TORONTO, April 6, 2021 /CNW/ - Denison Mines
Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce that it has entered into a
Participation and Funding Agreement (the "Participation Agreement")
and Letter of Intent (the "LOI") with the English River First
Nation ("ERFN") in connection with the advancement of the proposed
in-situ recovery ("ISR") uranium mining operation at
Denison's 90% owned Wheeler River Uranium Project ("Wheeler River
Project"), which is located in the eastern portion of the
Athabasca Basin region, in
northern Saskatchewan. Additionally, Denison and ERFN
have also entered into an Exploration Agreement (the
"Exploration Agreement") in respect of Denison's exploration
and evaluation activities within the ERFN traditional territories.
View PDF version.
These agreements reflect Denison's desire to operate its
business in a progressive and sustainable manner that respects ERFN
rights and advances reconciliation with Indigenous peoples.
The agreements provide ERFN with economic opportunities and other
benefits, while establishing a foundation for
future collaboration in an authentic,
cooperative, and respectful way – designed to cultivate a
long-term partnership in support of the Company's activities,
including the advancement of the Company's flagship Wheeler River
Project, which is currently advancing through a Federal and
Provincial Environmental Assessment ("EA") process.
David Cates, President & CEO
of Denison commented, "Many of Denison's
interests in the Athabasca Basin
region, including our flagship Wheeler River Project, are situated
in the traditional
territory of
ERFN. We acknowledge and respect
the rights of ERFN and are pleased to formalize our Company's
effort to work with ERFN in the pursuit of achieving
(1) a genuine understanding of the interests of
the
Nation, and
(2) meaningful mutual benefits from Denison's
activities. We feel strongly that
the future of the Wheeler River
Project will be greatly enhanced
by
partnering with
ERFN – ensuring Indigenous
knowledge regarding historical and contemporary land use,
environmental knowledge, and
environmental stewardship associated with ERFN's
connection to this
land, are all embedded as
essential components of the EA process and project
designs. Together,
Denison and ERFN are putting reconciliation
principles into
action and contributing to
the important evolution of Indigenous and industry
relationships in the province of
Saskatchewan."
Chief Jerry Bernard, of ERFN,
added, "We look forward to building on our positive
relationship with Denison Mines.
The participation and exploration
agreements underscore the
importance of starting in a good way. That means recognizing and
considering ERFN's rights and traditional land and resources uses
in all proposed activities on our ancestral lands. The
agreements will provide benefits
for our community by providing employment and contracting
opportunities, annual financial contributions and the ability to
help shape project activities to minimize environmental
impacts."
Participation Funding Agreement & Letter of
Intent
The Participation Agreement and LOI outline a
mutually agreeable framework and applicable funding
arrangements to facilitate ERFN's participation and engagement
in the EA process for the Wheeler River Project – including
ERFN's meaningful contribution to Denison's environmental
understanding of the Wheeler River Project in a holistic way that
respects ERFN's rights and interests. The LOI also outlines a
mutual desire to co-develop a future Shared Prosperity Agreement
with respect to the Wheeler River Project, which is intended to
reflect a shared vision of how new uranium mining operations in the
Athabasca Basin region can prioritize sustainability while
also offering new and creative ways to generate wealth and
prosperity for all parties involved in the advancement of
the Project.
Exploration Agreement
The Exploration Agreement establishes a framework for a
cooperative and mutually beneficial relationship between Denison
and ERFN whereby Denison's exploration and
evaluation activities are consented to by ERFN and Denison
agrees to support ERFN's interests in relation to community
development and benefits, environmental protection and
monitoring, as well as sustainable and predictable consultation and
engagement processes. Through this cooperative approach, the
parties seek to continue building a strong and positive
foundation for Denison to proceed with its exploration and
evaluation activities, in the traditional territory of ERFN,
in a manner that is informed by and respects the rights
and interests of ERFN.
About ERFN
English River First Nation
is located about 500 km north of Saskatoon in Treaty 10, with a main settlement
at Patuanak, alongside the
Churchill River. ERFN has seven
different reserves: Porter Island,
Cree Lake, Elak Dase, Knee Lake, Dipper Rapids, Wapachewunak and La
Plonge.
ERFN is a multilingual community with various combinations of
Dene, Cree, Michif, English and French spoken by over 1,400
members. The "people of the river" are known for their bold and
collaborative spirit and trusting and humble nature. They are
dedicated to stewardship of the land and the education of future
generations.
An industrious and entrepreneurial group, ERFN has led the
way in efficient economic relationship building through its support
and advancement of community development partnerships. These
relationships have been instrumental in advancing community support
and understanding across northern Saskatchewan.
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 (90% and operator) and JCU
(Canada) Exploration Company
Limited (10%).
A Pre-Feasibility Study
("PFS") was completed for Wheeler River
in late 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 of the 2020 suspension
on 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 the Wheeler River project, Denison's interests in the
Athabasca Basin include a 22.5%
ownership interest in the McClean Lake joint venture ("MLJV"),
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 and Midwest A deposits, and a 66.90% interest
in the Tthe Heldeth Túé ("THT," formerly J Zone) and
Huskie deposits on the Waterbury Lake property.
The Midwest, Midwest A, THT and
Huskie deposits are located within 20 kilometres of
the McClean Lake mill. In addition, Denison has
an extensive portfolio of exploration projects covering
approximately 270,000
hectares in the Athabasca Basin region.
Denison is engaged in mine decommissioning and environmental
services through its Closed Mines group (formerly Denison
Environmental Services), which manages Denison's Elliot Lake reclamation projects and provides
post-closure mine care and maintenance services to a variety of
industry and government clients.
Denison is also the manager of Uranium Participation Corp., a
publicly traded company which invests in uranium oxide and uranium
hexafluoride.
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Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. David
Bronkhorst, P.Eng, Denison's Vice President, Operations, who
is a Qualified Person 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
'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', 'be achieved' or 'has the
potential to'.
In particular, this news release contains forward-looking
information pertaining to the following: current
intentions and objectives regarding engagement
with respect to the Wheeler River project, including participation
funding and the co-development of
a shared prosperity agreement; expectations with respect
to exploration and intended cooperation with ERFN with
respect thereto; development and expansion plans and
objectives, generally; 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, including its advancement and planned completion of
the EA process at Wheeler River, if it is unable to
maintain or otherwise secure the necessary resources (such as
testing facilities, capital funding, regulatory approvals, etc.) or
operations are otherwise affected by COVID-19 and its potentially
far-reaching impacts. This may impact Denison's
ability to meet the objectives stated in this press release, or the
objectives of Denison and ERFN could become misaligned.
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 13, 2020
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.
Cautionary Note to United States Investors Concerning
Estimates of Mineral Resources and Mineral Reserves:
This press release may use terms such as "measured", "indicated"
and/or "inferred" mineral resources and "proven" or "probable"
mineral reserves, which are terms defined with reference to the
guidelines set out in the Canadian Institute of Mining, Metallurgy
and Petroleum ("CIM") CIM Definition Standards on Mineral Resources
and Mineral Reserves ("CIM Standards"). The Company's
descriptions of its projects using CIM Standards may not be
comparable to similar information made public by U.S. companies
subject to the reporting and disclosure requirements under
the United States federal
securities laws and the rules and regulations thereunder.
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SOURCE Denison Mines Corp.