Denison Mines Corp 6-K, filed Jul 12, 2022
Denison Mines Corp. (DNN)
6-K
2022-07-12
For: 2022-07-12
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Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on July 12, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
Date: July 12, 2022
Commission File Number: 001-33414
Denison Mines Corp.
(Name of
registrant)
1100-40 University Avenue
Toronto Ontario
M5J 1T1 Canada
(Address of
principal executive offices)
Indicate by check mark whether the registrant files
or will file annual reports under cover Form 20-F or Form
40-F.
Form
20-F ☐ Form 40-F ☒
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): ☐
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): ☐
INCORPORATION BY REFERENCE
Exhibit 99.1 to
this Form 6-K of Denison Mines Corp. is hereby incorporated by
reference to its Registration Statement on Form F-10 (File No.
333-258939), as amended or
supplemented.
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly
authorized.
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DENISON MINES
CORP.
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/s/ Amanda Willett
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Date: July
12, 2022
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Amanda
Willett
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Vice
President Legal and Corporate Secretary
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FORM 6-K
EXHIBIT INDEX
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Exhibit Number
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Description
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99.1
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Press release dated
July 12, 2022 |
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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 Receives Approval to Construct and Operate
Phoenix Feasibility Field Test Facility from Saskatchewan Minister
of Environment
Toronto, ON – July 12,
2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce that it has received approval from the Province of
Saskatchewan to prepare, construct, and operate the facilities
required to carry out the In-Situ Recovery (“ISR”)
Feasibility Field Test (“FFT”) planned for the Phoenix
deposit at the Company’s 95% owned Wheeler River
project.
The
approval was granted by the Saskatchewan Minister of Environment
(the “Minister”) and authorizes Denison to operate
“pollutant control facilities” – which is typical
for mining operations and allows for the management of material
recovered from mineral extraction through to waste water treatment,
discharge, and storage (as applicable). The approval followed the
completion of a process involving the review of and consultation on
the Company’s permit application and supporting materials
related to the FFT.
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, commented
“We
are pleased to have received approval from the Province of
Saskatchewan to prepare and operate the Phoenix FFT. This is a
significant advancement for the FFT, which is a key step in the
process of de-risking the proposed Phoenix ISR uranium mining
operation and is expected to provide important details to support
the ongoing Feasibility Study. Overall, Denison was pleased with
the permit submission, review, and community consultation process
– as it reflected a shared objective of all interested
parties to ensure the safe and environmentally responsible
operation of the facilities required to complete the
FFT.”
David Cates, Denison’s President & CEO,
added “The
permitting of the FFT is an excellent demonstration of our
team’s technical and regulatory capabilities. The FFT
represents a first-of-its-kind test of a uranium mining method that
is new to Canada. Successfully navigating the regulatory
environment in Saskatchewan to develop conditions for the oversight
of a novel advanced field test is a notable accomplishment for both
the Denison team and the regulatory team from the Ministry of the
Environment.”
With
receipt of the Approval to Operate Pollutant Control Facilities
from the Minister, preparation and construction of the FFT
facilities, described below, are now fully authorized and are
expected to commence shortly.
The
Canadian Nuclear Safety Commission has determined that a Nuclear
Substance License is also required for Denison to possess and store
a nuclear substance (mineralized solution containing uranium)
resulting from the operation of the FFT. The process to obtain this
license is well advanced, and the licence is expected to be
received before the site preparation and commissioning activities
are completed.
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.
Feasibility Field Test
The
FFT is designed to use the existing commercial-scale ISR test
pattern (“Test Pattern”), installed at Phoenix in 2021
(see news releases dated July 29, 2021 and October 28, 2021), to
facilitate a combined assessment of the Phoenix deposit’s
hydraulic flow properties with the leaching characteristics that
have been assessed through the metallurgical core-leach testing
program. Overall, the FFT is intended to provide further
verification of the permeability, leachability, and containment
parameters needed for the successful application of the ISR mining
method at Phoenix and is expected to validate and inform various
feasibility study design elements – including the production
and remediation profiles expected for the project.
The
operation of the FFT is planned to occur in three phases: (1) the
leaching phase, (2) the neutralization phase, and (3) the recovered
solution management phase.
The
majority of the test activities (leaching and neutralization phase)
will occur within an estimated 60-day operating time frame, with
the construction and placement of temporary facilities commencing
approximately two months prior to the commissioning of the test
facilities and initiation of the leaching phase.
The
leaching phase is designed to assess the effectiveness and
efficiency of the leaching process in the mineralized zone, at a
depth of approximately 400m below the surface. The leaching phase
includes the controlled injection of an acidic solution into a
portion of the existing Test Pattern within the mineralized zone
(the “Leaching Zone”) and the recovery of the solution
back to the surface using existing test wells. The recovered
solution from the leaching phase is expected to contain dissolved
minerals, including uranium, copper, iron, molybdenum, and zinc.
Once on surface, the recovered solution (up to a maximum of 500
cubic metres) will be stored temporarily in tanks in accordance
with approved environmental protection containment
measures.
The
neutralization phase includes the recovery of the remainder of the
leached mineralized solution from the Leaching Zone and is intended
to verify the efficiency and effectiveness of the process for
returning the Leaching Zone to near baseline conditions. During
this phase, a mild alkaline (basic) solution will be injected into
the Leaching Zone to neutralize the area and reverse the residual
effects of the acidic solution injected during the leaching phase.
The recovered solution from the neutralization phase (up to a
further maximum of 500 cubic metres) will also be stored
temporarily on surface in tanks in accordance with approved
containment measures.
The
recovered solution management phase involves separating the
solution recovered from both the leaching phase and the
neutralization phase into (i) mineralized precipitates and (ii) a
neutralized treated solution. The mineralized precipitate will be
temporarily stored on surface in steel tanks and the neutralized
treated solution will be re-injected into a designated subsurface
area.
FFT Facilities
Temporary
surface facilities required to complete the FFT are planned to be
installed at the Phoenix site during the third quarter of 2022. The
procurement of necessary materials, equipment, and supplies, as
well as detailed engineering of the facilities are already well
advanced.
The
FFT site is planned to include the following facilities and
infrastructure:
●
Tanker pad – for storage of tanker trucks used for
delivery of reagents to site.
●
Injection solution preparation
module – a modular unit
where groundwater will be mixed with reagents to prepare the
injection solution.
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Test pattern coverall
building – a
tension-fabric building to be built over the test
area.
●
Recovered solution surge
tank – the surge tank
will receive recovered solution from the test
wells.
●
Solution storage tanks
– six (6) tanks are expected to
be installed to provide a total of 1,000 cubic metres of solution
storage. These tanks are designed to receive solution pumped from
the recovered solution surge tank for temporary storage before
separating the recovered solution into mineralized precipitates and
a neutralized treated solution during the recovered solution
management phase of the FFT.
●
Piping – double-walled transfer piping will run
from the recovered solution surge tank (next to the test wells) to
the solution storage tanks.
●
Recovered solution management
modules – two modular
units will be mobilized to site that contain equipment for managing
the recovered solutions.
●
Mineralized precipitate storage
tanks – during the
recovered solution management phase, the mineralized precipitate
will be transferred into fully enclosed and lockable storage tanks.
The mineralized precipitate storage tanks will be placed in a
secure fenced area for temporary storage.
●
Laboratory – a mobile laboratory will be located on
site and equipped for bench-scale testing of
samples.
●
Construction / Operations
Centre – a mobile office
will serve as a construction office and operations centre as well
as the main gate entry point for the site.
●
Wash car and change room
– a mobile facility will allow
staff to change and wash before and after each shift at the Phoenix
site.
●
Perimeter fence
– the entire area (~8,820 square
meters) will be fenced and gated to control access and minimize
interactions with wildlife.
All
civil earthworks required for the FFT site are expected to occur on
previously disturbed areas and no additional land clearing is
planned.
Figure
1 provides a plan view of the expected FFT site layout. Figures 2
and 3 provide isometric schematics of the site
facilities.
Approval to Operate Pollutant Control Facilities
Under
the terms of the Approval to Operate Pollutant Control Facilities
obtained from the Minister, Denison is authorized to construct and
operate various regulated elements associated with the FFT,
including pollutant control facilities, mineralized precipitate
facilities, radon air pollution abatement equipment, and hazardous
substances and waste dangerous goods storage
facilities.
The
approval includes specific operating conditions related to (a)
mineralized precipitate, recovered solution and drill cuttings,
handling, and transportation, (b) hazardous substances material
storage, handling, and transportation, (c) air management, (d)
water/wastewater management, and (e) waste handling,
transportation, and disposal. Additionally, the approval includes
provisions related to inspections, monitoring, reporting, and
decommissioning and reclamation.
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 66.90%
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 33.8123%) and Christie Lake (JCU 34.4508%). Denison's
exploration portfolio includes further interests in properties
covering ~280,000 hectares in the Athabasca Basin
region.
Denison is also engaged in post-closure mine care and maintenance
services through its Closed Mines group (formerly Denison
Environmental Services), 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
(416) 979-1991 ext
362
President and
Chief Executive Officer
Mac
McDonald
(416) 979-1991 ext 242
Follow Denison on
Twitter
@DenisonMinesCo
Qualified Persons
The disclosure of scientific or technical information related to
the FFT 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: expectations with respect
to the FFT program, scope, timing and the anticipated results
thereof; the expectation that Denison will receive all required
permitting for the FFT, including CNSC approvals; 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 exploration and/or 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 exploration,
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.
Figure 1: Plan map showing location of FFT facilities
Figure 2: Isometric view of the planned FFT site and associated
facilities
Figure 3: Isometric view of the coverall building on the FFT site,
including test wells,
injection solution preparation module, and recovered solution surge
tank