EX-99.1
2
dml-20221129eisconformity.htm
PRESS RELEASE DATED NOVEMBER 29, 2022
dml-20221129eisconformity
Exhibit 99.1
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
PRESS
RELEASE
Denison Announces Completion of Wheeler River EIS
Conformity Review and Commencement of Technical Review
Toronto, ON – Nov. 29,
2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce that the Canadian Nuclear Safety Commission
(“CNSC”) has completed its conformity review of the
draft Environmental Impact Statement (“EIS”) submitted
for the proposed in-situ recovery (“ISR”) uranium mine
and processing plant (the “Project”) planned for
Denison’s 95% owned Wheeler River project (“Wheeler
River”). The CNSC determined that the draft EIS met the
requirements for the advancement of the Environmental Assessment
(“EA”) process. Denison is also pleased to report that
the federal technical review of the EIS, which is being completed
under the provisions of the Canadian Environmental Assessment Act,
2012 (“CEAA 2012”), has now
commenced.
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, commented,
“Clearing
the CNSC conformity review and commencing the formal technical
review phase is an important initial achievement as part of the EIS
review for Wheeler River – ensuring the continued progression
of the regulatory process for what is proposed as Canada’s
first ISR uranium mining operation. Our team looks forward to
showcasing the superior standard of environmental sustainability
assessed for the Project, as we work with the regulatory technical
review teams in the coming months.”
The
draft EIS outlines the Company’s findings from the assessment
of the potential effects associated with the Project, considering
applicable mitigation measures, and reflects several years of
baseline environmental data collection, detailed third-party
technical assessments, plus extensive engagement and consultation
with Indigenous and non-Indigenous interested parties.
The
federal technical review process is occurring in parallel and on a
coordinated basis with the Saskatchewan Ministry of Environment
(“MOE”), which began its review efforts of the draft
EIS following Denison’s initial submission in October (see
news release dated October 26, 2022). The technical review process
ensures the EIS (and supporting documents) contains complete and
sufficient information and that Denison’s analysis of
potential effects is performed correctly.
Corresponding
with the acceptance of the draft EIS and commencement of the
technical review, the CNSC has also opened the public review and
comment period for the Project, which will be open for 90-days
ending on February 18, 2023.
Environmental Assessment Process
A
project description was submitted by Denison and accepted by the
MOE and the CNSC in 2019, which marked the formal initiation of the
EA process for the Project (see news release dated June 3,
2019).
The
EIS has been prepared in accordance with the Terms of Reference
provided by the MOE in 2019 and the Generic Guidelines for the
Preparation of an Environmental Impact Statement
(“Guidelines”) as authorized by the CNSC in 2019.
Additionally, the EIS has been prepared to align with the federal
and provincial EA processes as stipulated under the Saskatchewan
Environmental Assessment Act, 2018 and CEAA 2012.
The
joint provincial and federal EA process allows Denison to file one
EIS that meets the requirements of both the MOE and CNSC. The
regulatory review process is expected to involve further requests
for information/clarification from Denison before the final EIS is
accepted by the regulatory agencies.
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
(416) 979-1991 ext
362
President and Chief Executive
Officer
Mac
McDonald
(416) 979-1991 ext
242
Executive Vice President and Chief Financial
Officer
Follow Denison on
Twitter
@DenisonMinesCo
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.
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 EIS and the EIS regulatory review process; expectations
regarding the public review and comment period for the Project;
scope, objectives 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 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 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 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”) 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.