dmc-pr20250806midwestproj
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 Results from Midwest ISR Preliminary
Economic
Assessment, Including After-Tax NPV of $965 Million
Toronto, ON – August 6,
2025. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
report the results of the Preliminary Economic Assessment
(“PEA”) completed for In-Situ Recovery
(“ISR”) mining of the Midwest Main uranium deposit
(“Midwest Main”) at the Company’s 25.17%-owned
Midwest project (“Midwest”). The PEA outlines total ISR
mine production (100% basis) of 37.4 million pounds
U3O8
over an approximately 6-year mine
life, resulting in annual average production of nearly 6.1 million
pounds U3O8,
an after-tax base-case NPV of $965 million, and after-tax base-case
IRR of 82.7%.
Midwest
is a joint venture (“MWJV”) owned by Denison (25.17%)
and Orano Canada Inc. (“Orano Canada”) (74.83%),
and is located approximately 25 kilometers, by existing roads, from
the Denison (22.5%) and Orano Canada (77.5%) owned McClean Lake
uranium mill. Orano Canada is the operator of Midwest and is part
of the Orano Group, which is recognized as a leading international
operator in the field of nuclear materials, with activities
including uranium mining, conversion, enrichment, and other fuel
services.
David Cates, Denison’s President & CEO
commented, “The
Midwest PEA illustrates tremendous technical and economic potential
for ISR mining at Midwest Main. While preliminary in nature, the
study incorporates the findings of our 2023 and 2024 field test
programs, which provided support for key ISR criteria necessary for
the application of the mining method and demonstrates the potential
for robust economics. The project is estimated to have an all-in
cost of production amongst the lowest cost uranium mines in the
world, benefitting from a powerful combination of low initial
capital costs and low cash operating costs.
Denison has established itself as the industry leader in advancing
the deployment of the ISR mining method to high-grade uranium
deposits in the Athabasca Basin region of northern Saskatchewan,
and we are pleased to have worked together with Engcomp to deliver
this exciting result. We thank our Joint Venture partner Orano for
entrusting us to advance the MWJV’s efforts to evaluate ISR
mining at Midwest.”
Midwest PEA Highlights:
●
Base case post-tax Net Present Value
(“NPV”)(8%) of $965 million (100% basis) – with
Denison’s 25.17% interest in the project equating to a
base-case after-tax NPV8%
of $243 million.
●
Base case pre-tax NPV8%
of $1.62 billion (100%
basis).
●
Robust
base-case Internal Rate of Return (“IRR”) of 83%
(post-tax) and 111% (pre-tax).
●
Base-case
indicative after-tax payback period of 9 months.
●
Estimated annual mine production of 6.1 million
pounds U3O8
for total life of mine production of
37.4 million pounds U3O8
over an approximately 6-year mine
life.
●
Processing assumed to occur at the Orano-Denison
owned McClean Lake mill, supporting modest estimated initial
capital costs of $254 million (100% basis) and yielding an
impressive after-tax NPV8%
to initial capital cost ratio of 3.8
times.
●
Denison’s
share of estimated initial capital costs is approximately $64
million.
●
Updated Midwest Main mineral resource estimate of
38.7 million pounds U3O8
in Indicated mineral resources
(510,000 tonnes @ 3.5% U3O8),
plus 12.6 million pounds U3O8
in Inferred mineral resources (905,000
tonnes @ 0.64% U3O8).
The
PEA is preliminary in nature, includes mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would allow them to be
categorized as mineral reserves, mineral resources that are not
mineral reserves do not have demonstrated economic viability, and
there is no certainty that the PEA will be realized.
Midwest Main ISR Preliminary Economic Assessment
The
PEA highlights that the ISR mining method has the potential to be a
technically sound and economically robust means to extract
significant uranium production from the high-grade Midwest Main
deposit with low initial capital costs, a high rate of return, and
rapid payback.
The
assessment incorporates the results of the 2023 and 2024 ISR field
de-risking programs completed by Denison on behalf of the MWJV
following the completion of an internal Conceptual Mining Study in
early 2023, which considered the potential application of ISR
mining to Midwest Main.
Engcomp
Engineering & Computing Professionals (“Engcomp”),
an independent engineering firm based in Saskatoon, Saskatchewan,
with expertise in uranium mine development studies, is the lead
author of the PEA, and incorporated contributions from Newmans
Geotechnique, Petrotek Corporation, and Understood Mineral
Resources Ltd. All dollar amounts are stated in Canadian dollars,
unless otherwise noted.
Key
operating parameters and economic results from the PEA are
presented in the tables below.
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Table 1 – Summary of Key Midwest Main Operation Parameters
(100% Basis)
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Mine
Life
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6.14 years
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Potentially Mineable Resources(1)
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37.4 million lbs U3O8 (650,000
tonnes at 2.60% U3O8)
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Annual Production (Average)(2)
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6.1 million lbs U3O8
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Initial
Capital Costs
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$254 million
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Average
Cash Operating Cost
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$15.78 (USD$11.69) per lb
U3O8
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All-in Cost(3)
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$34.80 (USD$25.78) per lb
U3O8
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(1)
See Table 3 below for additional information regarding estimated
mineral resource. See Table 4 below for additional information
regarding initial capital costs.
(2)
Based on the estimated number of pounds U3O8
to be produced over the life of the
project divided by mine life.
(3)
All-in cost is estimated on a pre-tax basis and includes all
project operating costs, capital costs post-FID, and
decommissioning costs divided by the estimated number of pounds
U3O8
to be produced.
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Table 2 – Summary of Midwest Economic Analysis (100%
Basis)
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Uranium
Selling Price
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USD$80/lb U3O8 (1)
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Exchange
Rate (CAD$:USD$)
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1.35
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Discount
Rate
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8%
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Operating profit margin(2)
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85.4%
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Pre-tax NPV8%(3)
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$1.62 billion
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Pre-tax IRR(3)
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111.1%
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Pre-tax payback period(4)
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~6 months
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Post-tax NPV8%(3)
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$964.7 million
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Post-tax IRR(3)
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82.7%
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Post-tax payback period(4)
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~9 months
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(1)
Price forecast is stated in constant (not-inflated)
dollars.
(2)
Operating profit margin is calculated as aggregate uranium revenue
less aggregate operating costs, divided by aggregate uranium
revenue. Operating costs exclude all royalties, surcharges and
income taxes.
(3)
NPV and IRR are calculated to the start of construction activities
for the Midwest project and excludes $16.8 million in pre-FID
expenditures.
(4)
Payback period is stated as number of months to payback from the
start of uranium production.
Mineral Resource Estimate
The
Midwest uranium project is comprised of two primary deposits:
Midwest Main and Midwest A. The Midwest Main mineral resource
estimate has been updated to reflect additional drill holes
completed since the previous mineral resource estimate from 2018.
The additional drilling consisted primarily of test well
installations for ISR de-risking activities and certain targeted
resource definition drill holes.
As a result of the additional drilling, the
updated estimate of mineral resources consists of 38.7 million
pounds U3O8
in Indicated mineral resources
(510,000 tonnes @ 3.5% U3O8),
and 12.6 million pounds U3O8
in Inferred mineral resources (905,000
tonnes @ 0.64% U3O8).
The
updated mineral resources estimated for Midwest, including the
Midwest Main and Midwest A deposits, are summarized
below.
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Table 3 – Estimated Midwest
Mineral Resources (100% Basis)1,2,3,4,5
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Deposit
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Category
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Zone6
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Tonnage(kt)
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Grade7,8(%
U)
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Metal
(tonnes U)
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Metal
(Mlbs U3O8)
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Denison’s Share(Mlbs
U3O8)
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Midwest
Main
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Indicated
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UC
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510
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2.92
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14,900
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38.7
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9.7
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Inferred
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UC
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389
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0.80
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3,100
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8.1
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2.0
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PER
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449
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0.36
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1,600
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4.1
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1.0
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BSMT
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67
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0.30
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200
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0.4
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0.1
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Midwest
A
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Indicated
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LG
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566
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0.74
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4,200
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10.8
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2.7
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Inferred
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LG
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43
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0.23
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100
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0.4
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0.1
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HG
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10
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24.00
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2,400
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6.4
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1.6
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Total Indicated
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1,076
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1.78
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19,100
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49.5
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12.5
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Total Inferred
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958
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0.77
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7,400
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19.4
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4.9
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(1) The effective date of
the mineral resource estimate is December 2, 2024. The Qualified
Person (QP) for the estimate is Mr. Matt Batty, P.Eng., of
Understood Mineral Resources.
(2) Mineral resource
estimates are prepared in accordance with CIM Definition Standards
(CIM, 2014) and the CIM Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines (CIM, 2019). Mineral resources
that are not mineral reserves do not have demonstrated economic
viability.
(3) Mineral resources are
reported at a cut-off grade of 0.1% U3O8.
(4) Mineral resources are
reported using a uranium price of USD$80/lb U3O8.
(5) All figures have been
rounded to reflect the relative accuracy of the estimate. Figures
may not add due to rounding.
(6) The Midwest Main and
Midwest A deposits consist of various geological zones including
the unconformity zone “UC”, perched zone
“PER”, basement zone “BSMT”, low-grade
“LG”, and high-grade zone
“HG”.
(7) Total Indicated and
Total Inferred grades indicate average grades.
(8) % U3O8
equal to % U X
1.18.
Mining Overview & Potentially Mineable Resources
The
PEA is based on utilization of the ISR method for mining the
unconformity-hosted portions of the Midwest Main deposit. A
three-phase development sequence is planned to exploit the orebody
over an approximately 6-year mine life in a manner that is
projected to optimize NPV, IRR, and capital efficiency, while
maintaining a steady rate of production throughout the projected
mine life.
Key
features of the application of ISR at the Midwest Main deposit
include:
●
Utilization
of a low pH mining solution.
●
Injection and
extraction wells on a 10-metre spacing in a 5-spot pattern with
extraction/recovery wells placed in the centre of a ring of
injection wells.
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A total of
676 ISR wells are required for complete coverage of the
deposit.
●
Utilization
of commercial permeability enhancement techniques to increase
hydraulic conductivity of the near well environment within the
deposit, where necessary.
●
Use of a
freeze wall (curtain) as a tertiary measure to isolate the mining
area from the regional groundwater, requiring the installation of
341 freeze holes.
●
A total of 50
monitoring wells are projected to be required around the perimeter
of the mineralized zone and within the overlying and underlying
aquifers, as dictated by geologic and hydrogeologic parameters, and
are spaced approximately every 125 metres.
An illustration of the planned mine is provided
in Figure
2, which depicts the location
of the ISR wellfield, the three mining phases planned, and the
associated surface infrastructure expected for the Midwest site. In
general, each extraction well is surrounded by 4 or more injection
wells, the type of which has been selected and/or located to
optimize cost and recovery.
A
unique characteristic of the planned Midwest Main ISR mine is the
use of artificial ground freezing around the perimeter of the
planned mining phases to create a vertical hydraulic barrier
surrounding the ISR mining area. The freeze perimeter is a tertiary
containment measure and is planned to consist of vertical wells
constructed from surface and extending into the impermeable
basement rock underlying the deposit.
Mining is planned to occur over an approximate
6-year period, with a partial year of production occurring in the
final calendar year of the production plan. Production is expected
to achieve nearly 6.1 million pounds U3O8
annually for total recovered uranium
of 37.4 million pounds U3O8
over the life of the project, which is
based on an estimated average mining recovery of 81%. Progressive
reclamation and decommissioning are planned to commence in each
phase of the ore zone once production has
ceased.
Midwest Main – Indicative Mine
Production per Year (lbs U3O8)
Processing Overview
Processing of uranium-bearing solution
(“UBS”) recovered from mine production at Midwest Main
is assumed to occur at the McClean Lake mill. The mill is part of
the McClean Lake Joint Venture (“MLJV”), which is owned
by Orano Canada (77.5%) and Denison (22.5%) and is currently
processing material from the Cigar Lake mine (up to 18 million lbs
U3O8/yr)
under a toll milling agreement. Importantly, the mill is licensed
to process up to 24 million lbs U3O8
per year, and thus is expected to have
approximately 6 million lbs U3O8
per year in excess licenced processing
capacity.
UBS
from Midwest Main would be trucked to the McClean mill and
offloaded into a storage tank providing surge capacity for both the
mine and mill. From the UBS storage tank it would be pumped into
the clarification circuit for fines removal prior to solvent
extraction. Following clarification, the solution would be
processed as per the current mill flowsheet, with final drummed
“yellowcake” expected to be a blend of the Midwest Main
and Cigar Lake feed streams.
Mining
of the Midwest Main deposit via ISR is expected to reduce tailings
deposited to the McClean Lake tailings management facility and
reduce contaminant loading to the tailings circuit compared to
conventional mining and milling.
Site Infrastructure
As
processing is assumed to occur at the McClean Lake mill, the
Midwest Main mine site is compact and has been designed to limit
environmental disturbance. The natural terrain of the area is used
where advantageous, further reducing the impact of the Project on
the environment. As the Midwest Main deposit is situated below the
South McMahon Lake, a berm is planned to be constructed to extend
the western edge of the lake to provide a base for the installation
of the ISR wellfield.
Based
on the Midwest Main site layout (see Figure 2), the primary site
facilities will consist of the ISR wellfield and berm, freeze
plant, storage pads and ponds, power substation and distribution,
process infrastructure, and operations facilities. The total area
for these facilities is estimated to be less than one square
kilometer.
Additional
on-site infrastructure includes a 6.5 km gravel road from Highway
905 to the site, a high-voltage electrical power line from the
existing SaskPower transmission line located alongside Highway 905,
and the existing dam across the Mink Arm of South McMahon Lake. Due
to the relatively short expected duration of mining activities and
the mine site’s proximity to existing lodging facilities, no
camp or airstrip is envisioned to be required on site and existing
facilities at Points North Landing, which is located approximately
3 km from the Midwest property, are expected to be
utilized.
Capital Costs
Initial
capital costs are expected to be incurred during an approximately
24-month construction period that will include the establishment of
site infrastructure, as well as the freeze wall perimeter around
the Phase 1 mining zone and initial ISR wellfield development
within Phase 1. Sustaining capital costs are largely related to the
continuation of wellfield development for the second and third
mining phase as well as the completion of remediation and
decommissioning of the mine site.
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Table 4 – Midwest Capital
Costs(1)
($ millions)
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Description
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Initial
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Sustaining
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Total
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ISR
Wellfield
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95.6
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239.3
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334.9
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Milling (McClean
Mill Modifications)
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2.9
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2.9
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McClean Lake Mill
Sustaining Capital
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37.4
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37.4
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Surface
Facilities
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1.6
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1.6
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Utilities
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0.9
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0.9
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Electrical
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11.2
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11.2
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Civil &
Earthworks
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46.3
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39.7
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86.0
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Road Upgrades
(Midwest to McClean Lake)
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1.2
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1.2
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SaskPower Line to
Midwest
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2.9
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2.9
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Surface Mobile
Equipment
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1.8
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1.8
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Remediation
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86.8
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86.8
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Demolition
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21.6
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21.6
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Contractor Direct
Field Support Costs
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12.3
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5.4
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17.7
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Subtotal Direct
Costs
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176.7
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430.2
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606.9
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Project Indirect
Costs
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18.8
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6.7
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25.5
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Subtotal Direct +
Indirect Costs
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195.5
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436.9
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632.4
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Contingency
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58.7
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10.1
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68.8
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Total Capital Cost
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254.2
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446.9
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701.2
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(1) Totals may not sum
precisely due to rounding
In
addition to the total capital costs identified in Table 4, further
costs are expected to be incurred prior to making a final
investment decision (“FID”). These costs are estimated
to total $16.8 million and include project evaluation and
development prior to the start of construction. Taken together with
estimated indirect costs, owners’ costs, sustaining and
decommissioning capital costs, contingencies, and excluding $16.8
million in costs related to the pre-FID period, total life of mine
capital costs are estimated at CAD$701.2 million.
Operating Costs
Average estimated operating costs are estimated to
be $15.78 (USD$11.69) per pound U3O8,
which are highly competitive and would position the Midwest Main
ISR project amongst the lowest-cost uranium mining operations
globally.
Average
operating costs estimated for life of mine are summarized in Table
5 below. A recovery rate of 98.5% has been assumed for processing
of the UBS from Midwest Main at the McClean Lake mill.
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Table 5 – Midwest Operating Cost
per Pound U3O8
Produced(1)
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CAD$
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USD$
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OPEX
- Mining
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2.89
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2.14
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OPEX
- Milling, Transport, Weigh, Assay
(Converter)
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12.21
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9.04
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OPEX
- G&A Site Support
|
0.11
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0.08
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OPEX
- G&A Administration and Other
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0.57
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0.43
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Total Operating Costs
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15.78
|
11.69
|
(1) Totals may not sum
precisely due to rounding
Uranium Selling Price Assumptions
The Base Case uranium price of USD$80.00 per pound
U3O8
is assumed for all years of production
and is derived from the current long-term price of uranium as
quoted by UxC, LLC in constant / uninflated 2024 dollars,
translated to Canadian dollars using an exchange rate of 1.35
CAD/USD.
Economic Analysis
The
Midwest PEA considers pre-tax and post-tax scenarios for the
project’s base-case economic analysis on a 100%
basis.
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Table 6 - Midwest Economic Analysis
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Economic Metric
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100% Project Pre-Tax
|
100% ProjectAfter-Tax
|
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IRR
|
%
|
111.1%
|
82.7%
|
|
Payback
|
Years
|
0.5
|
0.7
|
|
NPV0.0%
|
CAD$ '000
|
2,412,643
|
1,451,787
|
|
NPV8.0%
|
CAD$ '000
|
1,618,411
|
964,661
|
|
Average U3O8
Price
|
USD$/lb
|
80.00
|
|
Average
FX Rate
|
CAD$/US$
|
1.35
|
Sensitivity analysis of the economic results shows
that project economics remain robust even in cases where capital
costs or operating costs increase by 30%, each of which are
estimated to reduce the after-tax base-case NPV8%
by approximately 10%. The project also
remains robust in the case of a decline in uranium prices and
offers excellent leverage to rising uranium prices. In the
low-price scenario, a fixed uranium selling price of US$65.00 per
pound U3O8
is assumed and the project’s
after-tax NPV8%
decreases to $675 million with an IRR
of 66.5%. In the high-price scenario, a fixed uranium selling price
of US$95.00 per pound U3O8
is assumed and the project’s
after-tax NPV8%
increases to $1.26 billion with an IRR
of 97.1%.
Recommendations
Given
the favourable technical and economic results from the PEA, the
independent authors of the study recommend further advancement of
the evaluation and de-risking of the application of the ISR mining
method to the Midwest Main deposit, including the potential
completion of a Pre-Feasibility Study. Additional work is
recommended to focus on further classification of permeability
characteristics of the ore body, a detailed review of
infrastructure designs, verification of costing elements, and
completion of various trade-off studies to assess opportunities for
optimization identified during the PEA process.
SABRE Mining Method
In parallel to the continued evaluation of the
potential use of the ISR mining method at Midwest, the MWJV is also
advancing the assessment of the use of the Surface Access Borehole
Resource Extraction (“SABRE”) mining method for
extraction of the Midwest Main deposit. SABRE is a proprietary
mining method owned by the MLJV and currently being used at the
McClean North deposit. While
the PEA shows significant potential for the use of the ISR mining
method at Midwest Main, there can be no assurance that the MWJV
will ultimately advance the development of the Midwest Main deposit
or that future development of the deposit will occur using the ISR
mining method. The SABRE mining method has been commercially
demonstrated and may also provide a viable means to extract the
Midwest Main deposit.
About
Denison
Denison is a uranium mining, exploration and development company
with interests focused in the Athabasca Basin region of northern
Saskatchewan, Canada. The Company has an effective 95%
interest in its flagship Wheeler River Uranium Project, which is
the largest undeveloped uranium project in the infrastructure rich
eastern portion of the Athabasca Basin region of northern
Saskatchewan. In mid-2023, a feasibility study was completed
for the Phoenix deposit as an ISR mining operation, and an update
to the previously prepared 2018 Pre-Feasibility Study was completed
for Wheeler River's Gryphon deposit as a conventional underground
mining operation. Based on the respective studies, both deposits
have the potential to be competitive with the lowest cost uranium
mining operations in the world.
Permitting efforts for the planned
Phoenix ISR operation commenced in 2019 and are nearing completion
with approval of the project’s Environmental Assessment
(“EA”) received from the Province of Saskatchewan
and Canadian Nuclear Safety Commission hearing dates set in the fall of 2025 for Federal
approval of the EA and project construction
license.
Denison's interests in Saskatchewan also include a 22.5% ownership
interest in the MLJV, which includes unmined uranium deposits
(planned for extraction via the MLJV’s SABRE mining method
starting in 2025) and the McClean Lake uranium mill (currently
utilizing a portion of its licensed capacity to process the ore
from the Cigar Lake mine under a toll milling agreement), plus a
25.17% interest in the MWJV’s Midwest Main and Midwest A
deposits, and a 70.55% interest in the Tthe Heldeth Túé
(“THT”) and Huskie deposits on the Waterbury Lake
Property. The Midwest Main, Midwest A, THT and Huskie deposits are
located within 20 kilometres of the McClean Lake mill. Taken
together, Denison has direct ownership interests in properties
covering ~384,000 hectares in the Athabasca Basin
region.
Additionally, through its 50% ownership of JCU (Canada) Exploration
Company, Limited (“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%).
In 2024, Denison celebrated its 70th year in uranium mining,
exploration, and development, which began in 1954 with
Denison’s first acquisition of mining claims in the Elliot
Lake region of northern Ontario.
For more information, please contact
David Cates
(416) 979-1991 ext.
362
President and
Chief Executive Officer
Geoff Smith
(416) 979-1991 ext.
358
Vice President
Corporate Development & Commercial
Follow Denison on
X (formerly Twitter) @DenisonMinesCo
Qualified Persons
The disclosure of scientific or technical information contained in
this release has been reviewed and approved by Mr. Chad Sorba,
P.Geo., Denison’s Vice President, Technical Services &
Project Evaluation, who is a Qualified Person in accordance with
the requirements of NI 43-101.
Technical Information
The Midwest PEA has been completed in accordance with NI 43-101,
Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
standards, and best practices, as well as other standards such as
the AACE Cost Estimation Standards. Other than the risks identified
in Denison’s Annual Information Form dated March 28, 2025
(the “AIF”), there are no known legal, political,
environmental or other risks that could materially affect the
potential development of the mineral resources.
A technical report prepared in accordance with NI 43-101, with
further details of the results of the Midwest PEA, is anticipated
to be completed and filed under Denison’s profile on
Denison’s profile on SEDAR+ at www.sedarplus.ca and on EDGAR
at www.sec.gov, a copy of which will also be available on
Denison’s website.
Data verification has been undertaken by Qualified Persons to
support mineral resource and mineral reserve estimation, including
site visits, review of drill core, review of quality assurance
program and quality control measures and data, re-sampling and
sample analysis programs, and database verification. Validation
checks were performed on all data. For a further description of the
data verification, assay procedures and the quality assurance
program and quality control measures applied by Denison, please see
Denison’s AIF filed under the Company’s profile on
SEDAR+ and EDGAR.
Non-GAAP Financial Measures
This news release includes certain terms or performance measures
commonly used in the mining industry that are not defined under
International Financial Reporting Standards (“IFRS”).
Such non-GAAP performance measures, including operating costs and
sustaining costs, are included because it understands that
investors use this information to determine the Company’s
ability to generate earnings and cash flows. The Company believes
that conventional measures of performance prepared in accordance
with IFRS do not fully illustrate the ability of mines to generate
cash flows. Non-GAAP financial measures should not be considered in
isolation as a substitute for measures of performance prepared in
accordance with IFRS and are not necessarily indicative of
operating costs, operating profit or cash flows presented under
IFRS.
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’.
In particular, this news release contains forward-looking
information pertaining to the following: the interpretation of the
Midwest PEA and expectations with respect thereto, including
estimates of mine production, NPV, capital costs, operating costs
and estimated uranium revenue; expectations with respect to pre-
and post-FID costs; expectations with respect to taxes and
royalties; assumptions with respect to the industry and uranium
prices, anticipated impacts of inflation; expectations with respect
to project development and permitting, construction and operational
processes; infrastructure and the availability of services to be
provided by third parties; expectations with respect to project
remediation and decommissioning; future development methods and
plans; expectations and assumptions with respect to the SABRE
mining method and its current and potential deployment by the MLJV
and its partners; and joint venture ownership interests and the
continuity of its agreements with its joint venture partners and
third parties.
Statements relating to ‘mineral reserves’ or
‘mineral resources’ are deemed to be forward-looking
information, as they involve the implied assessment, based on
certain estimates and assumptions that the mineral reserves and
mineral resources described can be profitably produced in the
future. In addition, the PEA is preliminary in nature, includes
mineral resources that are considered too speculative geologically
to have the economic considerations applied to them that would
allow them to be categorized as mineral reserves, mineral resources
that are not mineral reserves do not have demonstrated economic
viability, and there is no certainty that the PEA will be
realized.
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
interpretation of results are based may not be maintained after
further testing or be representative of actual conditions. In
addition, while the PEA shows significant potential for the use of
the ISR mining method at Midwest Main, there can be no assurance
that the MWJV will ultimately advance the development of the
Midwest Main deposit or that future development of the deposit will
occur using the ISR mining method.
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 AIF and
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 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. 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 and/or will ever be upgraded
to a higher category, nor 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.
Figure 1 – Midwest Project Location Map
Figure 2 – Site Layout and Proposed Phased ISR Wellfield for
the Midwest Main Deposit
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