TORONTO, Sept. 17, 2018
/CNW/ - Denison Mines Corp. ("Denison" or the "Company") (DML: TSX,
DNN: NYSE American) is pleased to report a new discovery of uranium
mineralization on the Company's Waterbury Lake project, located in
the infrastructure rich eastern portion of the Athabasca Basin region in northern
Saskatchewan. Basement-hosted
uranium mineralization was intersected in two drill holes,
approximately three kilometres northeast of the project's Huskie
zone, returning mineralized assay intervals of 0.43%
U3O8 over 1.0 metre (including 0.73%
U3O8 over 0.5 metres) in drill hole WAT18-478
and 0.45% U3O8 over 0.5 metre as well as
0.31% U3O8 over 0.5 metre and 0.20%
U3O8 over 0.5 metre in drill hole WAT18-479.
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The two drill holes were completed as a fence and were designed
to test the intersection of the interpreted regional Midwest
structure with the conductive GB trend. The mineralization is
contained within a 60 to 80 metre wide package of highly structured
and strongly altered graphitic basement rocks, which remains open
along strike to the northwest and southeast. Additional targets
exist along the interpreted Midwest structure, notably to the south
at the intersection with the uranium-bearing Oban trend.
Dale Verran, Denison's Vice
President Exploration, commented,
"These drill holes
were designed as an initial test
of a geological concept – that
high-grade uranium
mineralization occurs
at the intersection of the interpreted
regional Midwest structure with cross-cutting,
graphite-bearing, structural corridors,
as evidenced by the occurrence of the J Zone and Roughrider
deposits and the Huskie zone. We are very encouraged
by these early results along the
GB
trend, which
has validated
the concept by identifying a
mineralized system
in proximity to the
interpreted structural
intersection. We look forward
to following up on these
results with further
drilling, and
the potential to
discover high-grades
along strike at GB
or along the mineralized Oban
trend."
Further details of the summer 2018 exploration program are
provided below and in Figures 1 and 2.
Figure 1: Summary plan map of the summer 2018 exploration
program related to the Midwest regional structure.
Figure 2: Summary plan map of the GB and Oban trends.
Summer
2018 Exploration
Program
The summer 2018 exploration program at Waterbury Lake commenced
in late-July and included 3,315 metres of diamond drilling in seven
completed holes. The program was focused on drill testing regional
exploration targets related to the interpreted Midwest structure
and additional step-out drilling down-dip and up-dip of the Huskie
zone. An initial DCIP resistivity survey is planned for
mid-September to map the potential extension of the Midwest
structure on to the Waterbury Lake property to the southwest of the
Midwest Main deposit (25.17% Denison-owned) – with the possibility
of defining drill targets for future testing. Summer 2018 drill
target areas and the location of the DCIP resistivity grid are
shown in Figure 1.
Regional Exploration Drilling
A total of four holes were completed on regional targets
approximately 2.5 to 3.0 kilometres to the northeast of the Huskie
zone, where the regionally interpreted Midwest structure is
projected to intersect the geologically favourable GB and Oban
trends. Figure 2 provides a summary map of the drilling completed
along the GB and Oban trends.
The regional exploration drilling was highlighted by two drill
holes along the GB trend, completed approximately 100 metres apart
on a north-south fence, which both intersected basement-hosted
uranium mineralization. The mineralization occurred as
structurally-controlled disseminations of uraninite (pitchblende)
associated with massive clay replacement. Highlight intersections
included:
- 0.43% U3O8 over 1.0 metre (including
0.73% U3O8 over 0.5 metre) from 262.5 to
263.5 metres in drill hole WAT18-478.
- 0.20% U3O8 over 0.5 metre from 372.0 to
372.5 metres, 0.45% U3O8 over 0.5 metre
from 410.5 to 411.0 metres and 0.31%
U3O8 over 0.5 metre from 420.0 to 420.5
metres in drill hole WAT18-479.
Drill hole WAT18-478 and WAT18-479 were drilled on an azimuth of
0 degrees with dips of -72 degrees and -74 degrees, respectively.
True thickness of the mineralization is estimated at approximately
70% of the intersection lengths. The sub-Athabasca unconformity was intersected at
approximately 200 vertically below surface in both holes.
The mineralization intersected is open along strike to the
northwest and southeast along the GB trend. Historic drilling was
completed during the early 1980's at a typical spacing of 400 to
600 metres along strike; however, the drill holes targeted the
sub-Athabasca unconformity and did
not adequately test the basement rocks. Apart from the
mineralization intersected, multiple geological features were
encountered that indicate potential for high-grade, basement-hosted
mineralization, including:
- A broad package of graphitic metasediments, 60 to 80 metres in
true width, which has undergone extensive brittle faulting. The
faulting is typically coincident with the foliation of the
graphitic metasediments which strike east-west and dip moderately
to steeply to the south; with cross-cutting breccia zones
interpreted to represent structures associated with the regionally
interpreted Midwest structure.
- Multiple zones of silica (quartz) flooding, along with bounding
granites to the north and south of the metasedimentary package,
which indicate good rheological contrast with the potential to
create space for mineralizing fluids; and
- Strong clay alteration indicating the presence of extensive
hydrothermal fluid movement.
In addition, the faulting and alteration identified in the basal
sandstone in WAT18-478, along with a possible unconformity offset
to the north, suggest a compelling target at the unconformity at
the up-dip projection of the basement mineralization
intersected.
The two regional holes designed to test the Oban trend as part
of the summer 2018 program are interpreted to have tested outside
of the intersection of the Oban trend and the Midwest structural
zone. A compelling basement target still exists on the Oban trend
approximately 800 metres to the south of drill holes WAT18-478 and
WAT18-479.
Huskie Zone Drilling
The Huskie zone of high-grade basement-hosted uranium
mineralization was discovered by Denison during the summer of 2017
and is located approximately 1.5 kilometres to the northeast of the
property's J Zone uranium deposit. Prior to summer 2018, the
completion of 23 drill holes on an approximate 50 x 50 metre
spacing allowed for the definition of mineralization over a strike
length of approximately 250 metres and dip length of up to 170
metres. The individual lenses of mineralization vary in interpreted
true thickness between approximately 2 and 7 metres. Highlight
drill intersections include:
- 9.1% U3O8
over 3.7 metres (including 16.8% U3O8
over 2.0 metres) in drill hole WAT17-446A (see Denison's press
release dated October 11, 2017);
and
- 4.5% U3O8
over 6.0 metres (including 5.8% U3O8
over 4.5 metres) in drill hole WAT18-452 (see Denison's press
release dated April 25, 2018).
The mineralized lenses are interpreted to occur as parallel,
stacked lenses, which are conformable to the foliation and fault
planes within the east-west striking graphitic gneiss unit. The
drilling to date suggests the grade, thickness, and number of
lenses present is controlled by the presence of northeast striking
faults which cross-cut the graphitic gneiss unit. The northeast
striking faults identified at the Huskie zone are interpreted to be
part of the regional Midwest structure.
A total of three drill holes were completed as part of the
summer 2018 program, with targets located both up-dip and down-dip
of the known mineralization with a view to test for high-grade
extensions related to the northeast striking, cross-cutting
faults.
- Drill hole WAT18-475A, completed as a 50 metre step
up-dip of the know mineralization, intersected 0.12%
eU3O8 over 1.0 metre from 277.5 metres and
0.15% eU3O8 over 1.0 metre from 285.5
metres. Due to core loss, the interval is reported as
radiometric equivalent U3O8
("eU3O8") derived from a calibrated total
gamma downhole probe. The mineralization intersected by WAT18-475A
appeared as disseminations of uraninite (pitchblende) contained
within zones of strong clay replacement surrounded by patches of
quartz flooding. True thickness of the mineralization is expected
to be 75% of the intersection length given the drill hole's azimuth
and dip of 154 degrees and -81 degrees, respectively.
- The two holes designed to test for extensions down-dip of
Huskie, WAT18-473 and WAT18-474, intersected the
targeted structure but no significant mineralization was
encountered.
Midwest Extension DCIP Resistivity Survey
Current interpretation suggests the Midwest structure, which
hosts the Midwest Main and Midwest A deposits on the Midwest
property (25.17% Denison owned), may extend onto the Waterbury Lake
property to the southwest of the Midwest Main deposit. An initial
DCIP resistivity survey is planned for mid-September to map the
possible extension of the Midwest structure and to define possible
drill targets for future testing.
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 (65.45%) and Korea Waterbury Uranium Limited
Partnership ("KWULP") (34.55%) 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.
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. 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
320,000 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 65.45% 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.
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.
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SOURCE Denison Mines Corp.