Denison Mines Corp 6-K, filed Aug 3, 2022
Denison Mines Corp. (DNN)
6-K
2022-08-03
For: 2022-08-03
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Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on August 3, 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: August 3, 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: August
3, 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
August 3, 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 Achieves Key Milestone with Completion of Metallurgical
Test Work
to Define Phoenix Process Plant Components and
Confirmation of Ability to Produce Yellowcake
Toronto, ON – August 3,
2022. Denison Mines Corp. (“Denison” or the
“Company”) (TSX: DML; NYSE American: DNN) is pleased to
announce the substantial completion of extensive metallurgical test
work to define the mechanical components for the planned Phoenix
processing plant (the “Phoenix Plant”), as part of the
Feasibility Study (“FS”) underway for the
Company’s 95% owned Wheeler River project (“Wheeler
River” or the “Project”). In addition, the
metallurgical program has confirmed the ability to produce a
yellowcake product that meets industry standard ASTM C967-13
specifications (see below for details).
Metallurgical
test work intended to define the mechanical components for the
Phoenix Plant was initiated in April 2021 at the Saskatchewan
Research Council (“SRC”) laboratories in Saskatoon. The
test work consisted of bench-scale lab tests using uranium bearing
solution (“UBS”) that was previously produced from
lab-scale leaching of core samples from the Phoenix deposit. These
samples are intended to be representative of what is expected to be
recovered from the In-Situ Recovery (“ISR”) wellfield
planned for the Phoenix deposit (see news release dated August 4,
2021).
Kevin Himbeault, Denison’s Vice President of
Plant Operations & Regulatory Affairs, commented,
“The
comprehensive test work undertaken by the Denison team has
demonstrated our ability to produce (i) a saleable uranium product
utilizing a simplified chemical precipitation process and (ii)
high-quality effluent for final discharge to the environment. This
is a significant milestone from which we can continue to optimize
the designs for the Phoenix Plant and further our de-risking of the
overall Project as part of the FS.”
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.
The
results of the metallurgical test work are highlighted by the
following:
●
The UBS from
the high-grade Phoenix deposit was processed using simple chemical
precipitation stages to remove certain elements prior to the
yellowcake precipitation circuit.
●
A yellowcake
product that meets uranium industry standard ASTM C967-13
specifications (see below for details) has been precipitated in the
lab.
●
A
high-quality effluent was obtained using typical industrial water
treatment processes through pH control and
precipitation.
Additionally,
the metallurgical test program has provided several important
inputs for the FS processes underway in relation to the planned
Phoenix Plant and ISR operation, including confirmation of the
following:
●
The
appropriateness of mechanical components for the Phoenix Plant
similar to those outlined in the Pre-Feasibility Study
(“PFS”).
●
The
suitability for the Phoenix Plant to process UBS head grades
averaging 15 g/L uranium.
●
Metallurgical
recovery rates of over 95% from processing of UBS to
yellowcake.
●
The ability
to achieve industry standards for yellowcake through drying at
110°C, indicating calcination is not required for the planned
Phoenix Plant.
●
The ability
to produce a yellowcake product that meets industry standards
without the use of ammonia and the specialized and additional
processes typically associated therewith.
●
The ability
to meet final plant effluent quality discharge criteria for
protection of the environment, which is expected to be outlined in
the draft Environmental Impact Statement (“EIS”)
planned to be submitted as part of the Environmental Assessment
(“EA”) for the Project.
Additionally,
extensive test work has been completed in defining any potential
elements of concern, required process components, reagents, and
general operating parameters necessary to mitigate processing risks
and ensure the production of a yellowcake product that meets
industry standards. This has allowed for the significant
progression of the plant and process designs for the
FS.
Additional
targeted metallurgical test work continues in the following
areas:
●
Specialized
test work to potentially further improve the effluent treatment
process, optimize reagent usage and enhance overall environmental
protection.
●
Lab scale
leaching of intact cores continues, with additional tests to
further refine the production recovery curve for the Phoenix ISR
operation, which will inform ISR simulation modelling for the FS
and will provide additional results for future wellfield and ISR
plant design optimization.
●
Lab scale
leaching and remediation tests of crushed core, representing
different hydrogeological units within the Phoenix deposit, to
determine achievable recovery, leaching rates, and remediation
plans for the different units.
The
laboratory work for the 2022 Metallurgical Program to support the
feasibility study is being carried out at the SRC Mineral
Processing and Geoanalytical Laboratories in Saskatoon, under the
supervision of Wood Canada Limited (see news release dated
September 22, 2021).
ASTM C967-13 Standard
ASTM
C967-13 is a set of quality specifications applied to uranium ore
concentrate that are generally recognized in the uranium industry
for meeting requirements for refining and conversion to uranium
hexafluoride and, therefore, a saleable product. Parties may,
however, agree to less or more stringent specifications of product
quality on a case by case basis.
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 33.8118%) 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 (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
Executive Vice
President and Chief Financial Officer
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: scope, objectives and
interpretations of the FS process for the proposed ISR operation
for the Phoenix deposit, including metallurgical testing programs
described herein 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; the definition of a saleable
product; 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.