To assist the institution of ISR manufacturing and restoration curves for use within the FS, the Firm accomplished a long-term take a look at of a consultant intact core pattern (“Core 4A”) utilizing specialised gear to copy the in-situ leaching situations of the Phoenix deposit.
The outcomes from long-term core leach testing of Core 4A are highlighted by the next:
- Total restoration of uranium in extra of 97% – demonstrating wonderful restoration of uranium from intact high-grade core, with out using permeability enhancement.
- Common recovered answer uranium head grade of 18.3 grams per litre (“g/L”) – exceeding the assumed 15 g/L uranium head grade being utilized in FS plant designs (see information launch dated August 4, 2021 ).
- Steady intact core leach testing over a interval of 377 days, with uranium restoration head grades persistently maintained above 5 g/L through the closing phases of the manufacturing curve after which declining through the ramp-down stage.
- Most recovered answer uranium head grade of 49.8 g/L achieved utilizing comparable lixiviant concentrations as to these used through the Feasibility Area Check (“FFT”).
Kevin Himbeault , Denison’s Vice President of Plant Operations & Regulatory Affairs, commented, ” The optimistic outcomes of the long-term intact core leach take a look at carried out on Core 4A add to the weight-of-evidence de – risking using the ISR mining technique at the high-grade Phoenix uranium deposit. The power to reveal the restoration of over 97% of the uranium from a high-grade intact core pattern is sort of optimistic and offers notable assist for the estimated restoration worth of 85% used within the 2018 Pre-Feasibility Examine (“PFS”) . Moreover, demonstrating a mean uranium head grade of 18. 3 g/L , over a 12 months o f testing Core 4A , offers additional tangible assist for the assumed 15 g/L uranium head grade being utilized in FS plant designs.”
This press launch constitutes a ” designated information launch ” for the needs of the Firm ‘ s prospectus complement dated September 28, 2021 to its brief kind base shelf prospectus dated September 16, 2021 .
Since 2019, Denison has accomplished a number of core leach assessments utilizing intact core samples obtained from Phoenix throughout varied area take a look at packages. The take a look at work has been accomplished on the Saskatchewan Analysis Council (“SRC”) laboratories in Saskatoon , and makes use of specialised gear meant to copy the in-situ leaching situations of the Phoenix deposit – together with sustaining the core in its authentic form and exerting uniform stress on the exterior of the core (simulating in-situ overburden stress) to make sure lixiviant should journey by way of the pure pathways current inside the core pattern. Earlier core leach testing centered on the essential leaching traits of intact core from completely different hydrogeological items, permitting evaluation of various lixiviant compositions, uranium grade ramp-up, lixiviant move traits by way of the intact core, and the neutralization effectivity of intact core. The core leach take a look at of Core 4A was used to check comparable parameters; nonetheless, it was leached long run to develop an mixture life-of-well restoration and manufacturing profile, together with the preliminary ramp-up and the gradual decline of the UBS head grade. This profile will likely be used to assist wellfield manufacturing modelling and optimization.
Core 4A is calculated to have a grade of 26.7% U 3 O 8 , which is comparable to the common grade of the estimated Indicated Mineral Assets for Phoenix of 19.14% U 3 O 8 , and is consultant of one of many primary hydrogeological items recognized inside the Phoenix deposit.
The precise grade of Core 4A was calculated post-test, because the intact core can’t be assayed with out destroying the integrity of the core. Upon termination of the core leach take a look at, the remaining core was crushed, floor, and assayed to find out the ultimate residual uranium mass contained inside the leached-out core pattern. The residual mass of uranium, together with the mass of uranium recovered throughout leaching, was used to calculate each the general restoration in addition to the unique grade of the core.
About Wheeler River
Wheeler River is the biggest undeveloped uranium undertaking within the infrastructure wealthy jap portion of the Athabasca Basin area, in northern Saskatchewan – together with mixed Indicated Mineral Assets of 132.1 million kilos U 3 O 8 (1,809,000 tonnes at a mean grade of three.3% U 3 O 8 ), plus mixed Inferred Mineral Assets of three.0 million kilos U 3 O 8 (82,000 tonnes at a mean grade of 1.7% U 3 O 8 ). The P roject is host to the high-grade Phoenix and Gryphon uranium deposits, found by Denison in 2008 and 2014, respectively, and is a three way partnership between Denison (operator) and JCU ( Canada ) Exploration Firm Restricted ( ” JCU ” ). Denison has an efficient 95% possession curiosity in Wheeler River (90% immediately, and 5% not directly by way of a 50% possession in JCU).
A PFS was accomplished for Wheeler River in 2018, contemplating the potential financial advantage of growing the Phoenix deposit as an ISR operation and the Gryphon deposit as a standard underground mining operation. Taken collectively, the P roject is estimated to have mine manufacturing of 109.4 million kilos U 3 O 8 over a 14-year mine life, with a base case pre-tax NPV of $1.31 billion (8% low cost charge), Inside Fee of Return ( ” IRR ” ) of 38.7%, and preliminary 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% low cost charge), IRR of 43.3%, preliminary pre-production capital expenditures of $322.5 million , and industry-leading common working prices of US$3.33 /lb U 3 O 8 . The PFS is ready on a undertaking (100% possession) and pre-tax foundation, as every of the companions to the Wheeler River Joint Enterprise are topic to completely different tax and different obligations.
Additional particulars relating to the PFS, together with further scientific and technical data, in addition to after-tax outcomes attributable to Denison’s possession curiosity, are described in higher element within the NI 43-101 Technical Report titled ” Pre-feasibility Examine for the Wheeler River Uranium Venture, Saskatchewan, Canada ” dated October 30, 2018, with an efficient date of September 24 , 2018. A duplicate of this report is obtainable on Denison’s web site and beneath its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml .
Denison suspended sure actions at Wheeler River throughout 2020, together with the EA course of, which is on the important path to attaining the undertaking improvement schedule outlined within the PFS. Whereas the EA course of has resumed, the Firm shouldn’t be at the moment capable of estimate the influence to the undertaking improvement schedule outlined within the PFS, and customers are cautioned towards counting on the estimates supplied therein relating to the beginning of pre-production actions in 2021 and first manufacturing in 2024.
About Denison
Denison is a uranium exploration and improvement firm with pursuits centered within the Athabasca Basin area of northern Saskatchewan, Canada . Along with its efficient 95% curiosity within the Wheeler River undertaking, Denison’s pursuits within the Athabasca Basin embody a 22.5% possession curiosity within the McClean Lake three way partnership, which incorporates a number of uranium deposits and the McClean Lake uranium mill that’s contracted to course of the ore from the Cigar Lake mine beneath a toll milling settlement, plus a 25.17% curiosity within the Midwest Primary and Midwest A deposits, and a 67.01% curiosity within the Tthe Heldeth Túé (“THT,” previously J Zone) and Huskie deposits on the Waterbury Lake property. The Midwest Primary, Midwest A, THT and Huskie deposits are every positioned inside 20 kilometres of the McClean Lake mill.
By means of its 50% possession of JCU, Denison holds further pursuits in varied uranium undertaking joint ventures in Canada , together with the Millennium undertaking (JCU 30.099%), the Kiggavik undertaking (JCU 33.8118%) and Christie Lake (JCU 34.4508%). Denison’s exploration portfolio contains additional pursuits in properties overlaying ~300,000 hectares within the Athabasca Basin area.
Denison can be engaged in post-closure mine care and upkeep providers by way of its Closed Mines group, which manages Denison’s reclaimed mine websites within the Elliot Lake area and offers associated providers to sure third-party initiatives.
Certified Individuals
The disclosure of scientific or technical data associated to the FFT, the core leach testing, or Wheeler River undertaking contained on this launch has been reviewed and accredited, as relevant, by Mr. David Bronkhorst , P.Eng, Denison’s Vice President, Operations or Mr. Andrew Yackulic , P. Geo., Denison’s Director, Exploration, who’re Certified Individuals in accordance with the necessities of NI 43-101.
Cautionary Assertion Concerning Ahead-Wanting Statements
Sure data contained on this information launch constitutes ‘forward-looking data’, inside the which means of the relevant United States and Canadian laws, regarding the enterprise, operations and monetary efficiency and situation of Denison. Typically, these forward-looking statements could be recognized by way of forward-looking terminology reminiscent of ‘potential’, ‘plans’, ‘expects’, ‘funds’, ‘scheduled’, ‘estimates’, ‘forecasts’, ‘intends’, ‘anticipates’, or ‘believes’, or the negatives and/or variations of such phrases and phrases, or state that sure actions, occasions or outcomes ‘could’, ‘might’, ‘would’, ‘may’ or ‘will ‘ ‘ be taken’, ‘happen’ or ‘be achieved’.
Particularly, this information launch comprises forward-looking data pertaining to the next: scope, goals and interpretations of the FS course of for the proposed ISR operation for the Phoenix deposit, together with metallurgical testing packages described herein and the interpretation of the outcomes therefrom ; the scope and design, and associated take a look at work, with respect to plans and course of designs for the FS; and expectations relating to its three way partnership possession pursuits and the continuity of its agreements with its companions and third events.
Ahead trying statements are primarily based on the opinions and estimates of administration as of the date such statements are made, and they’re topic to identified and unknown dangers, uncertainties and different elements that will trigger the precise outcomes, degree of exercise, efficiency or achievements of Denison to be materially completely different from these expressed or implied by such forward-looking statements. For instance, the modelling and assumptions upon which the work plans for the Wheeler River Venture are primarily based might not be maintained after additional work is accomplished. As well as, Denison could resolve or in any other case be required to discontinue testing, analysis and improvement work whether it is unable to keep up or in any other case safe the required sources (reminiscent of testing amenities, capital funding, regulatory approvals, and many others.). Denison believes that the expectations mirrored on this forward-looking data are cheap however no assurance could be provided that these expectations will show to be correct and outcomes could differ materially from these anticipated on this forward-looking data. For a dialogue in respect of dangers and different elements that might affect forward-looking occasions, please seek advice from the elements mentioned in Denison’s Annual Info Type dated March 25, 2022 or subsequent quarterly monetary reviews beneath the heading ‘Danger Components’. These elements should not, and shouldn’t be construed as being exhaustive.
Accordingly, readers shouldn’t place undue reliance on forward-looking statements. The forward-looking data contained on this information launch is expressly certified by this cautionary assertion. Any forward-looking data and the assumptions made with respect thereto speaks solely as of the date of this information launch. Denison doesn’t undertake any obligation to publicly replace or revise any forward-looking data after the date of this information launch to adapt such data to precise outcomes or to adjustments in Denison’s expectations besides as in any other case required by relevant laws.
Cautionary Notice to United States Traders Regarding Estimates of Mineral Assets and Mineral Reserves : This information launch could use the phrases ‘measured’, ‘indicated’ and ‘inferred’ mineral sources. United States traders are suggested that such phrases have been ready in accordance with the definition requirements on mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian Nationwide Instrument 43-101 Mineral Disclosure Requirements (‘NI 43-101’) and are acknowledged and required by Canadian rules. ‘Inferred mineral sources’ have a large amount of uncertainty as to their existence, and as to their financial and authorized feasibility. It can’t be assumed that every one or any a part of an inferred mineral useful resource will ever be upgraded to a better class. Below Canadian guidelines, estimates of inferred mineral sources could not kind the premise of feasibility or different financial research. United States traders are cautioned to not assume that every one or any a part of an inferred mineral useful resource exists, or is economically or legally mineable. United States traders are additionally cautioned to not assume that every one or any a part of measured or indicated mineral sources will ever be transformed into mineral reserves.
Efficient February 2019 , the United States Securities and Trade Fee (‘SEC’) adopted amendments to its disclosure guidelines to modernize the mineral property disclosure necessities for issuers whose securities are registered with the SEC beneath the Trade Act and because of this, the SEC now acknowledges estimates of “measured mineral sources”, “indicated mineral sources” and “inferred mineral sources”. As well as, the SEC has amended its definitions of “confirmed mineral reserves” and “possible mineral reserves” to be “considerably comparable” to the corresponding definitions beneath the CIM Requirements, as required beneath NI 43-101. Nevertheless, data relating to mineral sources or mineral reserves in Denison’s disclosure might not be similar to comparable data made public by United States corporations.
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SOURCE Denison Mines Corp.
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