Denison Mines Corp. (TSX:DML)(NYSE MKT:DNN)(NYSE Amex:DNN)
("Denison" or the "Company") is pleased to announce an updated
Mineral Resource Estimate for the high grade Phoenix A and Phoenix
B uranium deposits on its Wheeler River project in Northern
Saskatchewan.
For the combined Phoenix A and B deposits, the total Indicated
Mineral Resource is estimated to contain 52,300,000 lbs U3O8 based
on 152,400 tonnes of mineralization at an average grade of 15.6%
U3O8. Additionally, the total Inferred Mineral Resource is
estimated to contain 7,600,000 lbs U3O8 based on 11,600 tonnes of
mineralization with an average grade of 29.8% U3O8. This Mineral
Resource estimate update represents a 47% increase in Indicated lbs
U3O8 and a 100% increase in Inferred lbs U3O8 over the previous
Mineral Resource estimate done in 2010.
The Wheeler River property lies between the McArthur River mine
and Key Lake mill complex in the Athabasca Basin in northern
Saskatchewan. Denison is the operator and holds a 60% interest in
the project. Cameco Corporation holds a 30% interest and JCU
(Canada) Exploration Company, Limited holds the remaining 10%
interest.
Summary Table
The following table summarizes the Mineral Resource estimate by
deposit and classification.
2012 Phoenix Mineral Resource Estimate Summary
(Effective Date December 31, 2012)
Grade Million lbs
Category Deposit Tonnes (% U3O8) U3O8
---------------------------------------------------------------------------
Indicated A Deposit 133,500 15.8 46.5
Indicated B Deposit 19,000 14.1 5.9
---------------------------------------------------------------------------
Total Indicated 152,400 15.6 52.3
Inferred A Deposit 6,300 51.7 7.2
Inferred B Deposit 5,300 3.5 0.4
---------------------------------------------------------------------------
Total Inferred 11,600 29.8 7.6
Notes:
1. CIM Definitions were followed for classification of Mineral Resources.
2. Mineral Resources are reported above a cut-off grade of 0.8% U3O8.
3. The cut-off grade is based on internal conceptual studies and a price of
$50 per lb U3O8.
4. Numbers may not add due to rounding.
Geology and Mineralization
Mineralization at Phoenix shares many similarities with other
unconformity related Athabasca uranium deposits. It occurs along
the sub-Athabasca unconformity at its intersection with a
moderately east dipping fault zone which results in an elongate and
sub-horizontal shape to the deposits. Fault zones are best
developed in graphitic metasediments in the underlying basement
rocks. Mineralization varies from disseminated to massive, with
several very high grade drill hole intersections averaging greater
than 50% U3O8 over true thicknesses up to 6.0 meters. With the
completion of this Mineral Resource estimate, the Phoenix deposits
now belong to a select group of very high grade unconformity
uranium deposits that includes the prolific McArthur River mine (37
kilometers to the northeast) and the soon to be producing Cigar
Lake deposit (80 kilometers to the northeast).
Estimation Methodology
Denison has estimated Mineral Resources for the Phoenix Deposits
with data collected from several surface diamond drilling campaigns
from 2008 to 2012. Uranium grade data is comprised of chemical
assays on split drill core samples. All assays were completed by
SRC Geoanalytical Laboratories in Saskatoon, Saskatchewan using the
Inductively Coupled Plasma - Optical Emission Spectrometry
(ICP-OES) method. Quality control and quality assurance protocols
for the chemical assays include the use of standard reference
materials, blanks, check assays and duplicate samples. In those
cases where drill core recovery is poor, chemical assays have been
replaced with equivalent uranium grades obtained from down-hole
radiometric probing.
Geology, structure, and the size and shape of the mineralized
zones has been interpreted using data from 168 diamond drill holes
which resulted in three dimensional wireframe models that represent
0.05% U3O8 grade envelopes. Models of mineralization at each of the
two deposits contain higher grade zones within an envelope of lower
grade material, resulting in a total of four estimation domains -
Phoenix A higher grade, Phoenix A lower grade, Phoenix B higher
grade and Phoenix B lower grade.
Based on 165 dry bulk density determinations, Denison developed
a formula relating bulk density to grade which was used to assign a
density value to each assay. Bulk density values were used to
weight grades during the resource estimation process and to convert
volume to tonnage.
Uranium grade times density (GxD) values and density (D) values
were interpolated into each domain block model using an inverse
distance squared (ID2) algorithm. Hard domain boundaries were
employed such that drill hole grades from any given domain could
not influence block grades in any other domain. Very high grade
composites were not capped but grades greater than a designated
threshold level for each domain were subject to restricted search
ellipse dimensions in order to reduce their influence. Block grade
was derived from the interpolated GxD value divided by the
interpolated D value for each block. Block tonnage was based on
volume times the interpolated D value.
The Mineral Resources for the Phoenix Deposits were classified
as Indicated and Inferred based on drill hole spacing and apparent
continuity of mineralization. The block models were validated by
comparison of domain wireframe volumes with block volumes, visual
comparison of composite grades with block grades, comparison of
block grades with composite grades used to interpolate grades, and
comparison with estimation by a different method.
Roscoe Postle Associates Inc. (RPA) was retained by Denison on
behalf of the Wheeler River Joint Venture to audit the Mineral
Resource estimate and to prepare an independent Technical Report in
accordance with the requirements of National Instrument 43-101.
William E. Roscoe, Ph.D. P.Eng. of RPA, is the independent
"Qualified Person" responsible for the Mineral Resource estimate.
The Technical Report supporting the estimate will be filed on SEDAR
(www.sedar.com).
Looking Ahead
Denison is planning to complete large winter and summer drilling
programs similar in scale to that completed in 2012. The winter
2013 drilling program is expected to begin on January 16th, with
two drills primarily devoted to exploring for additional
mineralization near Phoenix and at other targets on the Wheeler
River property. Particular emphasis will be placed on following the
trend of mineralization and alteration along strike to the
northeast of Phoenix A.
Qualified Person
The disclosure of a scientific or technical nature contained in
this news release was prepared by Steve Blower P.Geo., Denison's
Vice President, Exploration, who is a Qualified Person in
accordance with the requirements of NI 43-101 and has been approved
by William E. Roscoe, Ph.D. P. Eng. of RPA. For a description of
the quality assurance program and quality control measures applied
by Denison, please see Denison's Annual Information Form dated
March 28, 2012 filed under the Company's profile on SEDAR at
www.sedar.com.
About Denison
Denison Mines Corp. is a uranium exploration and development
company with interests in exploration and development projects in
Saskatchewan, Zambia and Mongolia. Including the world class
Phoenix deposits, located on its 60% owned Wheeler River project,
Denison's exploration project portfolio includes 26 projects and
totals over 330,000 hectares in the Eastern Athabasca Basin region
of 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, one of the world's largest uranium processing facilities and
a 25.17% interest in the Midwest deposit, which is located 15
kilometres from the McClean Lake mill. Internationally, Denison
owns 100% of the conventional heap leach Mutanga project, in
Zambia, and an 85% interest in the in-situ recovery projects held
by the Gurvan Saihan Joint Venture, in Mongolia.
Denison is engaged in mine decommissioning and environmental
services through its Denison Environmental Services (DES) division
and is the manager of Uranium Participation Corporation (TSX:U), a
publicly traded company which invests in uranium oxide in
concentrates and uranium hexafluoride.
Cautionary Statements
Certain information contained in this press release constitutes
"forward-looking information", within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and similar
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"
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", 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".
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.
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 correct and such
forward-looking information included in this press release should
not be unduly relied upon. This information speaks only as of the
date of this press release. In particular, this press release may
contain forward-looking information pertaining to the following:
the estimates of Denison's mineral resources; capital expenditure
programs; estimated production costs, exploration and development
expenditures and reclamation costs; expectations of market prices
and costs; supply and demand for uranium; possible impacts of
litigation and regulatory actions on Denison; exploration,
development and expansion plans and objectives; Denison's
expectations regarding raising capital and adding to its mineral
resources through acquisitions and development; and receipt of
regulatory approvals, permits and licences and treatment under
governmental regulatory regimes.
There can be no assurance that such statements will prove to be
accurate, as Denison's actual results and future events could
differ materially from those anticipated in this forward-looking
information as a result of those factors discussed in or referred
to under the heading "Risk Factors" in Denison's Annual Information
Form dated March 28, 2012, available at http://www.sedar.com, and
in its Form 40-F available at http://www.sec.gov, as well as the
following: global financial conditions, the market price of
Denison's securities, volatility in market prices for uranium;
ability to access capital, changes in foreign currency exchange
rates and interest rates; liabilities inherent in mining
operations; uncertainties associated with estimating mineral
reserves and resources and production; uncertainty as to
reclamation and decommissioning liabilities; failure to obtain
industry partner and other third party consents and approvals, when
required; delays in obtaining permits and licenses for development
properties; competition for, among other things, capital,
acquisitions of mineral reserves, undeveloped lands and skilled
personnel; public resistance to the expansion of nuclear energy and
uranium mining; uranium industry competition and international
trade restrictions; incorrect assessments of the value of
acquisitions; property title risk; geological, technical and
processing problems; the ability of Denison to meet its obligations
to its creditors; actions taken by regulatory authorities with
respect to mining activities; the potential influence of or
reliance upon its business partners, and the adequacy of insurance
coverage.
Accordingly, readers should not place undue reliance on
forward-looking statements. These factors are not, and should not
be construed as being, exhaustive. 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. The forward-looking information contained in this press
release is expressly qualified by this cautionary statement.
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.
Cautionary Note to United States Investors Concerning Estimates
of Measured, Indicated and Inferred Resources: This press release
may use the terms "Measured", "Indicated" and "Inferred" Resources.
United States investors are advised that while such terms are
recognized and required by Canadian regulations, the United States
Securities and Exchange Commission does not recognize them.
"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
Measured or Indicated Mineral Resources will ever be converted into
Mineral Reserves. United States investors are also cautioned not to
assume that all or any part of an Inferred Mineral Resource exists,
or is economically or legally mineable.
Contacts: Denison Mines Corp. Ron Hochstein President and Chief
Executive Officer (416) 979-1991 ext 232 Denison Mines Corp. Steve
Blower Vice President, Exploration (604) 689-7842
www.denisonmines.com
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