TORONTO, April 12,
2023 /PRNewswire/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce the successful completion of
an internal conceptual mining study (the "Concept Study") examining
the potential application of the In-Situ Recovery ("ISR")
mining method at the Company's 25.17% owned Midwest project
("Midwest"). The Concept Study was prepared by Denison
during 2022 and was formally issued to the Midwest Joint
Venture ("MWJV") in early 2023. Based on the positive results
of the Concept Study, the MWJV has now provided Denison with
approval to complete additional ISR-related evaluation work for
Midwest in 2023. View PDF version.
Midwest is located
approximately 25 kilometres, by existing roads,
from the 22.5% Denison owned McClean Lake uranium mill,
and is a joint venture owned by Denison (25.17%) and Orano Canada
Inc. ("Orano Canada") (74.83%). Orano Canada is part of the
Orano Group, which is recognized as a leading international
operator in the field of nuclear materials, with activities
including uranium mining, conversion, enrichment, and other
fuel services.
David Cates, Denison's President
& CEO, commented, "Since the
completion of the Wheeler River Pre-Feasibility Study in 2018,
Denison has invested in the
development of a highly skilled and motivated
Saskatoon-based
technical team that has demonstrated industry
leadership in the evaluation of the application of the ISR mining
method to high-grade uranium deposits
in the Athabasca Basin.
We are encouraged by the results of the Midwest Concept
Study, and we are pleased to continue the further evaluation of the
potential application of the ISR mining method to Midwest, with the
support of our partner Orano."
Evaluation activities planned for Midwest during 2023 include
the collection of deposit-specific information and the completion
of select preliminary engineering studies to support the further
evaluation and de-risking of the key criteria required to further
assess the potential application of the ISR mining method, which
may result in the preparation of a Preliminary Economic
Assessment to support the development, if
warranted, of future field tests.
Property
Location & History
Midwest is situated in the eastern portion of the
Athabasca Basin region in northern
Saskatchewan. The property is
approximately one kilometre from the Points North Landing
airstrip and about 25 kilometres west, by existing
roads, from the McClean Lake mill, which is jointly owned
by Denison (22.5%) and Orano Canada (77.5%). Access to
Midwest is by both road and air. Goods are transported to the site
by truck over an all-weather road connecting with the provincial
highway system. Air transportation is provided through the Points
North airstrip (See Figure 1).
Initial exploration work at Midwest began in 1966, and Denison
first became an owner of the project in 1987. In 2007, Orano Canada
completed an internal study evaluating the feasibility of mining
the Midwest Main deposit via open pit mining methods
with processing of the resulting ore at the McClean Lake mill.
The MWJV subsequently advanced the project through the
environmental assessment process as an open pit mine and the
final version of the Midwest Project Environmental Impact Statement
was approved in September
2012.
Estimated Mineral
Resources
The Midwest Main uranium deposit ("Midwest Main") is
estimated to contain, on a 100% ownership basis, an Indicated
mineral resource of 39,900,000 lbs
U3O8, based on 453,000 tonnes at an average
grade of 4.00% U3O8, and an Inferred mineral
resource of 11,500,000 lbs
U3O8 based on 793,000 tonnes at an
average grade of 0.66% U3O8. Midwest Main is
lens to cigar shaped, 600 metres long, 10 to over 100 metres wide,
with thicknesses ranging from 5 metres to 10 metres. The deposit
consists of a near-massive high-grade mineralized core that
straddles the unconformity approximately 210 metres below surface.
The high-grade core is surrounded by lower-grade
fracture-controlled mineralization primarily in sandstone.
Midwest is also host to the Midwest A uranium deposit ("Midwest
A"), which is estimated to contain, on a 100% ownership
basis, an Indicated mineral resource
of 10,800,000 lbs U3O8, based on
566,000 tonnes at an average grade of 0.87%
U3O8, and an Inferred mineral resources
totaling 6,700,000 lbs U3O8 based on
53,000 tonnes at an average grade of 5.8%
U3O8. Midwest A is approximately 450 metres
long, 10 to 60 metres wide, ranges up to 70 metres in thickness and
occurs between 150 and 235 metres below surface. Mineralization
straddles the unconformity contact with minor amounts hosted within
basement structures immediately below the unconformity. Thicker
zones of mineralization above the unconformity are concentrated in
conglomerate units at the base of the Athabasca sandstone. Similar to Midwest Main,
a high-grade core of mineralization is surrounded by a
lower-grade fracture-controlled envelope.
The mineral resource estimate for Midwest (and the
technical information herein) is described in the independent
technical report, prepared in accordance with NI 43-101, titled
"Technical Report with an Updated Mineral Resource Estimate for the
Midwest Property, Northern Saskatchewan,
Canada", dated March 26,
2018.
Concept Study
The Concept Study evaluated the potential use of the ISR mining
method at Midwest. In an ISR uranium mining operation, a mining
solution (lixiviant) is injected into the ore zone through a series
of drill holes known as injection wells. The lixiviant leaches the
uranium as it travels through the ore zone and is then recovered as
a uranium bearing solution ("UBS"), which is pumped back to surface
via a series of recovery wells. Once on surface, the UBS is sent to
a surface processing plant for the chemical separation of the
uranium. Following the uranium removal, the lixiviant is
reconditioned and returned to the wellfield for further production.
The ISR mining method accounts for a significant portion of uranium
mine production globally and is generally considered the
lowest-cost uranium mining method in the world – owing to the fact
that the method eliminates (i) the surface disturbances and costs
associated with physically removing ore and waste from the ground,
and (ii) the need for conventional tailings treatment and storage,
which are normally associated with underground or open pit mining
operations.
The internal studies undertaken on Midwest are preliminary in
nature and there is significant uncertainty with respect to the
potential for, and the economic and technical risks associated
with, the use of ISR mining for the Midwest deposits. Further
technical evaluations may not be advisable or completed if the
preliminary results of internal studies are not maintained after
further testing and/or analysis.
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 Saskatchewan 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 67.41% 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 ~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, 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
contained in this release has been reviewed and approved, as
applicable, by Mr. Chad Sorba,
P.Geo., Denison's Director, Technical Services 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: interpretation of
the preliminary results of the Concept Study; expectations
with respect to evaluation work and studies,
including, scope, timing and the anticipated results
thereof; the results and interpretations of the
mineral resource estimate; 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 planned evaluation
work for Midwest 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 joint
venture approvals, 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 27,
2023 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.
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SOURCE Denison Mines Corp.