Exhibit 99.1
 |
Denison Mines Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
|
PRESS
RELEASE
DENISON ANNOUNCES DISCOVERY OF HIGH-GRADE URANIUM
MINERALIZATION FOUR KILOMETRES NORTHWEST OF PHOENIX
Toronto, ON – Jan. 28,
2021. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
report the results from the 2020 regional exploration program at
the Company’s 90% owned Wheeler River Uranium Project
(“Wheeler River”), including the discovery of new
high-grade unconformity-hosted uranium mineralization up to 7.66%
U3O8.
Drill hole WR-741AD2, which was completed along the K West
conductive trend on the western side of the Wheeler River property,
intersected high-grade uranium mineralization approximately 4
kilometres north northwest of the Phoenix uranium deposit
(“Phoenix”).
Similar
to Phoenix, uranium mineralization discovered in WR-741AD2 is
interpreted to straddle the unconformity contact of the underlying
basement rocks and the overlying Athabasca Basin sandstone. In
addition to high-grade uranium, the assay results from WR-741AD2
are highlighted by the presence of high-grade nickel:
●
2.14% U3O8
over 4.0
metres (including 7.66%
U3O8
over 1 metre) from 640.3 to 644.3
metres; and
●
4.29% Nickel over 6.5
metres (including grades of up
to 19.1% nickel) from 637.8 to 644.3 metres.
David Cates, Denison’s President & CEO,
commented, “Regional
exploration at Wheeler River in 2020 delivered on our objective to
identify additional high-grade uranium mineralization that could
produce a satellite deposit for the planned Phoenix In-Situ
Recovery (‘ISR’) operation, which is currently
advancing through the environmental assessment (‘EA’)
process. Our Saskatoon-based exploration team has a tremendous
track record of making high-grade uranium discoveries –
transforming the Wheeler River project into the largest undeveloped
uranium project in the infrastructure rich eastern portion of the
Athabasca Basin.”
Andy Yackulic, P. Geo., Denison’s Director,
Exploration, added, “The
new high-grade mineralization at K West was discovered with our
second last drill hole of the season. As a result, there remains
potential for us to delineate a broader mineralized zone, as the
new mineralized intersection is open on section to the footwall
side of WR-741AD2 and for several hundred metres along strike in
both directions. The exploration team is also very interested in
the presence of high-grade nickel mineralization along the margins
of the uranium mineralization – as this type of zonation
presents very similarly to other well-known and sizeable high-grade
unconformity uranium deposits in the Athabasca Basin, including
Cigar Lake, Fox Lake, Tamarack, and Key
Lake.”
This press release constitutes a "designated news release" for the
purposes of the Company's prospectus supplement dated November 13,
2020 to its short form base shelf prospectus dated April 2,
2020.
K-West
K
West is located in the northwest portion of the Wheeler River
property. The K West fault is the primary exploration target in
this area, which lies within the K West conductive trend, at or
near the contact between a graphitic pelite and underlying Archean
granite. The K West fault has been drill-defined over a strike
length of approximately 15 km, on both the Wheeler River property
and on adjacent properties located to the north of Wheeler River,
where several zones of high-grade unconformity-hosted
mineralization have been identified (including on Denison’s
30% owned Mann Lake property). Historical drilling at K-West, which
has been interpreted to have intersected the unconformity anywhere
from 30 to 100 metres hangingwall of the K West fault, has defined
a broad zone of anomalous uranium pathfinder geochemistry,
specifically copper, nickel, and cobalt.
A total of 6 drill holes were completed at K-West
as part of the 2020 exploration program, including drill hole
WR-741AD1, which was designed to test the up-dip projection of the
K West fault intersected in 2018 by drill hole WR-741A. WR-741AD1,
drilled at an azimuth of 295.7° and an inclination of -71.0°, intersected weak mineralization hosted within a
narrow breccia approximately 3 metres below the unconformity,
located at the upper contact of the K-West fault. In addition,
composite sandstone samples from WR-741AD1 returned highly
anomalous copper and nickel concentrations over the lower 310
metres of the sandstone column.
WR-741AD2 was drilled 10 metres to the northwest
of WR-741AD1, at an azimuth of 294.3° and an inclination of -63.0°, to test the extents of the mineralization
identified below the unconformity. As noted above, WR-741AD2
intersected high-grade uranium mineralization that is interpreted
to straddle the unconformity contact. In addition, low grade
mineralization was also encountered straddling the unconformity in
WR-775, drilled at an azimuth of 282.0° and an inclination of -74.0°, located approximately 400 metres to the south of
WR-741AD2. SeeTable 1 below for the applicable assay results,
Figure 1 for a property map of Wheeler River and Figure 2 for a map
of K West illustrating the location of the 2020
drilling.
Table
1 – K West
Zone Mineralized Intersections
|
Hole-ID
|
From (m)
|
To (m)
|
Length (m) 3
|
U3O8(%)
|
|
WR-741AD11
|
644.8
|
647.8
|
3.0
|
0.42
|
|
WR-741AD21
|
640.3
|
644.3
|
4.0
|
2.14
|
|
(includes)2
|
643.3
|
644.3
|
1.0
|
7.66
|
|
WR-7751
|
594.4
|
595.4
|
1.0
|
0.30
|
Notes:
(1)
Intersection interval is composited above a cut-off grade of 0.1%
U3O8
(2)
Intersection interval is composited above a cut-off grade of 1.0%
U3O8
(3) Lengths indicated are the down-hole length and do not represent
the true thickness of mineralization
M Zone
Regional
exploration drilling was also completed at the M Zone target area
during the 2020 Wheeler River exploration program. M Zone is
located approximately 5.5 kilometres east of Phoenix and lies
roughly 700 metres from the McArthur River – Key Lake haul
road. Denison’s exploration team conducted a core-relogging
program in 2018 and identified several historical drill holes at M
Zone that encountered indicative structure, alteration, elevated
radioactivity, or anomalous pathfinder geochemistry worthy of
follow-up.
A total of 4 drill holes were completed at M Zone
as part of the 2020 exploration program, including drill hole
WR-778, which was designed to test the subcrop of a graphitic fault
at the sub-Athabasca unconformity that was previously intersected
at depth in DDH ZM-17. WR-778, drilled at an azimuth of
304° and an inclination of -80.0°, intersected a wide reverse fault zone in the
lower sandstone, highlighted by multiple basement wedges, intense
hydrothermal alteration, and a broad interval of weak uranium
mineralization.
The
presence of basement wedges in WR-778 and an interpreted
unconformity elevation offset of 25 metres indicates that the broad
zone of weak mineralization is controlled by a large reverse fault.
See Figure 1 for a property map of Wheeler River and Figure 3 for a
map illustrating the location of the 2020 M Zone
drilling.
Weak uranium mineralization was returned along the
nose of basement wedges within a broad reverse fault zone, as
summarized in Table 2 below. The mineralized intervals are reported
as the radiometric equivalent uranium derived from a total gamma
down-hole probe (“eU3O8”)
due to extensive core loss. Taken together, the results from WR-778
present a model that may be similar to Zone 4 at McArthur River.
While the mineralization at M Zone is significantly lower grade
than McArthur, there are many similarities and future exploration
drilling is expected to test if the area is analogous to Zone 4 at
McArthur River.
Table 2 – M Zone Mineralized Intersection
|
Hole-ID
|
From
(m)
|
To
(m)
|
Length (m) 3
|
eU3O8(%)1
|
|
WR-7782
|
397.1
|
407.3
|
10.2
|
0.08
|
|
And
|
411.2
|
414.2
|
3.0
|
0.08
|
Notes:
(1) Due
to core loss, the interval is reported as radiometric equivalent
U3O8 ("eU3O8")
derived from a calibrated total gamma downhole probe
(2)
Intersection interval is composited above -a cut-off grade of 0.1%
eU3O8
(3)
Lengths indicates are the down-hole length and do not represent the
true thickness of mineralization
Sampling and Assay Procedures
Drill core with anomalous total gamma
radioactivity (>300 counts per second using a RS-120 or RS-125
scintillometer) was sampled over 0.5 metre intervals. Sampling is
undertaken on site by splitting the core in half, with one half
submitted for analysis and the other half retained in the core box
for future reference. Uranium chemical assays are performed by the
Saskatchewan Research Council ("SRC") Geoanalytical Laboratories
located in Saskatoon. Sample preparation involves crushing and
pulverizing core samples to 90% passing -106 microns. Splits of the
resultant pulps are initially submitted for multi-element ICP-MS
analysis following partial (HNO3:HCl) and total (HF:HNO3:HClO4)
digestions. Samples with ≥ 1,000 ppm U (partial digest) are
re-assayed for U3O8
using an ISO/IEC 17025:2005 accredited
method for the determination of U3O8
weight %. Pulp splits are digested
using aqua-regia and the solution analyzed for U3O8 weight
% using ICP-OES. In addition to internal checks by SRC
Geoanalytical Laboratories, the Company has rigorous quality
assurance and quality control ("QAQC") procedures including the
insertion of standard reference materials, blanks and field
duplicates. The assay data is subject to verification procedures by
qualified persons employed by Denison prior to disclosure. For
further details on the assay, QAQC 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).
Use of Radiometric Equivalent Grades
The Company typically 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. In the case where core recovery within a mineralized
intersection is less than 80%, radiometric grades are considered to
be more representative of the mineralized intersecton and may be
reported in the place of assay grades. 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%).
The Wheeler River Pre-Feasibility
Study (“PFS”) was completed 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.
Denison suspended certain activities at Wheeler River during 2020,
including the formal Environmental Assessment ("EA") process, which
is on the critical path to achieving the project development
schedule outlined in the PFS. On November 9, 2020, Denison
announced its decision to resume the formal EA process for the
Project in January 2021. 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 66.90% interest in the Tthe Heldeth
Túé ("THT", formerly J Zone) and Huskie deposits on the
Waterbury Lake property. Each of Midwest, Midwest A, THT 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
David
Cates (416) 979-1991 ext 362
President and
Chief Executive Officer
Sophia
Shane (604) 689-7842
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: the interpretation of the results from the
2020 regional exploration program, underlying assumptions and the
Company’s intentions with respect thereto; the results of the
PFS and expectations with respect thereto, including the duration
and scope of impacts of the COVID-19 pandemic and affiliated
operational adjustments; development and expansion plans and
objectives, including plans for a feasibility study; 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, areas of interest for further exploration selected based
on interpretation of current and historic exploration may not
result in findings of significance after further testing. 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 Mineral Resources and Mineral
Reserves: This presentation may use terms such as
“measured”, “indicated” and/or
“inferred” mineral resources and “proven”
or “probable” mineral reserves, which are terms defined
with reference to the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (“CIM”) CIM
Definition Standards on Mineral Resources and Mineral Reserves
(“CIM Standards”). The Company’s descriptions of
its projects using CIM Standards may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the United States federal
securities laws and the rules and regulations
thereunder.
This press release contains information relating to third parties
derived from third-party publications and/or reports which Denison
believes are reliable but have not been independently verified by
the Company.
Figure 1 – Wheeler RIver 2020 Regional
Exploration
Figure 2 – K West Zone 2020 Drilling
Figure 3 – M Zone 2020 Drilling
