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 97% Recovery from Long-Term
Phoenix ISR Core Leach Test
Toronto, ON – December 8,
2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce highly successful results from long-term core leach
metallurgical testing completed to further support the Feasibility
Study (“FS”) underway for the Phoenix In-Situ Recovery
(“ISR”) uranium mining operation proposed for the
Company’s 95% owned Wheeler River project (“Wheeler
River” or the “Project”).
To
support the establishment of ISR production and recovery curves to
be used in the FS, the Company completed a long-term test of a
representative intact core sample (“Core 4A”) using
specialized equipment to replicate the in-situ leaching conditions
of the Phoenix deposit.
The
results from long-term core leach testing of Core 4A are
highlighted by the following:
●
Overall
recovery of uranium in excess of 97% – demonstrating
excellent recovery of uranium from intact high-grade core, without
the use of permeability enhancement.
●
Average
recovered solution uranium head grade of 18.3 grams per litre
(“g/L”) – exceeding the assumed 15 g/L uranium
head grade being used in FS plant designs (see news release dated
August 4, 2021).
●
Continuous
intact core leach testing over a period of 377 days, with uranium
recovery head grades consistently maintained above 5 g/L during the
final stages of the production curve and then declining during the
ramp-down stage.
●
Maximum
recovered solution uranium head grade of 49.8 g/L achieved using
similar lixiviant concentrations as to those used during the
Feasibility Field Test (“FFT”).
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, commented,
“The
positive results of the long-term intact core leach test carried
out on Core 4A add to the weight-of-evidence de-risking the use of
the ISR mining method at the high-grade Phoenix uranium deposit.
The ability to demonstrate the recovery of over 97% of the uranium
from a high-grade intact core sample is quite positive and provides
notable support for the estimated recovery value of 85% used in the
2018 Pre-Feasibility Study (“PFS”). Additionally,
demonstrating an average uranium head grade of 18.3 g/L, over a
year of testing Core 4A, provides further tangible support for the
assumed 15 g/L uranium head grade being used in FS plant
designs.”
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.
Since
2019, Denison has completed several core leach tests using intact
core samples obtained from Phoenix during various field test
programs. The test work has been completed at the Saskatchewan
Research Council (“SRC”) laboratories in Saskatoon, and
makes use of specialized equipment intended to replicate the
in-situ leaching conditions of the Phoenix deposit –
including maintaining the core in its original shape and exerting
uniform pressure on the exterior of the core (simulating in-situ
overburden pressure) to ensure lixiviant must travel through the
natural pathways existing within the core sample. Previous core
leach testing focused on the basic leaching characteristics of
intact core from different hydrogeological units, allowing
assessment of varying lixiviant compositions, uranium grade
ramp-up, lixiviant flow characteristics through the intact core,
and the neutralization efficiency of intact core.
The
core leach test of Core 4A was used to study similar parameters;
however, it was leached longer term to develop an aggregate
life-of-well recovery and production profile, including the initial
ramp-up and the gradual decline of the UBS head grade. This profile
will be used to support wellfield production modelling and
optimization.
Core 4A is calculated to have a grade of 26.7%
U3O8,
which is comparable to the average grade of the estimated Indicated
Mineral Resources for Phoenix of 19.14% U3O8,
and is representative of one of the main hydrogeological units
identified within the Phoenix deposit.
The
actual grade of Core 4A was calculated post-test, as the intact
core cannot be assayed without destroying the integrity of the
core. Upon termination of the core leach test, the remaining core
was crushed, ground, and assayed to determine the final residual
uranium mass contained within the leached-out core sample. The
residual mass of uranium, along with the mass of uranium recovered
during leaching, was used to calculate both the overall recovery as
well as the original grade of the core.
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 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 ~300,000 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
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(416) 979-1991 ext
362
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President and Chief Executive
Officer
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Mac
McDonald
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(416) 979-1991 ext
242
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Executive Vice President and
Chief Financial Officer
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Follow Denison on
Twitter
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@DenisonMinesCo
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Qualified Persons
The disclosure of scientific or technical information related to
the FFT, the core leach testing, 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: scope, objectives and
interpretations of the FS process for the proposed ISR operation
for the Phoenix deposit, including metallurgical testing programs
described herein and the interpretation of the results therefrom;
the scope and design, and related test work, with respect to plans
and process designs for the FS; 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 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 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.
Cautionary Note to United States
Investors Concerning Estimates of Mineral Resources and Mineral
Reserves: This news release may use the terms 'measured',
'indicated' and 'inferred' mineral resources. United States
investors are advised that 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. '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 an inferred mineral resource exists,
or is economically or legally mineable.
United States investors are also cautioned not to assume that all
or any part of measured or indicated mineral resources will ever be
converted into mineral reserves.
Effective February 2019, the United States Securities and Exchange
Commission (‘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.