TORONTO, Feb. 9, 2021 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE: DNN)
is pleased to report the results from the 2020 exploration and
expansion drilling program focused on the area proximal to the
high-grade Phoenix uranium deposit
("Phoenix") at the Company's 90% owned Wheeler River Uranium
Project ("Wheeler River"). During the program, 19 drill holes were
completed for a total of approximately 7,400 metres – all of which
were located outside of the extents of the mineral resources
currently defined at Phoenix. The results from the program
were highlighted by the intersection of high-grade uranium
mineralization in Zone C, where no mineral resource is currently
estimated:
- 5.69% U3O8 over 5.0 metres in
WR-328D1, located approximately 22 metres northeast of historic
mineralized hole WR-368 (1.59% U3O8 over
2.0 metres); and
- 8.84% U3O8 over 2.5 metres in
WR-767D1, located approximately 35 metres to the northeast of
WR-328D1.
The mineralization in WR-328D1 and WR-767D1 represent the best
mineralized intersections returned to date from exploration
drilling at Phoenix Zone C. View PDF version
Andy Yackulic, P. Geo., Denison's
Director, Exploration, commented, "The grades and thicknesses
of the mineralized intersections from the 2020 Phoenix Zone C
drilling represent a significant upgrade compared to historical
drilling at Zone C. With each successive hole at Zone C, Denison's
exploration team becomes more optimistic about the prospect of
delineating an additional mineralized zone that could potentially
be incorporated into future development plans for the Phoenix
In-situ recovery ("ISR") operation."
This press release constitutes a "designated news release"
for the purposes of the Company's prospectus supplement dated
November 13, 2020 to its short form
base shelf prospectus dated June 2,
2020.
Phoenix Zone C
Zone C is the southwestern-most mineralized zone at Phoenix (see Figure 1). Prior to the 2020
drilling program, Zone C was defined over a strike length of
approximately 250 metres by only five mineralized intersections.
Historic exploration drilling at Phoenix was largely focused on the delineation
of Zone A and Zone B. As a result of the lack of historical
drilling at Zone C, no resource estimate exists for the
mineralization previously identified at Zone C.
The 2020 drilling program was designed to test the continuity
and extents of known mineralization at Zone C. Eleven drill holes
were completed at Zone C in 2020 for a total of 4,600 metres. Three
of these drill holes returned uranium mineralization, successfully
extending the mineralized zone's strike length by approximately 20
metres to the southwest and delineating a potential high-grade
mineralized "core." Mineralized intersections from 2020 drilling at
Zone C are outlined in Table 1 and illustrated in Figure
2.
With Denison's recent decision to adopt a freeze wall design and
phased mining approach, as part of the ISR mining operation planned
for the Phoenix deposit
(See Denison's news release from
December 1, 2020), it is possible
that further exploration could result in the delineation of a
mineral resource that could become a future mining "phase" at
Phoenix. Additional drilling will be required to determine
the extent of uranium mineralization at Zone C.
Table 1 – Phoenix
Zone C Mineralized Intersections
|
|
Hole-ID
|
From
(m)
|
To
(m)
|
Length
(m)
|
U3O8(%)
|
WR-328D11,3,4
|
376.4
|
381.4
|
5.0
|
5.69
|
WR-767D11,3,4
|
382.0
|
384.5
|
2.5
|
8.84
|
WR-7712,3,4
|
376.5
|
377.5
|
1.0
|
0.89
|
Notes:
|
(1) Intersection
interval is composited above a cut-off grade of 1.0% U3O8;
(2) Intersection interval is composited above a cut-off grade of
0.1% U3O8;
(3) WR-328D1 was drilled at an azimuth of 333.7° and an inclination
of -80.3°. WR-767D1 was drilled at an azimuth of 310.4° and an
inclination of -79.3°. WR-771 was drilled at an azimuth of 310.0°
and an inclination of -79.5°.
(4) Lengths indicated are the down-hole length and do not represent
the true thickness of mineralization. True thickness is estimated
to be approximately 98% of stated downhole length.
|
Phoenix Zone A and Zone B
Eight diamond drill holes totalling 3,796.0 m were completed to test the extents of
known mineralization at Zones A and B. While several drill
holes intersected weak uranium mineralization, the only notable
potential extension of existing mineralization was reported in
drill hole WR-765D1 in Zone B – which intersected 0.36%
U3O8 over 3.5 metres (from 401.3 to 404.8
metres), drilled at an azimuth of 332.3° and an inclination of
-79.6°, approximately 15 metres east of WR-333 (which
previously intersected 14.6% U3O8 over 6.0
metres).
Sampling and Assay Procedures
Drill core with anomalous total gamma radioactivity (>300
counts per second using an 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 percentage. Pulp splits
are digested using aqua-regia, and the solution analyzed for
U3O8 weight percentage 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 13,
2020, filed under the Company's profile on SEDAR
(www.sedar.com).
About Wheeler River
Wheeler River is the largest undeveloped uranium project in
the infrastructure rich eastern portion of the Athabasca Basin region, in northern
Saskatchewan – including combined
Indicated Mineral Resources of 132.1 million pounds
U3O8 (1,809,000 tonnes at an average grade of
3.3% U3O8), plus combined Inferred Mineral
Resources of 3.0 million pounds U3O8 (82,000
tonnes at an average grade of 1.7% U3O8). The
project is host to the high-grade Phoenix and Gryphon uranium deposits,
discovered by Denison in 2008 and 2014, respectively, and is a
joint venture between Denison (90% and operator) and JCU
(Canada) Exploration Company
Limited (10%).
The Wheeler River Pre-Feasibility Study ("PFS") was completed
in late 2018, considering the potential economic merit of
developing the Phoenix deposit as
an ISR operation and the Gryphon deposit as a conventional
underground mining operation. Taken together, the project is
estimated to have mine production of 109.4 million pounds
U3O8 over a 14-year mine life, with a base
case pre-tax NPV of $1.31 billion (8%
discount rate), Internal Rate of Return ("IRR") of 38.7%, and
initial 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% discount rate),
IRR of 43.3%, initial pre-production capital expenditures of
$322.5 million, and industry leading
average operating costs of US$3.33/lb
U3O8. The PFS is prepared on a project
(100% ownership) and pre-tax basis, as each of the partners to the
Wheeler River Joint Venture are subject to different tax and other
obligations.
Further details regarding the PFS, including additional
scientific and technical information, as well as after-tax results
attributable to Denison's ownership interest, are described in
greater detail in the NI 43-101 Technical Report titled
"Pre-feasibility Study for the Wheeler River Uranium Project,
Saskatchewan, Canada" dated
October 30, 2018 with an effective
date of September 24, 2018. A
copy of this report is available on Denison's website and under its
profile on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov/edgar.shtml.
Denison suspended certain activities at Wheeler River during
2020, including the EA process, which is on the critical path to
achieving the project development schedule outlined in the
PFS. While the EA process has resumed, the Company is not
currently able to estimate the impact to the project development
schedule outlined in the PFS, and users are cautioned against
relying on the estimates provided therein regarding the start of
pre-production activities in 2021 and first production in
2024.
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 the Wheeler River project, Denison's
Athabasca Basin exploration
portfolio consists of numerous projects covering over 250,000
hectares. Denison's interests in the 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 66.90% interest in the Tthe Heldeth Túé
("THT," formerly J Zone) and Huskie deposits on the Waterbury Lake
property. Each of Midwest, Midwest A, THT and Huskie are located
within 20 kilometres of the McClean Lake mill.
Denison is engaged in mine decommissioning and environmental
services through its Closed Mines group (formerly Denison
Environmental Services), which manages Denison's Elliot Lake reclamation projects and provides
post-closure mine care and maintenance services to a variety of
industry and government clients.
Denison is also the manager of Uranium Participation Corp., a
publicly traded company which invests in uranium oxide and uranium
hexafluoride.
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. Andrew
Yackulic, P. Geo., Denison's Director, Exploration, 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: the interpretation of the results from the
2020 Phoenix exploration program, underlying assumptions and the
Company's intentions with respect thereto; the results of the PFS
and expectations with respect thereto, including the duration and
scope of impacts of the COVID-19 pandemic and affiliated
operational adjustments; development and expansion plans and
objectives, including plans future mining phases for the project
described in the PFS; 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, areas of interest for further exploration selected
based on interpretation of current and historic exploration may not
result in findings of significance after further testing.
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 Mineral Resources and Mineral
Reserves: This press release may use terms such as
"measured", "indicated" and/or "inferred" mineral resources and
"proven" or "probable" mineral reserves, which are terms defined
with reference to the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum ("CIM") CIM Definition
Standards on Mineral Resources and Mineral Reserves ("CIM
Standards"). The Company's descriptions of its projects using
CIM Standards may not be comparable to similar information made
public by U.S. companies subject to the reporting and disclosure
requirements under the United
States federal securities laws and the rules and regulations
thereunder.
Follow Denison on Twitter @DenisonMinesCo
Figure 1 - Phoenix Deposit – 2020 Exploration Drilling
Figure 2 - Phoenix Zone C – 2020 Exploration Drilling
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SOURCE Denison Mines Corp.