TORONTO, July 28, 2020 /PRNewswire/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce the successful completion of
an internal conceptual mining study (the "Concept Study") examining
the potential future development of the J Zone uranium deposit ("J
Zone") using the In-Situ Recovery ("ISR") mining method.
Based on the results from the Concept Study, the Company has
decided to initiate the preparation of a Preliminary Economic
Assessment ("PEA"), which is expected to be completed during the
second half of 2020. View PDF
The Concept Study was prepared by Denison's in-house project
development team under the oversight of David Bronkhorst, P.Eng., the Company's Vice
President, Operations, and was reviewed and approved by the
Technical Committee of the Company's Board of Directors.
The J Zone deposit is located on the Company's Waterbury Lake
property ("Waterbury"), which is owned by Denison (66.71%) and
Korea Waterbury Lake Uranium Limited Partnership ("KWULP")
(33.29%), which is comprised of a consortium of investors, in which
Korea Hydro & Nuclear Power ("KHNP") holds a majority
position. KHNP is also a significant shareholder in
Denison.
David Cates, Denison's President
& CEO, commented, "We are encouraged by the results of the J
Zone Concept Study, and we are pleased to advance to a PEA. The
ability to complete the J Zone Concept Study with our internal
project development team showcases the depth of talent that Denison
has recruited since the completion of the Wheeler River
Pre-Feasibility Study in 2018 – which study was highlighted by the
selection of the ISR mining method for the Phoenix deposit. While investing in
advancing our understanding of the potential applicability of the
ISR mining method at Phoenix, we
also invested in our team – bringing on key project development
staff with expertise in hydrogeology, mine engineering,
environmental permitting, and corporate social
responsibility. This approach allows us to internalize
critical technical project knowledge related to Phoenix, and facilitates opportunities to
apply this knowledge to the Company's other potentially ISR
amenable uranium deposits – like J Zone. Having the benefit
of completing a first-of-its-kind ISR field test at Phoenix in 2019, our team was well positioned
to carry out the J Zone Concept Study and is expected to play an
important role in facilitating future studies."
Property Location
Waterbury Lake is located within the eastern portion of the
Athabasca Basin in northern
Saskatchewan. The property can be accessed year-round by
provincial highway or by air to Points North Landing, a privately
owned service centre with accommodations and airfield, which is
located near the eastern edge of the property. The J Zone
deposit is located on the eastern portion of the property
approximately 15 km from Denison's 22.5% owned McClean Lake uranium
mill (See Figure 1).
Estimated Mineral Resources
J Zone is estimated to contain Indicated mineral resources
totaling 12,810,000 lbs U3O8, based on
291,000 tonnes at an average grade of 2.00%
U3O8. The deposit is defined by 268
drill holes intersecting uranium mineralization over a combined
east-west strike length of up to 700 metres and a maximum
north-south lateral width of 70 metres. Uranium
mineralization is generally found within several metres of the
unconformity at depth ranges of 195 to 230 metres below surface,
with vertical thicknesses ranging from tens of centimeters to over
19.5 metres.
The mineral resource estimate for the J Zone deposit (and the
technical information described herein) is described in an
independent technical report, prepared in accordance with NI
43-101, titled "Technical Report with an Updated Mineral Resource
Estimate for the Waterbury Lake Property, Northern Saskatchewan, Canada", dated
December 21, 2018, by SRK
Consulting. .
Concept Study
The Concept Study evaluated the potential use of the ISR mining
method for the J Zone deposit. In an ISR uranium mining operation,
a mining solution (lixiviant) is injected into the ore zone through
a series of drill holes known as injection wells. The
lixiviant leaches the uranium as it travels through the ore zone
and is then recovered as a uranium bearing solution ("UBS"), which
is pumped back to surface via a series of recovery wells. Once on
surface, the UBS is sent to a surface processing plant for the
chemical separation of the uranium. Following the uranium removal,
the lixiviant is reconditioned and returned to the wellfield for
further production. The ISR mining method accounts for a
significant portion of uranium mine production globally and is
generally considered the lowest cost uranium mining method in the
world – owing to the fact that the method eliminates the surface
disturbances and costs associated with physically removing ore and
waste from the ground, as well as the tailings treatment and
storage, that are normally associated with underground or open pit
mining operations.
J Zone shares many geological characteristics with the
high-grade Phoenix deposit, which
is part of the Company's 90% owned Wheeler River Uranium Project
("Wheeler River"). J Zone is situated at the unconformity contact,
between the overlying sandstone and underlying basement rocks, the
mineralization is characterized as variably fractured, broken and
desilicified with zones of strong clay and high-grade uranium
metals. For these reasons, the mineralization is largely believed
to be highly permeable with the ability to increase areas of lower
permeability with the use of permeability enhancement
techniques. Additionally, J Zone is similar to Phoenix in that it is underlain by relatively
impermeable basement rocks providing the natural underlying
aquitard necessary for the containment of lixiviant within the
overlying sandstone units.
The internal studies undertaken by the Company on J Zone are
preliminary in nature and there is significant uncertainty with
respect to the potential for, and the economic and technical risks
associated with, advancing to a PEA for J Zone, and such further
studies may not be undertaken or completed if the preliminary
results of internal studies are not maintained after further
testing and/or analysis.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern Saskatchewan,
Canada. The Company's flagship project is the 90% owned
Wheeler River Uranium Project, which is the largest undeveloped
uranium project in the infrastructure rich eastern portion of the
Athabasca Basin region of northern
Saskatchewan. Denison's interests
in Saskatchewan 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 contracted to process the ore from the
Cigar Lake mine under a toll milling agreement, plus a 25.17%
interest in the Midwest deposits and a 66.71% interest in the J
Zone and Huskie deposits on the Waterbury Lake property. The
Midwest, J Zone and Huskie deposits are located within 20
kilometres of the McClean Lake mill. In addition, Denison has an
extensive portfolio of exploration projects in the Athabasca Basin region.
Denison is engaged in mine decommissioning and environmental
services through its Closed Mines group, which manages Denison's
Elliot Lake reclamation projects
and provides post-closure mine and maintenance services to industry
and government clients.
Denison is also the manager of Uranium Participation
Corporation, a publicly traded company listed on the TSX under the
symbol 'U', which invests in uranium oxide in concentrates and
uranium hexafluoride.
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. David
Bronkhorst, P.Eng, Denison's Vice President, Operations, who
is a Qualified Person in accordance with the requirements of NI
43-101.
Cautionary Statement Regarding Forward-Looking
Statements
Certain information contained in this news release
constitutes 'forward-looking information', within the meaning of
the applicable United States and
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 news release contains
forward-looking information pertaining to the following: the
mineral resource estimate for J Zone and Concept Study as well as
their underlying assumptions and interpretations; the expectations
for further evaluation activities including a PEA; and expectations
regarding its joint venture ownership interests and the continuity
of its agreements with its partners.
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 such forward-looking statements.
For example, further studies, including a PEA, may not be
undertaken if the results of the Concept Study are not maintained
after further testing; Denison may decide or otherwise be required
to discontinue the related work if it is unable to maintain or
otherwise secure the necessary resources (such as testing
facilities, capital funding, regulatory approvals, etc.) or
operations are otherwise affected by COVID-19 and its potentially
far-reaching impacts. 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 results 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 13, 2020
or subsequent quarterly financial reports 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 news 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 news release. Denison does not undertake any obligation to
publicly update or revise any forward-looking information after the
date of this news release to conform such information to actual
results or to changes in Denison's expectations except as otherwise
required by applicable legislation.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred Mineral Resources and
Probable Mineral Reserves: This press release may use
the terms 'measured', 'indicated' and 'inferred' mineral resources.
United States investors are
advised that while such terms have been prepared in accordance with
the definition standards on mineral reserves of the Canadian
Institute of Mining, Metallurgy and Petroleum referred to in
Canadian National Instrument 43-101 Mineral Disclosure Standards
('NI 43-101') and are recognized and required by Canadian
regulations, these terms are not defined under Industry Guide 7
under the United States Securities Act and, until recently, have
not been permitted to be used in reports and registration
statements filed with the United States Securities and Exchange
Commission ('SEC'). '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. In addition, the terms "mineral reserve",
"proven mineral reserve" and "probable mineral reserve" for the
purposes of NI 43-101 differ from the definitions and allowable
usage in Industry Guide 7. Effective February 2019, the SEC adopted amendments to its
disclosure rules to modernize the mineral property disclosure
requirements for issuers whose securities are registered with the
SEC under the Exchange Act and as a result, the SEC now recognizes
estimates of "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources". In addition, the SEC
has amended its definitions of "proven mineral reserves" and
"probable mineral reserves" to be "substantially similar" to the
corresponding definitions under the CIM Standards, as required
under NI 43-101. However, information regarding mineral
resources or mineral reserves in Denison's disclosure may not be
comparable to similar information made public by United States companies.
Figure 1: Waterbury Lake Project – Location of J
Zone Relative to McClean Lake
Mill
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SOURCE Denison Mines Corp.