EX-99.1
2
a20210921-fsannouncementv.htm
PRESS RELEASE DATED SEPTEMBER 22, 2021
a20210921-fsannouncementv
Exhibit 99.1
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
PRESS
RELEASE
DENISON ANNOUNCES DECISION TO ADVANCE WHEELER RIVER
TO FEASIBILITY STUDY STAGE AND SELECTION OF
WOOD PLC AS INDEPENDENT LEAD AUTHOR
Toronto, ON –Sept 22,
2021. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML, NYSE American: DNN) is pleased to
announce that the Wheeler River Joint Venture (“WRJV”)
has approved the initiation of an independent Feasibility Study
(“FS” or the “Study”) for the In-Situ
Recovery (“ISR”) mining operation proposed for the
Phoenix uranium deposit (“Phoenix” or the
“Project”). The Company is also pleased to announce the
selection of leading global consulting and engineering firm Wood
PLC (“Wood”) to lead and author the FS in accordance
with Canadian Securities National Instrument
43-101
(“NI
43-101”).
David Cates, Denison’s President & CEO,
commented, “The
ISR de-risking activities we’ve completed since the
publication of the Pre-Feasibility Study (‘PFS’) for
Wheeler River in 2018 have been designed to support the completion
of a future Feasibility Study, and the results to date have further
confirmed the technical viability of the Project – leading to
the decision to advance the Project and initiate the formal
Feasibility Study process.
During this de-risking phase, we have been able to verify ore-body
permeability and the leachability of high-grade uranium in
conditions representative of an ISR mining setting. We’ve
also engineered an improved containment design using a more
conventional ground freezing approach. Based on the results of
field programs and metallurgical lab testing completed over the
last three years, we are confident that the Project is ready to
advance into a full Feasibility Study. Taken together with the
selection of globally recognized engineering firm Wood, the
decision to launch the formal Feasibility Study process for Phoenix
represents another important step towards achieving our objective
of bringing low-cost ISR mining to the high-grade uranium deposits
of the
Athabasca Basin.”
Feasibility Study
The
completion of the FS is a critical step in the progression of the
Project and is intended to advance de-risking efforts to the point
where the Company and the WRJV will be able to make a definitive
development decision. Key objectives of the Study are expected to
include:
●
Environmental
Stewardship: Extensive planning
and technical work undertaken as part of the ongoing Environmental
Assessment (“EA”), including applicable feedback from
consultation efforts with various interested parties, is expected
to be incorporated into the FS project designs to support our
aspiration of achieving a superior standard of environmental
stewardship that meets and exceeds the anticipated environmental
expectations of regulators and aligns with the interests of local
Indigenous communities;
●
Updated Estimate of Mineral
Resources: Mineral resources
for Phoenix were last estimated in 2018. Since then, additional
drilling has been completed in and around the Phoenix deposit as
part of various ISR field tests, including drill hole GWR-045
(22.0% eU3O8
over 8.6 metres, see news release
dated July 29, 2021), and exploration drilling. The updated mineral
resource estimate will form the basis for mine planning in the
FS;
●
Mine Design
Optimization: FS mine design is
expected to reflect the decision to adopt a freeze wall
configuration for containment of the ISR well field (see news
release dated December 1, 2020), as well as the results from
multiple field test programs and extensive hydrogeological
modelling exercises, which have provided various opportunities to
optimize other elements of the Project – including well
pattern designs, permeability enhancement strategies, and both
construction and production schedules;
●
Processing Plant
Optimization: FS process plant
design is expected to reflect the decision to increase the ISR
mining uranium head-grade to 15 g/L (see news release dated August
4, 2021), as well as the results from extensive metallurgical
laboratory studies designed to optimize the mineral processing
aspects of the Project; and
●
Class 3 Capital Cost
Estimate: The FS is also
intended to provide the level of engineering design necessary to
support a Class 3 capital cost estimate (AACE international standard with an accuracy of
-15% /+25%), which is expected to provide a basis to confirm the
economic potential of the Project highlighted in the PFS completed
in 2018 (see news release dated September 24,
2018).
Wood PLC
Wood is a global leader in consulting and
engineering across energy and the built environment, helping to
unlock solutions to some of the world’s most critical
challenges. Wood provides consulting, project and operational
solutions in more than 60 countries and employs around 40,000
people. Importantly, Wood’s Saskatchewan-based team has
significant experience in ISR mining projects as well as
large-scale uranium, potash and solution mining projects. For more
information about Wood, please visit www.woodplc.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. 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 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 post-closure mine care and
maintenance services to a variety of industry and government
clients.
For more information, please contact
David Cates
(416) 979-1991 ext
362
President and Chief Executive
Officer
Shae Frosst
(416) 979-1991 ext
228
Investor
Relations
Follow Denison on
Twitter
@DenisonMinesCo
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. David Bronkhorst, P.Eng, Denison's
Vice President, Operations and 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 ‘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: initiation of the FS; the
selection and appointment of Wood to author the FS; the planned
scope, elements, and objectives of the FS, including the plans for
an updated mineral resource estimate, mine design optimization
processing plant optimization and Class 3 capital cost estimate;
other evaluation activities, objectives and expectations, including
the ongoing EA and related processes; the results of the PFS and
expectations with respect thereto, including the designs disclosed
to-date and the ability to maintain or build upon such designs;;
other development and expansion plans and objectives; 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.