TORONTO, April 25, 2018
/PRNewswire/ - Denison Mines Corp. ("Denison" or the "Company")
(DML: TSX, DNN: NYSE American) is pleased to report the expansion
of the Huskie zone with the receipt of chemical assay
("U3O8") results from the
Company's winter 2018 diamond drilling program on the 64.22% owned
Waterbury Lake project. The winter drilling program involved 9,794
metres of diamond drilling in 19 drill holes, and was focused on 50
metre step-out drilling along strike and down-dip of the Huskie
zone, as well as wider-spaced reconnaissance drilling to the west
along the geological trend. The winter drilling program is part of
a larger 14,400 metre drill program planned for Waterbury Lake in
2018, with the remainder to be completed during the summer
months.
Winter 2018 Drilling Program
Highlights:
The basement-hosted uranium mineralization discovered by Denison
in 2017 (see Denison's press release dated October 11, 2017) was extended down-dip as a
result of step-out drilling completed on an approximate 50 metre
spacing. The results were highlighted by the following
intercepts:
- 4.5%
U3O8 over
6.0 metres, including 5.8%
U3O8 over 4.5
metres in drill hole WAT18-452, located
approximately 100 metres down-dip of drill hole WAT17-446A, which
returned 9.1% U3O8 over 3.7 metres (including
16.8% U3O8 over 2.0 metres) in the summer of
2017;
- 0.57% U3O8
over 6.3 metres, including 1.9%
U3O8 over 1.0
metre also in drill hole WAT18-452;
- 0.62% U3O8 over 1.0 metre in drill hole
WAT18-460A, located approximately 50 metres along strike to the
west of drill hole WAT17-450A, which returned 1.5%
U3O8 over 4.5 metres (including 3.9%
U3O8 over 1.0 metres) in the summer of
2017.
Dale Verran, Denison's Vice
President of Exploration, commented, "Drill hole WAT18-452
represents the second-best hole to date at Huskie in terms of
combined grade and thickness and a meaningful expansion in the
down-dip direction. The high-grade mineralization at Huskie appears
to be controlled by the intersection of east-west striking faults,
associated with the graphitic gneiss unit, and cross-cutting
northeast striking faults, possibly related to the regional Midwest
structure. This has led to high-grade 'lens stacking' in a
northeast direction as opposed to the lenses being laterally
extensive along strike to the east and west. Our team will utilize
this improved understanding to target additional
high-grade mineralization proximal
to Huskie and along this northeast structural trend."
The regional Midwest structure hosts the Midwest A and Midwest
Main deposits (25.17% Denison), which are located approximately
three and six kilometres to the southwest of the Huskie zone,
respectively, and is interpreted to control the location of the J
Zone deposit on the Waterbury Lake property, as well as the
Roughrider deposit, which are located 1.5 kilometres to the
southwest of the Huskie zone.
Further details of the results from the winter 2018 drilling
program are provided below, including composited chemical assay
results in Table 1. The location of the Waterbury Lake project and
the location of the winter 2018 drill holes are provided in Figures
1 to 3.
Details of Winter 2018 Drilling Results
A total of 19 drill holes were completed as part of the winter
2018 Waterbury Lake exploration program:
- Fourteen drill holes were completed around the Huskie zone as
50 metre step-outs from the mineralization identified in 2017 (see
Denison's press release dated October 11,
2017). Drill holes were completed along strike to the east
(two drill holes), along strike to the west (seven drill holes) and
in the down-dip direction (five drill holes) of the Huskie
mineralization. All drilling was designed to test the basement
units below the sub-Athabasca
unconformity.
- An additional five reconnaissance drill holes were completed
along two drill fences west of the Huskie zone at 150 metres (three
drill holes) and 450 metres (two drill holes), respectively.
Uranium mineralization was intersected in five drill holes
during the winter 2018 program, as described below and provided in
Table 1:
- Down-dip of Huskie, drill hole WAT18-452 extended
mineralization by approximately 50 metres, intersecting four
stacked lenses of mineralization which are interpreted to occur
along, or proximal to, the northeast structural trend interpreted
to be associated with the regional Midwest structure. Results
included 4.5% U3O8 over 6.0 meters (including
5.8% U3O8 over 4.5 meters), and 0.57%
U3O8 over 6.3 meters (including 1.9%
U3O8 over 1.0 meter).
- At the western extent of Huskie, drill hole
WAT18-460A was designed to test approximately 50 metres
along strike to the west of drill hole WAT17-450A (1.5%
U3O8 over 4.5 metres), and intersected 0.62%
U3O8 over 1.0 metre.
- Drill hole WAT18-464A returned a mineralized interval
of 0.05% U3O8 over 1.0 metre.
While this result also extended the mineralized zone further to the
west, located 50 metres up-plunge to the west of WAT18-460A, the
results indicate a weakening of the mineralization to the
west.
- At the eastern extent of Huskie, drill hole WAT18-462
intersected weak mineralization (0.03% U3O8
over 1.5 metres) approximately 50 metres along strike to the east
of drill hole WAT17-443 (1.2% U3O8 over 1.0
metres).
- Drill hole WAT18-468 tested a resistivity anomaly,
identified from a 2008 geophysical survey, located 450 metres to
the west along strike of the Huskie Zone and intersected weak
mineralization (0.03% U3O8 over 2.0 metres)
approximately 300 metres below the unconformity. The mineralized
intercept was not associated with any significant alteration or
structure.
Table 1. Assay results for the Waterbury Lake winter 2018 drill
program.
Drill
Hole
|
From
(m)
|
To
(m)
|
Length
(m)6
|
U3O8
(%)1,2,5
|
WAT18-452
|
405.5
|
409.5
|
4.0
|
0.18
|
and
|
416.0
|
417.0
|
1.0
|
0.10
|
and
|
419.5
|
425.5
|
6.0
|
4.5
|
Including3
|
419.5
|
424.0
|
4.5
|
5.8
|
and
|
435.7
|
442.0
|
6.3
|
0.57
|
Including3
|
438.0
|
439.0
|
1.0
|
1.9
|
WAT18-460A
|
303.0
|
304.0
|
1.0
|
0.62
|
WAT18-4624
|
245.6
|
247.1
|
1.5
|
0.03
|
WAT18-464A
|
248.0
|
249.0
|
1.0
|
0.05
|
WAT18-4684
|
500.7
|
502.7
|
2.0
|
0.03
|
|
|
Notes:
|
1.
|
U3O8 is the chemical assay of
mineralized split core samples.
|
2.
|
Intersection interval
is composited above a cut-off grade of 0.05%
U3O8 unless otherwise indicated.
|
3.
|
Intersection interval
is composited above a cut-off grade of 1.0%
U3O8.
|
4.
|
Intersection interval
is composited above a cut-off grade of 0.01%
U3O8.
|
5.
|
Composites are
compiled using 1.0 metre minimum ore thickness and 2.0 metres
maximum
waste.
|
6.
|
As the drill holes
are oriented steeply toward the south-southeast and the mineralized
lenses are interpreted to dip moderately to the north, the true
thickness of mineralization is expected to be approximately 75% of
the intersection lengths.
|
The remaining drill holes at Huskie successfully tested their
designated targets, and while variable structure and alteration was
encountered, no additional mineralization was intersected.
Geology of the Huskie Zone
To date, drilling has been completed on an approximate 50 x 50
metre grid pattern which has allowed for the wide-spaced definition
of a zone of entirely basement-hosted mineralization with
geological features consistent with basement-hosted deposits in the
Athabasca Basin. The mineralized
zone is hosted primarily within a faulted graphite-bearing pelitic
gneiss ("graphitic gneiss"), which forms part of an east-west
striking, northerly dipping package of metasedimentary rocks
flanked to the north and south by granitic gneisses. The Athabasca
Group sandstones that unconformably overly the basement rocks are
approximately 210 metres thick.
Interpretation indicates the mineralization occurs as parallel,
stacked lenses, which are conformable to the foliation and fault
planes within the graphitic gneiss. The location of the
mineralized lenses and their strike extent in the east-west
direction appears to be controlled by cross-cutting, northeast
striking faults. These faults are interpreted to be part of the
regional Midwest structure and indicate the potential for
additional high-grade basement-hosted mineralization in a northeast
orientation.
The high-grade mineralization is comprised of massive to
semi-massive uraninite (pitchblende) and subordinate bright yellow
secondary uranium minerals occurring along fault or fracture
planes, or as replacement along foliation planes. Disseminations of
lower grade mineralization occur within highly altered rocks
proximal to fault planes. The mineralization is intimately
associated with hematite, which both occur central to a broad and
pervasive alteration envelope of white clays, chlorite and
silicification.
The mineralized zone defined to date occurs between 50 and 225
metres vertically below the sub-Athabasca unconformity (265 and 435 metres
vertically below surface) and measures approximately 250 metres
along strike, up to 170 metres along dip, with individual lenses
varying in interpreted true thickness between approximately 2 and 7
metres.
Waterbury Lake Property
The Waterbury Lake property consists of multiple claims covering
40,256 hectares, and is located in the infrastructure rich eastern
portion of the Athabasca Basin
region in northern Saskatchewan. The property is jointly
owned by Denison (64.22%) and Korea Waterbury Uranium Limited
Partnership ("KWULP") (35.78%) through the Waterbury Lake Uranium
Limited Partnership ("WLULP"). KWULP consists of a consortium of
investors in which Korea Hydro & Nuclear Power ("KHNP") holds a
majority position. KWULP has elected not to fund the 2018
exploration program and, as a result, will incur dilution of its
ownership interest in the WLULP. KHNP is also a significant
shareholder in Denison, holding 58,284,000 common shares of
Denison, which represents approximately 10.42% of the Company's
issued and outstanding common shares.
Illustrative Figures
Location of the winter 2018 drill collars on Denison's Waterbury
Lake project, relative to the J Zone and Roughrider deposits, are
shown in Figure 1. Figure 2 provides the simplified basement
geology map of the Huskie zone at the sub-Athabasca unconformity showing the location of
the winter 2018 drill holes. An inclined longitudinal section
showing the location of mineralized pierce points and the
interpreted mineralized wireframes is presented in Figure 3. The
mineralized lenses shown are defined using a 0.05%
U3O8 over 1.0 metre cut-off and modelled
using a minimum thickness of two metres. There is no certainty that
the modelled mineralized lenses shown will constitute future
mineral resources and they may be subject to modifications as
further drilling data becomes available.
Sampling and Assay Procedures
Drill core with anomalous total gamma radioactivity (>500
counts per second using a RS-120 or RS-125 scintillometer) was
sampled over 0.5 metre intervals. Sampling is undertaken on site by
splitting the core in half, with one half submitted for analysis
and the other half retained in the core box for future reference.
Uranium chemical assays are performed by the Saskatchewan Research
Council ("SRC") Geoanalytical Laboratories located in Saskatoon. Sample preparation involves
crushing and pulverizing core samples to 90% passing -106 microns.
Splits of the resultant pulps are initially submitted for
multi-element ICP-MS analysis following partial
(HNO3:HCl) and total
(HF:HNO3:HClO4) digestions. Samples
with ≥ 1,000 ppm U (partial digest) are re-assayed for
U3O8 using an ISO/IEC 17025:2005 accredited
method for the determination of U3O8 weight
%. Pulp splits are digested using aqua-regia and the solution
analyzed for U3O8 weight % using ICP-OES.
Core recovery at the Huskie zone is typically 100% and therefore
radiometric equivalent U3O8 grades
("eU3O8") are not required as a substitute
for chemical U3O8 assays. In addition to
internal checks by SRC Geoanalytical Laboratories, the Company has
rigorous quality assurance and quality control ("QAQC") procedures
including the insertion of standard reference materials, blanks and
field duplicates. The assay data is subject to verification
procedures by qualified persons employed by Denison prior to
disclosure. For further details on the assay, QAQC and data
verification procedures please see Denison's Annual Information
Form dated March 27, 2018 filed under
the Company's profile on SEDAR (www.sedar.com).
Qualified Persons
Dale Verran, MSc, P.Geo,
Pr.Sci.Nat., Denison's Vice President, Exploration, who is a
Qualified Person in accordance with the requirements of NI 43-101
has reviewed and approved the technical information contained in
this release.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern Saskatchewan,
Canada. In addition to its 63.3% owned Wheeler River
project, which ranks as the largest undeveloped high-grade uranium
project in the infrastructure rich eastern portion of the
Athabasca Basin region, Denison's
Athabasca Basin exploration
portfolio consists of numerous projects covering approximately
353,000 hectares. Denison's interests in Athabasca Basin also include a 22.5% ownership
interest in the McClean Lake joint venture ("MLJV"), which includes
several uranium deposits and the McClean Lake uranium mill, which
is currently processing ore from the Cigar Lake mine under a toll
milling agreement, plus a 25.17% interest in the Midwest and
Midwest A deposits, and a 64.22% interest in the J Zone deposit and
Huskie discovery on the Waterbury Lake property. Each of Midwest,
Midwest A, J Zone and Huskie are located within 20 kilometres of
the McClean Lake mill.
Denison is also engaged in mine decommissioning and
environmental services through its Denison Environmental Services
division and is the manager of Uranium Participation Corp., a
publicly traded company which invests in uranium oxide and uranium
hexafluoride.
Cautionary Statement Regarding Forward-Looking
Statements
Certain information contained in this press release
constitutes "forward-looking information", within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and similar Canadian legislation concerning the business,
operations and financial performance and condition of
Denison.
Generally, these forward-looking statements can be identified
by the use of forward-looking terminology such as "plans",
"expects", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates", or "believes", or the negatives and/or
variations of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur", "be achieved" or "has the potential to".
In particular, this press release contains forward-looking
information pertaining to the following: exploration (including
drilling) and evaluation interpretations, activities, plans and
objectives, and Denison's percentage in its properties and its
plans and agreements with its joint venture partners, as
applicable. Statements relating to "mineral reserves" or "mineral
resources" are deemed to be forward-looking information, as they
involve the implied assessment, based on certain estimates and
assumptions that the mineral reserves and mineral resources
described can be profitably produced in the future.
Forward looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Denison to be materially different
from those expressed or implied by forward-looking statements.
Denison believes that the expectations reflected in this
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be accurate and may
differ materially from those anticipated in this forward looking
information. For a discussion in respect of risks and other factors
that could influence forward-looking events, please refer to the
factors discussed in Denison's Annual Information Form dated
March 27, 2018 under the heading
"Risk Factors". These factors are not, and should not be construed
as being exhaustive. Accordingly, readers should not place undue
reliance on forward-looking statements.
The forward-looking information contained in this press
release is expressly qualified by this cautionary statement. Any
forward-looking information and the assumptions made with respect
thereto speaks only as of the date of this press release. Denison
does not undertake any obligation to publicly update or revise any
forward-looking information after the date of this press release to
conform such information to actual results or to changes in
Denison's expectations except as otherwise required by applicable
legislation.
This document contains certain information derived from
third-party publications and reports, including estimates of
resources and mineralization of the Roughrider deposit, which
Denison believes are reliable but have not been independently
verified by Denison.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred Mineral
Resources: This press release may use the terms
"measured", "indicated" and "inferred" mineral resources.
United States investors are
advised that while such terms are recognized and required by
Canadian regulations, the United States Securities and Exchange
Commission does not recognize them. "Inferred mineral resources"
have a great amount of uncertainty as to their existence, and as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or other
economic studies. United
States investors are cautioned not to assume that all or any
part of measured or indicated mineral resources will ever be
converted into mineral reserves. United
States investors are also cautioned not to assume that all
or any part of an inferred mineral resource exists, or is
economically or legally mineable.
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