Exhibit 99.1
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Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
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PRESS
RELEASE
DENISON ANNOUNCES COMPLETION OF ISR FIELD PROGRAM AND
INITIATION OF EXPLORATION PROGRAM AT WHEELER RIVER
Toronto, ON – Oct 28,
2020. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
announce that field activities at Denison’s 90% owned Wheeler
River Uranium Project (“Wheeler River”) have safely and
successfully transitioned from the In-Situ Recovery
(“ISR”) field program at the high-grade Phoenix uranium
deposit (“Phoenix”), which was initiated in July (see
press release dated July 27, 2020), to a ~12,000 metre exploration
drilling program designed to test initially for extensions to known
mineralization at Phoenix and then advance to regional targets for
the discovery of satellite uranium deposits potentially amenable to
ISR mining.
David Cates, Denison’s President & CEO,
commented “Having recently raised
US$19 million through a well supported public offering, Denison
remains debt free and is well funded with over CAD$29 million in
cash. We are now turning our attention to finalizing our plans for
2021 and beyond, as well as completing our planned activities in
2020 – including an exciting exploration program at Wheeler
River and the Preliminary Economic Assessment (‘PEA’)
planned for the J Zone deposit on the Waterbury Lake property.
I’m proud of the effort that our team has put in to make the
most of 2020, despite a temporary suspension of the formal part of
the Wheeler River Environmental Assessment (‘EA’)
– carrying out important scopes of work, including the 2020
ISR field program, in order for the company to be poised for a
strong future re-start to the formal EA
process.”
ISR Field Program
The
ISR field work completed in 2020 (the “2020 Field
Program”) was designed with the primary objective of building
additional confidence in the results of an independent
hydrogeologic “Proof of Concept” model developed for
Phoenix by Petrotek Corporation (“Petrotek”) for the
application of the ISR mining method (see press release dated June
4, 2020). Taken together with the installation of additional
environmental monitoring wells, the data collected during the 2020
Field Program is expected to support the design and permitting of
further field tests to be incorporated into a future Feasibility
Study (“FS”).
David Bronkhorst, Denison’s Vice President
Operations, commented, “While the formal EA
process for Wheeler River was suspended in March 2020, in response
to the COVID-19 pandemic, Denison’s Wheeler River project
team has been busy advancing certain scopes of work during the year
– including the 2020 Field Program. Our activities in 2020
have been designed to ensure the EA and future FS support
activities can advance as quickly as possible, and with minimized
impact to the Project schedule, following a decision to resume the
formal EA process.
The 2020 ISR Field Program at Phoenix was completed safely and
successfully, despite the disruptions related to COVID-19 –
resulting in the collection of an extensive hydrogeological data
set based on seventeen additional pump and injection tests,
permeameter test work and groundwater sampling. This work is
expected to further validate and increase our confidence in the
previously announced independent ‘proof of concept’
model developed by Petrotek.”
Key
elements of the completed 2020 Field Program included:
●
Hydrogeological test work
o
17 pump and
injection tests were completed between Test Area 1 and Tests Area 2
at Phoenix Zone A (see Figure 1 for Wheeler River location, and
Figure 2 for Phoenix);
o
Data
collected from these tests will supplement the extensive dataset
acquired as part of the 2019 ISR field testing program (see press
release dated December 18, 2019), and is expected to provide
additional insight into individual well capacities and the overall
hydrogeological network of the deposit areas.
●
Permeameter analysis
o
Over 1,000
additional drill core samples were collected from historic holes,
dried, and analyzed for permeability and porosity;
o
Samples were
selected to refine our understanding of the mineralized
hydrogeologic horizons, including the low permeability basement
rocks and the overlying sandstone.
●
Rock mechanics
o
Mineralized
core samples were collected and shipped to SNC Lavalin (Saskatoon)
for rock mechanics tests, including tensile strength and uniaxial
compressive strength;
o
The samples
targeted various previously identified hydrogeologic units,
including the Upper Clay Zone, Lower Clay Zone and High-Grade
Friable Zone;
o
Results from
these tests will be utilized to better define the design of certain
permeability enhancement techniques for subsequent field
programs.
●
Groundwater sampling
o
Groundwater
samples were collected from eight different environmental
monitoring wells in the Phoenix deposit area;
o
Sampling
occurred at several horizons within each well – including the
horizons above, below, and within the Phoenix ore
body;
o
Samples have
been submitted to the Saskatchewan Research Council
(“SRC”) for analysis. Once received, data from these
samples will be utilized to support the design and permitting of
additional field tests expected to be incorporated into a future
FS.
●
Installation of additional environmental monitoring
wells
o
Five
additional monitoring wells were installed in two clusters, located
approximately 500 metres northeast of Phoenix, and 750 metres
southeast of Phoenix (see Figure 2);
o
The
additional monitoring wells will allow for the collection of
groundwater flow information at locations further away from the
Phoenix deposit than had been previously studied, providing
additional data for the site groundwater model – which will
allow for long-term monitoring and the modelling of ground water
impacts through construction, operations and decommissioning, each
of which will be an important element of the effects assessments in
an Environmental Impact Statement (“EIS”).
Exploration Drilling Program
The
2020 exploration drilling program at Wheeler River commenced late
in the third quarter. The program is expected to include ~12,000
metres of diamond drilling, planned in 27-30 drill holes. The drill
program is designed to be executed in several phases, with an
initial focus on the area proximal to Phoenix where further
exploration and delineation drilling is warranted to identify
potential additional mineralization that could be included as part
of a future FS. Of particular focus is the area around Zone B,
where previous exploration results suggest that the potential for
additional mineralization remains outside of the current extents of
the estimated mineral resource. The program has also been designed
to test for additional mineralization at Phoenix Zone C (where
there are previous mineralized intercepts, but where no mineral
resource is currently estimated) and to explore regional target
areas elsewhere on the property with the potential to produce a
discovery that could become a satellite deposit potentially
amenable to ISR mining.
As of October 27th,
the Company has completed approximately 5,460 metres of drilling,
representing roughly 44% of the total planned for the 2020
exploration program. A total of 12 holes have been completed to
target depth, as well as three holes that were abandoned due to
either excessive deviation or drilling difficulties. All drill
holes completed to date have been located outside of the previously
delineated mineralized zones for Phoenix, with results highlighted
by the following mineralized intercepts:
●
WR-765D1 (Phoenix Zone B) intersected uranium
mineralization straddling the unconformity contact, grading 0.39%
eU3O8
over 3.8 metres (from 399.85 to 403.65
metres) – approximately 15.0 metres east of WR-333 (which
previously intersected 14.6% U3O8
over 6.0 metres);
and
●
WR-771 (Phoenix Zone C) encountered uranium
mineralization approximately 4 metres below the unconformity
contact, grading 0.86% eU3O8
over 1.2 metres (from 375.15 to 376.35
metres) – approximately 28.8 metres to the southwest of
WR-368 (which previously intersected 1.59% U3O8
over 2.0 metres)
The
remaining targets at Phoenix will be re-prioritized by
incorporating the results of the recently completed drill holes.
Dependent on results, exploration drilling proximal to Phoenix is
expected to be completed in early to mid-November, with the
expectation that the focus of the exploration drill program will
shift to regional drill targets that have been prioritized based on
their potential to result in the discovery of satellite uranium
deposits that may be amenable to ISR mining.
The Company reports results as preliminary
radiometric equivalent grades ("eU3O8"),
derived from a calibrated downhole total gamma probe, during active
exploration programs and subsequently reports definitive assay
grades following sampling and chemical analysis of the mineralized
drill core. Radiometric equivalent probe results are subject to
verification procedures by qualified persons employed by Denison
prior to disclosure. For further details on the total gamma
downhole probe methods employed by Denison, QAQC procedures and
data verification procedures please see Denison's Annual
Information Form dated March 13, 2020 filed under the Company's
profile on SEDAR (www.sedar.com).
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 (1,809,000 tonnes
at an average grade of 3.3% U3O8), plus combined
Inferred Mineral Resources of 3.0 million pounds U3O8 (82,000 tonnes 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 (Canada)
Exploration Company Limited (10%).
A Pre-feasibility Study (“PFS”) was completed for
Wheeler River in late 2018, considering the potential economic
merit of developing the Phoenix deposit as an ISR operation and the
Gryphon deposit as a conventional underground mining operation.
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 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
Phoenix ISR operation is estimated to have a stand-alone base case
pre-tax NPV of $930.4 million (8% discount rate), IRR of 43.3%,
initial pre-production capital expenditures of $322.5 million, and
industry-leading average operating costs of US$3.33/lb
U3O8.
The PFS is prepared on a project (100% ownership) and pre-tax
basis, as each of the partners to the Wheeler River Joint Venture
are subject to different tax and other obligations.
Further details regarding the PFS, including additional scientific
and technical information, as well as after-tax results
attributable to Denison's ownership interest, are described in
greater detail in the NI 43-101 Technical Report titled
"Pre-feasibility Study for the Wheeler River Uranium Project,
Saskatchewan, Canada" dated October 30, 2018 with an effective date
of September 24, 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.
Given recent social, financial and market disruptions, Denison has
suspended certain activities at Wheeler River, including the formal
EA process, which is on the critical path to achieving the project
development schedule outlined in the PFS. The Company is not
currently able to estimate the impact to the project development
schedule outlined in the PFS, and users are cautioned against
relying on the estimates provided therein regarding the start of
pre-production activities in 2021 and first production in
2024.
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 the Wheeler River project,
Denison's Athabasca Basin exploration portfolio consists of
numerous projects covering over 250,000 hectares. Denison's
interests in the 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 66.71% interest in the J Zone and Huskie
deposits 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 engaged in mine decommissioning and environmental
services through its Closed Mines group (formerly Denison
Environmental Services), which manages Denison's Elliot Lake
reclamation projects and provides post-closure mine care and
maintenance services to a variety of industry and government
clients.
Denison is also 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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Qualified Persons
The technical information contained in this release related to the
2020 ISR Field Program and the Wheeler River PFS has been reviewed
and approved by Mr. David Bronkhorst, P.Eng, Denison's Vice
President, Operations, who is a Qualified Person in accordance with
the requirements of NI 43-101.
The technical information contained in this release related to the
Exploration Drilling Program 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 results of the 2019
Field Test and 2020 Field Program, including the hydrogeologic
model, and their underlying assumptions and interpretations; the
2020 exploration drilling program, including its intended scope and
timing, objectives and interpretations; the Company’s
intentions with respect to the Waterbury PEA; the current and
continued use and availability of third party technologies for
testing; the results of the PFS and expectations with respect
thereto; development and expansion plans and objectives, including
the Company’s intentions with respect to the resumption of
the EA and feasibility study support activities and the potential
impacts to the project schedule plans for a feasibility study; the
duration and scope of impacts of the COVID-19 pandemic and
affiliated operational adjustments; 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 results of the 2020 exploration drilling program, 2019
Field Test, hydrogeologic model and/or 2020 Field Program discussed
herein may not be maintained after further testing or be
representative of actual conditions within the Phoenix
deposit.
In addition, Denison may decide or otherwise be required to
discontinue the 2020 Field Program, exploration drilling program or
other testing, evaluation and development work at Wheeler River if
it is unable to maintain or otherwise secure the necessary
resources (such as testing facilities, capital funding, regulatory
approvals, etc.) or operations are otherwise affected by COVID-19
and its potentially far-reaching impacts. 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
13, 2020 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.
Cautionary Note to United States
Investors Concerning Estimates of Measured, Indicated and Inferred
Mineral Resources and Probable Mineral Reserves: This press
release may use the terms 'measured', 'indicated' and 'inferred'
mineral resources. United States investors are advised that while
such terms have been prepared in accordance with the definition
standards on mineral reserves of the Canadian Institute of Mining,
Metallurgy and Petroleum referred to in Canadian National
Instrument 43-101 Mineral Disclosure Standards ('NI 43-101') and
are recognized and required by Canadian regulations, these terms
are not defined under Industry Guide 7 under the United States
Securities Act and, until recently, have not been permitted to be
used in reports and registration statements filed with the United
States Securities and Exchange Commission ('SEC'). '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. In addition, the terms
"mineral reserve", "proven mineral reserve" and "probable mineral
reserve" for the purposes of NI 43-101 differ from the definitions
and allowable usage in Industry Guide 7. Effective February 2019,
the SEC adopted amendments to its disclosure rules to modernize the
mineral property disclosure requirements for issuers whose
securities are registered with the SEC under the Exchange Act and
as a result, the SEC now recognizes estimates of "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". In addition, the SEC has amended its definitions of
"proven mineral reserves" and "probable mineral reserves" to be
"substantially similar" to the corresponding definitions under the
CIM Standards, as required under NI 43-101. However, information
regarding mineral resources or mineral reserves in Denison's
disclosure may not be comparable to similar information made public
by United States companies.
Figure 1: Location Map of Wheeler River Showing Existing Regional
Infrastructure.
Figure 2: Plan Map of Phoenix Showing Location of 2020 ISR Field
Test Work