Denison Mines Corp. (“Denison” or the “Company”) (TSX:DML) (NYSE
MKT:DNN) (NYSE American:DNN) is pleased to report the discovery of
high-grade uranium mineralization 600 metres and 1 kilometre to the
northeast of the Gryphon uranium deposit, on the Company’s 63.3%
owned Wheeler River project, in northern Saskatchewan. The winter
drilling program is now complete, resulting in a total of 21,153
metres drilled in 29 diamond drill holes. The program was
focused on step-out drilling along strike of the Gryphon deposit
and reconnaissance level regional exploration along the K-North and
K-West trend. The winter 2018 drilling results reported in
this release are preliminary, equivalent uranium (“eU3O8”) results
derived from a calibrated downhole probe. Drill core samples have
been collected and submitted for chemical assay, results of which
will be reported when available.
Regional Exploration
Highlights:
High-grade intercepts were obtained at the
sub-Athabasca unconformity along the K-North
trend, to the northeast of Gryphon, from reconnaissance
drill fences spaced 200 metres apart, including:
- 0.55% eU3O8 over 5.6 metres, located 600 metres northeast of
Gryphon, including 2.3%
eU3O8
over 1.0 metre
in drill hole WR-704; and
- 0.94% eU3O8 over 3.5 metres, located 1 kilometre northeast of
Gryphon, including 2.7%
eU3O8
over 1.0 metre
in drill hole WR-710D1.
The results indicate a continuation of the
Gryphon mineralizing system to the northeast, and highlight the
potential for the discovery of an additional high-grade uranium
deposit within the basement or at the unconformity along strike of
Gryphon.
In addition, wide-spaced reconnaissance drilling
along the K-West trend,
approximately 500 metres west and northwest of the Gryphon deposit,
has identified the hallmarks of a significant fertile trend with
the potential to host high-grade uranium – including a large
re-activated graphite-bearing fault zone, hydrothermal alteration
and elevated radioactivity.
Gryphon Exploration
Highlights:
Multiple basement intercepts were obtained from
step-out drilling on 50 to 100 metre centres immediately along
strike to the northeast of the Gryphon deposit. Highlights
from the Gryphon step-out drilling include:
- Intercepts of upper basement mineralization extending the E
series lenses to the northeast:
- 2.5%
eU3O8
over 1.3 metres in drill hole
WR-696;
- 0.86% eU3O8 over 1.9 metres in drill hole WR-709; and
- 0.38% eU3O8 over 2.8 metres in drill hole WR-702.
- Intercept of mineralization, 100 metres along strike to the
northeast of the previous down-plunge extent of A series
mineralization for the Gryphon deposit, including:
- 0.82% eU3O8 over 3.9 metres, including
2.1%
eU3O8
over 1.0 metre
in drill hole WR-698
Further details of the winter 2018 drilling
program and the results are provided below, including comprehensive
drilling tables of preliminary eU3O8 results.
Dale Verran, Vice President Exploration of
Denison commented, “The last time Denison undertook any
significant regional exploration on Wheeler was in 2014, which
resulted in the discovery of Gryphon. The initiation of regional
exploration once again in 2018 has been met with positive results
delivering high-grade intercepts along the K-North trend and
identifying K-West as a significant fertile trend. Furthermore, the
initial step-outs from Gryphon confirm potential to continue to
expand the mineral resource. We look forward to the summer drilling
program to continue to test regional targets across the Wheeler
River property and commence follow-up activities where
warranted.”
Details of Regional
Exploration Results:
K North
A total of eight reconnaissance holes were
completed along the K-North trend to the northeast of the Gryphon
deposit. Drilling was completed along four drill fences located
approximately 200 metres apart with two drill holes per fence. On
each fence, the drill holes were designed to test the G-Fault
(principle mineralized structure at Gryphon); (1) at the
sub-Athabasca unconformity, and (2) within the basement,
approximately 100 metres below the unconformity,
respectively. Preliminary eU3O8 drilling results are provided
in Table 1 and drill hole locations are shown in Figure 2.
- Three of the four holes designed to test the unconformity
intersected mineralization, including drill hole WR-704 (2.3% eU3O8
over 1.0 metre, 600 metres northeast of Gryphon) and WR-710D1 (2.7%
eU3O8 over 1.0 metre, 1 kilometre northeast of Gryphon).
- Drill hole WR-708, located between WR-704 and WR-710D1, did not
intersect mineralization but was interpreted to have overshot the
optimal target, intersecting elevated radioactivity at the
unconformity and significant structure and alteration above the
unconformity.
- The mineralization intersected in WR-704 and WR-710D1 was
located at or immediately below the unconformity and comprised of
massive to semi-massive uraninite with associated hematite and clay
alteration – typical of unconformity-hosted deposits.
- The drill results indicate the unconformity-related
mineralizing system extends over approximately 600 metres of strike
length (from WR-697D1 to WR-710D1) and may have connectivity to the
E series lens mineralization at Gryphon.
- The four drill holes testing the basement confirmed
Gryphon-type stratigraphy (graphitic pelitic gneiss overlying
quartz-pegmatite) and encountered Gryphon-like structural
disruption along the G-Fault with associated clay alteration.
Basement mineralization was intersected in drill holes WR-697D1
(0.23% eU3O8 over 1.0 metre) and WR-700 (0.11% eU3O8 over 1.0
metre).
K West
The K-West trend is parallel to, and located
approximately 500 metres west of, the K-North trend and shares many
geological similarities. During summer 2016, weak basement-hosted
mineralization and extensive clay alteration was intersected in
drill hole WR-663 at K-West (see Denison’s press release dated
August 4, 2016). Follow-up drilling commenced along strike of
WR-663 as part of the winter 2018 program, with 100 metre step-out
holes in both directions, and two reconnaissance drill holes
completed further along strike to the northeast (located at 400 and
750 metres from WR-663, respectively). Preliminary eU3O8 drilling
results are provided in Table 1 and drill hole locations are shown
in Figure 2.
- A significant basement fault zone with associated clay
alteration was intersected in every hole, with elevated
radioactivity recorded in drill hole WR-715 (up to 700 counts per
second over 6 metres using a down-hole 2GHF-1000 triple gamma
probe) and drill hole WR-714 (up to 550 counts per second over 1
metre).
- Taken together, the results indicate K-West is a large fertile
trend with the potential to host high-grade uranium within the
basement and at the unconformity.
Table 1: Preliminary Regional
Exploration winter 2018 drilling
results.
Drill Hole |
From (m) |
To (m) |
Length (m)5 |
eU3O8
(%)1,2,4 |
Zone & Location |
WR-697D1 |
557.3 |
558.3 |
1.0 |
0.09 |
K-North - 400 m NE of Gryphon |
and |
664.8 |
665.8 |
1.0 |
0.23 |
WR-700 |
611.7 |
612.7 |
1.0 |
0.11 |
WR-701 |
No significant mineralization. |
K-North - 600 m NE of Gryphon |
WR-704 |
561.9 |
567.5 |
5.6 |
0.55 |
including3 |
565.2 |
566.2 |
1.0 |
2.3 |
WR-705 |
No significant mineralization. |
K-North - 800 m NE of Gryphon |
WR-708 |
Elevated radioactivity. Significant alteration. |
WR-710 |
No significant mineralization. |
K-North - 1 km NE of Gryphon |
WR-710D1 |
567.1 |
570.6 |
3.5 |
0.94 |
including3 |
569.4 |
570.4 |
1.0 |
2.7 |
WR-714 |
No significant mineralization. Elevated
radioactivity. |
K West - see Figure 2 |
WR-716 |
No significant mineralization. |
WR-715 |
No significant mineralization. Elevated
radioactivity. |
WR-717 |
No significant mineralization. |
Notes:1. eU3O8 is radiometric equivalent U3O8 derived
from a calibrated total gamma down-hole probe.2. Composited above a
cut-off grade of 0.05% eU3O8 unless otherwise indicated.3.
Composited above a cut-off grade of 1.0% eU3O8.4. Composites
compiled using 1.0 metre minimum mineralization thickness and 2.0
metres maximum waste.5. As the drill holes are oriented steeply
toward the northwest and the unconformity mineralization is
interpreted to be flat-lying, the true thickness of the
mineralization is expected to be approximately 75% of the
intersection lengths.
Details of Gryphon
Exploration Results:
Gryphon Down-Plunge
The Gryphon deposit remains open in the
down-plunge area to the northeast and five holes were completed in
this direction during the winter 2018 drill program. Preliminary
eU3O8 drilling results are provided in Table 2 and drill hole
locations are shown in Figure 2.
- Drill hole WR-698, located approximately 100 metres along
strike and to the northeast of the Gryphon deposit’s A series
lenses, intersected 0.82% eU3O8 over 3.9 metres, including 2.1%
eU3O8 over 1.0 metre.
- Additional weak mineralization was intersected in three
follow-up holes drilled on an approximate 50 metre spacing
(WR-698D1, WR-703 and WR-707), which showed apparent continuity of
the mineralization and extensive Gryphon-style alteration.
E Series Lenses
A total of seven drill holes were completed to
test for Gryphon E series lens mineralization along strike to the
northeast of the Gryphon deposit. Drill holes were spaced
approximately 50 metres apart on sections up to 200 metres away
from the Gryphon deposit. Preliminary eU3O8 drilling results are
provided in Table 2 and drill hole locations are shown
in Figure 2
- Six of the seven drill holes were mineralized, including WR-696
(2.5% eU3O8 over 1.3 metres), WR-709 (0.86% eU3O8 over 1.9 metres),
and WR-702 (0.38% eU3O8 over 2.8 metres).
- The winter 2018 drilling has extended the E series lens
mineralization a further 200 metres to the northeast. As a
result, the E series lenses remain open to the northeast and
southwest, and now have a total strike length of over 500
metres.
D Series Lenses
Four step-out drill holes were completed on a 50
metre spacing to test for D series lens mineralization along strike
to the southwest of the D series lenses included in the current
Gryphon mineral resource estimate. Preliminary eU3O8 drilling
results are provided in Table 2 and drill hole locations are shown
in Figure 2.
- Two of the drill holes were mineralized above the 0.05% eU3O8
cut-off, with drill hole WR-711 returning a highlight intersection
of 0.46% eU3O8 over 1.1 metres.
Table 2:
Preliminary Gryphon Exploration
winter 2018 drilling results.
Section |
Drill Hole |
From (m) |
To (m) |
Length (m)5 |
eU3O8
(%)1,2,4 |
Lens Target & Designation |
5350GP |
WR-698 |
775.9 |
779.8 |
3.9 |
0.82 |
A/B/C Lens |
including3 |
776.7 |
777.7 |
1.0 |
2.1 |
and |
780.5 |
781.5 |
1.0 |
0.05 |
WR-698D1 |
783.2 |
784.2 |
1.0 |
0.06 |
5400GP |
WR-703 |
806.3 |
808.6 |
2.3 |
0.35 |
and |
813.9 |
814.9 |
1.0 |
0.08 |
WR-703D1 |
No significant mineralization. |
5450GP |
WR-707 |
802.6 |
803.6 |
1.0 |
0.15 |
5325GP |
WR-696 |
580.8 |
582.0 |
1.2 |
0.28 |
E Lens |
and |
595.6 |
596.9 |
1.3 |
2.5 |
including3 |
595.7 |
596.7 |
1.0 |
3.3 |
and |
618.1 |
619.1 |
1.0 |
0.06 |
and |
624.9 |
625.9 |
1.0 |
0.09 |
and |
665.3 |
666.5 |
1.2 |
0.42 |
5350GP |
WR-699D1 |
604.7 |
605.7 |
1.0 |
0.06 |
and |
620.1 |
621.1 |
1.0 |
0.07 |
5400GP |
WR-702 |
542.6 |
545.4 |
2.8 |
0.38 |
and |
703.7 |
704.7 |
1.0 |
0.09 |
and |
713.6 |
714.6 |
1.0 |
0.44 |
WR-702D1 |
556.7 |
557.7 |
1.0 |
0.26 |
5450GP |
WR-706 |
No significant mineralization. |
5500GP |
WR-709 |
580.1 |
582.0 |
1.9 |
0.86 |
including3 |
580.1 |
581.1 |
1.0 |
1.0 |
WR-709D1 |
Not probed due to drilling issues. |
WR-712 |
580.7 |
581.7 |
1.0 |
0.09 |
5075GP |
WR-711 |
631.9 |
632.9 |
1.0 |
0.06 |
D Lens |
and |
634.2 |
635.2 |
1.0 |
0.06 |
and |
636.0 |
637.1 |
1.1 |
0.46 |
5000GP |
WR-713 |
668.7 |
670.7 |
2.0 |
0.16 |
5025GP |
WR-713D1 |
No significant mineralization. |
4975GP |
WR-718 |
No significant mineralization. |
Notes:1. eU3O8 is radiometric equivalent U3O8 derived
from a calibrated total gamma down-hole probe.2. Composited above a
cut-off grade of 0.05% eU3O8 unless otherwise indicated.3.
Composited above a cut-off grade of 1.0% eU3O8.4. Composites
compiled using 1.0 metre minimum mineralization thickness and 2.0
metres maximum waste.5. As the drill holes are oriented steeply
toward the northwest and the unconformity mineralization is
interpreted to dip moderately to the southeast, the true thickness
of the mineralization is expected to be approximately 75% of the
intersection lengths.
Illustrative Figures and Further
Details
A location map of Wheeler River and the Phoenix
and Gryphon deposits is provided in Figure 1. The winter 2018 drill
hole locations are provided in Figure 2. Drill traces, mineralized
pierce points and Gryphon mineralized wireframes are projected to
the interpreted basement geology at the sub-Athabasca unconformity.
The interpreted basement geology map has not yet been updated to
include the geology intersected in the winter 2018 program;
however, the revised G-Fault location is shown to illustrate the
optimal ‘target horizon’ at the unconformity.
Further details regarding the Wheeler River
project are provided in the NI 43-101 Technical Report for the
Wheeler River project titled “Technical Report with an Updated
Resource Estimate for the Wheeler River Property, Northern
Saskatchewan, Canada" dated March 15, 2018 with an effective date
of March 9, 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.
Qualified Persons and Data
Quality
Dale Verran, MSc, P.Geo, Pr.Sci.Nat., Denison's
Vice President, Exploration, who is a Qualified Person in
accordance with the requirements of NI 43-101 has reviewed and
approved the technical information contained in this release.
The Company currently reports preliminary
radiometric equivalent grades ("eU3O8"), derived from a calibrated
down-hole total gamma probe, during or upon completion of its
exploration programs and subsequently reports definitive U3O8 assay
grades following sampling and chemical analysis of the mineralized
drill core. Radiometric equivalent probe results are subject to
data verification procedures by qualified persons employed by
Denison prior to disclosure. For further details on the total gamma
down-hole probe methods employed by Denison, QAQC procedures and
data verification procedures please see Denison's Annual
Information Form dated March 27, 2018 available on the Company’s
website and filed under the Company's profile on SEDAR
(www.sedar.com).
About Wheeler River
Wheeler River is the largest undeveloped
high-grade 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 at an average grade of 3.3% U3O8, plus combined
Inferred Mineral Resources of 3.0 million pounds U3O8 at an average
grade of 1.7% U3O8. The project is host to the high-grade
Gryphon and Phoenix uranium deposits (discovered by Denison in 2014
and 2008, respectively), and is a joint venture between Denison
(63.3% and operator), Cameco Corp. (“Cameco”) (26.7%), and JCU
(Canada) Exploration Company Limited (“JCU”) (10%).
A Pre-Feasibility Study (“PFS”) was initiated
for the Wheeler River project in Q3’2016 and is expected to be
completed during 2018. Prior to initiation of the PFS, a
Preliminary Economic Assessment (“PEA”) was completed in Q2’2016,
which considered the potential economic merit of co-developing the
high-grade Gryphon and Phoenix deposits as a single underground
mining operation. The PEA returned a base case pre-tax Internal
Rate of Return ("IRR") of 20.4% based on the then current long term
contract price of uranium (US$44.00 per pound U3O8), and Denison's
share of estimated initial capital expenditures ("CAPEX") of
CAD$336M (CAD$560M on 100% basis).
The PEA is preliminary in nature and includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them to
be categorized as mineral reserves, and there is no certainty that
the preliminary economic assessment will be realized. Mineral
resources are not mineral reserves and do not have demonstrated
economic viability.
In January, 2017, Denison entered into an
agreement with its Wheeler River Joint Venture partners, Cameco and
JCU, to fund 75% of Joint Venture expenses in 2017 and 2018
(ordinarily 60%) in exchange for an increase in Denison's interest
in the project to up to approximately 66%. Under the terms of the
agreement, Cameco will fund 50% of its ordinary 30% share in 2017
and 2018, and JCU is expected to continue to fund its 10% interest
in the project. Pursuant to the agreement, as at December 31, 2017,
Denison had increased its interest in the Wheeler River project
from 60% to 63.3%.
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 63.3% owned
Wheeler River project, which ranks as the largest undeveloped
high-grade uranium project in the infrastructure rich eastern
portion of the Athabasca Basin region, Denison's Athabasca Basin
exploration portfolio consists of numerous projects covering
approximately 353,000 hectares. Denison's interests in Athabasca
Basin also include a 22.5% ownership interest in the McClean Lake
joint venture (“MLJV”), which includes several uranium deposits and
the McClean Lake uranium mill, which is currently processing 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 64.22%
interest in the J Zone deposit and Huskie discovery on the
Waterbury Lake property. Each of Midwest, Midwest A, J Zone and
Huskie are located within 20 kilometres of the McClean Lake
mill.
Denison is also engaged in mine decommissioning
and environmental services through its Denison Environmental
Services division and is 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. 362President and Chief Executive
Officer
Sophia
Shane
(604) 689-7842Investor Relations
Follow Denison on
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@DenisonMinesCo
Cautionary Statement Regarding
Forward-Looking Statements
Certain information contained in this press
release constitutes "forward-looking information", within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and similar 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 press release contains
forward-looking information pertaining to the following:
exploration (including drilling) and evaluation activities, plans
and objectives; potential mineralization of drill targets and
identified trends; estimates of Denison's mineral resources and the
results of its PEA; plans and objectives with respect to updating
its resource estimates and preparing a PFS to assess on a
preliminary basis the potential for mine development an whether to
proceed with a detailed feasibility study; and Denison’s percentage
interest in its properties and its plans and agreements with its
joint venture partners, as applicable. Statements relating to
"mineral reserves" or "mineral resources" are deemed to be
forward-looking information, as they involve the implied
assessment, based on certain estimates and assumptions that the
mineral reserves and mineral resources described can be profitably
produced in the future.
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
forward-looking statements. Factors, such as environmental impacts,
stakeholder approvals, and capital needs can significant alter
plans and achievements. 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 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 27, 2018 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 press 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 press
release. Denison does not undertake any obligation to publicly
update or revise any forward-looking information after the date of
this press 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: This press release may use the terms
“measured”, “indicated” and “inferred” mineral resources. United
States investors are advised that while such terms are recognized
and required by Canadian regulations, the United States Securities
and Exchange Commission does not recognize them. “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.
Photos accompanying this announcement are available at
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