TORONTO, Feb. 16, 2022 /PRNewswire/ - Denison
Mines Corp. ("Denison" or the "Company") (TSX: DML) (NYSE
American: DNN) is pleased to announce multiple intersections of
high-grade uranium mineralization beyond the previously defined
extents of the high-grade domain in the Phase 1 area of the Zone A
portion of the Phoenix uranium
deposit ("Phoenix") at the Company's effective 95%-owned Wheeler
River Uranium Project ("Wheeler River" or the "Project") in
northern Saskatchewan. View PDF
version.
Three drill holes were completed during the fall of 2021 to
follow up the discovery of high-grade uranium mineralization (22.0%
eU3O8 over 8.6 metres) in drill hole GWR-045,
which was located outside of the previously defined extent of the
high-grade domain of Phoenix Zone A (see Denison's news release
dated July 29, 2021). All three
follow-up holes returned intervals of high-grade uranium
mineralization, including massive uraninite mineralization in
GWR-049.
- 24.9% eU3O8 over 4.2 metres in
GWR-049: This drill hole was expected to intersect only a
narrow interval of high-grade uranium mineralization along the
northwestern boundary of the Phoenix Zone A high-grade resource
domain, approximately 17 metres to the northeast of GWR-045. The
drill hole intersected a thick interval of high-grade
unconformity-associated uranium mineralization that, coupled with
the results of GWR-045, is expected to expand the volume of the
high-grade domain to the northwest outside of the extents of the
same in the current resource model (see Figures 1 and 3).
- 3.6% eU3O8 over 3.5 metres in
WR-787: This drill hole was designed to test the extents of the
high-grade mineralization discovered in GWR-049, by targeting the
unconformity approximately 6 metres north of the mineralization in
GWR-049 (see Figures 1 and 3). Mineralization in WR-787 was
encountered at the unconformity, and included a mineralized
interval grading 15.2% eU3O8 over 0.7
metres.
- 1.2% eU3O8 over 2.1 metres in
WR-784: This drill hole was designed to test the extents of
high-grade mineralization discovered by drill hole GWR-045, by
targeting the unconformity approximately 6 metres northwest of the
mineralized intersection in GWR-045 (see Figures 1 and 2). The
drill hole intersected perched uranium mineralization grading 1.2%
eU3O8 over 2.1 metres, lying approximately
6.5 metres above the unconformity.
Andy Yackulic, P. Geo., Denison's
Director, Exploration, commented, "The grade and thickness of
mineralization in holes GWR-045 and GWR-049
significantly exceeded what was predicted by the Phoenix block model. We believe these
results will support an expansion of the volume of the high-grade
mineralized domain in Phase 1 area of Zone A. Follow-up
drilling encountered additional uranium mineralization that is also
expected to be additive to future updates to the resource model for
Phoenix Zone A. Of particular interest is the perched
mineralization discovered in WR-784, which presents a style of
mineralization that has not been previously encountered at
Phoenix. As this intersection is
located outside the extents of previous drilling at Phoenix, the potential exists to identify
additional perched mineralization along the northwest margin of the
Deposit."
This press release constitutes a "designated news release"
for the purposes of the Company's prospectus supplement dated
September 28, 2021, to its short form
base shelf prospectus dated September 16,
2021.
Assay Results and Radiometric Equivalent Grades
The final assay results from the follow-up holes and GWR-045
were recently received, and confirmed the presence of high-grade
mineralization in each drill hole. However, the Company is
reporting radiometric equivalent grades
("eU3O8") for these holes, instead of
final assay results, as significant core loss was encountered in
each of these mineralized intervals.
The Company may report results as preliminary
eU3O8, derived from a calibrated downhole
total gamma probe, and subsequently report definitive assay grades
following sampling and chemical analysis of the mineralized drill
core. In the case where core recovery within a mineralized
intersection is less than 80%, meaning that samples may not be
assayed with enough resolution to be considered representative of
the nature and grade of the mineralization, radiometric grades are
considered to be more representative of the mineralized
intersection and may be reported in the place of assay
grades. Radiometric equivalent probe results are subject to
verification procedures by qualified persons employed by Denison
prior to disclosure.
For further details on the total gamma downhole probe methods
employed by Denison, QAQC procedures and data verification
procedures please see Denison's Annual Information Form dated
March 26, 2021 filed under the
Company's profile on SEDAR (www.sedar.com).
Summary of 2021 Phoenix Expansion Drill Results
Figure 1 illustrates the location of the drill holes completed
as part of the Company's 2021 expansion drilling at Phoenix Zone A,
including the position of the five-spot commercial scale well
pattern installed during the summer of 2021 (see Denison's news
related dated July 29, 2021).
Figure 2 illustrates the previously defined extents of the
Phoenix Zone A low-grade and high-grade domains, on section with
the interpreted results from GWR-045 and WR-784.
Figure 3 illustrates the previously defined extents of Phoenix
Zone A low-grade and high-grade domains, on section with the
interpreted results from GWR-049 and WR-787.
The mineralized intervals from each of these drill holes are
summarized in the table below:
Table 1 – Phoenix Zone A – Select 2021
Mineralized Intersections
Drill
Hole
|
From
(m)
|
To
(m)
|
Length
(m)(1)
|
eU3O8
(%)(2,3)
|
GWR-045
|
406.95
|
415.55
|
8.6
|
22.0(4)
|
GWR-049
|
408.95
|
413.15
|
4.2
|
24.9(4)
|
WR-784
|
406.25
|
408.35
|
2.1
|
1.2
|
WR-787
|
411.40
|
415.90
|
4.5
|
3.6
|
including
|
413.00
|
413.70
|
0.7
|
15.2(4)
|
|
Notes:
|
1.
|
As the drill holes
are oriented vertically and the mineralization is interpreted to
lie nearly horizontal, the drill intersection is interpreted to
represent the true thickness.
|
2.
|
eU3O8 is a radiometric
equivalent grade U3O8 derived from a
calibrated total gamma down-hole probe.
|
3.
|
Composited above a
cut-off grade of 0.1% eU3O8 unless
otherwise indicated.
|
4.
|
Composited above a
cut-off grade of 1.0% eU3O8
|
Sampling and Assay Procedures
Drill core with anomalous total gamma radioactivity (>300
counts per second using an RS-120 or RS-125 scintillometer) was
sampled over 0.5 metre intervals. Sampling is undertaken on site by
splitting the core in half, with one half submitted for analysis
and the other half retained in the core box for future reference.
Uranium chemical assays are performed by the Saskatchewan Research
Council ("SRC") Geoanalytical Laboratories located in
Saskatoon. Sample preparation involves crushing and
pulverizing core samples to 90% passing -106 microns. Splits of the
resultant pulps are initially submitted for multi-element ICP-MS
analysis following partial (HNO3:HCl) and total (HF:HNO3:HClO4)
digestions. Samples with ≥ 1,000 ppm U (partial digest) are
re-assayed for U3O8 using an ISO/IEC
17025:2005 accredited method for the determination of
U3O8 weight percentage. Pulp splits are
digested using aqua-regia, and the solution is analyzed for
U3O8 weight percentage using ICP-OES. In
addition to internal checks by SRC Geoanalytical Laboratories, the
Company has rigorous quality assurance and quality control ("QAQC")
procedures, including the insertion of standard reference
materials, blanks and field duplicates. The assay data is subject
to verification procedures by qualified persons employed by Denison
prior to disclosure. For further details on the assay, QAQC
and data verification procedures, please see Denison's Annual
Information Form dated March 26,
2021, filed under the Company's profile on SEDAR
(www.sedar.com).
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 (operator) and JCU (Canada) Exploration Company Limited
("JCU"). Denison has an effective 95% ownership interest in
Wheeler River (90% directly, and 5% indirectly through a 50%
ownership in JCU).
A PFS was completed for Wheeler River in 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 to 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 its effective 95% interest in the
Wheeler River project, Denison's interests in the Athabasca Basin 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 66.90% 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 33.8123%) and Christie Lake (JCU 34.4508%). Denison's
exploration portfolio includes further interests in properties
covering ~280,000 hectares in the Athabasca Basin region.
Denison is also 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 third-party post-closure mine care and maintenance
services.
Follow Denison on Twitter @DenisonMinesCo
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. Andrew
Yackulic, P. Geo., Denison's Director, Exploration, 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: the interpretation of
exploration results and expectations with respect thereto,
including expansion of the volume of the high-grade domain in, or
other ipmacts on, the Company's mineral resource estimation for
Wheeler River and the interpreted potential to identify further
mineralization; other evaluation activities, objectives and
expectations; 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 are based may not be maintained after further
testing or be representative of actual conditions within the
Phoenix deposit. In addition,
Denison may decide or otherwise be required to discontinue its
field test activities or other testing, evaluation and development
work 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.
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 26, 2021
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. 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.
Figure 1 - Plan Map Showing Location of
Phoenix Deposit (Phase 1) – ISR Test Pattern and exploration holes
WR-784 and WR-787
Figure 2 - Cross-Section
View of the Phoenix Deposit (Phase 1) – Through GWR-045 and
WR-784
Figure 3 - Cross-Section View of the Phoenix
Deposit (Phase 1) – Through GWR-049 and WR-787
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SOURCE Denison Mines Corp.