TORONTO, Sept. 8,
2022 /PRNewswire/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to report that assays recently received
from exploration drilling completed at the Company's 22.5% owned
McClean Lake Joint Venture ("McClean Lake" or "MLJV"), during the
winter of 2022, have resulted in a significant expansion of the
"new" high-grade unconformity-hosted zone of uranium mineralization
discovered in 2021 between the McClean South 8W and 8E pods (see
Denison's news release dated April 14,
2021). View PDF version.
Ten drill holes completed during 2022 by Orano Canada Inc.
("Orano Canada"), 77.5% owner and operator of the MLJV, returned
notable uranium mineralization, including drill hole MCS-58, which
returned 2.96% U3O8 over 15.5 metres,
including 24.49% U3O8 over 1.5 metres,
located approximately 54 metres to the southeast of drill hole
MCS-34, which was completed in 2021 and returned a mineralized
interval of 8.67% U3O8 over 13.5 metres.
Overall, the results from 2022 have successfully expanded the
footprint of the "new" mineralized zone to approximately 180 metres
in strike length (see Figure 1 and Figure 2).
Andy Yackulic, P.Geo., Denison's
Director, Exploration, commented, "We are pleased with the
exploration success produced by Orano Canada as operator of the
MLJV – including a significant expansion of the footprint of
high-grade uranium mineralization discovered in 2021 between the
McClean South 8W and 8E pods. Based on the results of the 14
mineralized holes drilled in this area during 2021 and 2022, a
third mineralized pod with a strike length of roughly 180 metres
has now been interpreted in the McClean South area. Given the
complex structural framework controlling the mineralization of this
"new" pod, and the fact that mineralization remains open across
strike on several fences, additional exploration drilling is
warranted."
David Cates, Denison's President
& CEO, added "The emergence of a 'new' mineralized pod in
the McClean Lake South area is quite encouraging for the
MLJV. Taken together with the successful field test of the
SABRE mining method completed in 2021, the excess licensed capacity
at the McClean Lake mill, and the approval of the McClean tailings
management facility ('TMF') expansion earlier in 2021, the
delineation of meaningful new uranium mineralization on the McClean
Lake property has the potential to translate into an important
source of future mill feed and ultimately considerable value for
the MLJV and its owners."
2022 McClean South Exploration
Highlights
A diamond drilling program consisting of 23 drill holes
totalling 5,682 metres was completed at McClean South during 2022.
The program was designed to test for the potential expansion of a
'new' pod of high-grade mineralization discovered in 2021 between
the 8W and 8E pods along the McClean South conductor, as well as to
test for additional mineralization in the surrounding area (see
Figure 2).
Uranium mineralization grading greater than 0.05%
U3O8 was intersected in 10 of 23 holes
completed at McClean South during the winter of 2022, successfully
expanding the footprint of the 'new' mineralized pod to a strike
length of approximately 180 metres. The best mineralized
intersection from the 2022 program was encountered in hole MCS-58,
grading 2.96% U3O8 over 15.5 metres
from 153.1 metres to 168.6 m, located
54 metres southeast of high-grade mineralization discovered during
2021 in MCS-34. Follow-up drilling approximately 8 metres to the
north of MCS-58 identified further unconformity-associated
mineralization, grading 0.34% eU3O8 over
9.5 metres in MCS-59A. Mineralization remains open to the north
of MCS-59A.
MCS-57, drilled approximately 28 metres along strike to the east
of MCS-58, also identified unconformity-associated uranium
mineralization, grading 0.35% U3O8 over
8.8 metres. This represents the eastern-most mineralized
intersection of the 'new' mineralized pod and remains open further
to the east for approximately 50 metres, where it appears to have
been cut off by historical drilling that has defined the western
extent of the 8E pod.
MCS-38, the first hole drilled during the 2022 drilling program,
intersected unconformity-associated uranium mineralization grading
1.17% U3O8 over 12.0 metres,
approximately 12 metres along strike to the west of the mineralized
intersection in MCS-34.
Additionally, MCS-50 tested the unconformity approximately 65
metres along strike to the west of MCS-38 and encountered
unconformity-associated mineralization that returned an interval
grading 1.13% U3O8 over 8.0 metres.
Drill testing to the west of MCS-50 did not return any notable
high-grade mineralization; however, further drill testing is
required to determine if the mineralization discovered in MCS-50
can be extended to the west by following an interpreted structural
offset to the south.
The results of the holes discussed above and the balance of
mineralized drill holes completed at the McClean South target area
during 2022 are outlined in Table 1, below, while drill hole
locations and traces are depicted in Figure 2.
Table 1 – 2022 McLean Lake Exploration Drilling - Mineralized
Intersections
Drill
Hole
|
Orientation
(azi./dip)
|
From
(m)
|
To
(m)
|
Length
(m)(1)
|
U3O8
(%)(2)
|
MCS-38
|
345°/-80°
|
160.8
|
172.8
|
12.0
|
1.17
|
MCS-40
|
345°/-83°
|
173.1
|
175.1
|
2.0
|
0.06
|
MCS-44
|
345°/-80°
|
162.4
|
166.4
|
4.0
|
0.59
|
MCS-45
|
345°/-83°
|
166.1
|
167.6
|
1.5
|
0.75
|
MCS-48
|
345°/-70°
|
194.8
|
195.3
|
0.5
|
0.09
|
MCS-49
|
345°/-80°
|
172.7
|
174.2
|
1.5
|
0.06
|
MCS-50
|
345°/-80°
|
162.0
|
170.0
|
8.0
|
1.13
|
MCS-57
|
345°/-80°
|
157.1
|
165.9
|
8.8
|
0.35
|
MCS-58
|
345°/-87°
|
153.1
|
168.6
|
15.5
|
2.96
|
Including
|
-
|
161.6
|
163.1
|
1.5
|
24.49(3)
|
MCS-59A
|
345°/-83°
|
160.9
|
170.4
|
9.5
|
0.34
|
Notes:
(1) Lengths indicated
represent the down-hole length of mineralized
intersections.
|
(2) Interval
is composited above a cut-off grade of 0.05%
U3O8, allowing for internal waste of up to
1.0 metre.
|
(3) Interval is
composited above a cut-off grade of 5.0%
|
Sampling, Analysis and Data
Verification
Assay sample intervals are generally 50 centimetres long, except
where higher or lower grade mineralization boundaries fall within
the interval. In that case, two 25 centimetre samples are
collected. Flank samples of 1.0 metre are always collected where
mineralization is located. Systematic geochemistry samples are
collected every 10 metres down the hole.
All assayed core is split in half, with one half retained and
the other sent to the SRC Geoanalytical Laboratory in Saskatoon for analysis. Control samples are
routinely assayed with each batch of core samples analyzed.
For results from McClean Lake, Orano Canada has performed
detailed QAQC and data verification, where possible, of all
datasets. Denison has performed additional QAQC and data
verification of the drilling database.
McClean South 8E and 8W
Pods
The McClean South trend is located parallel to and approximately
500 metres south of the McClean North trend in the southwestern
portion of the property (see Figure 1). The McClean South
target area has been the subject of historic exploration drilling,
resulting in the discovery and subsequent delineation of the 8W and
8E pods, which are situated along a N70° to 80° trend in close
proximity to the McClean Lake granitic dome to the south (see
Figure 2). The dip of the geology appears to range from 45° to 65°
S in the 8W pod. In contrast, the dip within the 8E pod is steeper
and undulating but is most commonly around 80° S. Several graphitic
horizons of varying thickness are present in the McClean South
target area and extend beyond and into other parts of the
property.
Mineralization within the 8W pod is currently understood to be
primarily hosted within the sandstone; however, it has also been
locally encountered within the basement of the 8W pod. The
mineralization within the sandstone can extend upwards of 50 metres
above the unconformity. Mineralization within the 8E pod is
currently understood to overlap the unconformity, with
mineralization located both in the sandstone and within the upper
basement.
No current resource estimate, prepared in accordance with NI
43-101, exists for the mineralization identified to date at the
McClean South pods.
About McClean
Lake
The McClean Lake property is located on the eastern edge of
the Athabasca Basin in northern
Saskatchewan, approximately 750
kilometres north of Saskatoon.
Denison holds a 22.5% ownership interest in the MLJV and the
McClean Lake uranium mill, one of the world's largest uranium
processing facilities. The mill has licensed annual production
capacity of 24.0 million pounds U3O8, and is
currently operating under a 10-year license expiring in 2027. The
mill is contracted to process the ore from the Cigar Lake mine
under a toll milling agreement (up to 18.0 million pounds
U3O8 per year). The MLJV is an unincorporated
contractual arrangement between Orano Canada with a 77.5% interest
and Denison with a 22.5% interest. Orano Canada is the operator of
the project.
McClean Lake consists of nine known uranium deposits: JEB;
Sue A, B, C, D and E; McClean North; McClean South; and Caribou. In
1995, the development of the McClean Lake project began. Mill
construction commenced in 1995 and ore processing activities
reached commercial production in November 1999. Mining
operations commenced in 1996 and the following deposits have been
mined out to date: JEB (1996 to 1997), Sue C (1997 to 2002),
Sue A (2005 to 2006), Sue E (2005 to 2008) and Sue B (2007 to
2008).
About Denison
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.
Denison's interests in the Athabasca Basin also 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 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
each 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 ~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 technical information contained in this release has been
reviewed and approved by Mr. Andrew
Yackulic, P. Geo., Denison's Director, Exploration, 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 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 interpretation of
exploration results and expectations with respect thereto,
including the interpretation of the results from the McClean Lake
JV exploration program undertaken by Orano Canada, underlying
assumptions and the McClean Lake JV's intentions with respect
thereto; exploration plans and objectives; and expectations
regarding its joint venture ownership interests and the continuity
of its agreements with its partners.
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
interpretation of results are based may not be maintained after
further testing or be representative of actual conditions. 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.
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SOURCE Denison Mines Corp.