Actionable news
0
All posts from Actionable news
Actionable news in DNN: DENISON MINES CORP,

Denison Mine: 1100 40 University Avenue Toronto, ON M5J 1T1

The following excerpt is from the company's SEC filing.

Ph. 416-979-1991 Fx. 416-979-5893

www.denisonmines.com

PRESS RELEASE

DENISON MINES CORP. REPORTS THIRD QUARTER 2015 RESULTS

Toronto, ON November 5, 2015. Denison Mines Corp.

(Denison or the Company) (DML: TSX, DNN: NYSE MKT) today reported its results for the three- and nine months ended September 30, 2015. All amounts in this release are in U.S. dollars unless otherwise stated.

Highlights

Gryphon Deposit adds 43 Million Pounds of Uranium Resource at the Wheeler River Property:

The Company completed an initial mineral resource estimate for the basement hosted Gryphon uranium deposit, which is located three kilometres to the northwest of the high-grade Phoenix deposit.

The Gryphon deposit is estimated to contain an inferred mineral resource of 43.0 million U

at an average grade of 2.3% U

. When combined with the high-grade Phoenix deposit, Wheeler River now contains an indicated resource of 70.2 million pounds U

at a grade of 19.1% U

and inferred resources totaling 44.1 million pounds U

at a combined grade of 2.4%. The significant increase to the mineral resource estimate at Denisons 60% owned Wheeler River property

establishes the project as one of the largest and highest grade undeveloped uranium projects in the Athabasca Basin region.

Appointment of Lukas Lundin as the Companys Executive Chairman:

Throughout his career, Mr. Lundin has been responsible for various resource discoveries, including the multi-million ounce Veladero gold deposit. Mr. Lundin has also led numerous companies through very profitable business acquisitions and mergers, including the sale of Red Back Mining Inc. Mr. Lundin currently sits on the Board of a number of publicly traded companies and has served as a director of Denison since 1997.

Continued Exploration Success at the Wheeler River Property:

The summer drilling program was completed with a total of 24,468 metres of drilling in 34 drill holes. The best result was drill hole WR-604, which intersected 6.3% U

over 5.5 metres (779.0 to 784.5 metres), followed by 11.6% U

over 1.0 metres (790.0 to 791.0 metres), extending the Gryphon Zone of mineralization approximately 50 metres in the down-dip direction.

Twenty additional drill holes were completed in the general K North area surrounding the Gryphon Zone, to evaluate a variety of targets and identify additional mineralization. The best result from these targets was in drill hole WR-612, located 200 metres south of the unconformity mineralization identified on the WR-595/597 section during the winter 2015 exploration program. WR-612 intersected 2.4% U

over 2.5 metres, approximately 25 metres below the unconformity.

Other pipeline exploration properties provide exciting Summer 2015 Drilling results

: Promising results were achieved at some of Denisons pipeline properties, including at Denisons 58.94% owned Murphy Lake project, where the first drill hole of the summer 2015 program intersected a new zone of uranium mineralization. Drill hole MP-15-03 returned 0.25% U

over 6.0 metres (270.0 to 276.0 metres) at the unconformity.

Positive Cash flow from toll milling on track to exceed initial 2015 guidance:

The McClean Lake mill, in which Denison holds a 22.5% interest, packaged approximately 6.7 million pounds U

in the first nine months of 2015 for the Cigar Lake Joint Venture (CLJV), generating toll milling revenues for Denison of $1.9 million. If production continues at current rates, the McClean Lake mill could produce more than 10 million packaged pounds of U

by the end of this year (previously targeted at six to eight million packaged pounds). The Companys share of toll milling revenues for the year is now expected to be approximately $2.5 million.

Update on sale of Mongolian interests:

During the second quarter, Denison entered into a share purchase agreement with Uranium Industry a.s. (UI), of the Czech Republic, which provided that UI would acquire all of Denisons interest in uranium projects and operations located in Mongolia in exchange for cash consideration of $20 million, payable upon the achievement of specified milestones and subject to various conditions on closing (the Mongolian Transaction). The sale did not close as expected by September 8, 2015, as certain conditions were not satisfied. Denison remains the owner of its Mongolian interests and continues to pursue the closing of a transaction to sell its Mongolian interests to UI.

Denison and Fission Uranium Corp. (Fission) terminate arrangement agreement:

On July 27, 2015, Denison entered into an agreement to combine its business with Fission by way of a court approved plan of arrangement (the Arrangement). Denisons shareholders strongly supported the Arrangement. Although a majority of the Fission shareholders approved the Arrangement by the proxy voting deadline, the required two-thirds approval was not obtained. As a result, on October 13, 2015, the Arrangement was terminated.

Mineral Property Exploration

Global exploration expenditures were $3,919,000 and $13,065,000 during the three and nine months ended September 30, 2015, with approximately 92% of exploration expenditures being incurred in Canada.

Denisons share of exploration spending on its Canadian properties was $3,753,000 and $12,007,000 during the three and nine months ended September 30, 2015, as compared to $3,099,000 and $12,593,000 during the same periods in 2014. Exploration spending in Canada is seasonal with spending higher during the winter drilling programs (January to mid-April) and summer drilling programs (June to mid-October) in the Athabasca Basin.

The Wheeler River property lies in close proximity to existing mining and milling infrastructure between the McArthur River Mine and the Key Lake mill complex in the Athabasca Basin in northern Saskatchewan this infrastructure includes the provincial power grid, provincial highways, air transportation and multiple uranium processing facilities, including the 22.5% Denison owned McClean Lake mill. Denison is the operator and holds a 60% interest in the project, while Cameco holds a 30% interest and JCU (Canada) Exploration Company, Limited (JCU) holds a 10% interest. Denisons share of exploration costs at Wheeler River amounted to $1,829,000 and $4,604,000, respectively, during the three and nine months ended September 30, 2015, compared to $1,423,000 and $4,209,000 in the same periods in 2014.

A total of 24,468 metres of drilling was completed in 34 drill holes during the summer program at Wheeler River, all of which were completed by September 30, 2015. The winter 2015 drilling program was completed in April 2015, with a total of 17,700 metres in 26 holes.

Increased Mineral Resource Estimate at Wheeler River

With the receipt of the final chemical assays from the drilling completed at Gryphon this summer, the Company completed an initial mineral resource estimate for the basement hosted Gryphon uranium deposit, which is located three kilometres to the northwest of the high-grade Phoenix deposit. When combined with the Phoenix deposit, Wheeler River now contains an indicated resource of 70.2 million pounds U

at a combined grade of 2.4% establishing Wheeler River as one of the largest and highest grade undeveloped uranium projects in the Athabasca Basin region.

The following table summarizes the mineral resource estimate for Wheeler River by deposit and classification. Mineral resources for the Phoenix deposit were last updated in 2014 to reflect the expansion of the high-grade zone. As no drilling has been completed since 2014, the resource estimate for the Phoenix deposit remains current.

2015 Wheeler River Property Mineral Resource Estimate Summary

(1)(4)

Category

Tonnes

Million Pounds U

(100% Basis)

(Denisons Share)

Inferred

834,000

Indicated

166,000

CIM Definitions were followed for classification of mineral resources.

Mineral resources for the Gryphon deposit are reported above a cut-off grade of 0.2% U

. The cut-off grade is based on internal conceptual studies and a price of US$50 per lb U

Mineral resources for the Phoenix deposit are reported above a cut-off grade of 0.8% U

Numbers may not add due to rounding.

- 2 -

The mineral resource estimate was completed by RPA Inc (RPA), in accordance with National Instrument 43-101 (NI 43-101). For the Gryphon deposit, RPA used data collected from four surface diamond drilling campaigns completed during the last two years. Uranium grade data is comprised of chemical assays on half split drill core samples. Drill core recovery in the Gryphon deposit area is good, and therefore no down-hole gamma probe data was required for the estimate. The mineral resource estimate for the Gryphon deposit was classified as inferred based on the drill hole spacing and apparent continuity of mineralization.

Gryphon Drilling

The Gryphon deposit, located approximately three kilometres northwest of the high grade Phoenix uranium deposit, was discovered in 2014. The highest grade intersection to date at Gryphon was returned from drill hole WR-573D1, which intersected 22.2% U

over 2.5 metres.

Seven of the 12 drill holes completed during the winter 2015 program, targeting extensions of the Gryphon zone, intersected significant uranium mineralization. As a result, the zone was extended up-plunge, down-plunge, and up-dip on two sections. Following up on the success from the winter program, seven drill holes completed during the summer 2015 program were designed to complete a 50 metre x 50 metre spaced drill pattern at Gryphon and outline the extent of the mineralization in the down-dip and down-plunge directions. The best result was in drill hole WR-604, which intersected 6.3% U

over 5.5 metres (779.0 to 784.5 metres), followed by 11.6% U

over 1.0 metres (790.0 to 791.0 metres)extending the previously identified zone of mineralization approximately 50 metres in the down-dip direction.

Exploration in the K North Area

The K North Area is a new area of highly prospective targets surrounding the Gryphon Zone. This Area together with the K Central Area define a contiguous geological trend that runs along the western side of the Wheeler River property for approximately six kilometers and remains largely untested.

During the winter 2015 exploration program, 14 drill holes were completed to explore for other areas of mineralization along strike to the south of the Gryphon deposit. This resulted in the discovery of a new zone of uranium mineralization, occurring at the unconformity, 800 metres to the south of Gryphon. The discovery was highlighted by the results in drill holes WR-595 and WR-597.

Following the discovery of the new zone of uranium mineralization occurring at the unconformity, the summer 2015 exploration program followed up with 20 drill holes in the K North Area, to the south, north and west of Gryphon, to evaluate a variety of targets and identify additional mineralization. The best result from these targets was in drill hole WR-612, located 200 metres south of the unconformity mineralization identified on the WR-595/597 section during the winter 2015 exploration program. WR-612 intersected 2.4% U

over 2.5 metres, approximately 25 metres below the unconformity.

Exploration Pipeline Properties

During the summer 2015 exploration program, Denison carried out...


More