Exhibit 99.1
 |
Denison Mines
Corp.
1100 – 40
University Ave
Toronto, ON M5J
1T1
www.denisonmines.com
|
PRESS
RELEASE
Denison Announces History-Making Recovery of
Uranium Bearing Solution from Phoenix ISR Feasibility Field
Test
Toronto, ON –October 17,
2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce that it has successfully recovered uranium bearing
solution from the Phoenix in-situ recovery (“ISR”)
Feasibility Field Test (“FFT”) underway at the
Company’s 95% owned Wheeler River project (“Wheeler
River” or the “Project”).
David Cates, Denison’s President & CEO,
commented, “The
successful recovery of uranium bearing solution from
Denison’s high-grade Phoenix deposit is a historic moment for
uranium mining in Canada. This accomplishment reflects the
culmination of several years of technical de-risking and provides
tangible validation of the Company’s selection of the ISR
mining method for Phoenix in our 2018 Wheeler River Pre-Feasibility
Study. With this result, Denison has truly showcased its industry
leadership in bringing the low-cost ISR mining method to the
high-grade uranium deposits of the Athabasca
Basin.”
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, added,
“The
recovery of uranium bearing solution at targeted rates and grades
is history in the making. Initial analysis indicates the
hydrogeological system has responded as expected with pH trends,
flow characteristics and uranium recovery meeting expectations. I
am extremely proud of our team’s focus and dedication in
getting us to this momentous stage safely and on
schedule.”
The leaching phase of the FFT commenced in
September 2022 (see news release dated September 26, 2022) and
preliminary results received to date have demonstrated the
successful acidification of the Test Pattern (defined below) and
recovery of uranium through the ISR mining method. Several samples
of recovered solution have been collected during the leaching phase
and remain subject to full lab assay and analysis, which will
generate additional detailed information about the performance of
the FFT.
Given
the highly successful results of the FFT, lixiviant injection has
ceased, and operators at the Phoenix FFT site are preparing to
transition from the leaching phase of the FFT to the neutralization
phase, which is expected to be completed before the end of the
year. The final phase of the FFT, which involves management of the
recovered solution, is expected to commence in the spring of
2023.
This press release constitutes a “designated news
release” for the purposes of the Company's prospectus
supplement dated September 28, 2021, to its short form base shelf
prospectus dated September 16, 2021.
Feasibility Field Test
The
FFT is designed to use the existing commercial-scale ISR test
pattern ("Test Pattern"), installed at Phoenix in 2021 (see news
releases dated July 29, 2021, and October 28, 2021), to facilitate
a combined assessment of the Phoenix deposit's hydraulic flow
properties with the leaching characteristics that have been
assessed through the metallurgical core-leach testing
program.
The
FFT is fully permitted, having been authorized by both the
Saskatchewan Minister of Environment (see news release dated July
12, 2022) and the Canadian Nuclear Safety Commission (see news
release dated August 8, 2022).
Overall,
the FFT is intended to provide further verification of the
permeability, leachability, and containment parameters needed for
the successful application of the ISR mining method at Phoenix and
is expected to validate and inform various feasibility study design
elements – including the expected production and remediation
profiles.
The
operation of the FFT is planned to occur in three phases: (1) the
leaching phase, (2) the neutralization phase, and (3) the recovered
solution management phase.
The
leaching phase is designed to assess the effectiveness and
efficiency of the leaching process in the mineralized zone, which
is approximately 400m below the surface. The leaching phase
includes the controlled injection of an acidic solution into a
portion of the existing Test Pattern within the mineralized zone
(the “Leaching Zone”) and the recovery of the solution
back to the surface using existing test wells. The recovered
solution from the leaching phase is expected to contain dissolved
minerals, including uranium, copper, iron, molybdenum, and
zinc.
The
neutralization phase involves the recovery of the remainder of the
leached mineralized solution from the Leaching Zone and is intended
to verify the efficiency and effectiveness of the process for
returning the Leaching Zone to environmentally acceptable
conditions. During this phase, a mild alkaline (basic) solution
will be injected into the Leaching Zone to neutralize the area and
reverse the residual effects of the acidic solution injected during
the leaching phase.
The
recovered solution management phase involves separating the
solution recovered from both the leaching phase and the
neutralization phase into (i) mineralized precipitates and (ii) a
neutralized treated solution.
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 (operator) and JCU (Canada)
Exploration Company Limited (“JCU”). Denison has an
effective 95% ownership interest in Wheeler River (90% directly,
and 5% indirectly through a 50% ownership in JCU).
A Pre-Feasibility Study (“PFS”) was completed for
Wheeler River in 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 EA process, which is on the critical path to
achieving the project development schedule outlined in the PFS.
While the EA process has resumed, 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 its effective 95% interest in
the Wheeler River project, Denison's interests in the Athabasca
Basin 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 67.01%
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 33.8118%) and Christie Lake (JCU 34.4508%). Denison's
exploration portfolio includes further interests in properties
covering ~280,000 hectares in the Athabasca Basin
region.
Denison is also engaged in post-closure mine care and maintenance
services through its Closed Mines group, which manages Denison's
reclaimed mine sites in the Elliot Lake region and provides related
services to certain third-party projects.
For more information, please contact
David
Cates (416) 979-1991 ext 362
President and
Chief Executive Officer
Mac
McDonald (416) 979-1991 ext 242
Executive Vice
President and Chief Financial Officer
Qualified Persons
The disclosure of scientific or technical information related to
the FFT or Wheeler River project contained in this release has been
reviewed and approved, as applicable, by Mr. David Bronkhorst,
P.Eng, Denison's Vice President, Operations or Mr. Andrew Yackulic,
P. Geo., Denison's Director, Exploration, who are Qualified Persons
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
‘potential’, ‘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’ or
‘be achieved’.
In particular, this news release contains forward-looking
information pertaining to the following: expectations with respect
to the FFT program, scope, timing and the anticipated results
thereof; the interpretation of the results of the FFT obtained
to-date; and expectations regarding its joint venture ownership
interests and the continuity of its agreements with its partners
and third parties.
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 work plans
for exploration and/or the Wheeler River Project are based may not
be maintained after further work is completed. In addition, Denison
may decide or otherwise be required to discontinue exploration,
testing, evaluation and development work if it is unable to
maintain or otherwise secure the necessary resources (such as
testing facilities, capital funding, regulatory approvals,
etc.).
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 25, 2022 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.