TORONTO, May 24, 2018
/PRNewswire/ - Denison Mines Corp. ("Denison" or the "Company")
(DML: TSX, DNN: NYSE American) is pleased to announce the Company's
summer 2018 exploration plans for its high-priority Athabasca Basin exploration pipeline projects
located in northern Saskatchewan.
View PDF Version.
Summer 2018
Drilling Program
Highlights:
- Waterbury Lake Project – Summer drilling is expected to
focus on additional step-out drilling at the Huskie zone of
high-grade basement-hosted uranium mineralization, and testing of
high-priority targets approximately 2.5 kilometres to the
northeast, where the regionally interpreted Midwest structure is
projected to intersect the geologically favourable Oban
trend. The Oban trend has produced previous drill intercepts
of uranium mineralization, but has not previously been tested at
the interpreted intersection of the Midwest regional structure. The
summer program is expected to include approximately 4,800 metres of
diamond drilling in 12 holes, and to commence in late-July.
- Hook-Carter Project – The summer drilling program
is designed as a continuation of the Company's winter 2018 drilling
program, which encountered hydrothermal alteration in both the
sandstone and the basement lithologies associated with graphitic
basement structures. Results from the winter program suggest
that the mineralizing system associated with the Patterson Corridor
continues on to the property. The summer program commenced recently
and is expected to include 3,500 metres of diamond drilling in five
to six drill holes designed to test high-priority geophysical
targets on a
regional scale.
- South Dufferin – High-priority drill targets have been
identified through geochemical and geophysical surveying along the
Virgin River Shear zone, approximately 25 kilometres south of
Cameco Corp's Centennial deposit. The summer diamond drilling
program is expected to be of a reconnaissance nature and is planned
to commence in June, with approximately 2,500 metres of diamond
drilling in 16 to 20 holes.
David Cates, Denison's President
& CEO, commented, "In addition to
Denison's flagship Wheeler River
project, the Company has one of
the largest land positions in the
prolific Athabasca Basin
region. This extensive portfolio of
projects
provides a
pipeline of high-potential exploration
opportunities to generate new
discoveries and build on the
Company's significant high-grade
uranium resource
base. With over $35 million in cash and equivalents on the
balance sheet at the end of the first quarter of 2018, the summer
program is fully funded and provides investors with exposure to
Company specific uranium
exploration catalysts as our
team continues with our
disciplined-approach of testing high-priority
targets, at Waterbury Lake,
Hook-Carter and South Dufferin."
A map of Denison's Athabasca
Basin properties is provided in Figure 1.
Denison Athabasca Property Map.
Waterbury Lake
Huskie Zone
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. To date, the completion of 23
drill holes on an approximate 50 x 50 metre spacing has 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.
The planned summer program includes step-out drilling both
up-dip and down-dip of the known mineralization to test for
high-grade extensions related to the northeast striking,
cross-cutting faults.
Oban
Oban is an east-west striking geological trend located 2
kilometres to the north of the Huskie zone, which has shown
considerable exploration potential from previous drilling
campaigns. Results include the presence of faulted graphitic
basement rocks, significantly structured and altered basal
Athabasca sandstone, and
mineralized sandstone intercepts of 0.079%
U3O8 over 4.8 metres in drill hole WAT14-406A
and 0.050% U3O8 over 1.5 metres in drill hole
WAT14-407. The trend remains under-explored with untested gaps in
drilling coverage of up to 1.7 kilometres.
On the eastern side of the Waterbury Lake property, the
intersection of the interpreted northeast striking regional Midwest
structure with east-west striking graphite-bearing basement units
appears to control the location of the J Zone/Roughrider deposits
and the Huskie zone. Current interpretation of the Midwest
structure suggests it cross-cuts the Oban trend in areas that have
not yet been drill tested, which produces compelling targets for
exploration. The planned summer program includes drilling to test
these targets, particularly within the basement rocks.
Midwest Extension
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 late summer or fall to map
the possible extension of the Midwest structure and define drill
targets for future testing.
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.
Hook-Carter
The Hook-Carter project is highlighted by 15 kilometres of
strike potential along the prolific Patterson Corridor – host to
the Arrow deposit (NexGen Energy Ltd.), Triple R deposit (Fission
Uranium Corp.), and Spitfire discovery (Purepoint Uranium Group
Inc., Cameco Corp., and Orano Canada Inc.), which occur within 8 to
20 kilometres of the property. The property is significantly
underexplored compared to other properties along this trend, with
only five historic drill holes located along the 15 kilometres of
Patterson Corridor strike length. The property also covers
significant portions of the Derkson and Carter Corridors, which
provide additional priority target areas.
All four drill holes, completed during the inaugural winter 2018
drilling program, encountered hydrothermal alteration in both the
sandstone and the basement lithologies associated with graphitic
basement structures. These features are consistent with
unconformity-related mineralizing systems in the Athabasca Basin and suggest that the
mineralizing system within the Patterson Corridor continues onto
the Hook-Carter property. Elevated radioactivity was noted in two
holes, ranging up to 184 counts per second measured on a Mount
Sopris 2GHF-1000 - Triple Gamma downhole probe. The summer drilling
program, which commenced in mid-May, is expected to include 3,500
metres of diamond drilling in five to six drill holes designed to
test high-priority geophysical targets on a regional scale.
The Hook-Carter property consists of 45 claims covering 20,522
hectares and is owned 80% by Denison and 20% by ALX Uranium Corp.
("ALX"). Denison has agreed to fund ALX's share of the first
CAD$12M in expenditures (see
Denison's Press Releases dated October
13 and November 7, 2016).
South Dufferin
The South Dufferin project is a 100% Denison owned property
comprising 14,364 hectares in 6 claims and is located immediately
south of the southern margin of the Athabasca Basin in northern
Saskatchewan. The property covers the southern extension of
the Virgin River Shear Zone, which hosts known high-grade uranium
mineralization at Cameco Corp.'s Dufferin Lake zone approximately
13 kilometres to the north (highlight of 1.73%
U3O8 over 6.5 metres) and Cameco Corp.'s
Centennial deposit approximately 25 kilometres to the north
(includes intersections up to 8.78% U3O8 over
33.9 metres). Exploration potential exists for
basement-hosted uranium mineralization associated with the Dufferin
Lake fault and parallel faults within the Virgin Lake Shear
zone. Priority drill targets have been developed across the
property from recent ground geochemical and geophysical surveying.
The summer 2018 diamond drilling program is of a reconnaissance
nature and is expected to include approximately 2,500 metres of
drilling in 16 to 20 holes.
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.
Follow Denison on Twitter @DenisonMinesCo
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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SOURCE Denison Mines Corp.