TORONTO, Aug. 8, 2024
/CNW/ - Denison Mines Corp. ('Denison' or the
'Company') (TSX: DML) (NYSE American: DNN) today filed its
Condensed Consolidated Financial Statements and Management's
Discussion & Analysis ('MD&A') for the three and six months
ended June 30, 2024. Both documents
will be available on the Company's website at
www.denisonmines.com, SEDAR+ (at www.sedarplus.ca) and EDGAR
(at www.sec.gov/edgar.shtml). The highlights provided below are
derived from these documents and should be read in conjunction with
them. All amounts in this release are in Canadian dollars unless
otherwise stated. View PDF version
David Cates, President and CEO of
Denison commented, "Following the completion of our Phoenix
Feasibility Study ('FS') in June
2023, we embarked on an ambitious 2-year plan to advance
towards a final investment decision. At the end of the second
quarter of 2024, we have completed 12-months of post-FS project
work and have already achieved completion of over 30% total
engineering. Our rapid engineering progress is possible because we
have built off of the systematic and rigorous technical evaluation
and de-risking work that was incorporated into the FS. The FS
already reflects the wave of significant cost inflation experienced
in the mining sector from 2021 to 2023 and robust project designs
that incorporated the learnings from the environmental assessment
process as described in our draft Environmental Impact Statement
('EIS') submitted in 2022. Engineering and ongoing long-lead
procurement efforts continue to accelerate in accordance with our
project plans and guidance targeting first production by 2027 /
2028.
In parallel, we have obtained support for the project from
Indigenous and non-Indigenous interested parties – reaching
impact-benefit type agreements, supporting the advancement and
operation of the Wheeler River project, with each of English River
First Nation, Kineepik Métis Local #9, the Village of Pinehouse, and a group of
interested northern municipalities (the Northern Village of Beauval, the Northern
Village of Île-à-la Crosse, the Northern Hamlet of Jans Bay, and the Northern Hamlet of
Cole Bay). Additionally, we have
made significant progress towards the finalization of our EIS,
project permitting, and licensing. Based on feedback received to
date, we are optimistic that the EIS review process is nearing
completion.
Ending Q2 with no debt on the balance sheet and a combination
of working capital and investments valued at nearly 95% of
Denison's share of the Phoenix FS initial capex means that our
Company is very well funded to continue to execute on our project
development plans and to deliver a new source of Canadian uranium
supply to the market at a time when demand is increasing and
securing sustainable and geopolitically stable supply is expected
to be a priority for future utility customers.
Beyond Wheeler River, Denison continues to demonstrate its
industry leadership in the assessment of the application of the
low-cost ISR mining method to the high-grade uranium deposits of
the Athabasca Basin. In 2024, we
are carrying out field studies and evaluation programs at both the
Tthe Heldeth Túé ('THT') and Midwest Main deposits. Working
together with Orano Group, a global leader in the nuclear fuel
cycle, we recently completed an inaugural field test of ISR mining
at the Midwest Main deposit, providing important preliminary
validation that the deposit possesses the characteristics necessary
for an ISR operation and efforts are now focused on the completion
of a Preliminary Economic Assessment ('PEA') during the balance of
the year."
Q2 2024 MD&A Highlights
- Completion of Inaugural ISR Field Test Program at
Midwest
In June 2024, Denison
and Orano Canada Inc. ('Orano
Canada') announced the
completion of an In-Situ Recovery ('ISR') field test
program at the Company's 25.17% owned Midwest Uranium Project
('Midwest'). The program involved drilling ten small
diameter boreholes within the Midwest Main deposit
primarily undertaken to evaluate site-specific conditions
for ISR mining. A series of tests were successfully
performed on each borehole, creating an extensive
database of geological, hydrogeological,
geotechnical, and metallurgical data and validating certain
key assumptions in the previously completed internal conceptual
mining study (the 'Concept Study') evaluating the potential use
of ISR mining at Midwest (see Press Release dated
April 12, 2023).
Denison carried out the program in collaboration
with Orano Canada, as
operator and owner of 74.83% of the Midwest Joint Venture
('MWJV'). Highlights from the program include:
- Confirmation of Hydraulic Conductivity: Pump and
injection tests validated hydraulic connectivity in the test wells
within the mineralized zone and achieved hydraulic conductivity
values (a measure of permeability) consistent with the Concept
Study. Sufficient permeability within the mineralized zone is a key
criterion for the successful deployment of the ISR mining
method.
- Demonstrated the Effectiveness of Permeability
Enhancement: One method of permeability enhancement was
successfully deployed within two wells, demonstrating the
suitability of the method to the Midwest Main deposit. Efficiency
of permeability enhancement was verified by comparison of pre- and
post-permeability enhancement hydraulic testing.
- Metallurgical Samples Defined and Collected for Leaching
Characteristics: Core samples representative of the Midwest
Main deposit were collected during the program for use in future
metallurgical tests to assess leaching characteristics.
- Signing of Wheeler River Benefit Agreements
with Kineepik Métis Local #9 and the Village of Pinehouse Lake
In early July 2024, Denison
announced the signing of a Mutual Benefits Agreement ('MBA')
with Kineepik Métis Local #9 ('KML'), and
a Community Benefit Agreement ('CBA') with the
northern Village of Pinehouse Lake (the 'Village'), in
support of the development and operation of Denison's
95% owned Wheeler River Project.
The MBA acknowledges that the project is located within
KML's Land and Occupancy Area in northern Saskatchewan and provides KML's
consent and support to advance the project. Additionally, the
MBA recognizes that the development and operation of the project
can support KML in advancing its social and economic
development aspirations, while mitigating the impacts on the local
environment and KML members. Key commitments of the
MBA include providing KML and its Métis
members an important role in environmental monitoring and
commits to the sharing of benefits from the successful operation of
the project – including benefits from community investment,
business opportunities, employment and training opportunities, and
financial compensation.
The CBA acknowledges that the Village is the
closest residential community to the project by road, which relies
on much of the same regional infrastructure that Denison
will rely on as it advances the project. The Village has
provided its consent and support for the project, while
Denison, on behalf of the Wheeler River Joint Venture, is
committed to help the Village develop its own capacity to take
advantage of economic and other development opportunities in
connection with the advancement and operation of the project.
- Appointment of New Board Chair
In May 2024, following the
results of the Annual General Meeting of Shareholders ('AGM') held
in Toronto, Denison announced the
appointment of Ms. Jennifer Traub as
the Company's new Board Chair. The former Board Chair, Mr.
Ron Hochstein, did not stand for
re-election at the AGM. Ms. Traub, who joined the Denison Board in
2021, is a partner in the Securities Group, and Co-Chair of the
Mining Group, at Cassels Brock & Blackwell LLP, and has been
recognized as a legal leader in the Canadian resource sector.
About Denison
Denison Mines Corp. was formed under the laws of Ontario and is a reporting issuer in all
Canadian provinces and territories. Denison's common shares are
listed on the Toronto Stock Exchange (the 'TSX') under the symbol
'DML' and on the NYSE American exchange under the symbol 'DNN'.
Denison is a uranium mining, exploration and development company
with interests focused in the Athabasca Basin region of northern
Saskatchewan, Canada. The Company
has an effective 95% interest in its flagship Wheeler River Uranium
Project, which is the largest undeveloped uranium project in the
infrastructure rich eastern portion of the Athabasca Basin region of northern
Saskatchewan. In mid-2023, the
Phoenix FS was completed for the Phoenix deposit as an ISR mining operation,
and an update to the previously prepared 2018 Pre-Feasibility Study
('PFS') was completed for Wheeler River's Gryphon deposit as a
conventional underground mining operation. Based on the respective
studies, both deposits have the potential to be competitive with
the lowest cost uranium mining operations in the world. Permitting
efforts for the planned Phoenix ISR operation commenced in 2019 and
have advanced significantly, with licensing in progress and a draft
Environmental Impact Study ('EIS') submitted for regulatory and
public review in October 2022.
Denison's interests in Saskatchewan also include a 22.5% ownership
interest in the McClean Lake Joint Venture ('MLJV'), which includes
unmined uranium deposits (planned for extraction via the MLJV's
SABRE mining method starting in 2025) and the McClean Lake uranium
mill (currently utilizing a portion of its licensed capacity to
process the ore from the Cigar Lake mine under a toll milling
agreement), plus a 25.17% interest in the Midwest Joint Venture
('MWJV')'s Midwest Main and Midwest A deposits, and a 69.44%
interest in the Tthe Heldeth Túé ('THT') and Huskie deposits
on the Waterbury Lake Property ('Waterbury'). The Midwest Main,
Midwest A, THT and Huskie deposits are located within 20 kilometres
of the McClean Lake mill. Taken together, the Company has
direct ownership interests in properties covering ~384,000 hectares
in the Athabasca Basin region.
Additionally, through its 50% ownership of JCU (Canada) Exploration Company, Limited ('JCU'),
Denison holds interests in various uranium project joint ventures
in Canada, including the
Millennium project (JCU, 30.099%), the Kiggavik project (JCU,
33.8118%) and Christie Lake (JCU,
34.4508%).
Technical Disclosure and Qualified Person
The technical information contained in this press release has
been reviewed and approved by Chad
Sorba, P.Geo., Denison's Vice President Technical Services
& Project Evaluation, and Andy
Yackulic, P.Geo., Denison's Vice President Exploration, who
are both Qualified Persons in accordance with the requirements of
NI 43-101.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain information contained in this press 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 press release contains forward-looking
information pertaining to the following: projections with respect
to exploration, development and expansion plans and objectives,
including the scope, objectives and interpretations of FS, PFS and
the Wheeler River technical de-risking process for the proposed ISR
operation for the Phoenix deposit;
expectations with respect to the EA, EIS and licensing and
permitting for proposed operations at Wheeler River; expectations
regarding the restart of mining operations at McClean Lake;
expectations regarding the assessment of the amenability of ISR for
THT and Midwest deposits; expectations regarding the performance of
the uranium market and global sentiment regarding nuclear energy;
expectations regarding Denison's joint venture ownership interests;
and expectations regarding the objectives and continuity of its
agreements with third parties. 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.
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 results and underlying assumptions and
interpretations of the FS and PFS may not be maintained after
further testing or be representative of actual conditions within
the applicable deposits. In addition, Denison may decide or
otherwise be required to discontinue testing, evaluation,
engineering, and development work if it is unable to maintain or
otherwise secure the necessary approvals or resources (such as
testing facilities, capital funding, etc.). 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 the Company's Annual Information Form dated
March 28, 2024 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 press 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 press release. 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.
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SOURCE Denison Mines Corp.
