TORONTO, Nov. 12, 2018 /PRNewswire/ - Denison
Mines Corp. ("Denison" or the "Company") (DML: TSX, DNN: NYSE
American) filed its Consolidated Financial Statements and
Management's Discussion & Analysis ("MD&A") for the quarter
ended September 30, 2018. Both
documents can be found on the Company's website at
www.denisonmines.com or on SEDAR (at www.sedar.com) and EDGAR (at
www.sec.gov/edgar.shtml). The highlights provided below are
derived from these documents and should be read in conjunction with
them. All amounts in this release are in Canadian dollars unless
otherwise stated. View PDF version
David Cates, President and CEO of
Denison commented, "The Company's activities during the
third quarter of 2018 have served to remind investors why Denison
is such a unique uranium investment case. Developments from the
quarter were highlighted by exceptional results from the completion
of the Wheeler River PFS, including an estimated operating cost of
US$3.33/lb U3O8
from the high-grade Phoenix
deposit – representing nearly a 90% operating margin at the current
spot price of uranium. The PFS also features comparatively very low
initial capital costs, for an Athabasca Basin development project, with only
~$290 million attributable to
Denison's recently consolidated 90% interest in the project. In
addition to the results from the Wheeler River PFS, the Company
also delivered exciting results on the exploration side –
discovering a new area of uranium and base metals mineralization on
the K West trend on the Wheeler River property (approximately 500
metres west of the parallel K North trend, which hosts the Gryphon
deposit), and a new area of uranium mineralization on the Waterbury
Lake property, at the interpreted intersection of the GB trend and
the Midwest regional structure.
As the uranium market continues to recover, Denison intends
to continue to position itself as a 'must own' stock, offering
investors a unique combination of exposure to both the future
development of Wheeler River, an exceptionally low-cost and
large-scale uranium mining operation, and discovery success across
a diverse portfolio of highly prospective exploration
properties."
PERFORMANCE HIGHLIGHTS
- Wheeler River Pre-Feasibility Study ('PFS') returns project
level pre-tax NPV of $1.31 billion
and IRR of 38.7%
On September 24, 2018, Denison
released the results of the PFS for its flagship Wheeler River
uranium project ('Wheeler River') in northern Saskatchewan. The PFS has been completed in
accordance with NI 43-101 and is highlighted by the selection of
the in-situ recovery ('ISR') mining method for the development of
the Phoenix deposit, with an
estimated average operating cost of $4.33 (US$3.33) per
pound U3O8. The project, on a 100% basis, is
estimated to have mine production of 109.4 million pounds
U3O8 over a 14-year mine life, with a base
case pre-tax Net Present Value ('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 complete technical report, supporting the disclosure of the PFS
results on September 24, 2018, was
made available on Denison's website as well as SEDAR and EDGAR on
October 30, 2018.
- Acquisition of additional Wheeler River ownership
interest
On October 29, 2018, Denison
announced that it completed a transaction with Cameco Corporation
('Cameco') to increase its ownership interest in the Wheeler River
Joint Venture ('WRJV') to 90%. Denison acquired Cameco's
approximately 24% interest in the project in exchange for the
issuance of 24,615,000 common shares of Denison.
- Discovery of unconformity uranium and base metals on the K
West trend at Wheeler River
Highlights from the Company's summer 2018 diamond drilling
program at Wheeler River include the discovery of
unconformity-hosted mineralization on the K West trend, including
0.30% U3O8, 4.7% Co, 3.7% Ni and 0.55% Cu
from 651.1 to 652.1 metres in drill hole WR-733D1 and 1.2% Cu
and 0.49% Ni from 636.6 to 642.6 metres in drill hole WR-733D2. The
K West trend is a priority target area located approximately 500
metres west of the parallel K North trend, which hosts the Gryphon
deposit. The results are associated with significant structure and
alteration in the overlying sandstone, as well as elevated uranium
values (averaging 17 ppm uranium) extending up to 100 metres above
the unconformity. The results are encouraging and further drill
testing is warranted to the south, where up to five kilometres of
strike length remains untested along the K West trend.
- Exploration success at Waterbury Lake with the discovery of
uranium mineralization on the GB Trend
On September 17, 2018, Denison
reported the discovery of uranium mineralization on the Company's
65.92% owned Waterbury Lake project. Basement-hosted uranium
mineralization was intersected in two drill holes on the GB trend,
approximately three kilometres northeast of the project's Huskie
zone, including mineralized assay intervals of 0.43%
U3O8 over 1.0 metre (including 0.73%
U3O8 over 0.5 metre) 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.
The results validate the Company's geological concept that uranium
mineralization occurs at the intersection of the interpreted
regional Midwest structure with cross-cutting, graphite-bearing,
structural corridors on the Waterbury Lake project.
- Maiden mineral resource estimate completed for the Huskie
deposit at Waterbury Lake
Denison completed a maiden mineral resource estimate for
the Huskie basement-hosted uranium deposit in accordance with NI
43-101 and CIM Definitions (2014), which was reviewed and audited
by SRK Consulting (Canada) Inc.
('SRK'). Since its discovery in 2017, Denison has completed 28
drill holes at Huskie at a spacing of approximately 50 metres x 50
metres to define the deposit over a strike length of approximately
210 metres and dip length of up to 215 metres. The deposit has been
interpreted to include three parallel, stacked lenses of
mineralization (Huskie 1, Huskie 2 and Huskie 3) which vary in true
thickness between approximately 1 and 7 metres. The result of the
2017 and 2018 drilling campaigns at Huskie is an inferred mineral
resource estimate of 5.7 million pounds of
U3O8 (above a cut-off grade of 0.1%
U3O8) based on 268 thousand tonnes of
mineralization at an average grade of 0.96%
U3O8. The effective date of the resource
estimate is October 17, 2018.
SELECTED QUARTERLY FINANCIAL INFORMATION
|
|
|
|
|
(in thousands, except
for per share amounts)
|
|
Q3
2018
|
|
Q3
2017
|
|
|
|
|
|
Total
revenues
|
$
|
3,729
|
$
|
3,753
|
Net loss
|
$
|
(3,884)
|
$
|
(7,627)
|
Basic and diluted
loss per share
|
$
|
(0.01)
|
$
|
(0.01)
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
As
at September
30, 2018
|
|
As
at December
31, 2017
|
|
|
|
|
|
Financial
Position:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
21,470
|
$
|
3,636
|
Investments in debt
instruments (GICs)
|
$
|
-
|
$
|
37,807
|
Cash, cash
equivalents and GICs
|
$
|
21,470
|
$
|
41,443
|
|
|
|
|
|
Working
capital
|
$
|
22,345
|
$
|
38,065
|
Property, plant and
equipment
|
$
|
247,003
|
$
|
249,002
|
Total
assets
|
$
|
302,269
|
$
|
326,300
|
Total long-term
liabilities(1)
|
$
|
80,055
|
$
|
84,252
|
|
(1) Predominantly comprised of
the non-current portion of deferred revenue, non-current
reclamation obligations, and deferred income taxes.
|
RESULTS OF CONTINUING OPERATIONS
Revenues
During Q3 2018, the McClean Lake mill processed 2.9 million
pounds U3O8 for the Cigar Lake Joint Venture
('CLJV'). The Company recorded toll milling revenue of
$755,000 and related accretion
expense of $829,000.
Revenue from the Company's DES division was $2,365,000 and revenue from the Company's
management contract with UPC was $609,000 during Q3 2018.
Effective January 1, 2018, upon
adoption of IFRS 15, the accounting policy applicable to the
Company's toll milling deferred revenue arrangement with Anglo
Pacific Group PLC (the 'APG Transaction') has changed and the
comparative period has been restated to reflect this change. Refer
to the Company's unaudited interim consolidated financial
statements and related notes for more details on the accounting for
the APG Transaction related revenue.
Operating expenses
Operating expenses in the Canadian mining segment include
depreciation, mining and other development costs, as well as
adjustments, where applicable, to the estimates of future
reclamation costs in relation to the companies mining
properties. Operating expenses during Q3 2018 were
$2,141,000, including $529,000 of depreciation from the McClean Lake
mill, which is associated with the processing and packaging of
U3O8 for the CLJV. Operating expenses include
development and other operating costs related to the McClean Lake
Joint Venture ('MLJV') of $1,610,000.
These costs predominantly relate to the advancement of the Surface
Access Borehole Resource Extraction ('SABRE') mining technology, as
part of a multi-year test mining program operated by Orano Canada
within the MLJV. During the current quarter, drilling and casing of
four access holes was successfully completed into the McClean North
deposit. The holes were drilled from surface to the top of the
orebody and will allow for mining of the orebody beneath the holes
during the latter stages of the test mining program. All holes were
within the specifications required in terms of deviation, size and
depth.
Operating expenses at DES during Q3 2018 totaled $2,051,000 and relate primarily to care and
maintenance, and environmental consulting services provided to
clients, and includes labour and other costs.
Exploration and evaluation
During Q3 2018, the Company continued to focus on its highest
priority projects in the Athabasca
Basin region in Saskatchewan. Denison's share of exploration
and evaluation expenditures in the quarter was $3,894,000. The Company's Athabasca land package decreased during the
third quarter from 356,713 hectares (305 claims) to 320,166
hectares (292 claims), primarily due to Skyharbour Resources Ltd.
completing its option to acquire 100% of the Moore Lake project,
which accounted for 35,705 hectares (12
claims).
Wheeler River
Project Highlights:
- PFS results produce a pre-tax NPV of 2.75 times the 2016
preliminary economic analysis ('2016 PEA')
On September 24, 2018, the
Company announced the results of the PFS for Wheeler River. On
October 30, 2018, Denison filed the
technical report for the PFS titled 'Pre-feasibility Study Report
for the Wheeler River Uranium Project, Saskatchewan, Canada' prepared by Mark Liskowich, P.Geo. of SRK Consulting
(Canada) Inc. with an effective
date of September 24, 2018 (the "PFS
Technical Report").
The PFS was completed in accordance with National Instrument 43-101
and is highlighted by the selection of the ISR mining method for
the development of the Phoenix
deposit, with an estimated average operating cost of $4.33 (US$3.33) per
pound U3O8.
The PFS considers the potential economic merit of co-developing the
Phoenix and Gryphon deposits. The
high-grade Phoenix deposit is
designed as an ISR mining operation, with associated processing to
a finished product occurring at a plant to be built on site at
Wheeler River. The Gryphon deposit is designed as an underground
mining operation, utilizing a conventional long hole mining
approach with processing of mine production assumed at Denison's
22.5% owned McClean Lake mill. 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), IRR of 38.7%, and initial pre-production capital
expenditures of $322.5 million.
The base-case economic analysis assumes uranium sales are made at
UxC Consulting Company, LLC's ('UxC') annual estimated spot price
(composite mid-point scenario in constant dollars) for mine
production from the Phoenix
deposit (from ~US$29/lb
U3O8 to US$45/lb U3O8), and a fixed
price for mine production from the Gryphon deposit (US$50/lb U3O8).
Using the same price assumed for the project's 2016 PEA, a fixed
uranium price of US$44/lb
U3O8, the PFS produces a combined pre-tax
project NPV of $1.41 billion –
representing roughly 2.75 times the $513
million pre-tax project NPV estimated in the 2016 PEA.
The PFS was prepared on a project (100% ownership) and pre-tax
basis. Denison completed an indicative post-tax assessment based on
a 90% ownership interest, yielding a base case post-tax NPV of
$755.9 million and post-tax IRR of
32.7%, with initial capital costs to Denison of $290.3 million.
- The largest undeveloped uranium project in the eastern
Athabasca Basin
With the completion of the PFS and in accordance with NI
43-101 standards, the Company has declared the following mineral
reserves and resources (see the PFS Technical Report for further
details).
-
- Probable Mineral Reserves of 109.4 million pounds
U3O8 (Phoenix 59.7 million pounds
U3O8 from 141,000 tonnes at 19.1%
U3O8; Gryphon 49.7 million pounds
U3O8 from 1,257,000 tonnes at 1.8%
U3O8);
- Indicated Mineral Resources (inclusive of Reserves) of 132.1
million pounds U3O8 (1,809,000 tonnes at an
average grade of 3.3% U3O8); plus
- Inferred Mineral Resources of 3.0 million pounds
U3O8 (82,000 tonnes at an average grade
of 1.7% U3O8).
- Potential for resource growth
Very little regional exploration has taken place on the
property in recent years, with drilling efforts focussed on
Phoenix and Gryphon, which were
discovered in 2008 and 2014 respectively. The property is host to
numerous uranium-bearing lithostructural corridors which are under-
or unexplored and have the potential for additional large,
high-grade unconformity or basement hosted deposits. Exploration
drilling is warranted along these corridors to follow-up on
previous mineralized drill results, or to test geophysical targets
identified from past surveys.
Evaluation Program:
During Q3 2018, Denison's share of evaluation costs at Wheeler
River amounted to $797,000, which
related to completion of the PFS and continued environmental and
sustainability activities.
During Q3 2018, the Company continued with the community
consultation and engagement process as well as environmental
baseline data collection activities. Additional environmental
baseline data is being collected in key areas to better
characterize the existing environment in the project area. This
data will form the foundation of the environmental impact
assessment for the project. The information will also be used in
the design of various aspects of the project, including the
location and layout of site infrastructure, the location for
treated effluent discharge and fresh water intake, and the designs
of water treatment plants, waste storage facilities, and other
infrastructure interacting with the environment. Programs in
progress and/or completed during the quarter included a range of
studies related to the aquatic environment, terrestrial
environment, atmospheric environment, and waste rock
geochemistry.
Exploration Program:
Denison's share of exploration costs at Wheeler River amounted
to $2,058,000 during Q3 2018. The
summer 2018 diamond drilling program for Wheeler River commenced in
early June 2018 and was completed in
late August 2018. The program
included 18,402 metres in 31 drill holes and was largely focused on
testing regional target areas (outside of the immediate Gryphon and
Phoenix deposit areas) across the
Wheeler River property.
K West
The summer 2018 drilling program, which included 3,222 metres in
5 drill holes in this area, was designed to test the K West fault
zone at the sub-Athabasca
unconformity on the northern portion of the trend. Highlight
results include the intersection of uranium and base-metal
mineralization at the unconformity, including 0.30%
U3O8, 4.7% Co, 3.7% Ni and 0.55% Cu from
651.1 to 652.1 metres in drill hole WR-733D1, and 1.2% Cu and
0.49% Ni from 636.6 to 642.6 m in
drill hole WR-733D2. The results are associated with significant
structure and alteration in the overlying sandstone, as well as
elevated uranium values, averaging 17 ppm uranium, extending up to
100 metres above the unconformity. Further drilling is warranted to
test this target horizon to the south, where up to five kilometres
of strike length remains untested along the K West trend. Refer to
the MD&A for further information.
K North
The summer 2018 program, which included 3,003 metres in five
drill holes in this area, was designed to extend the unconformity
mineralization, identified during the winter 2018 drill program, on
section and along strike on 200 metre-spaced drill fences.
Mineralization was intersected 600 metres northeast of Gryphon
including 0.15% U3O8 over 1.0 metre in drill
hole WR-704D1. Further potential for mineralization exists, both at
the unconformity and within the basement, between the 200
metre-spaced drill fences.
Q Central, Q South, K South
Regional exploration drilling was undertaken at Q Central (2,547
metres in five drill holes), Q South (3,306 metres in six drill
holes) and at K South (2,370 metres in four drill holes) to test
geological and geophysical targets on a reconnaissance scale.
Favourable geology, structure, alteration and anomalous
geochemistry was encountered in all the target areas and follow-up
will be planned based on a more detailed assessment of geochemical,
spectral clay and structural data.
Gryphon Unconformity
A total of 3,954 metres of exploration drilling in six drill
holes was completed to test unconformity targets to the southwest
and northeast of the Gryphon deposit. To the southwest of Gryphon,
five holes were completed to test for unconformity mineralization
along the Basal Fault at the up plunge projection of the D series
lenses. Results included the intersection of mineralization, in
drill hole WR-722D1 (0.13% U3O8 over 1.5
metres), immediately below the unconformity. The continuity of
significant sandstone structure and strong hydrothermal alteration
over the 500 metres of strike length tested suggests further
potential for unconformity mineralization associated with the Basal
Fault. This target horizon is wide-open to the southwest and a
priority target exists a further 400 metres to the southwest where
previous drilling returned weak basement mineralization along the
Basal Fault and 4.5% U3O8 over 4.5 metres
(drill hole WR-597) at the intersection of the unconformity with
the G-Fault.
Exploration Pipeline Properties
While spending on exploration pipeline projects has been reduced
from prior year levels, exploration activities continue to deliver
encouraging results generally warranting follow-up.
During the 2018 summer season, Denison carried out exploration
programs at Waterbury Lake, Hook-Carter and South Dufferin. Results
from the Hook-Carter and South Dufferin drilling programs were
reported with the Company's financial results for the second
quarter of 2018.
The summer/fall program at Waterbury Lake included a diamond
drilling program and a DCIP resistivity survey – with the highlight
being the discovery of new uranium mineralization at the
interpreted intersection of the GB trend with the regional Midwest
structure, roughly 3 kilometres to the northeast of the Huskie
deposit. Mineralized assay results from the GB trend
discovery included intervals of 0.43% U3O8
over 1.0 metre (including 0.73% U3O8 over 0.5
metre) 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. The results validate the Company's geological
concept that uranium mineralization occurs at the intersection of
the interpreted regional Midwest structure with cross-cutting,
graphite-bearing, structural corridors on the Waterbury Lake
project.
In addition, a maiden mineral resource estimate for the Huskie
deposit, located on the Waterbury Lake project, was completed with
an effective date of October 17,
2018. Refer to Denison's MD&A filed on November 9, 2018 for more details.
At McClean Lake, a DCIP resistivity surveying was completed by
Orano Canada, and a diamond drilling program commenced in early
October 2018.
General and administrative expenses
Total general and administrative expenses were $1,657,000 during Q3 2018. These costs are
mainly comprised of head office salaries and benefits, office costs
in multiple locations, audit and regulatory costs, legal fees,
investor relations expenses, project costs, and all other costs
related to operating a public company with listings in Canada and the
United States, as well as non-recurring project or legal
costs.
Other income and expenses
During Q3 2018, the Company recognized a gain of $664,000 in other income. The gain is
predominantly due to net gains on investments carried at fair
value.
Equity share of income from associates
During Q3 2018, the Company recognized a gain of $639,000 from its 16.49% equity share of its
associate GoviEx Uranium Inc. ('GoviEx'), owing largely to an
equity gain based on the Company's share of GoviEx's net gain
during the period as well as a dilution gain as a result of other
shareholders' exercise of GoviEx share warrants.
Liquidity and capital resources
Cash and cash equivalents were $21,470,000 at September
30, 2018.
On November 2, 2018, the Company
announced it had entered into an agreement with Cantor Fitzgerald
Canada Corporation, as a sole bookrunner and lead underwriter, on
behalf of a syndicate of underwriters (together, the
'Underwriters'), under which the Underwriters have agreed to
purchase, on a 'bought deal' private placement basis, 4,950,495
common shares on a flow-through basis (the 'Flow-Through Shares')
at a price of $1.01 per share for
total gross proceeds of approximately $5,000,00. The Company also granted the
Underwriters an option to increase the gross proceeds of the
Offering by up to 10% (the 'Underwriters' Option'), exercisable in
whole or in part at any time up to two business days prior to the
closing date, which is expected to occur on or about November 23, 2018.
Outlook for 2018
Refer to the Company's annual MD&A for the year ended
December 31, 2017 for a detailed
discussion of the previously disclosed 2018 budget.
During the current quarter, the Company has decreased its 2018
outlook for development and operations expense by $600,000, primarily because of a reduction in
planned MLJV expenditures related to the advancement of the SABRE
mining method. The Company also increased its 2018 outlook for
management services fees from UPC by $100,000, primarily due to an increase in
estimated NAV-based management fees in order to reflect increased
uranium spot prices.
ABOUT DENISON
Denison was formed under the laws of Ontario and is a reporting issuer in all
Canadian provinces. Denison's common shares are listed on the
Toronto Stock Exchange (the 'TSX') under the symbol 'DML' and on
the NYSE American exchange (formerly 'NYSE American') under the
symbol 'DNN'.
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern Saskatchewan,
Canada. In addition to its 90% owned Wheeler River project,
which hosts the high grade Phoenix
and Gryphon uranium deposits, Denison's exploration portfolio
consists of numerous projects covering approximately 320,000
hectares in the Athabasca Basin
region. 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 currently processing ore from the Cigar Lake mine under a toll
milling agreement, plus a 25.17% interest in the Midwest deposit
and a 65.92% 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.
Denison is engaged in mine decommissioning and environmental
services through its Denison Environmental Services ('DES')
division, which manages Denison's Elliot
Lake reclamation projects and provides post-closure mine
care and maintenance services as well as environmental consulting
services to a variety of industry and government clients.
Denison is also the manager of Uranium Participation Corporation
('UPC'), a publicly traded company listed on the TSX under the
symbol 'U', which invests in uranium oxide in concentrates
('U3O8') and uranium hexafluoride
('UF6').
Qualified Persons
The disclosure regarding the estimated Mineral Reserves, 2016
PEA, PFS, and environmental and sustainability activities for the
Wheeler River project was reviewed and approved by Peter Longo, P. Eng, MBA, PMP, Denison's
Vice-President, and Project Development, who is a Qualified Person
in accordance with the requirements of NI 43-101.
The balance of the disclosure of scientific and technical
information regarding Denison's properties in this news release,
including estimated Mineral Resources, was prepared or approved by
Dale Verran, MSc, P. Geo,
Pr.Sci.Nat., the Company's Vice President, Exploration, a Qualified
Person in accordance with the requirements of NI 43-101. For a
description of Denison's assay procedures, downhole gamma probe
procedures, and the quality assurance program and quality control
measures applied by Denison, please see Denison's Annual
Information Form dated March 27, 2018
available under Denison's profile on SEDAR at www.sedar.com, and
its Form 40-F available on EDGAR at www.sec.gov/edgar.shtml.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain information contained in this news 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', 'target', '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'.
In particular, this news release contains forward-looking
information pertaining to the following: the benefits to be derived
from corporate transactions; the estimates of Denison's mineral
reserves and mineral resources, including the new mineral resource
estimate for the Huskie deposit; exploration, development and
expansion plans and objectives, including the results of the PFS,
and statements regarding anticipated budgets, fees and
expenditures; expectations regarding Denison's joint venture
ownership interests and the continuity of its agreements with its
partners; expectations regarding adding to its mineral reserves and
resources through acquisitions or exploration; expectations
regarding the toll milling of Cigar Lake ores; expectations
regarding revenues and expenditures from operations at DES;
expectations regarding revenues from the UPC management contract;
and the annual operating budget and capital expenditure programs,
estimated exploration and development expenditures and reclamation
costs and Denison's share of same. 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 such 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. This cautionary statement expressly
qualifies the forward-looking information contained in this news
release. 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 news 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, the United States Securities and Exchange Commission
("SEC") 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. The estimates of mineral reserves in this press
release have been prepared in accordance with 43-101. The
definition of probable mineral reserves used in NI 43-101 differs
from the definition used by the SEC in the SEC's Industry Guide
7. Under the requirements of the SEC, mineralization may not
be classified as a "reserve" unless the determination has been
made, pursuant to a "final" or "bankable" feasibility study that
the mineralization could be economically and legally produced or
extracted at the time the reserve determination is made.
Accordingly, Denison's probable mineral reserves disclosure may not
be comparable to information from U.S. companies subject to the
reporting and disclosure requirements of the SEC.
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SOURCE Denison Mines Corp.