TORONTO, Nov. 7, 2019 /PRNewswire/ - Denison Mines
Corp. ("Denison" or the "Company") (DML: TSX, DNN: NYSE
MKT) today filed its Unaudited Consolidated Financial Statements
and Management's Discussion & Analysis ("MD&A") for the
quarter ended September 30, 2019.
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 second half of 2019 has been very
exciting for Denison – as we advance our plans to validate the
applicability of In-Situ Recovery ('ISR'), the world's lowest-cost
and most-utilized method for uranium mining, at our high-grade
Phoenix deposit in the
Athabasca Basin region. Over the
last several months we have reported multiple successful results
from our ongoing ISR field test program. Taken together, these
results have greatly increased our level of confidence regarding
the ability to move fluids through the Phoenix ore body, which is an important
element of the ISR mining process.
The field test work also underscores the fact that our plan
for ISR mining of the Phoenix
deposit is based on using existing mining methods and technologies.
As a result, we have been able to quickly ramp up our test work,
including the installation of commercial scale wells, owing in
large part to the fact that ISR mining equipment and expertise has
been readily available to support our efforts. With the final
stages of the 2019 ISR field test program planned for completion in
the fourth quarter, we are beginning to look forward to 2020 and
beyond, as we accelerate towards bringing Phoenix to life as an ISR mining operation
with potentially industry leading costs."
PERFORMANCE HIGHLIGHTS
During the third quarter of 2019, the Company made several
positive announcements related to the ongoing In-Situ Recovery
('ISR') field testing taking place at the Phoenix deposit ('Phoenix') on the Company's 90% owned Wheeler
River Uranium Project ('Wheeler River') in northern Saskatchewan, Canada.
- Positive initial results from ISR field testing confirm
hydraulic connectivity within the Phoenix Deposit.
During the third quarter of 2019, the Company announced positive
initial results from ISR field testing at Phoenix. The initial test results confirmed
hydraulic connectivity between all of the ore zone test wells in
Test Area 1 (see Denison's press release dated August 27, 2019) and a significant portion of the
ore zone in Test Area 2 (see Denison's press release dated
September 19, 2019) – providing
significant preliminary indications of the suitability for the
application of ISR mining at Phoenix.
- Successful installation of commercial scale test wells in
Test Area 1 and Test Area 2
Following confirmation of hydraulic connectivity within
Phoenix described above, Denison
initiated the second stage of ISR field testing – the installation
of a large-diameter Commercial Scale Wells ('CSWs') in each of Test
Area 1 and Test Area 2 (see Denison's press release dated
October 31, 2019). CSW1 (drill hole
GWR-031, in Test Area 1) and CSW2 (drill hole GWR-032, in Test Area
2) represent the first large-diameter CSWs successfully installed,
for the purposes of ISR mining, in the Athabasca Basin region. The completion of each
CSW included the drilling of a large-diameter bore hole
(approximately12 inches in diameter) approximately 400 metres from
surface, to intersect the Phoenix
ore body, and the installation of well materials that have been
designed to meet expected environmental and regulatory standards
for eventual ISR mining.
- Successful deployment and operational testing of MaxPERF
drilling tool
Penetrators Canada Inc., developers and operators of the MaxPERF
drilling tool, successfully deployed the tool within CSW1 and
completed 28 lateral drill holes (penetration tunnels) within a
variety of ore types associated with Phoenix. Following the completion of the
MaxPERF drilling array in CSW1, initial, short-duration /
operational hydrogeological tests confirmed increased flow rates in
Test Area 1 – demonstrating the effectiveness of the MaxPERF
drilling tool in providing increased access to hydraulic
connectivity associated with the existing geological formations
within the ore zone. Deployment of the MaxPERF tool is planned to
follow at CSW2 during the remainder of the 2019 ISR Field Test
program.
- ISR field program nearing completion with long-duration
tests planned as final stage
Based on the successful completion of CSW1 and CSW2, as well as
the successful deployment of the MaxPERF tool, long-duration
(commercial scale) hydrogeological tests are planned to be
completed during the remainder of the 2019 ISR Field Test. These
tests are expected to be carried out in both CSW1 and CSW2 to allow
for the simulation of fluid flow, within Test Area 1 and Test Area
2 of Phoenix, under conditions
similar to a commercial production environment.
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%).
A 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 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 Phoenix ISR operation is estimated to have a stand-alone base
case pre-tax NPV of $930.4 million (8% discount rate),
internal rate of return ('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 was
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.
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 currently processing ore from the Cigar
Lake mine under a toll milling agreement, plus a 25.17% interest in
the Midwest deposits and a 66.51% 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 DES division, 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
('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').
Technical Disclosure and Qualified Person
The disclosure of scientific and technical information regarding
Denison's properties in this news release was prepared or reviewed
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.
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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 estimates of Denison's
mineral reserves and mineral resources; exploration, development
and expansion plans and objectives, including the results of, and
estimates and assumptions within, the PFS, the plans and objectives
for ISR and related field and hydrogeological testing plans and
objectives;; expectations regarding environmental and regulatory
standards and permitting processes; expectations regarding
Denison's joint venture ownership interests; and expectations
regarding the continuity of its agreements with third parties.
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 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 12, 2019
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 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 news release have been prepared in
accordance with NI 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' feasibility
study that the mineralization could be economically and legally
produced or extracted at the time the reserve determination is
made. Denison has not prepared a feasibility study for the purposes
of NI 43-101 or the requirements of the SEC. 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.