Denison Mines Corp 6-K, filed Nov 6, 2023
Denison Mines Corp. (DNN)
6-K
2023-11-06
For: 2023-11-06
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About this 6-K
Denison Mines Corp filed this 6-K on November 6, 2023.
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: November 6, 2023
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): ☐
SIGNATURES
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:
November 6, 2023
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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 November 6,
2023 |
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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 Announces Successful Completion of
Inaugural ISR Field Test Program
at Tthe Heldeth Túé
(THT)
Toronto, ON – November 6,
2023. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is
pleased to announce the successful completion of the inaugural
In-Situ Recovery ("ISR") field test program within the Tthe Heldeth
Túé uranium deposit ("THT") at the Company's 67.41% owned
Waterbury Lake Uranium Project ("Waterbury"), which is located in
northern Saskatchewan, Canada and is situated in close proximity to
key regional infrastructure, including roads, the provincial power
grid, and Denison’s 22.5%-owned McClean Lake mill (see Figure
1).
The
THT ISR field test involved the installation of an 8-well ISR test
pattern (“Test Pattern”) designed to collect an
extensive database of hydrogeological data, and the program
successfully achieved each of its planned objectives,
including:
●
Confirmed Hydraulic
Conductivity: Pump and
injection tests were successfully completed within the Test
Pattern, validating hydraulic connectivity in 100% of the test
wells within the ore zone, and achieving hydraulic conductivity
values (a measure of permeability) consistent with the 2020
Preliminary Economic Assessment (“PEA”) for the
project. Sufficient permeability within the ore zone is a key
criteria for the successful deployment of the ISR mining
method.
●
Established 10-hour
Breakthrough Time with Ion Tracer Test: A subsequent tracer test significantly increased
the confidence in the initial hydrogeological evaluations (pump and
injection tests) within the Test Pattern. The tracer test
demonstrated Denison’s ability to maintain hydraulic control
of injected solutions and achieve breakthrough times consistent
with expectations.
●
Demonstrated the Effectiveness
of Permeability Enhancement: One method of permeability enhancement was
successfully deployed from multiple wells demonstrating the
suitability of the method to the THT deposit. Efficiency of
permeability enhancement was verified by comparison of pre- and
post-permeability enhancement hydraulic
testing.
David Cates, Denison’s President and Chief
Executive Officer, commented “Our
recently completed ISR de-risking efforts at THT demonstrate the
competitive advantage of our in-house Saskatoon-based technical
team. While there is no short-cut for the collection of key
project-specific technical data, our team developed a program for
THT that leveraged our experience and maximized the value of our
time and efforts in the field. The program was completed safely and
delivered excellent results, confirming our previous expectations
that THT can be amenable to ISR mining and should be considered as
a potentially low-cost and highly prospective uranium development
project.
Despite higher
uranium prices, many potential projects in the uranium mining
industry struggle to meaningfully advance towards a future
development or restart decision. We continue to meaningfully invest
in our exploration and development pipeline projects, and the
results from the ISR field test program support bringing THT
forward for additional evaluation, and reinforce the
project’s potential to become Denison’s second ISR
uranium mine development asset in the Athabasca
Basin”.
In November 2020, an independent PEA was completed
for Waterbury evaluating the potential use of the ISR mining method
at THT. The PEA demonstrated robust economics for a small-scale
Athabasca Basin ISR mining project, highlighted by an estimated
all-in cost per pound U3O8
of US$24.93 and a pre-tax internal rate of return estimated
at 50.0% based on a uranium selling price of US$65.00 per
pound U3O8
(see press release dated November 17,
2020).
The
PEA included recommendations to further advance the technical
de-risking of the project with the collection of site-specific
data. As the PEA is preliminary in nature, there is no certainty
that the results of the PEA will be realized and mineral resources
that are not mineral reserves do not have demonstrated economic
viability.
2023 ISR Field Test Program
The
2023 ISR field test program was designed to validate the
permeability of THT, and to collect a database of hydrogeological
and metallurgical data to further evaluate the ISR mining
conditions present at the deposit. This data is expected to de-risk
the ISR requirements related to permeability and is to be further
incorporated into ISR mine planning efforts as part of the
completion of a potential future Pre-Feasibility Study
(“PFS”) for THT.
The
Test Pattern consists of 8 small diameter wells in the Eastern Pod
of THT (see Figure 2) – made up of four monitoring wells, two
pump/injection wells, one Vibrating Wire Piezometer
(“VWP”) and one recharge well. Each test well was
drilled to their target depths and, as applicable, outfitted with
well screens and/or pressure monitoring devices.
Core
collected from the test wells within the mineralized zone is also
expected to allow Denison to verify and update the current mineral
resource estimate for the deposit and support future wellfield
design and mineral processing assessments.
Successful Completion of Hydrogeologic Test Work
The
2023 ISR field test program included preliminary hydrogeological
tests completed by using the test wells to move water through the
Test Pattern. Measurements of the movement of water (hydraulic
pressure changes) within the ore zone provide evidence of the
hydraulic conditions present and are indicative of the potential
movement of mining solution in an ISR mining operation. Over 20
different pump, injection, or slug tests were completed during the
program.
Results
from the hydrogeological testing produced hydraulic conductivity
values consistent with the PEA. Importantly, 100% of the wells
located within the Test Pattern showed hydraulic connectivity with
another test well.
Additional
supportive test work completed during the program included
permeability and porosity tests conducted either downhole or on
mineralized drill core recovered during the test
program.
Execution of Ion Tracer Test
Following
hydrogeologic testing, a 2-hole ion tracer test was completed
within the Test Pattern. The ion tracer was injected into GWA-003A
(Injection well), with pumping occurring from the extraction well
(GWA-002). Water recovered from the extraction well was then
recirculated until concentrations of the ion tracer
stabilized.
After
completion of the ion tracer test, remediation was then conducted
to demonstrate the ability to remove injected tracer fluid from the
Test Pattern. Injection was halted at the injection well and the
extraction well continued to pump to remove the remaining injected
ion tracer. Based upon tracer concentrations measured during the
two-day clean-up period, 89% of the injected tracer mass was
recovered in the extraction well.
Vertical
hydraulic control during the tracer test was confirmed through
monitoring of the VWP installed in GWA-004, which provided pressure
recordings at 3 positions in the sandstone above the mineralized
zone, 3 positions in the mineralized zone, and 2 positions in the
basement horizons. Hydraulic control was also validated through
sampling of the four perimeter monitoring wells for total dissolved
solids (“TDS”) values before and after the ion tracer
test. No elevated values in TDS were observed outside of the test
area during the ion tracer test, confirming no migration of the
tracer outside of the two-spot pattern.
Demonstration of the Effectiveness of Permeability Enhancement
Method
One
method of permeability enhancement was successfully evaluated on
three test wells, with efficiency verified by comparison of pre-
and post-permeability enhancement hydraulic conductivity tests.
Permeability enhancement has been proven to increase and normalize
hydraulic conductivity in the area proximal to the wellbore. This
is important as it provides a useful tool for increasing contact of
injected fluids with the ore zone to maximize uranium recoveries in
an ISR mining environment.
Collection of Other Supporting ISR Datasets
In
addition to the hydrogeological tests described above, samples will
be collected from the drill core recovered from the test wells to
facilitate (1) assessment of matrix permeability to inform an
initial model of the hydrogeological variations of the deposit, (2)
future column leach and core leach testing to investigate the
uranium extraction curve, lixiviant requirements, reagent
consumption and solution flow rates; and (3) characterization of
hydrogeologic units and anticipated flow path
distribution.
About Waterbury Lake
Waterbury Lake is owned by the Waterbury Lake Uranium Limited
Partnership, of which Denison Waterbury Corp. (a wholly-owned
subsidiary of Denison) owns 67.41% and Korea Waterbury Lake Uranium
Limited Partnership (“KWULP”) owns 32.59%. KWULP is
comprised of a consortium of investors, in which Korea Hydro &
Nuclear Power holds a majority position. More information about the
project is available in the technical
report titled “‘Preliminary Economic Assessment for the
Tthe Heldeth Túé (J Zone) Deposit, Waterbury Lake
Property, Northern Saskatchewan, Canada’ with an effective
date of October 30, 2020” a copy of which is available
on Denison’s website and under its profile on SEDAR+ at
www.sedarplus.ca and on EDGAR at www.sec.gov/edgar.shtml.
About Denison
Denison is a uranium 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 Wheeler
River’s Phoenix deposit as an ISR mining operation, and an
update to the previously prepared PFS 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 have advanced significantly,
with licensing in progress and a draft Environmental Impact
Statement submitted for regulatory and public review in October
2022.
Denison's interests in Saskatchewan also include a 22.5% ownership
interest in the McClean Lake Joint Venture, which owns several
uranium deposits and the McClean Lake uranium mill, 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 67.41% interest in the 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.
Through its 50% ownership of JCU (Canada) Exploration Company, Ltd
('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 285,000 hectares in the Athabasca
Basin region.
For more information, please contact
David
Cates
(416) 979-1991 ext
362
President and
Chief Executive Officer
Qualified Persons
The technical information contained in this release has been
reviewed and approved by Mr. Chad Sorba, P.Geo., Denison’s
Director, Technical Services, who is a Qualified Person 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: scope, objectives and
interpreted results of the ISR test program at THT; future plans
and objectives for Waterbury, including further studies, analysis
and a potential future resource estimate update and PFS; 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 plans for
Waterbury Lake 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 other 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 27, 2023 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: Tthe Heldeth Túé (THT) Site Location
Map
Figure 2: Tthe Heldeth Túé (THT) Test Pattern Plan
View
