EX-99.5
6
dmc-pr20240808q2financial.htm
PRESS RELEASE DATED AUGUST 8, 2024
dmc-pr20240808q2financial
Exhibit 99.5
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
PRESS RELEASE
Denison CEO Highlights Phoenix Post-Feasibility Study Progress
and
Company Reports Financial and Operational Results for
Q2’2024
Toronto, ON – August 8,
2024. 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.
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.
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.