Denison Mines Corp 6-K, filed Sep 26, 2022
Denison Mines Corp. (DNN)
6-K
2022-09-26
For: 2022-09-26
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Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on September 26, 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: September 26, 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:
September 26, 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
September 26, 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 Completes Commissioning of Lixiviant Injection
Modules
for Phoenix ISR Feasibility Field Test
Toronto, ON – September
26, 2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce the completion of commissioning of the lixiviant injection
system for the Phoenix in-situ recovery (“ISR”)
Feasibility Field Test (“FFT”) at the Company’s
95% owned Wheeler River project (“Wheeler River” or the
“Project”). The lixiviant injection system is the
critical operating component necessary to support the leaching
phase of the FFT.
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, commented,
“With
the completion of construction and wet commissioning of the
injection modules, we have now successfully commenced our initial
injection of lixiviant into the test area, which represents the
beginning of the leaching phase of the
FFT.”
David Cates, Denison’s President and CEO,
added, “We
are proud of this notable milestone, particularly given the
extensive coordination and efforts of Denison’s
Saskatoon-based technical team and our various construction
partners that have delivered on the safe and timely construction
and commissioning of this first-of-its-kind test
facility.”
Limited
construction activities continue on-site to support future phases
of the FFT (discussed below). Construction efforts for the FFT are
being completed in collaboration with Tron Construction &
Mining, a well-established operator in northern Saskatchewan that
is part of the Des Nedhe Group and owned 100% by English River
First Nation. Civil earthworks for the FFT are substantially
completed, and continue to be supported by Snake Lake Contracting,
another northern Saskatchewan-based and Indigenous-owned
business.
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.
Background on the FFT
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.
The
FFT is fully permitted, having been authorized by both the
Saskatchewan Minister of Environment (see news release dated July
12, 2022) and the Canadian Nuclear Safety Commission (see news
release dated August 8, 2022).
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 expected production and remediation
profiles.
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
leaching phase is designed to assess the effectiveness and
efficiency of the leaching process in the mineralized zone, which
is 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.
The
neutralization phase involves 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 environmentally acceptable
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 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.
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 approximately 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 (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: status of commissioning
and readiness of the FFT; scope, objectives and interpretations of
the FS process for the proposed ISR operation for the Phoenix
deposit, including the FFT and other testing programs 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.