TORONTO, Feb. 19, 2020 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (DML: TSX, DNN: NYSE American) is pleased to report that preliminary information from core leach tests contains elemental uranium ("uranium") concentrations, after the initial test startup, within the range of 13.5 grams per litre ("g/L") to 39.Eight g/L. This compares favourably to the earlier metallurgical test work completed to evaluate the use of the In-Situ Recovery ("ISR") mining technique at the excessive-grade Phoenix uranium deposit ("Phoenix") - which supported a uranium focus of 10 g/L for the ISR processing plant design used within the Pre-Feasibility Study ("PFS") completed for the company's 90% owned Wheeler River Uranium Project ("Wheeler River" or the "Project"), situated in northern Saskatchewan, Canada. View PDF version.
David Bronkhorst, Denison's Vice President Operations, commented, "The preliminary data from the core leach check exhibits that uranium may be recovered from intact core samples at a concentration that is considerably greater than the levels used in the PFS. The implications of a better uranium focus coming from the ISR wellfield are probably vital - allowing the metallurgical crew to explore numerous combinations of lixiviant parameters to optimize working prices, and processing plant configurations to probably scale back capital prices whereas maintaining the same stage of annual uranium manufacturing."
Background
The test work included into the PFS (see press release dated September 24, 2018) included column leach and agitated leach tests, which led to the design of the Phoenix processing plant in the PFS based mostly on a minimum of 10 g/L uranium content within the uranium bearing solution anticipated to be recovered from the ISR wellfield. The current metallurgical check program ("2020 Metallurgical Program") has been designed to build upon the laboratory check knowledge collected as part of the PFS (see news launch dated December 18, 2019).
The first stage of the 2020 Metallurgical Program involves finishing specialised assessments using intact mineralized core samples, consultant of the in-situ circumstances at Phoenix. The testing apparatus used for these tests permits for intact core samples to be mounted inside a versatile sleeve with a confining stress utilized to the exterior of the sleeve. Lixiviant (within the case of Phoenix, an acid-bearing mining answer) can then be injected into to the intact core at one finish of the pattern with out having a solution to by-cross the intact core. Because of this, the lixiviant travels through the core to the other finish of the pattern, where a uranium bearing solution is recovered. Denison considers this sort of specialized check of intact competent core samples to be essentially the most representative obtainable laboratory check of the natural leach conditions of the host rock.
Current Core Leach Test
Over 50 days of testing has been accomplished, thus far, on a mineralized core sample recovered from drill hole GWR-016. The core sample was recovered from between 405 and 407 metres below surface throughout the extent of the high-grade core of Phoenix Zone A. Various parameters for lixiviant composition (together with each acid and oxidant concentration) have been examined up to now. In all circumstances, the lixiviant is injected into the core continuously and only interrupted periodically if a change in the lixiviant composition is required. After the preliminary test startup, uranium bearing resolution recovered from the core pattern has returned uranium content within the vary of 13.5 g/L to 39.8 g/L. The common uranium focus returned over the past 20 days of testing is 29.8 g/L - which represents a uranium content material that is approximately 200% higher than (or 3 times) the minimal level used for the ISR course of plant design within the PFS.
The test with this core sample will proceed as the corporate refines the optimum lixiviant parameters for the mineralized core inside Phoenix Zone A and in the end the optimum uranium-bearing answer parameters for the answer that can be fed into the proposed process plant flowsheet. The preliminary outcomes reported from the testing completed, up to now, mirror the uranium concentrations recovered from a single core sample. Additional core samples are deliberate for core leach testing (as described below). The preliminary outcomes reported above might not be representative of results from further testing of the present core pattern, or future testing of further core samples.
Overview of the 2020 Metallurgical Test Program
In December 2019, the company initiated the 2020 Metallurgical Program, which is expected to provide vital data for the purpose of completing the Environmental Assessment ("EA") and a future Feasibility Study for the Phoenix ISR operation (see Denison's news release dated December 18, 2019). The 2020 Metallurgical Program has been designed to make use of the mineralized drill core recovered through the set up of varied test wells in the course of the 2019 ISR discipline check program (see Denison's information launch dated December 18, 2019) and to build upon the earlier laboratory test knowledge, which was collected as a part of the PFS process to assess the recovery of uranium. The 2020 Metallurgical Program has been deliberate in stages, permitting for the preliminary results from each stage of testing to inform the design and standards of the additional levels of testing.
The first stage of the 2020 Metallurgical Program is anticipated to proceed throughout the primary half of 2020 using core samples consultant of the varied ore varieties and grade ranges (~1% U3O8 to up to 60% U3O8) contained within Phoenix. The objective of the first stage of this system is to determine the optimum lixiviant parameters for various grade ranges inside Phoenix, which can contain the testing of a number of consultant core samples. The uranium restoration outcomes from the primary 50 days of testing of the first core sample will enable refinement of the check program for the subsequent core samples deliberate for future intact core leach tests, and for the final planning and design of the second stage of the 2020 Metallurgical Program - which includes the completion of various column leach assessments.
The column leach checks deliberate within the second stage of this system contain the crushing and packing of mineralized core samples into test columns, that are then anticipated to utilize the identical lixiviant composition as the core leach tests to supply further knowledge on the restoration of uranium, and another metals, from the various ore varieties and grade ranges associated with the Phoenix deposit. The aim of the column leach checks is to correlate knowledge from the specialized core leach assessments to the normal ISR laboratory testing methods used throughout the PFS. Additionally, the column leach assessments are capable of generate uranium bearing options in bigger portions for further laboratory testing of the method plant flowsheet - which is deliberate as the third stage of the 2020 Metallurgical Program, and is expected to involve bench-scale testing of the unit operations of the proposed process plant flowsheet with uranium-bearing options produced through the leach checks. The third stage of the program is in the planning stage and shall be refined pending the results of the leach exams.
The laboratory work for the first stage and second stage of the 2020 Metallurgical Program is being carried out on the Saskatchewan Research Council ("SRC") Mineral Processing and Geoanalytical Laboratories, in Saskatoon, underneath the supervision of Mr. Chuck Edwards (P.Eng., FCIM).
About Wheeler River
Wheeler River is the most important undeveloped uranium venture within the infrastructure wealthy japanese portion of the Athabasca Basin area, in northern Saskatchewan - together with combined Indicated Mineral Resources of 132.1 million pounds U3O8 (1,809,000 tonnes at a mean grade of 3.3% U3O8), plus mixed Inferred Mineral Resources of 3.Zero million pounds U3O8 (82,000 tonnes at a mean 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 enterprise between Denison (90% and operator) and JCU (Canada) Exploration Company Limited (10%).
A PFS was accomplished for Wheeler River in late 2018, considering the potential financial benefit of growing the Phoenix deposit as an ISR operation and the Gryphon deposit as a traditional underground mining operation. Taken collectively, the challenge is estimated to have mine manufacturing of 109.4 million pounds U3O8 over a 14-12 months mine life, with a base case pre-tax NPV of $1.31 billion (8% discount fee), Internal Rate of Return ("IRR") of 38.7%, and preliminary 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.Four million (8% low cost price), IRR of 43.3%, preliminary pre-manufacturing capital expenditures of $322.5 million, and trade main common working costs of US$3.33/lb U3O8. The PFS is prepared on a undertaking (100% possession) and VC pre-tax foundation, as every of the partners to the Wheeler River Joint Venture are subject to completely different tax and other obligations.
Further details relating to the PFS, together with extra scientific and technical information, as well as after-tax results attributable to Denison's possession curiosity, are described in larger element in the NI 43-one hundred and one 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 duplicate of this report is on the market on Denison's web site and below its profile on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
About Denison
Denison is a uranium exploration and development firm with pursuits centered in the Athabasca Basin region of northern Saskatchewan, Canada. In addition to the Wheeler River mission, Denison's Athabasca Basin exploration portfolio consists of numerous projects masking approximately 280,000 hectares. Denison's interests within the Athabasca Basin additionally embrace a 22.5% ownership curiosity within the McClean Lake joint venture ("MLJV"), which includes a number of uranium deposits and the McClean Lake uranium mill, which is presently processing ore from the Cigar Lake mine below a toll milling settlement, plus a 25.17% interest in the Midwest and Midwest A deposits, and a 66.57% interest in the J Zone and Huskie deposits on the Waterbury Lake property. Each of Midwest, Midwest A, J Zone and Huskie are situated within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental providers via 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.
Qualified Persons
Description of the metallurgical check program and knowledge contained on this release was reviewed by Mr. Chuck Edwards, P. Eng., FCIM, Principal at Chuck Edwards Extractive Metallurgy Consulting, an unbiased Qualified Person in accordance with the requirements of NI 43-101.
The other technical information contained in this launch has been reviewed and approved by Mr. Dale Verran, MSc, P.Geo, Pr.Sci.Nat., Denison's Vice President, Exploration, a certified Person in accordance with the requirements of NI 43-101.
Cautionary Statement Regarding Forward-Looking Statements
Certain info contained in this information launch constitutes 'forward-wanting information', throughout the meaning of the applicable United States and Canadian laws regarding the enterprise, operations and financial efficiency and condition of Denison.
Generally, these ahead-looking statements can be identified by means of forward-wanting terminology equivalent to 'plans', 'expects', 'price range', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes', or the negatives and/or variations of such words and phrases, or state that sure actions, occasions or results 'may', 'could', 'would', 'may' or 'will likely be taken', 'occur', 'be achieved' or 'has the potential to'.
Particularly, this information launch contains forward-wanting information pertaining to the following: the 2020 Metallurgical Program, including its intended scope and timing, objectives and analysis interpretations; the present and continued use and availability of third social gathering applied sciences for testing; the results of the PFS and expectations with respect thereto; development and expansion plans and targets, including plans for a feasibility examine; and expectations concerning its joint enterprise possession interests and the continuity of its agreements with its companions.
Forward wanting statements are primarily based on the opinions and estimates of administration as of the date such statements are made, and they are subject to recognized and unknown risks, uncertainties and different factors that may trigger the actual results, stage of exercise, efficiency or achievements of Denison to be materially totally different from those expressed or implied by such ahead-wanting statements. For instance, the initial outcomes of the 2020 Metallurgical Program mentioned herein may not be maintained after further testing or be consultant of actual circumstances within the Phoenix deposit. As well as, Denison might resolve or otherwise be required to discontinue the 2020 Metallurgical Program or different testing, analysis and growth work at Wheeler River if it is unable to keep up or otherwise safe the mandatory assets (similar to testing services, capital funding, regulatory approvals, and so on.). Denison believes that the expectations mirrored in this forward-looking info are reasonable but no assurance can be provided that these expectations will prove to be accurate and outcomes could differ materially from these anticipated on this ahead-looking data. For a discussion in respect of dangers and different elements that could affect ahead-looking events, please seek advice from the components mentioned in Denison's Annual Information Form dated March 12, 2019 underneath the heading 'Risk Factors'. These elements usually are not, and should not be construed as being exhaustive.
Accordingly, readers should not place undue reliance on forward-trying statements. The ahead-looking information contained on this information launch is expressly qualified by this cautionary assertion. Any ahead-looking information and the assumptions made with respect thereto speaks only as of the date of this news launch. Denison does not undertake any obligation to publicly update or revise any ahead-looking data after the date of this news release to conform such info to actual results or to changes in Denison's expectations except as otherwise required by applicable laws.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources and Probable Mineral Reserves: This information launch could use the phrases 'measured', 'indicated' and 'inferred' mineral assets. United States buyers are suggested 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-a hundred and one Mineral Disclosure Standards ("NI 43-101") and are recognized and required by Canadian rules, the United States Securities and Exchange Commission ("SEC") doesn't acknowledge them. 'Inferred mineral sources' have a great amount of uncertainty as to their existence, and as to their financial and authorized feasibility. It cannot be assumed that all or any a part of an inferred mineral resource will ever be upgraded to the next category. Under Canadian rules, estimates of inferred mineral sources could not form the basis of feasibility or different financial studies. United States investors are cautioned not to assume that every one or any part of measured or indicated mineral assets will ever be transformed into mineral reserves. United States investors are also cautioned not to assume that each one or any part of an inferred mineral resource exists, or is economically or legally mineable. The estimates of mineral reserves on this news launch have been ready in accordance with NI 43-101. The definition of probable mineral reserves utilized in NI 43-101 differs from the definition used by the SEC in the SEC's Industry Guide 7. Under the requirements of the SEC, mineralization will not be categorized as a "reserve" until the dedication has been made, pursuant to a "ultimate" feasibility examine that the mineralization could possibly be economically and legally produced or extracted at the time the reserve dedication is made. Denison has not ready a feasibility examine for the purposes of NI 43-one zero one or the requirements of the SEC. Accordingly, Denison's probable mineral reserves disclosure may not be comparable to info from U.S.
