate for the Phoenix uranium deposit (‘Phoenix‘) following completion of the 2018 Pre-Feasibility Examine (‘PFS’) for the Firm’s 90% owned Wheeler River Uranium Challenge (‘Wheeler River’) (see Denison information releases dated June 4, 2020, Feb. 19, 2020, Oct. 28, 2020, and Dec. 1, 2020, respectively):
    • Achieved unbiased “Proof of Idea” for software of ISR mining technique at Phoenix;
    • Accomplished preliminary core leach checks, reporting uranium concentrations as much as 4 instances the quantity assumed within the PFS for the Phoenix ISR operation;
    • Accomplished a 2020 ISR Area Program designed to construct further confidence within the outcomes of the unbiased hydrogeologic mannequin developed by Petrotek Company (‘Petrotek’), and to help the design and allowing of additional discipline work anticipated to be included right into a future FS; and
    • Accomplished a trade-off examine demonstrating the benefit of adopting a freeze wall design, moderately than the freeze “dome” design included within the PFS, as a part of the ISR mining strategy deliberate for Phoenix.
  • Restarted the formal Environmental Evaluation (‘EA’) course of for Wheeler RiveIn January 2021, Denison restarted the formal EA course of for Wheeler River.  The choice to renew the EA course of marked the top of the short-term suspension introduced in March 2020 amidst the numerous social and financial disruption that emerged because of the onset of the COVID-19 pandemic.
  • Profitable collection of fairness financings to fund the EA and FS course of for Wheeler RiverDenison accomplished fairness financings for gross proceeds of over US$56 million (together with roughly US$3 million from an At-the-Market (‘ATM’) providing, excluding the flow-through financings) in 2020 and early 2021. Topic to a call to advance to a proper FS for Phoenix, the proceeds from the choices are anticipated, primarily based on present estimates, to be adequate to finish such FS course of and the EA course of.
  • Accomplished flow-through fairness financings to fund Canadian exploration  The Firm accomplished flow-through fairness financings of $8.9 million in late 2020 and early 2021. Proceeds of the financings are anticipated for use for eligible Canadian exploration actions in 2021 and 2022.
  • 2020 Phoenix growth drilling returns greatest outcomes to this point at Zone CThe first focus of the Firm’s 2020 exploration drilling program at Wheeler River centered on the realm proximal to the Phoenix deposit with the potential to broaden the extent of mineralization presently estimated for Phoenix. Enlargement drilling within the Zone C space of Phoenix, which doesn’t presently have an estimate of mineral sources, returned excessive grade mineralization – together with 5.69% U3O8 over 5.0 metres in WR-328D1, which represents one of the best mineralized intersection at Zone C to this point (see Denison press launch dated February 9, 2021).
  • Discovery of latest high-grade uranium mineralization 4 kilometres from Phoenix at Wheeler River As a part of the Firm’s 2020 exploration drilling program at Wheeler River, sure regional goal areas have been additionally examined, which resulted within the discovery of latest high-grade unconformity-hosted uranium mineralization as much as 7.66% U3O8 alongside the Ok-West conductive development (see Denison press launch dated January 28, 2021).
  • Accomplished a Preliminary THT deposit on the Waterbury Lake PropertyOn Dec. 30, 2020, Denison filed the technical report “Preliminary Financial Evaluation for the Tthe Heldeth Túé (J Zone) Deposit, Waterbury Lake Property, Northern Saskatchewan, Canada“, with an efficient date of October 30, 2020 for the 66.90% Denison-owned Waterbury Lake property. The technical report features a PEA that demonstrates sturdy economics for the potential future growth of THT as a small-scale Athabasca Basin ISR uranium mining venture – together with low preliminary capital prices, low common money working prices and globally aggressive all-in prices beneath US$25 per pound U3O8.

About Wheeler River

Wheeler River is the most important undeveloped uranium venture within the infrastructure wealthy jap portion of the Athabasca Basin area, in northern Saskatchewan and is a three way partnership between Denison (90% and operator) and JCU (Canada) Exploration Firm Restricted (10%). The venture is host to the high-grade Phoenix and Gryphon uranium deposits, found by Denison in 2008 and 2014, respectively, estimated to have mixed Indicated Mineral Sources of 132.1 million kilos U3O8 (1,809,000 tonnes at a mean grade of three.3% U3O8), plus mixed Inferred Mineral Sources of three.0 million kilos U3O8 (82,000 tonnes at a mean grade of 1.7% U3O8).

The PFS was accomplished in late 2018, contemplating the potential financial benefit of creating the Phoenix deposit as an ISR operation and the Gryphon deposit as a traditional underground mining operation. Taken collectively, the venture is estimated to have mine manufacturing of 109.4 million kilos U3O8 over a 14-year mine life, with a base case pre-tax internet current worth (‘NPV’) of $1.31 billion (8% low cost fee), Inside Charge of Return (‘IRR’) of 38.7%, and preliminary pre-production capital expenditures of $322.5 million. The Phoenix ISR operation is estimated to have a stand-alone base case pre-tax NPV of $930.4 million (8% low cost fee), IRR of 43.3%, preliminary pre-production capital expenditures of $322.5 million, and business main common working prices of US$3.33/lb U3O8.  The PFS was ready on a venture (100% possession) and pre-tax foundation, as every of the companions to the Wheeler River Joint Enterprise are topic to totally different tax and different obligations. 

Additional particulars concerning the PFS, together with further scientific and technical info, in addition to after-tax outcomes attributable to Denison’s possession curiosity, are described in larger element within the NI 43-101 Technical Report titled “Pre-feasibility Examine for the Wheeler River Uranium Challenge, Saskatchewan, Canada” dated October 30, 2018 with an efficient date of September 24, 2018. A duplicate of this report is offered on Denison’s web site and beneath its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.

Given the social, monetary and market disruptions associated to COVID-19, and sure fiscally prudent measures, Denison briefly suspended sure actions at Wheeler River beginning in April 2020, together with the formal components of the EA program, which is on the vital path to attaining the venture growth schedule outlined within the PFS Technical Report. Whereas the formal EA course of has resumed in early 2021, the Firm shouldn’t be presently capable of estimate the affect to the venture growth schedule, outlined within the PFS Technical Report, and customers are cautioned that sure of the estimates supplied therein, notably concerning the beginning of pre-production actions in 2021 and first manufacturing in 2024 shouldn’t be relied upon.

About Denison

Denison Mines Corp. was fashioned beneath the legal guidelines of Ontario and is a reporting issuer in all Canadian provinces. Denison’s widespread shares are listed on the Toronto Inventory Trade (the ‘TSX’) beneath the image ‘DML’ and on the NYSE American trade beneath the image ‘DNN’.

Denison is a uranium exploration and growth firm with pursuits centered within the Athabasca Basin area of northern Saskatchewan, Canada. Along with the Firm’s flagship venture, Wheeler River, Denison’s pursuits in Saskatchewan embody a 22.5% possession curiosity within the McClean Lake Joint Enterprise (‘MLJV’), which incorporates a number of uranium deposits and the McClean Lake uranium mill, which is presently processing ore from the Cigar Lake mine beneath a toll milling settlement, plus a 25.17% curiosity within the Midwest deposits and a 66.90% curiosity within the THT and Huskie deposits on the Waterbury Lake property. The Midwest, THT and Huskie deposits are positioned inside 20 kilometres of the McClean Lake mill. As well as, Denison has an intensive portfolio of exploration initiatives within the Athabasca Basin area.

Denison is engaged in mine decommissioning and environmental companies by way of its Closed Mines group (previously Denison Environmental Companies), which manages Denison’s Elliot Lake reclamation initiatives and offers post-closure mine and upkeep companies to a wide range of business and authorities purchasers.

Denison can also be the supervisor of Uranium Participation Company (‘UPC’), a publicly traded firm listed on the TSX beneath the image ‘U’, which invests in uranium oxide in concentrates (‘U3O8‘) and uranium hexafluoride (‘UF6‘).

Technical Disclosure and Certified Particular person

The technical info contained on this press launch has been reviewed and authorized by David Bronkhorst, P.Eng, Denison’s Vice President, Operations and/or Andrew Yackulic, P. Geo, Denison’s Director, Exploration, every of whom is a Certified Particular person in accordance with the necessities of NI 43-101.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 

Sure info contained on this press launch constitutes ‘forward-looking info’, throughout the which means of the relevant United States and Canadian laws regarding the enterprise, operations and monetary efficiency and situation of Denison.

Typically, these forward-looking statements might be recognized by means of forward-looking terminology resembling ‘plans’, ‘expects’, ‘finances’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, or ‘believes’, or the negatives and/or variations of such phrases and phrases, or state that sure actions, occasions or outcomes ‘could’, ‘might’, ‘would’, ‘may’ or ‘can be taken’, ‘happen’, ‘be achieved’ or ‘has the potential to’.

Specifically, this press launch incorporates forward-looking info pertaining to the next: exploration, growth and growth plans and targets, together with the outcomes of, and estimates and assumptions inside, the PFS, the plans and targets for ISR and the associated discipline and hydrogeological testing outcomes, fashions, “proof of idea”, plans and targets; expectations, plans and targets of a future FS for Wheeler and any work to be undertaken in respect thereto, together with any “de-risking” and the EA course of;  the affect of COVID-19 on Denison’s operations; the outcomes of, and estimates and assumptions inside, the PEA for the THT deposit at Waterbury Lake; projections with respect to make use of of proceeds of current financings; the estimates of Denison’s mineral reserves and mineral sources; expectations concerning Denison’s three way partnership possession pursuits; expectations concerning the continuity of its agreements with third events; and its interpretations of, and expectations for, nuclear energy and uranium provide, demand and associated market elements. Statements regarding ‘mineral reserves’ or ‘mineral sources’ are deemed to be forward-looking info, as they contain the implied evaluation, primarily based on sure estimates and assumptions that the mineral reserves and mineral sources described might be profitably produced sooner or later.

Ahead trying statements are primarily based on the opinions and estimates of administration as of the date such statements are made, and they’re topic to identified and unknown dangers, uncertainties and different elements that will trigger the precise outcomes, degree of exercise, efficiency or achievements of Denison to be materially totally different from these expressed or implied by such forward-looking statements. For instance, the outcomes and underlying assumptions and interpretations of the PFS in addition to de-risking efforts such because the ISR discipline checks and hydrogeological take a look at applications mentioned herein will not be maintained after additional testing or be consultant of precise circumstances throughout the relevant deposits.  As well as, Denison could resolve or in any other case be required to increase the EA and/or in any other case discontinue testing, analysis and growth work, together with a FS at Wheeler River, whether it is unable to take care of or in any other case safe the mandatory approvals or sources (resembling testing services, capital funding, and many others.).  Denison believes that the expectations mirrored on this forward-looking info are cheap, however no assurance might be provided that these expectations will show to be correct and outcomes could differ materially from these anticipated on this forward-looking info. For a dialogue in respect of dangers and different elements that would affect forward-looking occasions, please confer with the elements mentioned within the MD&A for the yr ended December 31, 2020 beneath the heading ‘Danger Components’. These elements will not be, and shouldn’t be, construed as being exhaustive.

Accordingly, readers mustn’t place undue reliance on forward-looking statements. The forward-looking info contained on this press launch is expressly certified by this cautionary assertion. Any forward-looking info and the assumptions made with respect thereto speaks solely as of the date of this press launch. Denison doesn’t undertake any obligation to publicly replace or revise any forward-looking info after the date of this press launch to adapt such info to precise outcomes or to adjustments in Denison’s expectations besides as in any other case required by relevant laws.

Cautionary Word to United States Traders Regarding Estimates of Mineral Sources and Mineral Reserves:  This press launch could use phrases resembling “measured”, “indicated” and/or “inferred” mineral sources and “confirmed” or “possible” mineral reserves, that are phrases outlined close to the rules set out within the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) CIM Definition Requirements on Mineral Sources and Mineral Reserves (“CIM Requirements”).  The Firm’s descriptions of its initiatives utilizing CIM Requirements will not be akin to related info made public by U.S. firms topic to the reporting and disclosure necessities beneath the US federal securities legal guidelines and the principles and laws thereunder. . United States buyers are cautioned to not assume that each one or any a part of measured or indicated mineral sources will ever be transformed into mineral reserves. United States buyers are additionally cautioned to not assume that each one or any a part of an inferred mineral useful resource exists, or is economically or legally mineable.  

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SOURCE Denison Mines Corp.

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