EX-99.1
2
a20220216wrxphoenixfieldp.htm
PRESS RELEASE DATED FEBRUARY 16, 2022
a20220216wrxphoenixfieldp
Exhibit 99.1
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
PRESS
RELEASE
Denison Announces Intersection of
24.9% eU3O8
over 4.2 metres
extending beyond the high-grade domain at Phoenix Zone
A
Toronto, ON – Feb. 16,
2022. 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.
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.
For more information, please contact
David
Cates
(416)
979-1991 ext 362
President and
Chief Executive Officer
Mac
McDonald
(416) 979-1991 ext
242
Exec. Vice
President & Chief Financial Officer
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.
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