Denison Mines Corp. (TSX:DML)(NYSE MKT:DNN)(NYSE Amex:DNN)
("Denison" or the "Company") announces that its 2013 exploration
plans are focussed on the Athabasca Basin with over 44,000 metres
of drilling planned, a 25% increase over the amount drilled in
2012. "The 2013 plan will continue to focus on expanding our 60%
owned Wheeler River project resource base and other high priority
Athabasca Basin exploration projects will receive more attention
than in recent years" said Ron Hochstein, President and CEO of
Denison.
Athabasca Basin
Exploration
In Canada, Denison will manage or participate in 11 exploration
programs, of which Wheeler River will continue to be the primary
focus. The total budget for these programs is Cdn$14.6 million of
which Denison's share is Cdn$9.9 million. At Wheeler River, a
25,000 metre winter and summer drill program is planned along with
geophysical surveys at a total cost of Cdn$6.8 million (Denison's
share Cdn$4.1 million). Drilling at Wheeler River will have a
greater emphasis on exploration as compared to past years, both
proximal to Phoenix and at other target areas. A small component of
in-fill drilling is also planned to further expand and upgrade the
Phoenix Mineral Resource estimates which were announced earlier
this week.
In addition to the Wheeler River project, winter drill programs
are also planned for Moore Lake (6,400 metres), Hatchet Lake (1,940
metres), Wolly (2,500 metres) and McClean Lake (4,000 metres).
Wolly and McClean Lake are operated by AREVA Resources Canada Inc.
and Denison's interest is 22.5% in each of those projects.
Exploration work including drilling or geophysical programs will
also be carried out on the Crawford, Bachman, Russell Lake,
Stevenson River, Perpete Lake and Bell Lake properties.
Development/Operations
In Canada, Cdn$3.5 million (Denison's share Cdn$814,000) is
budgeted to be spent on the Midwest and McClean Underground
development stage projects and the Surface Access Borehole Resource
Extraction ("SABRE") program in 2013. The McClean Underground
project Feasibility Study was completed in the fourth quarter of
2012 and a decision was made to postpone a production decision due
to the poor uranium market conditions. A production decision will
be revisited in 2013. Very little work is currently planned on the
Midwest project. A majority of the expenditures are planned for the
evaluation of the results of the SABRE two hole test program
completed in 2012 and the preliminary evaluation of the SABRE
mining method for the Caribou and Midwest deposits.
The McClean Lake mill continues to be on stand-by, but activity
at the mill has begun to ramp up in preparation for processing of
Cigar Lake ore anticipated to begin later in 2013. Construction on
the McClean Lake mill expansion, which is 100% funded by the Cigar
Lake Joint Venture, began last summer and will increase annual
production capacity to 24 million pounds U3O8. Denison's share of
operating and capital expenditures in 2013 is estimated at Cdn$1.8
million. Denison's expenditures are expected to be offset by
revenue projected at Cdn$1.5 million from toll milling revenues and
the proceeds from the sale of 25,000 lbs. U3O8 recovered from
McClean Lake ores processed as part of the Cigar Lake commissioning
efforts.
International
On its wholly owned Mutanga project in Zambia, the Company plans
to carry out extensive programs of geological mapping and
geochemical and geophysical surveying to increase the confidence in
existing drill targets and identify new targets. At this point no
exploration drilling is planned for 2013. The Zambian program will
total an estimated US$3.5 million.
In Mongolia, mining licence applications for its four license
areas were submitted in 2011 and the Company is continuing to work
to restructure the Gurvan Saihan Joint Venture to meet the
requirements of the Mongolian Nuclear Energy Law. In 2013, the
Mongolian program is estimated at US$1.7 million. The focus in 2013
will be on the ongoing restructuring efforts and the work necessary
to obtain the mining licenses.
Corporate
At the end of 2012, Mr. Jim Anderson and Mr. Don Campbell
announced their retirement. Jim served as Executive V.P. and Chief
Financial Officer of Denison for the past eight years. Don served
as V.P. Commercial of Denison, and was with the Company for over 31
years. The Board of Directors would like to thank Jim and Don for
their contributions to Denison over the years. Both Jim and Don
will continue to consult with Denison and maintain their positions
of Chief Financial Officer and V.P. Commercial, respectively, with
Uranium Participation Corporation. Mr. David Cates was appointed
V.P. Finance & Tax, and Chief Financial Officer of Denison on
January 1, 2013. David was previously Director, Taxation for
Denison and is based in the Company's Toronto office.
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.
Contacts: Denison Mines Corp. Ron Hochstein President and Chief
Executive Officer (416) 979-1991 ext 232 Sophia Shane Investor
Relations (604) 689-7842
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