WHEELER RIVER PFS - Mining Method

WHEELER RIVER PFS - Mining Method

Postby Oscar » Wed Sep 26, 2018 6:21 pm

-------- Original Message --------
Subject: [cleangreensask] Denison Reports Results from Wheeler River PFS, Including +275% Increase in Pre-Tax NPV and Selection of ISR Mining Method for Phoenix Deposit

Date: Wed, 26 Sep 2018 14:08:53 -0400

From: Jamie Kneen jamie@miningwatch.ca

Holy ever-lovin'... In-situ leach in a part of the world that doesn't even have distinct aquifers?! OK, a freeze-wall -- if properly implemented -- will prevent leakage during operation, but what the hell are they going to do to prevent groundwater flows from getting contaminated and making their way into rivers and lakes??

= = = =

DENISON REPORTS RESULTS FROM WHEELER RIVER PFS, INCLUDING +275% INCREASE IN PRE-TAX NPV AND SELECTION OF ISR MINING METHOD FOR PHOENIX DEPOSIT

[ https://www.prnewswire.com/news-release ... 18036.html ]

September 24, 2018 Download PDF Version

TORONTO, Sept. 24, 2018 /CNW/ - Denison Mines Corp. ("Denison" or the "Company") (DML: TSX, DNN: NYSE American) is pleased to announce the results of the Pre-Feasibility Study ("PFS") on its flagship Wheeler River uranium project ("Wheeler River") in northern Saskatchewan. The PFS has been completed in accordance with NI 43-101 and is highlighted by the selection of the in-situ recovery ("ISR") mining method for the development of the Phoenix deposit, with an estimated average operating cost of $4.33 (US$3.33) per pound U3O8. View PDF version.

The PFS considers the potential economic merit of co-developing the Phoenix and Gryphon deposits. The high-grade Phoenix deposit is designed as an ISR mining operation, with associated processing to a finished product occurring at a plant to be built on site at Wheeler River. The Gryphon deposit is designed as an underground mining operation, utilizing a conventional long hole mining approach with processing of mine production assumed at Denison's 22.5% owned McClean Lake mill. 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 Net Present Value ("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 base-case economic analysis assumes uranium sales are made at UxC Consulting Company, LLC's ("UxC") annual estimated spot price for mine production from the Phoenix deposit (from ~US$29/lb U3O8 to US$45/lb U3O8), and a fixed price for mine production from the Gryphon deposit (US$50/lb U3O8).

Using the same price assumed for the project's 2016 Preliminary Economic Assessment ("2016 PEA"), a fixed uranium price of US$44/lb U3O8 ("PEA Reference Case"), the PFS produces a combined pre-tax project NPV of $1.41 billion – representing a roughly 275% increase from the $513 million pre-tax project NPV estimated in the 2016 PEA.

The PFS is prepared on a project (100% ownership) and pre-tax basis, as each of the partners to the Wheeler River Joint Venture ("WRJV") are subject to different tax and other obligations. After-tax results attributable to Denison's ownership interest are provided under the heading "Indicative Denison Post-Tax Results". All amounts are in Canadian dollars unless otherwise noted.

David Cates, President and CEO of Denison, commented "The selection of ISR mining for the high-grade Phoenix deposit is a defining moment for our Company and a potentially transformational development for the future of uranium mining in the Athabasca Basin – bringing the world's lowest cost uranium mining method to the jurisdiction hosting the world's highest-grade uranium deposits."

Mr. Cates further added, "Based on an estimated production cost of US$3.33/lb U3O8 and relatively modest initial capital costs, the Phoenix operation is expected to have superior leverage to an anticipated recovery of the spot price of uranium – owing to the fact that the operation may not require a book of long-term contracts to support a development decision. The Gryphon deposit is a perfect complement to Phoenix, as it is expected to supply additional low-cost pounds, financed through cash flow from Phoenix, at a time when the uranium market is expected to be in a significant supply deficit."

Conference Call

The Company will host a conference call and live webinar on Tuesday September 25, 2018 at 8:15 a.m. Eastern Daylight Time. During the call, management will provide an overview of the results of the PFS and will also accept questions from analysts and other participants. To join the call please dial (604) 638-5340 (Local/International) or 1-800-319-4610 (North America Toll Free).

To access the conference call and live webinar via the internet, please use the following link prior to the start of the call: http://services.choruscall.ca/links/den ... 80925.html

A recorded version of the conference call will be available on our website (http://www.denisonmines.com) shortly after the call, or by telephone via the following playback numbers (604) 674-8052 (Local/International) or 1-855-669-9658 (North America Toll Free) using the access code, 2611.

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Oscar
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