TORONTO, Oct. 17,
2022 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce that it has successfully
recovered uranium bearing solution from the Phoenix in-situ recovery ("ISR") Feasibility
Field Test ("FFT") underway at the Company's 95% owned Wheeler
River project ("Wheeler River" or the "Project"). View PDF
version
David Cates, Denison's President
& CEO, commented, "The successful
recovery of uranium bearing solution
from
Denison's high-grade
Phoenix deposit
is a historic moment for uranium mining in Canada. This accomplishment
reflects the culmination
of several years of technical
de-risking and provides tangible validation of
the Company's selection of
the ISR mining method for
Phoenix in our 2018 Wheeler River
Pre-Feasibility Study. With this result, Denison has
truly showcased
its industry leadership in
bringing the low-cost ISR mining
method to the high-grade uranium deposits of
the Athabasca
Basin."
Kevin Himbeault, Denison's Vice
President of Plant Operations & Regulatory Affairs,
added, "The recovery of uranium bearing
solution at targeted rates and grades is history in the
making. Initial analysis
indicates the hydrogeological
system has responded as expected with pH trends, flow
characteristics and uranium recovery meeting
expectations. I am extremely proud of our
team's focus and dedication in getting us to this
momentous
stage safely and on
schedule."
The leaching phase of the FFT commenced in September 2022 (see news release dated
September 26, 2022) and
preliminary results received to date have demonstrated
the successful acidification of the Test Pattern (defined below)
and recovery of uranium through the ISR mining method.
Several samples of recovered solution have been collected during
the leaching phase and remain subject to full lab assay and
analysis, which will generate additional detailed information
about the performance of the FFT.
Given the highly successful results of the FFT, lixiviant
injection has ceased, and operators
at the Phoenix FFT site are preparing to
transition from the leaching phase of the FFT to the neutralization
phase, which is expected to be completed before the end of the
year. The final phase of the FFT, which involves management of the
recovered solution, is expected to commence in the spring
of 2023.
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.
Feasibility Field Test
The FFT is designed to use the existing commercial-scale ISR
test pattern ("Test Pattern"), installed at Phoenix in 2021 (see news releases dated
July 29, 2021, and October 28, 2021), to facilitate a combined
assessment of the Phoenix
deposit's hydraulic flow properties with the leaching
characteristics that have been assessed through the metallurgical
core-leach testing program.
The FFT is fully permitted, having been authorized by both the
Saskatchewan Minister of
Environment (see news release dated July 12,
2022) and the Canadian Nuclear Safety Commission (see news
release dated August 8, 2022).
Overall, the FFT is intended to provide further verification of
the permeability, leachability, and containment parameters needed
for the successful application of the ISR mining method at
Phoenix and is expected to
validate and inform various feasibility study design elements –
including the expected production and remediation profiles.
The operation of the FFT is planned to occur in three phases:
(1) the leaching phase, (2) the neutralization phase, and (3) the
recovered solution management phase.
The leaching phase is designed to assess the effectiveness and
efficiency of the leaching process in the mineralized zone, which
is approximately 400m below the
surface. The leaching phase includes the controlled injection of an
acidic solution into a portion of the existing Test Pattern within
the mineralized zone (the "Leaching Zone") and the recovery of the
solution back to the surface using existing test wells. The
recovered solution from the leaching phase is expected to contain
dissolved minerals, including uranium, copper, iron, molybdenum,
and zinc.
The neutralization phase involves the recovery of the remainder
of the leached mineralized solution from the Leaching Zone and is
intended to verify the efficiency and effectiveness of the process
for returning the Leaching Zone to environmentally acceptable
conditions. During this phase, a mild alkaline (basic) solution
will be injected into the Leaching Zone to neutralize the area and
reverse the residual effects of the acidic solution injected during
the leaching phase.
The recovered solution management phase involves separating the
solution recovered from both the leaching phase and the
neutralization phase into (i) mineralized precipitates and (ii) a
neutralized treated solution.
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 Pre-Feasibility Study
("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 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, 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 ~280,000 hectares in the Athabasca Basin region.
Denison is also engaged in post-closure mine care and
maintenance services through its Closed Mines group, 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: expectations with respect
to the FFT program, scope, timing and the anticipated
results thereof; the interpretation of the results of the
FFT obtained to-date; 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 exploration and/or 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
exploration, 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.
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SOURCE Denison Mines Corp.