EX-99.1
2
a2021-04dmcdenisonannounc.htm
PRESS RELEASE DATED APRIL 21, 2021
a2021-04dmcdenisonannounc
Exhibit 99.1
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
PRESS
RELEASE
DENISON PROVIDES INITIAL PROGRESS UPDATE ON
INSTALLATION OF ISR TEST PATTERN AT WHEELER RIVER
Toronto, ON – April 21,
2021. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
announce the initiation and ramp-up of In-Situ Recovery
(“ISR”) field test activities, including the
installation of a five-spot ISR test pattern (“Test
Pattern”), at the Company’s 90% owned Wheeler River
Uranium Project (“Wheeler River” or the
“Project”). Mobilization of drilling equipment
necessary to complete the large diameter drill holes, for each
Commercial Scale Well (“CSW”) planned for the Test
Pattern, was completed in early April 2021 and, to date, four of
the five planned CSWs have been successfully drilled to target
depths, cased, and cemented into position. The fifth CSW is in
progress and is expected to be completed within the next week. The
installation of the Test Pattern is the first step in an ambitious
2021 ISR field program, which is designed to support the further
de-risking of the application of the ISR mining method at the
high-grade Phoenix uranium deposit
(“Phoenix”).
David Bronkhorst,
Denison’s VP Operations, commented, “We are excited to
have our 2021 ISR field program underway at Wheeler River. Our
Saskatoon based technical team has assembled an industry-leading
group of experts to design, install and operate the Test Pattern as
part of our 2021 ISR field program. We are very pleased with the
productivity achieved to date, for the installation of the large
diameter CSWs, and are looking forward to further validating the
effectiveness of various permeability enhancement tools and
collecting additional hydrogeologic data to support the permitting
and set-up of a lixiviant test in 2022. The lixiviant test is
expected to be a key de-risking milestone for the Project –
as it is intended to confirm technical feasibility by verifying the
permeability, leachability, and containment parameters needed for
the successful application of the ISR mining method at
Phoenix.”
The
2021 ISR field program is expected to involve the following key
components:
●
Installation of a Five-spot
Test Pattern: The Test Pattern is located in the Phase 1 area of
the Phoenix deposit and is planned to consist of five new CSWs (see
Figure 1 and Figure 2). The Test Pattern has been designed to
facilitate the further evaluation of the ISR mining conditions at
Phoenix – for incorporation into detailed mine planning that
is expected to be completed as part of a future Feasibility Study
(“FS”) for the Project;
●
Installation of 11 Additional
Monitoring Wells (“MWs”): In addition to the existing small-diameter MWs,
eleven further MWs are planned to be installed in the Phase 1 area
(see Figure 1 and Figure 2) and are designed to surround the Test
Pattern on all sides and above the ore zone horizon, in order to
facilitate detailed monitoring of pressure changes and observations
of fluid flow patterns during active hydrogeological tests. Certain
MWs will also allow for water quality sampling over the duration of
test work;
●
Extensive Hydrogeologic
Testing: Approximately
twenty-five hydrogeologic tests are planned to be completed during
the ISR field program. Tests are expected to (1) evaluate baseline
conditions, (2) evaluate the effectiveness of permeability
enhancement tools deployed on an individual well basis, and (3)
assess the Test Pattern’s total permeability on a full-scale
basis. Additionally, ion tracer tests using inorganic salts are
expected to be conducted on the full Test Pattern to establish
breakthrough times for each CSW and confirm sub-surface pathways
– thus allowing for a more complete understanding of the
hydrogeologic characteristics expected throughout Phase 1, which is
expected to support the permitting and design of a lixiviant test,
planned for 2022, utilizing the existing Test
Pattern.
Please
refer to the Company’s news release dated February 8, 2021
for additional details related to the Company’s 2021
evaluation program plans for Wheeler River, which also includes
information about the resumption of the Environmental Assessment
process.
Phoenix Phase 1
As
outlined in the Company’s freeze wall trade-off study (see
news release dated Dec. 1, 2020), Denison has decided to adapt its
plans for the Project to use a freeze wall in future Project design
and environmental assessment efforts. The trade-off study
highlighted a key opportunity for the Project – whereby the
freeze wall could be installed in stages to facilitate a phased
mining approach at Phoenix. In a phased mining approach, only a
limited portion of the freeze wall is required to support first
production, with the subsequent expansion of the freeze wall
perimeter allowing for additional mining phases to be brought into
production over the duration of the mine life.
The
phased mining approach is expected to allow for the targeted
extraction of the least capital-intensive reserves first, based on
the grade and distribution of ore in various areas of the deposit.
The trade-off study provides for mining to occur over 5
phases.
Phase 1 of the deposit is estimated to contain
approximately 22.2 million pounds U3O8
(37,242 tonnes at 27.1%
U3O8,
above a cut-off grade of 0.8% U3O8)
in Probable mineral reserves. Based on current designs, the Company
estimates approximately 6.6 million pounds U3O8
(7,717 tonnes at 39.2%
U3O8,
above a cut-off grade of 0.8% U3O8)
in Probable mineral reserves are contained within the expected
operating perimeter of the Test Pattern (see Figure 1). These
estimates are derived as a direct subset of those reported in the
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. The key assumptions,
parameters and methods used to estimate the mineral reserves herein
remain unchanged.
COVID-19
The
Company is committed to ensuring that the Wheeler River site is a
safe operating environment for its staff and contractors and that
the Company's field activities do not compromise the health and
safety of the residents of northern Saskatchewan. In 2020, the
Company's Occupational Health and Safety Committee in Saskatoon
developed a comprehensive guide for the safe resumption of work at
Wheeler River. The protocols consider the unique health and safety
risks associated with operating a remote work camp amidst the
ongoing COVID-19 pandemic. Public health guidelines and best
practices (including testing) have been incorporated into the
Company's protocols.
Despite
the Company's current intentions, it is possible that the 2021 ISR
field program may be disrupted by the continuously evolving social
and/or economic disruptions associated with the COVID-19 pandemic,
which are outside of the control of the Company – for
example, the ability of Company or contractor staff to attend to
the site, Provincial or local travel restrictions, and changing
public health guidelines.
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 (90% and operator) and JCU (Canada)
Exploration Company Limited (10%).
A PFS was completed for Wheeler River in late 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 the Wheeler River project,
Denison's interests in the Athabasca Basin include a 22.5%
ownership interest in the McClean Lake joint venture ("MLJV"),
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 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, Midwest A,
THT and Huskie deposits are located within 20 kilometres of the
McClean Lake mill. In addition, Denison has an extensive portfolio
of exploration projects covering approximately 280,000 hectares in
the Athabasca Basin region.
Denison is 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.
Denison is also the manager of Uranium Participation Corp., a
publicly traded company which invests in uranium oxide and uranium
hexafluoride.
For more information, please contact
David Cates
(416) 979-1991 ext
362
President and Chief Executive
Officer
Sophia Shane
(604) 689-7842
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, 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 planned scope,
elements, and objectives of the 2021 ISR field programs, including
the drilling of CSWs and MWs and development of the Test Pattern;
other evaluation activities, including a planned future lixiviant
test and those connected with the EA process;
the results of the PFS and expectations with respect thereto;
expectations with respect to freeze wall containment and phased
development, and the estimates of reserves in each such phase;
other development and expansion plans and objectives, including
plans for a feasibility study; and expectations regarding its joint
venture ownership interests and the continuity of its agreements
with its partners.
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 29, 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 Measured, Indicated and Inferred
Mineral Resources and Probable Mineral Reserves: This press
release may use the terms 'measured', 'indicated' and 'inferred'
mineral resources. United States investors are advised that while
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, these terms
are not defined under Industry Guide 7 under the United States
Securities Act and, until recently, have not been permitted to be
used in reports and registration statements filed with the United
States Securities and Exchange Commission ('SEC'). '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
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. In addition, the terms
"mineral reserve", "proven mineral reserve" and "probable mineral
reserve" for the purposes of NI 43-101 differ from the definitions
and allowable usage in Industry Guide 7. Effective February 2019,
the 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.
Figure 1: Plan Map Showing Location of Phoenix Deposit (Phase 1)
– ISR Test Pattern
Figure 2: 3D Isometric Views of the Phoenix Deposit (Phase 1)
– ISR Test Pattern