TORONTO, June 6, 2018 /CNW/ - Denison Mines Corp.
("Denison" or the "Company") (TSX: DML) (NYSE MKT: DNN) (NYSE
American: DNN) is pleased to announce summer 2018 drilling plans,
and report assay results from the winter 2018 drilling program, for
the Company's 63.3% owned Wheeler River project in northern
Saskatchewan. View PDF Version
Summer 2018 Drilling Program
The summer 2018 diamond drilling program for Wheeler River is
scheduled to commence this week and is expected to include
approximately 20,500 metres in 28 drill holes. The drilling program
is planned to focus on the following target areas:
- K-North - Follow-up of high-grade uranium mineralization
discovered during the winter 2018 drilling program at 600 metres
and 1 kilometre to the northeast of the Gryphon uranium deposit
(see Winter 2018 Assay Highlights below).
- High-Priority Regional - Testing of
high-priority targets along known fertile trends (Q Central,
K-West) and reconnaissance exploration of high-priority targets
generated from previous ground geophysical surveys (K-South and Q
South).
- Gryphon Unconformity - Testing of targets
immediately along strike of the Gryphon deposit at the
sub-Athabasca unconformity,
including extensions of the E series lenses to the northeast and
the up-plunge extents of the D series lenses to the southwest.
Dale Verran, Vice President
Exploration of Denison commented, "The summer 2018 drilling
program will largely be results driven, focused on high-priority
regional targets outside of the immediate Gryphon resource area,
and will include both the follow-up of high-grade mineralization
and the testing of geophysical anomalies on geologically favourable
trends. With 3 drill rigs turning on the project we are looking
forward to a productive summer with the potential to deliver the
next discovery at Wheeler River."
A location map of the summer 2018 drilling target areas is
provided in Figure 1. View Figure 1
Winter 2018 Assay Highlights
Chemical assay ("U3O8") results have been
received for the Wheeler River winter 2018 drilling program, which
included 21,153 metres of drilling in 29 diamond drill holes.
The assay results were on average 26% higher, in
terms of combined grade and thickness, than the preliminary
equivalent uranium ("eU3O8") results reported
previously (see Denison's press release dated April 18, 2018). The program was focused on
step-out drilling from the Gryphon deposit and regional exploration
along the K-North and K-West trend.
- Regional Exploration: Assay results confirmed high-grade
intercepts from reconnaissance drill holes targeting the
sub-Athabasca unconformity, to the
northeast of Gryphon, along the K-North trend. Highlight assay
results include:
- 1.4% U3O8
over 5.5 metres, located 600 metres northeast of Gryphon,
including 7.2%
U3O8 over 1.0
metre in drill hole WR-704; and
- 1.1%
U3O8 over 3.0
metres, located 1 kilometre northeast of Gryphon,
including 2.8%
U3O8 over
1.0 metre in drill hole WR-710D1.
The results confirm the
continuation of the Gryphon mineralizing system to the northeast,
and highlight the potential for the discovery of an additional
high-grade uranium deposit within the basement or at the
unconformity along strike of Gryphon.
- Gryphon Exploration: Multiple basement uranium
intercepts were confirmed from step-out drilling on 50 to 100 metre
centres immediately along strike to the northeast of the Gryphon
deposit. Assay highlights from the Gryphon step-out drilling
include:
- Intercepts of upper basement mineralization extending the E
series lenses to the northeast: 2.9%
U3O8 over 1.5
metres in drill hole WR-696; 1.2%
U3O8 over 1.5 metres in drill hole WR-709;
and 0.29% U3O8 over 3.0 metres in drill hole
WR-702; and
- Intercept of basement mineralization, 100 metres along strike
to the northeast of the previous down-plunge extent of A series
mineralization for the Gryphon deposit, including: 0.85%
U3O8 over 5.0
metres, including 2.6%
U3O8 over 1.0
metre in drill hole WR-698.
The results confirm potential to
continue to expand the Gryphon mineral resource outside of the
current extents of the deposit.
Comprehensive drilling tables of composited assay results are
provided in Table 1 and 2 below. The location of the drill holes
and the highlight assay results are shown in Figure 2. View Figure
2
Table 1: Composited assay results from the
winter 2018 regional exploration drilling
program.
Drill
Hole
|
From
(m)
|
To
(m)
|
Length
(m)5
|
U3O8
(%)1,2,4
|
Previously
Reported
eU3O8
Result6
|
Zone
|
WR-697D1
|
557.7
|
558.7
|
1.0
|
0.09
|
0.09% / 1.0
m
|
K-North - 400 m
NE of Gryphon
|
and
|
665.0
|
666.0
|
1.0
|
0.16
|
0.23% / 1.0
m
|
WR-700
|
Below assay
cut-off
|
0.11% / 1.0
m
|
WR-701
|
No significant
mineralization
|
|
K-North - 600 m
NE of Gryphon
|
WR-704
|
562.2
|
567.7
|
5.5
|
1.4
|
0.55% / 5.6
m
|
including3
|
565.2
|
566.2
|
1.0
|
7.2
|
2.3% / 1.0
m
|
WR-705
|
No significant
mineralization
|
|
K-North - 800 m
NE of Gryphon
|
WR-708
|
No significant
mineralization. Anomalous geochemistry.
|
|
WR-710
|
No significant
mineralization.
|
|
K-North - 1 km
NE of Gryphon
|
WR-710D1
|
567.3
|
570.3
|
3.0
|
1.1
|
0.94% / 3.5
m
|
including3
|
569.3
|
570.3
|
1.0
|
2.8
|
2.7% / 1.0
m
|
WR-714
|
No significant
mineralization. Anomalous geochemistry.
|
|
K West
|
WR-716
|
No significant
mineralization
|
|
WR-715
|
No significant
mineralization. Anomalous geochemistry.
|
|
WR-717
|
No significant
mineralization
|
|
|
|
Notes:
|
1.
|
U3O8 is the chemical assay
of mineralized split core samples.
|
2.
|
Composited above a
cut-off grade of 0.05% U3O8 unless
otherwise indicated.
|
3.
|
Composited above a
cut-off grade of 1.0% U3O8.
|
4.
|
Composites compiled
using 1.0 metre minimum mineralization thickness and 2.0 metres
maximum waste.
|
5.
|
As the drill holes
are oriented steeply toward the northwest and the unconformity
mineralization is interpreted to be flat-lying, the true thickness
of the mineralization is expected to be approximately 75% of the
intersection lengths.
|
6.
|
Previously reported
radiometric equivalent U3O8 result
("eU3O8") derived from a calibrated total
gamma down-hole probe (see Denison's press release dated April 18,
2018).
|
Table 2: Composited assay results from the
winter 2018 Gryphon exploration drilling
program.
Section
|
Drill
Hole
|
From
(m)
|
To
(m)
|
Length
(m)5
|
U3O8
(%)1,2,4
|
Previously
Reported
eU3O8
Result6
|
Zone
|
5350GP
|
WR-698
|
777.0
|
782.0
|
5.0
|
0.85
|
0.82% / 3.9
m
|
A/B/C
Lens
|
including3
|
777.5
|
778.5
|
1.0
|
2.6
|
2.1% / 1.0
m
|
including3
|
779.5
|
780.5
|
1.0
|
1.3
|
|
and
|
Merged with above
interval
|
0.05% / 1.0
m
|
WR-698D1
|
783.4
|
784.4
|
1.0
|
0.05
|
0.06% / 1.0
m
|
5400GP
|
WR-703
|
806.5
|
809.0
|
2.5
|
0.48
|
0.35% / 2.3
m
|
and
|
814.0
|
815.0
|
1.0
|
0.09
|
0.08% / 1.0
m
|
WR-703D1
|
No significant
mineralization
|
5450GP
|
WR-707
|
802.5
|
803.5
|
1.0
|
0.23
|
0.15% / 1.0
m
|
5325GP
|
WR-696
|
Below assay
cut-off
|
0.28% / 1.2
m
|
E Lens
|
and
|
595.2
|
596.7
|
1.5
|
2.9
|
2.5% / 1.3
m
|
|
including3
|
595.2
|
596.2
|
1.0
|
4.1
|
3.3% / 1.0
m
|
|
and
|
Below assay
cut-off
|
0.06% / 1.0
m
|
|
and
|
624.6
|
625.6
|
1.0
|
0.19
|
0.09% / 1.0
m
|
|
and
|
665.0
|
666.0
|
1.0
|
0.30
|
0.42% / 1.2
m
|
|
5350GP
|
WR-699
|
No significant
mineralization
|
|
WR-699D1
|
604.7
|
605.7
|
1.0
|
0.06
|
0.06% / 1.0
m
|
|
and
|
606.7
|
607.7
|
1.0
|
0.05
|
|
|
and
|
620.4
|
621.4
|
1.0
|
0.06
|
0.07% / 1.0
m
|
|
5400GP
|
WR-702
|
543.4
|
546.4
|
3.0
|
0.29
|
0.38% / 2.8
m
|
|
and
|
552.8
|
553.8
|
1.0
|
0.05
|
|
|
and
|
579.9
|
580.9
|
1.0
|
0.07
|
|
|
and
|
705.4
|
706.4
|
1.0
|
0.09
|
0.09% / 1.0
m
|
|
and
|
715.5
|
716.5
|
1.0
|
0.26
|
0.44% / 1.0
m
|
|
WR-702D1
|
556.2
|
557.7
|
1.5
|
0.38
|
0.26% / 1.0
m
|
|
5450GP
|
WR-706
|
No significant
mineralization
|
|
5500GP
|
WR-709
|
580.6
|
582.1
|
1.5
|
1.2
|
0.86% / 1.9
m
|
|
including3
|
580.1
|
581.1
|
1.0
|
1.2
|
1% / 1.0
m
|
|
WR-709D1
|
No significant
mineralization
|
|
5550GP
|
WR-712
|
Below assay
cut-off
|
0.09% / 1.0
m
|
|
4975GP
|
WR-718
|
No significant
mineralization.
|
D Lens
|
5000GP
|
WR-713
|
669.0
|
671.0
|
2.0
|
0.09
|
0.16% / 2
m
|
|
5025GP
|
WR-713D1
|
No significant
mineralization.
|
|
5075GP
|
WR-711
|
Below assay
cut-off
|
0.06% / 1.0
m
|
|
and
|
635.0
|
637.5
|
2.5
|
0.24
|
0.06% / 1.0
m
|
|
and
|
Merged with above
interval
|
0.46% / 1.1
m
|
|
Notes:
|
1.
|
U3O8 is the chemical assay
of mineralized split core samples.
|
2.
|
Composited above a
cut-off grade of 0.05% U3O8 unless
otherwise indicated.
|
3.
|
Composited above a
cut-off grade of 1.0% U3O8.
|
4.
|
Composites compiled
using 1.0 metre minimum mineralization thickness and 2.0 metres
maximum waste.
|
5.
|
As the drill holes
are oriented steeply toward the northwest and the unconformity
mineralization is interpreted to dip moderately to the southeast,
the true thickness of the mineralization is expected to be
approximately 75% of the intersection lengths.
|
6.
|
Previously reported
radiometric equivalent U3O8 result
("eU3O8") derived from a calibrated total
gamma down-hole probe (see Denison's press release dated April 18,
2018).
|
Sampling and Assay Procedures
Drill core with anomalous total gamma radioactivity (>300
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 Wheeler River
Wheeler River is the largest undeveloped high-grade
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 at an
average grade of 3.3% U3O8, plus combined
Inferred Mineral Resources of 3.0 million pounds
U3O8 at an average grade of 1.7%
U3O8. The project is host
to the high-grade Gryphon and Phoenix uranium deposits (discovered by
Denison in 2014 and 2008, respectively), and is a
joint venture between Denison (63.3% and operator),
Cameco Corp. ("Cameco") (26.7%), and JCU
(Canada) Exploration Company
Limited ("JCU") (10%).
A Pre-Feasibility Study ("PFS") was initiated for the Wheeler
River project in Q3'2016 and is expected to be completed during
2018. Prior to initiation of the PFS, a Preliminary Economic
Assessment ("PEA") was completed in 2016,
which considered the potential economic merit of
co-developing the high-grade Gryphon and Phoenix deposits as a single underground
mining operation. The PEA returned a base case pre-tax Internal
Rate of Return ("IRR") of 20.4% based on the then
current long term contract price of uranium (US$44.00 per pound
U3O8), and
Denison's share of estimated initial capital expenditures ("CAPEX")
of CAD$336M (CAD$560M on 100% basis).
The PEA is preliminary in nature and includes inferred
mineral resources that are considered too speculative geologically
to have the economic considerations applied to them to be
categorized as mineral reserves, and there is no certainty that the
preliminary economic assessment will be realized. Mineral resources
are not mineral reserves and do not have demonstrated economic
viability.
In January, 2017, Denison entered into an agreement
with its Wheeler River Joint Venture partners, Cameco and JCU, to
fund 75% of Joint Venture expenses in 2017 and 2018 (ordinarily
60%) in exchange for an increase in Denison's interest in the
project to up to approximately 66%. Under the terms of the
agreement, Cameco will fund 50% of its ordinary 30% share in 2017
and 2018, and JCU is expected to continue to fund its 10% interest
in the project. Pursuant to the agreement, as at December 31, 2017, Denison had increased its
interest in the Wheeler River project from 60% to 63.3%.
Further details regarding the Wheeler River project are
provided in the NI 43-101 Technical Report for the Wheeler River
project titled "Technical Report with an Updated Resource Estimate
for the Wheeler River Property, Northern
Saskatchewan, Canada" dated March 15,
2018 with an effective date of March
9, 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.
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 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.
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
activities, plans and objectives; potential mineralization of drill
targets and identified trends; estimates of Denison's mineral
resources and the results of its PEA; plans and objectives with
respect to preparing a PFS to assess on a preliminary basis the
potential for mine development an whether to proceed with a
detailed feasibility study; and Denison's percentage interest 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.
Factors, such as environmental impacts, stakeholder approvals, and
capital needs can significant alter plans and achievements.
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.
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.