Denison Announces Phoenix Uranium Deposit Mineral Resource Estimate
Now Over 70 Million Pounds
TORONTO, ONTARIO--(Marketwired - Jun 17, 2014) - Denison Mines
Corp. (TSX:DML)(NYSEMKT:DNN) ("Denison" or the "Company") is
pleased to announce an updated mineral resource estimate for the
high grade Phoenix uranium deposit on its Wheeler River project in
Northern Saskatchewan.
Since the previous mineral resource estimate in 2012, Denison
has completed 25 drill holes at Phoenix to convert inferred mineral
resources to indicated, and to extend higher grade portions of the
deposit. The result of these efforts is an increase in the total
indicated mineral resource estimate from 52,300,000 lbs U3O8 to
70,200,000 lbs U3O8 based on 166,400 tonnes of mineralization at an
average grade of 19.13% U3O8. This is a 34% increase in indicated
lbs U3O8 over the 2012 estimate. Additionally, the total inferred
mineral resource is now estimated to contain 1,100,000 lbs U3O8
based on 8,600 tonnes of mineralization with an average grade of
5.80% U3O8.
Wheeler River 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
classification.
2014 Phoenix Mineral Resource Estimate Summary |
|
Category |
Tonnes |
Grade (% U3O8) |
Million lbs U3O8 (100% Basis) |
Million lbs U3O8 (Denison's Share) |
Indicated |
166,400 |
19.13 |
70.2 |
42.1 |
Inferred |
8,600 |
5.80 |
1.1 |
0.6 |
Notes:
- CIM Definitions were followed for classification of mineral
resources.
- Mineral resources are reported above a cut-off grade of 0.8%
U3O8.
- The cut-off grade is based on internal conceptual studies and a
price of US$50 per lb U3O8.
- Numbers may not add due to rounding.
- Effective as of May 28, 2014
Geology and Mineralization
Mineralization at Phoenix occurs 400 metres below surface and
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 deposit.
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
including WR-525 which averaged 43.8% U3O8 over an interpreted true
thickness of 12.0 metres. Phoenix belongs to a select group of very
high grade unconformity uranium deposits that includes the prolific
McArthur River mine (37 kilometres to the northeast) and the Cigar
Lake mine (80 kilometres to the northeast).
Estimation Methodology
The methods used to estimate mineral resources at Phoenix are
the same as those employed in 2012. Denison used data collected
from several surface diamond drilling campaigns from 2008 to 2014.
Uranium grade data is comprised of chemical assays on half 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 have been interpreted using data from 229 diamond drill holes
which resulted in three dimensional wireframe models that represent
0.05% U3O8 grade envelopes. The mineralization model consists of a
higher grade zone within an envelope of lower grade material,
resulting in two main estimation domains - higher grade and lower
grade. Additionally, a new domain representing a small zone of
structurally controlled basement mineralization was added at the
north end of the deposit.
Based on 196 dry bulk density determinations, Denison developed
a formula relating bulk density to uranium 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 blocks in each domain 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 resource estimate for the Phoenix deposit was
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 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. A
Technical Report supporting the estimate will be filed on SEDAR
(www.sedar.com) shortly.
Looking Ahead
An aggressive 14,000 metre summer drilling program at Wheeler
River is underway. Two drills are primarily assigned to extending
high grade basement hosted mineralization discovered in March, 2014
at the Gryphon zone, three kilometres northwest of Phoenix. In
addition, a 3D DC-resistivity survey is planned for the northern
strike extension of the Phoenix trend to aid drill hole targeting
in this prospective area.
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 14, 2014 filed under the Company's profile on SEDAR at
www.sedar.com.
About Denison
Denison is a uranium exploration and development company
with interests in exploration and development projects in Canada,
Zambia, Mali, Namibia, and Mongolia. Including the high grade
Phoenix deposits, located on its 60% owned Wheeler project,
Denison's exploration project portfolio includes 42 projects and
totals approximately 483,000 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, plus a 25.17% interest in the Midwest deposit and a 60%
interest in the J-Zone deposit on the Waterbury property. Both the
Midwest and J Zone deposits are located within 20 kilometres of the
McClean Lake mill. Internationally, Denison owns 100% of the
conventional heap leach Mutanga project in Zambia, 100% of the
uranium/copper/silver Falea project in Mali, a 90% interest in the
Dome project in Namibia, 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 DES division and is the manager of Uranium
Participation Corporation, a publicly traded company which invests
in uranium oxide 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 likelihood of completing and benefits to be derived from
corporate transactions; the estimates of Denison's mineral reserves
and mineral resources; expectations regarding the toll milling of
Cigar Lake ores; capital expenditure programs, estimated
exploration and development expenditures and reclamation costs;
expectations of market prices and costs; supply and demand for
uranium ("U3O8"); possible impacts of litigation and regulatory
actions on Denison; exploration, development and expansion plans
and objectives; expectations regarding adding to its mineral
reserves and resources through acquisitions and exploration; and
receipt of regulatory approvals, permits and licenses 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 the factors discussed in or referred to
under the heading "Risk Factors" in Denison's Annual Information
Form dated March 14, 2014 available at http://www.sedar.com, and in
its Form 40-F available at http://www.sec.gov/edgar.shtml.
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 Mineral Resources: This press
release may use the terms "measured", "indicated" and "inferred"
mineral 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.
Denison Mines Corp.Ron HochsteinPresident and Chief Executive
Officer(416) 979-1991 ext 232Denison Mines Corp.Sophia
ShaneInvestor Relations(604) 689-7842www.denisonmines.com
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