TORONTO,
March 29, 2022 /CNW/ -
Denison Mines Corp. ("Denison" or the "Company") (TSX:
DML) (NYSE: DNN) is pleased to report the discovery of multiple new
high-grade intercepts of unconformity-hosted uranium mineralization
in the final three drill holes completed during the winter 2022
exploration program on the Waterfound River property
("Waterfound"). The results were highlighted by drill
hole
WF-68, which returned a broad zone of uranium mineralization,
including a peak interval of 5.91% eU3O8
over 3.9 metres (0.05% eU3O8
cut-off) with a sub-interval grading 25.30%
eU3O8 over 0.7
m, located approximately 800 metres west, along the La
Rocque Conductive Corridor, of the previously discovered high-grade
mineralization (including 4.49% U3O8 over
10.53 metres) at the Alligator Zone. PDF Version
Denison has an effective 24.68% ownership interest in the
Waterfound River Joint Venture ("Waterfound JV") to which each of
Orano Canada Inc. ("Orano Canada"), Denison, and JCU (Canada) Exploration Company, Limited ("JCU")
are participants. Orano Canada has a 62.42% interest in the
Waterfound JV and is the project operator.
Andy Yackulic, P. Geo., Denison's
Director, Exploration, commented, "We are excited to see
additional high-grade mineralization discovered within the La
Rocque corridor, which also hosts Cameco's La Rocque Lake Zone and
IsoEnergy's Hurricane Zone. Not only has the drilling at
Waterfound intersected high-grade uranium, but the mineralization
remains open along strike in both directions."
David Cates, Denison's President
& CEO, added, "Denison is appreciative of the efforts of
Orano Canada to breathe new life into Waterfound. Denison has
a unique partnership with Orano – as joint owners of the McClean
Lake mill and the nearby Midwest project. This discovery at
Waterfound is well situated relative to the McClean Lake mill and
has the potential to translate into a further important source of
future mill feed for the McClean Lake joint venture.
Waterfound is also a good example of the significant, but often
underappreciated, discovery potential associated with Denison's
well situated and prospective exploration property
portfolio."
2022 Waterfound River Winter Exploration Program
Highlights
Drill holes WF-67, WF-68, and WF-68-1 were all drilled on line
4000E, approximately 800 m along
strike to the west of the Alligator Zone, to test the potential for
uranium mineralization along the up-dip projection of a graphitic
structure intersected at depth in historical drill hole WF-50.
All three drill holes successfully identified high-grade
uranium mineralization, highlighted by hole WF-68, which returned
5.91% eU3O8 over 3.9 metres. The
mineralized intersections are illustrated in Figure 1 and
summarized in Table 1 below.
Table 1 – 2022 Waterfound River Winter Exploration Drilling
Highlights
Drill
Hole
|
From
(m)
|
To
(m)
|
Length
(m)(1)
|
eU3O8
(%)(2)
|
WF-67(3,4)
|
474.1
|
488.3
|
14.2
|
0.73
|
WF-68(3,4)
|
459.7
|
462.0
|
2.3
|
0.66
|
WF-68(3,4)
|
467.1
|
470.3
|
3.2
|
0.97
|
WF-68(3,4)
|
473.7
|
477.6
|
3.9
|
5.91
|
including(5)
|
476.2
|
476.9
|
0.7
|
25.3
|
WF-68-1(3,4)
|
464.2
|
472.2
|
8.0
|
0.87
|
WF-68-1(3,4)
|
474.0
|
476.4
|
2.4
|
0.31
|
WF-68-1(3,4)
|
480.3
|
482.7
|
2.4
|
2.20
|
Notes:
|
|
|
(1) Lengths
indicated represent the down-hole length of mineralized
intersections.
(2) Radiometric equivalent
U3O8 ("eU3O8")
derived from a calibrated gamma downhole probe
(3) WF-67 was drilled at an azimuth of 154° and a dip of
-70.0°, WF-68, was drilled at an azimuth of 154° and
a dip of -71.5°, and WF-68-1 was drilled at an azimuth
of 154° and a dip of -73.5°.
(4) Mineralized interval is composited above a cut-off grade of
0.05% eU3O8
(5) Mineralized interval is composited above a cut-off grade of
10.0% eU3O8
|
The 2022 exploration program was designed to test for the
potential expansion of previously discovered mineralization in the
Alligator Zone, as well as to test for new mineralization in the
surrounding area along the La Rocque conductive corridor (see
Figure 2). The program was planned to occur during both the
winter and summer drilling seasons with approximately 7,400 metres
of diamond drilling in an estimated 12 drill holes. Six
diamond drill holes, totalling 3,175.4 metres, were completed as
part of the winter drill program.
The first two drill holes of the winter program (WF-64 and
WF-65) were completed on the eastern end of the property to test
the D-1 conductor, located within the La Rocque conductive
corridor. While each of these holes encountered elevated
radioactivity at the unconformity, no mineralization above a 0.05%
eU3O8 cut-off was identified. WF-66,
the third drill hole of the winter program, was drilled to test the
D-1 conductor approximately 500 metres west of the Alligator Zone.
WF-66 failed to intersect significantly elevated
radioactivity. The final three drill holes (WF-67, WF-68, and
WF-68-1), as described above, were successful in intersecting
significant uranium mineralization associated with the D-1
conductor, which lies within the La Rocque conductive
corridor. This newly identified mineralization remains open
along strike in both directions. Additional drilling to test
the extent of mineralization is expected to be completed during the
planned summer exploration drilling program.
Radiometric Equivalent Grades, Sampling, Analysis and Data
Verification
Following the completion of a drill hole, the hole is
radiometrically logged using a downhole slimline gamma probe, which
collects continuous readings of radioactivity along the length of
the drill hole. Probe results are then calibrated using an
algorithm calculated from the comparison of probe results against
geochemical analyses in the area. The gamma-log results
provide an immediate radiometric equivalent uranium value (eU%,
then converted to eU3O8%) for the hole,
which, except in very high-grade zones, is reasonably accurate.
The Company typically reports eU3O8, as
a preliminary result and subsequently reports definitive assay
grades following sampling and chemical analysis of the mineralized
drill core.
Assay sample intervals are generally 50 centimetres long, except
where higher or lower grade mineralization boundaries fall within
the interval. In that case, two 25 centimetre samples are
collected. Flank samples of 1.0 metre are always collected
where mineralization is located. Systematic geochemistry
samples are collected every 10 metres down the hole.
All assayed core is split in half, with one half retained and
the other sent to the SRC Geoanalytical Laboratory in Saskatoon for analysis. Control samples
are routinely assayed with each batch of core samples analyzed.
About Waterfound River
The Waterfound River property is located within the eastern
portion of the Athabasca Basin
region of northern Saskatchewan,
approximately 40 kilometres northwest of Denison's 22.5% owned
McClean Lake mill. The Waterfound JV is an unincorporated
contractual arrangement between Orano Canada (62.4223%), Denison
Mines Inc. (11.7767%), and JCU (25.8010%). Denison holds an
effective 24.6772% ownership interest in the Waterfound JV through
its direct interest in the joint venture and its 50% ownership of
JCU.
About Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca
Basin region of northern Saskatchewan,
Canada. The Company has an effective 95% interest in
its flagship Wheeler River Uranium Project, which is the largest
undeveloped uranium project in the infrastructure rich eastern
portion of the Athabasca Basin
region of northern Saskatchewan.
Denison's interests in the Athabasca Basin also 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 ~300,000 hectares in the Athabasca Basin region.
Denison is also engaged in post-closure mine care and
maintenance services through its Closed Mines group (formerly
Denison Environmental Services), which manages Denison's reclaimed
mine sites in the Elliot Lake
region and provides related services to certain third-party
projects.
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.
Cautionary Statement Regarding Forward-Looking
Statements
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 the interpretation of the results from the Waterfound
River exploration program undertaken by Orano Canada, underlying
assumptions and the Waterfound JV's intentions with respect
thereto; exploration plans and objectives; 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
interpretation of results are based may not be maintained after
further testing or be representative of actual conditions.
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.
Figure 1
– Location – Waterfound River JV
Figure 2 – 2022 Winter Exploration
Drilling – Alligator Extension
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SOURCE Denison Mines Corp.