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1100
– 40 University Ave
Toronto,
ON M5J 1T1
www.denisonmines.com
@DenisonMinesCo
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PRESS RELEASE
DENISON
ANNOUNCES 2018 EXPLORATION & EVALUATION
PROGRAM FOCUSED ON
HIGH PRIORITY PROPERTIES
Toronto, ON – January 17, 2018
Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML) (NYSE MKT: DNN) (NYSE American:
DNN) is pleased to announce the details of its CAD$16.7 million
(Denison’s share) exploration and evaluation budget for 2018.
The budget will be mainly focused on the Company’s high
priority projects, namely Wheeler River, Waterbury Lake and
Hook-Carter, each of which are located in the Athabasca Basin in
northern Saskatchewan. Winter drilling has commenced at Wheeler
River and winter drilling programs are expected to start at
Waterbury Lake this week and at Hook-Carter in
February.
Budget highlights for 2018 include:
●
Wheeler River Project - A diamond drilling program of
approximately 45,000 metres in 60 drill holes is planned with a
focus on exploration drilling along strike of the Gryphon deposit
and at other high priority, and largely untested, regional targets
on the property. Concurrent with the diamond drilling program, a
Pre-Feasibility Study
(“PFS”) is scheduled for completion in 2018, which will
be based on an updated mineral resource estimate for the project
(expected in Q1 2018, see Denison’s press release dated
January 4, 2018).
●
Waterbury Lake Project - Exploration efforts in 2018 will
follow-up on the highly successful drilling completed in 2017,
which resulted in the discovery of the Huskie Zone of high-grade,
basement-hosted uranium mineralization (see Denison’s press
release dated October 11, 2017). Approximately 14,400 metres of
diamond drilling is planned in 36 drill holes.
●
Hook-Carter Project - Numerous priority targets have
been generated along the prolific Patterson Corridor from ground
geophysical surveying completed in 2017. An inaugural diamond drilling program of
approximately 10,000 metres in 17 drill holes is
planned.
David
Cates, President and CEO of Denison commented, "The 2018 budget aligns
with our strategy to focus our exploration spending on select
high-priority projects. Our winter drilling programs at Wheeler and
Waterbury will commence with drill step-outs from high-grade,
basement hosted mineralization that remains open. In addition, our
exploration team is excited to commence our maiden drilling
campaign on the Patterson Corridor at Hook-Carter. We look forward
to another year of active exploration on a range of exciting
opportunities on the Company’s Athabasca-focused exploration
portfolio.”
Wheeler River Project
A
CAD$13.1 million budget has been approved for Denison’s
flagship project, located in the infrastructure rich eastern
portion of the Athabasca Basin. The budget includes exploration
expenditures of CAD$9.5 million and evaluation expenditures of
CAD$3.6 million.
Denison’s
share of the budget is expected to be CAD$9.8million, which
represents 75% of joint venture expenses. The increased funding by
Denison (ownership of 60%) in 2017 and 2018 is in accordance with
an agreement with the Wheeler River Joint Venture partners Cameco
Corp. (“Cameco”) and JCU (Canada) Exploration Company
Limited (“JCU”), which allows Denison to increase its
interest in the project to up to approximately 66% by the end of
2018. Under the terms of the agreement, Cameco will fund 50% of its
ordinary 30% share in 2017 and 2018, and JCU will continue to fund
its 10% interest in the project (see Denison’s press release
dated January 10, 2017).
The
2018 exploration program, including approximately 45,000 metres of
diamond drilling in 60 drill holes, will be focused on step-out
drilling along strike of the Gryphon deposit and drill testing of
high-priority and largely untested regional targets on the
property. The Gryphon deposit remains open in numerous areas with a
significant amount of potential for future resource growth.
Priority target areas include: (1) Along strike to the northeast of
the E series lenses, where both unconformity and basement potential
exists; (2) Down plunge of the A and B series lenses; (3) Along
strike to the northeast and southwest of the D series lenses; and
(4) Within the currently defined D series lenses, where additional
high-grade shoots may exist. Very little regional exploration has
taken place on the property in recent years, with drilling efforts
focused on Phoenix and Gryphon, which were discovered by Denison in
2008 and 2014 respectively. The property is host to numerous
uranium-bearing lithostructural corridors which are under- or
unexplored and have the potential for additional large, high-grade
unconformity or basement hosted deposits. The 2018 exploration
program will see renewed focus along these corridors to follow-up
on previous mineralized drill results, or to test geophysical
targets identified from recent past surveys.
The 2018 evaluation program will be aimed at completion of the
Wheeler River PFS. As outlined in the Company’s press
release dated January 4, 2017, Denison has assembled a group of
leading engineering and consulting firms to support the
Company’s in-house project development team in the completion
of the PFS.
Waterbury Lake Project
The ‘Huskie Zone’ was discovered during the
Company’s summer 2017 drilling program at Waterbury Lake.
Seven of the nine drill holes completed as part of the summer
program intersected uranium mineralization, including intersections
of 9.1% U3O8
over 3.7 meters (drill
hole WAT17-446A), 1.7% U3O8
over 7.5 meters (drill
hole WAT17-449) and 1.5% U3O8
over 4.5 meters (drill
hole WAT17-450A) (see Denison’s press release dated October
11, 2017). The mineralized zone is entirely basement-hosted
occurring between 50 and 175 metres vertically below the
sub-Athabasca unconformity (265 and 390 metres vertically below
surface) and measuring approximately 100 metres along strike
(current extent of drilling), up to 120 metres along dip, with
individual lenses varying in interpreted true thickness between
approximately 2 and 7 metres. The zone is wide-open in all
directions in terms of the mineralization and associated alteration
intersected.
The
2018 exploration program is budgeted at CAD$3.5 million (100%
Denison share) and is designed with the potential to expand the
Huskie zone mineralization through step-out drilling. A diamond
drilling program of approximately 14,400 metres in 36 drill holes
is planned for 2018 and is expected to be carried out during the
winter and summer drilling seasons.
The
Waterbury Lake property consists of 13 claims covering 40,256
hectares, and is located in the infrastructure rich eastern portion
of the Athabasca Basin. The property is jointly owned by Denison
(64.22%) and Korea Waterbury Uranium Limited Partnership
(“KWULP”) (35.78%) through the Waterbury Lake Uranium
Limited Partnership (“WLULP”). KWULP has elected not to
fund the 2018 exploration program and, as a result, will incur
dilution of its ownership interest in the WLULP.
Hook-Carter Project
The
Hook-Carter property consists of 45 claims covering 20,522 hectares
and is located in the western portion of the Athabasca Basin. The
project is highlighted by 15 kilometres of strike potential along
the prolific Patterson Corridor – host to the recently
discovered Arrow deposit (NexGen Energy Ltd.), Triple R deposit
(Fission Uranium Corp.), and Spitfire discovery (Purepoint Uranium
Group Inc., Cameco Corp., and AREVA Resources Canada Inc.), which
occur within 8 to 20 kilometres of the property. The property is
significantly underexplored compared to other properties along this
trend, with only five of eight historic drill holes located along
the 15 kilometres of Patterson Corridor strike length. The property
also covers significant portions of the Derkson and Carter
Corridors, which provide additional priority target
areas.
During
2017, exploration activities at the Hook-Carter project included
ground electromagnetic and resistivity surveying covering 7.5
kilometres of strike along the shallower portions of the Patterson
Corridor. The surveys have generated numerous compelling
unconformity and basement targets which Denison believes warrant
drill testing. A diamond drilling program is planned for the winter
of 2018, consisting of approximately 10,000 metres in 17 drill
holes, with a budget of CAD$2.2 million (100% Denison share).
The property is owned
80% by Denison and 20% by ALX Uranium Corp. (“ALX”),
and Denison has agreed to fund ALX's share of the first CAD$12M in
expenditures (see Denison’s Press Releases dated October
13th
and November
7th,
2016).
Other Exploration Projects
The
2018 budget also provides for a reconnaissance diamond drilling
program (2,200 metres in 16 drill holes) for approximately CAD$1.0
million on Denison’s 100% owned South Dufferin project, and
funding of Denison’s share of AREVA Resources Canada operated
exploration programs at the McClean Lake project (22.5% Denison)
and Midwest project (25.17% Denison) with a total budget of
$570,000 (Denison’s share).
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 60% owned Wheeler River
project, which hosts the high-grade Phoenix and Gryphon uranium
deposits, Denison's exploration portfolio consists of numerous
projects covering approximately 347,000 hectares in the Athabasca
Basin region, including 327,000 hectares in the infrastructure rich
eastern portion of the Athabasca Basin. Denison's interests in
Saskatchewan 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
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David
Cates
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(416) 979-1991 ext.
362
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President and Chief
Executive Officer
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Sophia
Shane
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(604)
689-7842
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Investor
Relations
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Follow Denison on Twitter
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@DenisonMinesCo
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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 state that certain actions,
events or results "may", "could", "would", "might" or "will be
taken", "occur", "be achieved" or "has the potential to", or the
negatives and/or variations of such words and phrases. In
particular, this press release contains forward-looking information
pertaining to the following: exploration (including drilling) and
evaluation activities, plans, budgets and objectives;
management’s assessments regarding the potential for
additional mineralization to be discovered through further
exploration of its properties; plans and objectives with respect to
updating its resource estimates and preparing a PFS; 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 potential environmental impacts, the speculative nature of
exploration and development, the need for stakeholder approvals,
and ongoing capital needs can significantly 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 23, 2017 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.
Figure 1: Denison’s Athabasca property portfolio as of
December 31st, 2017.