TORONTO, Aug. 4, 2022
/CNW/ - Denison Mines Corp. ('Denison' or the
'Company') (TSX: DML) (NYSE American: DNN) today filed its
Condensed Consolidated Financial Statements and Management's
Discussion & Analysis ('MD&A') for the quarter ended
June 30, 2022. Both documents will be
available on the Company's website at
www.denisonmines.com, 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. PDF Version
David Cates, President and CEO of
Denison commented, "During the second quarter, Denison
capitalized on rising uranium prices with the sale of the Company's
share of Canadian-origin production received from the successful
SABRE mining test completed by the McClean Lake Joint Venture
('MLJV') in 2021. The SABRE test resulted in the production of over
175,000 lbs U3O8. By comparison, this test
production represents over eight times the total mine production of
uranium reported in the United
States for 2021 – highlighting the importance of new sources
of low-cost Canadian uranium supply as the global uranium market
grapples with sanctions and self-sanctioning against Russian
uranium supplies and progresses towards a geopolitical bifurcation
where product origin could be crucial.
The Company's flagship Wheeler River development project is
well positioned to respond to global demand for Canadian-origin
uranium, and our efforts through the second quarter have produced
several key developments that have advanced the project – namely,
the receipt of regulatory approval from the Province of
Saskatchewan to carry out the
Feasibility Field Test ('FFT') planned for the Phoenix deposit and the achievement of key
metallurgical milestones to define the components necessary for the
Phoenix processing plant and
confirm our ability to produce a saleable yellowcake. We were also
pleased to report the execution of two important agreements with
Kineepik Métis Local #9 ('KML') for (i) Denison's
exploration and evaluation activities within KML's land and
occupancy area, and (ii) the co-development of an agreement related
to the advancement of the proposed Phoenix In-Situ Recovery ('ISR')
uranium mining operation.
During the second half of the year, we are anticipating the
completion of ISR field testing initiated at Wheeler River during
the first quarter of the year and the transition of our efforts to
focus on the preparation, construction, and operation of the
Phoenix FFT. From a regulatory standpoint, we are approaching the
submission of our draft Environmental Impact Statement for Wheeler
River, which is expected to represent a key accomplishment in the
environmental assessment and permitting process. On the exploration
side, we will be participating in partner-operated programs and are
planning to complete regional exploration drilling programs at
Wheeler River and Waterbury Lake."
Highlights
- Completed the sale of 40,000 pounds of
U3O8 from MLJV production at a sales price
of $74.65 (US$59.25) per pound
U3O8.
In April 2022, Denison
completed the sale of 40,000 pounds of U3O8,
representing the Company's share of production from the SABRE test
mining program completed at the MLJV in 2021. The uranium was sold
at a price of $74.65 (US$59.25) per
pound U3O8.
- Received approval to construct and operate the Phoenix
FFT
In July 2022, Denison
announced that it had received approval from the Province of
Saskatchewan to prepare,
construct, and operate the facilities required to carry out the ISR
FFT planned for the Phoenix
deposit ('Phoenix') at the
Company's 95% owned Wheeler River Uranium Project ('Wheeler River'
or 'the Project'). The approval was granted by the Saskatchewan Minister of Environment and
authorizes Denison to operate "pollutant control facilities" –
which is typical for mining operations and allows for the
management of material recovered from mineral extraction through to
waste water treatment, discharge, and storage (as applicable). The
approval followed the completion of a process involving the review
of and consultation on the Company's permit application and
supporting materials related to the FFT.
- Achieved key milestone for Phoenix with completion of metallurgical test
work to define Phoenix process
plant components and confirmation of ability to produce
Yellowcake
In August 2022, Denison
announced the substantial completion of extensive metallurgical
test work to define the mechanical components for the planned
Phoenix processing plant as part
of the Feasibility Study underway for Wheeler River. In addition,
the metallurgical program has confirmed the ability to produce a
yellowcake product that meets industry standard ASTM C967-13
specifications.
- Executed agreements with KML
In June 2022, Denison
announced that it has entered into a Participation and Funding
Agreement with KML which expresses Denison's and KML's mutual
commitment to the co-development of an agreement supporting the
advancement of the ISR uranium mining operation proposed at Wheeler
River. The Company also entered into an Exploration Agreement in
respect of all of Denison's exploration and evaluation activities
within KML's land and occupancy area. These agreements reflect
Denison's commitment to the principles set out in the Company's
Indigenous People's Policy and advancing reconciliation through
taking action.
About Denison
Denison Mines Corp. was formed under the laws of Ontario and is a reporting issuer in all
Canadian provinces and territories. Denison's common shares are
listed on the Toronto Stock Exchange under the symbol 'DML' and on
the NYSE American exchange under the symbol 'DNN'.
Denison is a uranium exploration and development company with
interests focused in the Athabasca Basin region of northern
Saskatchewan, Canada. The
Company has an effective 95% interest in its flagship 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. A Pre-Feasibility
Study ('PFS') was completed for Wheeler River in late 2018,
considering the potential economic merit of developing Phoenix as an ISR operation and the Gryphon
deposit as a conventional underground mining operation.
Denison's interests in Saskatchewan also include a 22.5% ownership
interest in the MLJV, which includes several uranium deposits and
the McClean Lake uranium mill, which 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
67.01% 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
located within 20 kilometres of the McClean Lake
mill.
Through its 50% ownership of JCU (Canada) Exploration Company Limited ('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.
Technical Disclosure and Qualified
Person
The technical information contained in this press release has
been reviewed and approved by David
Bronkhorst, P.Eng, Denison's Vice President, Operations 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 press 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 press release contains forward-looking
information pertaining to the following: projections with respect
to exploration, development and expansion plans and objectives,
including the scope, objectives and interpretations of the
Feasibility Study process for the proposed ISR operation for the
Phoenix deposit, including the FFT
and metallurgical testing programs described herein and the
interpretation of the results therefrom; expectations regarding
regulatory applications and approvals and the elements thereof,
including the submission of the Environmental Impact
Statement; expectations regarding Denison's joint venture
ownership interests; expectations regarding the continuity of its
agreements with third parties; and its interpretations of, and
expectations for, nuclear energy and uranium demand. 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.
For example, the results and underlying assumptions and
interpretations of the PFS as well as de-risking efforts such as
the ISR field programs discussed herein may not be maintained after
further testing or be representative of actual conditions within
the applicable deposits. In addition, Denison may decide or
otherwise be required to extend its evaluation activities and/or
the FS and/or otherwise discontinue testing, evaluation and
development work if it is unable to maintain or otherwise secure
the necessary approvals or resources (such as testing facilities,
capital funding, 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 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.
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SOURCE Denison Mines Corp.