Blueprint
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Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
@DenisonMinesCo
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PRESS
RELEASE
DENISON
ANNOUNCES COMPLETION OF TRANSACTION TO INCREASE
INTEREST IN
THE WHEELER RIVER URANIUM PROJECT TO 90%
Toronto, ON – October
29, 2018 Denison Mines Corp. (“Denison” or
the “Company”) (TSX: DML) (NYSE American: DNN) is
pleased to announce that it has
completed the previously announced transaction (the
“Transaction”) with Cameco Corporation
(“Cameco”), whereby Denison has acquired all of
Cameco’s minority interest in the Wheeler River Uranium
Project (“Wheeler River” or the “Project”).
Denison now holds a 90% participating interest in the Project
(directly and indirectly through its subsidiary Denison Mines
Inc.).
Denison’s
joint venture partner in the Project, JCU (Canada) Exploration
Company Limited (“JCU”), waived its right of first
refusal to pro rata participation in the Transaction, and retained
its 10% participating interest in the Project.
Denison
acquired Cameco’s approximately 24% interest in the Wheeler
River Joint Venture, in exchange for the issuance of 24,615,000
common shares of Denison, representing approximately 4.2% of the
Company’s issued and outstanding common shares.
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
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 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
(10%).
A Pre-Feasibility Study ("PFS") was
completed, considering the potential economic merit of
co-developing the high-grade Gryphon and Phoenix deposits, the
results of which were announced on September 24, 2018. 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 Net Present Value ("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
PFS is prepared on a project (100% ownership) and pre-tax basis, as
each of the partners to the Wheeler River Joint Venture ("WRJV")
are subject to different tax and other obligations. Additional
scientific and technical information relevant to the PFS, as well
as after-tax results attributable to Denison's ownership interest,
are described in greater detail in the September 24, 2018 press
release announcing the results of the PFS. A NI 43-101 technical
report supporting the PFS results is in the process of being
finalized and will be filed under Denison's profile on SEDAR within
45 days of the initial press release.
The disclosure of the results of the PFS contained in this news
release, including the mineral reserves, was reviewed and approved
by Peter Longo, P. Eng, MBA, PMP, Denison's Vice-President, Project
Development, who is a Qualified Person in accordance with the
requirements of NI 43-101.
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.
The disclosure of a scientific or technical nature regarding the
Phoenix and Gryphon deposits, including the mineral resources,
contained in this news release was reviewed and approved by 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.
For a description of the data verification, assay procedures and
the quality assurance program and quality control measures applied
by Denison, please see Denison's Annual Information Form dated
March 27, 2018 filed under the Company's profile on SEDAR at
www.sedar.com.
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 90% 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 320,000
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 65.45%
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
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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 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: Denison’s percentage interest in its properties
and its plans and agreements with its joint venture partners; the
interests of JCU and its rights under the terms of the Wheeler
River JV; estimates of Denison's mineral resources; the results of
its PFS assessing the potential for project development; and
outlook for the industry and uranium mining in the Athabasca Basin.
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, performance or achievements of
Denison to be materially different from those expressed or implied
by forward-looking statements. 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.