a2022-1212phoenixfftneutr
Exhibit 99.1
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Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
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PRESS
RELEASE
Denison Announces Successful Completion of Neutralization
Phase
of Phoenix ISR Feasibility Field Test
Toronto, ON – December
12, 2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce the successful completion of the neutralization phase of
the Phoenix in-situ recovery (“ISR”) Feasibility Field
Test (“FFT”) at the Company’s 95% owned Wheeler
River project (“Wheeler River” or the
“Project”). Sampling of monitoring wells around the FFT
site has confirmed the successful restoration of the Leaching Zone
(defined below) to environmentally acceptable pH conditions, as
outlined in the applicable regulatory approvals for the
FFT.
The
neutralization phase was initiated in mid-October 2022, following
the highly successful completion of the leaching phase of the FFT
(see news releases dated October 17, 2022 and November 22, 2022),
and was designed to confirm certain environmental assessment
assumptions and verify the efficiency and effectiveness of the
neutralization process planned for ISR mining at
Phoenix.
David Cates, Denison’s President & CEO,
commented, “The
completion of the neutralization phase of the FFT marks the end of
our 2022 evaluation field activities at Wheeler River. During the
year we successfully constructed and commissioned the FFT
facilities, and carried out both the leaching and neutralization
phases of the FFT. Our recovery of uranium bearing solution
(“UBS”) with the use of the ISR mining method is a
first in the history of the Athabasca Basin region, and now we have
achieved another landmark accomplishment with the restoration of
the test area to environmentally acceptable pH conditions. The work
was done on schedule and without any recordable safety incidents
– which is a testament to the hard work and professionalism
of our dedicated Saskatchewan-based staff of geoscientists,
engineers, metallurgists, process operators, well field operators,
and contractors.”
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, added,
“The
Company embarked on the FFT to confirm the practical application of
the ISR mining method within the high-grade Phoenix uranium
deposit. The results from the leaching and neutralization phases of
the FFT have confirmed our ability to leach UBS from the deposit
and neutralize the pH conditions within the test area in accordance
with our expectations – providing significant support for the
processes utilized in defining the parameters for the
Project’s Feasibility Study (‘FS’) and draft
Environmental Impact Statement.”
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.
Completion of FFT Leaching & Neutralization Phases
The
leaching phase of the FFT commenced in September 2022 (see news
release dated September 26, 2022) and was completed in October 2022
(see news release dated October 17, 2022, and November 22, 2022),
with the objective of assessing the effectiveness and efficiency of
the leaching process in the ore zone located approximately 400m
below the surface. The leaching phase consisted of the controlled
injection of an acidic mining solution into a portion of the
existing Test Pattern (defined below) within the ore zone (the
“Leaching Zone”) and the recovery of the solution back
to the surface using existing test wells.
Throughout
the leaching phase, both vertical and horizontal containment of the
mining solution was maintained, with no migration of the mining
solution observed above, below or outside of the designed FFT test
area along the Leaching Zone horizon. These results were consistent
with the findings from the 2021 tracer test (see news release dated
October 28, 2021).
Following
the process executed for the 2021 tracer test, the neutralization
phase commenced after completion of the leaching phase and included
the initial recovery of additional leached mineralized solution and
injected lixiviant from the Leaching Zone. Following this initial
stage of neutralization, a mild alkaline (basic) solution was
injected into the Leaching Zone to further neutralize the area and
reverse the residual effects of remaining acidic solution injected
during the leaching phase. Overall, the results of the
neutralization phase achieved the key pH restoration parameter
outlined in the applicable regulatory approvals for the FFT, and
verified the efficiency and effectiveness of the process for
returning the Leaching Zone to environmentally acceptable pH
conditions. Regular monitoring of the FFT’s environmental
performance will continue into 2023.
The
recovered solution from the neutralization phase is being stored
temporarily on surface in tanks in accordance
with approved containment measures and will be
further processed as part of the recovered solution management
phase of the FFT.
Feasibility Field Test Background
The
FFT is designed to use the existing commercial-scale ISR test
pattern (“Test Pattern”), installed at Phoenix in 2021
(see news releases dated July 29, 2021, and October 28, 2021), to
facilitate a combined assessment of the Phoenix deposit’s
hydraulic flow properties with the leaching characteristics that
have been assessed through the metallurgical core-leach testing
program.
The
FFT is fully permitted, having been authorized by both the
Saskatchewan Minister of Environment (see news release dated July
12, 2022) and the Canadian Nuclear Safety Commission (see news
release dated August 8, 2022).
Overall,
the FFT is intended to provide further verification of the
permeability, leachability, and containment parameters needed for
the successful application of the ISR mining method at Phoenix and
is expected to validate and inform various FS design elements
– including the expected production and remediation profiles.
The operation of the FFT is planned to occur in three phases: (1)
the leaching phase, (2) the neutralization phase, and (3) the
recovered solution management phase.
As
described above, the leaching phase and neutralization phase are
now completed.
The
recovered solution management phase is expected to commence in the
spring of 2023, and involves separating the solution recovered from
both the leaching phase and the neutralization phase into (i)
mineralized precipitates and (ii) a neutralized treated solution.
The mineralized precipitate will be temporarily stored on surface
in storage tanks and the neutralized treated solution will be
re-injected into a designated subsurface area.
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 Pre-Feasibility Study (“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 67.01%
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 33.8118%) and Christie Lake (JCU 34.4508%). Denison's
exploration portfolio includes further interests in properties
covering ~300,000 hectares in the Athabasca Basin
region.
Denison is also engaged in post-closure mine care and maintenance
services through its Closed Mines group, which manages Denison's
reclaimed mine sites in the Elliot Lake region and provides related
services to certain third-party projects.
For more information, please contact
David Cates
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(416) 979-1991 ext
362
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President and Chief Executive
Officer
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Mac McDonald
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(416) 979-1991 ext
242
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Executive Vice President and
Chief Financial Officer
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Follow Denison on
Twitter
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@DenisonMinesCo
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Qualified Persons
The disclosure of scientific or technical information related to
the FFT or Wheeler River project contained in this release has been
reviewed and approved, as applicable, by Mr. David Bronkhorst,
P.Eng, Denison's Vice President, Operations or Mr. Andrew Yackulic,
P. Geo., Denison's Director, Exploration, who are Qualified Persons
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
‘potential’, ‘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’ or
‘be achieved’.
In particular, this news release contains forward-looking
information pertaining to the following: expectations with respect
to the FFT program, scope, timing and the anticipated results
thereof; the interpretation of the results of the FFT obtained
to-date; scope, objectives and interpretations of the FS process
for the proposed ISR operation for the Phoenix deposit; the results
and interpretations of the PFS 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 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 testing, evaluation and
development work if it is unable to maintain or otherwise secure
the necessary resources (such as testing facilities, capital
funding, regulatory approvals, 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 Denison’s Annual Information Form dated March
25, 2022 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 news release may use the terms 'measured',
'indicated' and 'inferred' mineral resources. United States
investors are advised that such terms have been prepared in
accordance with the definition standards on mineral reserves of the
Canadian Institute of Mining, Metallurgy and Petroleum referred to
in Canadian National Instrument 43-101 Mineral Disclosure Standards
(‘NI 43-101’) and are recognized and required by
Canadian regulations. '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 an inferred mineral resource exists,
or is economically or legally mineable. United States
investors are also cautioned not to assume that all or any part of
measured or indicated mineral resources will ever be converted into
mineral reserves.
Effective February 2019, the United States Securities and Exchange
Commission (‘SEC’) adopted amendments to its disclosure
rules to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the
Exchange Act and as a result, the SEC now recognizes estimates of
“measured mineral resources”, “indicated mineral
resources” and “inferred mineral resources”. In
addition, the SEC has amended its definitions of “proven
mineral reserves” and “probable mineral reserves”
to be “substantially similar” to the corresponding
definitions under the CIM Standards, as required under NI 43-101.
However, information regarding mineral resources or mineral
reserves in Denison’s disclosure may not be comparable to
similar information made public by United States
companies.