TORONTO, Aug. 3, 2022
/CNW/ - Denison Mines Corp. ("Denison" or the
"Company") (TSX: DML) (NYSE American: DNN) is pleased to announce
the substantial completion of extensive metallurgical
test work to define the mechanical components for
the planned Phoenix processing
plant (the "Phoenix Plant"), as part of the Feasibility Study
("FS") underway for the Company's 95% owned Wheeler River
project ("Wheeler River" or the "Project"). In addition,
the metallurgical program has confirmed the ability to produce a
yellowcake product that meets industry standard ASTM
C967-13 specifications (see below for details). View PDF
Version
Metallurgical test work intended to define the mechanical
components for the Phoenix Plant was initiated in April
2021 at the Saskatchewan Research Council ("SRC")
laboratories in Saskatoon. The test work consisted
of bench-scale lab tests using uranium
bearing solution ("UBS") that was previously
produced from lab-scale leaching of core samples from the
Phoenix deposit. These
samples are intended to be representative of what
is expected to be recovered from the In-Situ Recovery ("ISR")
wellfield planned for the Phoenix deposit (see news release dated
August 4, 2021).
Kevin Himbeault, Denison's Vice
President of Plant Operations & Regulatory Affairs,
commented, "The
comprehensive test work undertaken by the
Denison team has
demonstrated our ability to
produce (i) a
saleable uranium product utilizing a simplified
chemical precipitation
process and (ii)
high-quality effluent for final
discharge to the environment.
This is a significant
milestone from which
we can continue
to optimize the
designs for the Phoenix
Plant and further
our de-risking of
the overall Project as part of the
FS."
This press release constitutes a "designated news
release" for the purposes of the Company's prospectus supplement
dated September 28, 2021 to its short
form base shelf prospectus dated September
16, 2021.
The results of the metallurgical test work are highlighted by
the following:
- The UBS from the high-grade Phoenix deposit was processed using simple
chemical precipitation stages to remove certain elements prior to
the yellowcake precipitation circuit.
- A yellowcake product that meets uranium industry standard ASTM
C967-13 specifications (see below for details) has been
precipitated in the lab.
- A high-quality effluent was obtained using typical industrial
water treatment processes through pH control and
precipitation.
Additionally, the metallurgical test program has provided
several important inputs for the FS processes underway in
relation to the planned Phoenix Plant and ISR operation,
including confirmation of the following:
- The appropriateness of mechanical components for the Phoenix
Plant similar to those outlined in the Pre-Feasibility Study
("PFS").
- The suitability for the Phoenix Plant to process UBS head
grades averaging 15 g/L uranium.
- Metallurgical recovery rates of over 95% from processing of UBS
to yellowcake.
- The ability to achieve industry standards for yellowcake
through drying at 110°C, indicating calcination is not required for
the planned Phoenix Plant.
- The ability to produce a yellowcake product that meets industry
standards without the use of ammonia and the specialized and
additional processes typically associated therewith.
- The ability to meet final plant effluent quality discharge
criteria for protection of the environment, which is expected to be
outlined in the draft Environmental Impact Statement ("EIS")
planned to be submitted as part of the Environmental Assessment
("EA") for the Project.
Additionally, extensive test work has been completed in defining
any potential elements of concern, required process
components, reagents, and general operating parameters
necessary to mitigate processing risks and ensure the production of
a yellowcake product that meets industry standards. This has
allowed for the significant progression of the plant and
process designs for the FS.
Additional targeted metallurgical test work continues in the
following areas:
- Specialized test work to potentially further improve the
effluent treatment process, optimize reagent usage and enhance
overall environmental protection.
- Lab scale leaching of intact cores continues, with additional
tests to further refine the production recovery curve for the
Phoenix ISR operation, which will inform ISR simulation modelling
for the FS and will provide additional results for future wellfield
and ISR plant design optimization.
- Lab scale leaching and remediation tests of crushed core,
representing different hydrogeological units within the
Phoenix deposit, to determine
achievable recovery, leaching rates, and remediation plans for the
different units.
The laboratory work for the 2022 Metallurgical Program to
support the feasibility study is being carried out at the SRC
Mineral Processing and Geoanalytical Laboratories
in Saskatoon, under the supervision of Wood Canada
Limited (see news release dated September
22, 2021).
ASTM C967-13
Standard
ASTM C967-13 is a set of quality specifications applied to
uranium ore concentrate that are generally recognized in the
uranium industry for meeting requirements for refining and
conversion to uranium hexafluoride and, therefore, a
saleable product. Parties may, however, agree
to less or more stringent specifications of product
quality on a case by case basis.
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 (operator) and JCU (Canada) Exploration Company Limited
("JCU"). Denison has an effective
95% ownership interest in Wheeler River (90% directly, and 5%
indirectly through a 50% ownership in JCU).
A PFS was completed for Wheeler River in 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 its effective 95% interest in the
Wheeler River project, Denison's interests in the Athabasca Basin include a 22.5% ownership
interest in the McClean Lake joint venture, which includes several
uranium deposits and the McClean Lake uranium mill that is
contracted to process the ore from the Cigar Lake mine under a toll
milling agreement, plus a 25.17% interest in the Midwest Main 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. The Midwest Main, Midwest A, THT and Huskie deposits are
each located within 20 kilometres of the McClean Lake mill.
Through its 50% ownership of JCU, Denison holds additional
interests in various uranium project joint ventures in Canada, including the Millennium project (JCU
30.099%), the Kiggavik project (JCU 33.8118%) and Christie Lake (JCU 34.4508%). Denison's
exploration portfolio includes further interests in properties
covering approximately 300,000 hectares in the Athabasca Basin region.
Denison is also engaged in post-closure mine care and
maintenance services through its Closed Mines group (formerly
Denison Environmental Services), which manages Denison's reclaimed
mine sites in the Elliot Lake
region and provides related services to certain third-party
projects.
Follow Denison on Twitter: @DenisonMinesCo
Qualified Persons
The disclosure of scientific or technical information related
to the FFT or Wheeler River project contained in this release has
been reviewed and approved, as applicable, by Mr. David Bronkhorst, P.Eng, Denison's Vice
President, Operations or Mr. Andrew
Yackulic, P. Geo., Denison's Director, Exploration, who are
Qualified Persons 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 'potential', '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' or 'be
achieved'.
In particular, this news release contains forward-looking
information pertaining to the following: scope, objectives and
interpretations of the FS process for the proposed ISR operation
for the Phoenix deposit, including
metallurgical testing programs described herein and the
interpretation of the results therefrom; the scope and design, and
related test work, with respect to plans and process designs for
the FS; the definition of a
saleable product; and expectations regarding
its joint venture ownership interests and the continuity of its
agreements with its partners and third parties.
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, the modelling and assumptions upon which the work
plans for the Wheeler River Project are based may not be maintained
after further work is completed. In addition, Denison may
decide or otherwise be required to discontinue testing, evaluation
and development work if it is unable to maintain or otherwise
secure the necessary resources (such as testing facilities, capital
funding, regulatory approvals, etc.). 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 25, 2022 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 news release may use the terms
'measured',
'indicated' and
'inferred' mineral resources.
United States investors are
advised that 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. 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 an inferred mineral resource exists,
or is economically or legally mineable. United States investors are also cautioned not
to assume that all or any part of measured or indicated mineral
resources will ever be converted into mineral reserves.
Effective February 2019,
the United States Securities and Exchange Commission
("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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/denison-achieves-key-milestone-with-completion-of-metallurgical-test-work-to-define-phoenix-process-plant-components-and-confirmation-of-ability-to-produce-yellowcake-301598670.html
SOURCE Denison Mines Corp.