Denison Mines Corp 6-K, filed Feb 19, 2020
Denison Mines Corp. (DNN)
6-K
2020-02-19
For: 2020-02-19
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April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on February 19, 2020.
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
of the Securities Exchange Act of 1934
Date: February 19, 2020
Commission File Number: 001-33414
Denison Mines Corp.
(Translation of registrant’s name into
English)
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:
February 19, 2020
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Amanda Willett
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Corporate Counsel and Corporate Secretary
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EXHIBIT
INDEX
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Exhibit Number
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Description
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99.1
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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 REPORTS URANIUM CONCENTRATIONS FROM
INITIAL CORE LEACH TESTS UP TO FOUR TIMES THE AMOUNT
ASSUMED IN PRE-FEASIBILITY STUDY FOR PHOENIX ISR
OPERATION
Toronto, ON – February
19, 2020. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
report that initial data from core leach tests includes elemental
uranium (“uranium”) concentrations, after the initial
test startup, in the range of 13.5 grams per litre
(“g/L”) to 39.8 g/L. This compares favourably to the
previous metallurgical test work completed to assess the use of the
In-Situ Recovery (“ISR”) mining method at the
high-grade Phoenix uranium deposit (“Phoenix”) –
which supported a uranium concentration of 10 g/L for the ISR
processing plant design used in the Pre-Feasibility Study
(“PFS”) completed for the Company’s 90% owned
Wheeler River Uranium Project (“Wheeler River” or the
“Project”), located in northern Saskatchewan,
Canada.
David Bronkhorst, Denison’s Vice President
Operations, commented, “The initial data from the core
leach test shows that uranium can be recovered from intact core
samples at a concentration that is significantly higher than the
levels used in the PFS. The implications of a higher uranium
concentration coming from the ISR wellfield are potentially
significant – allowing the metallurgical team to explore
various combinations of lixiviant parameters to optimize operating
costs, and processing plant configurations to potentially reduce
capital costs while maintaining the same level of annual uranium
production.”
Background
The
test work incorporated into the PFS (see press release dated
September 24, 2018) included column leach and agitated leach tests,
which led to the design of the Phoenix processing plant in the PFS
based on a minimum of 10 g/L uranium content in the uranium bearing
solution expected to be recovered from the ISR wellfield. The
current metallurgical test program (“2020 Metallurgical
Program”) has been designed to build upon the laboratory test
data collected as part of the PFS (see news release dated December
18, 2019).
The
first stage of the 2020 Metallurgical Program involves completing
specialized tests using intact mineralized core samples,
representative of the in-situ conditions at Phoenix. The testing
apparatus used for these tests allows for intact core samples to be
mounted within a flexible sleeve with a confining pressure applied
to the exterior of the sleeve. Lixiviant (in the case of Phoenix,
an acid-bearing mining solution) can then be injected into to the
intact core at one end of the sample without having a way to
by-pass the intact core. As a result, the lixiviant travels through
the core to the other end of the sample, where a uranium bearing
solution is recovered. Denison considers this type of specialized
test of intact competent core samples to be the most representative
available laboratory test of the natural leach conditions of
the
host
rock.
Current Core Leach Test
Over 50 days of testing has been completed, to
date, on a mineralized core sample recovered from drill hole
GWR-016. The core sample was recovered from between 405 and 407
metres below surface within the extent of the high-grade core of
Phoenix Zone A. Various parameters for lixiviant composition
(including both acid and oxidant concentration) have been tested to
date. In all cases, the lixiviant is injected into the core
continuously and only interrupted periodically if a change in the
lixiviant composition is required. After the initial test startup,
uranium bearing solution recovered from the core sample has
returned uranium content in the range of 13.5 g/L to 39.8
g/L. The
average uranium concentration returned over the last 20 days of
testing is 29.8 g/L – which represents a uranium content that
is approximately 200% higher than (or three times) the minimum
level used for the ISR process plant design in the
PFS.
The
test with this core sample will continue as the Company refines the
optimal lixiviant parameters for the mineralized core within
Phoenix Zone A and ultimately the optimal uranium-bearing solution
parameters for the solution that will be fed into the proposed
process plant flowsheet. The initial results reported from the
testing completed, to date, reflect the uranium concentrations
recovered from a single core sample. Additional core samples are
planned for core leach testing (as described below). The initial
results reported above may not be representative of results from
further testing of the current core sample, or future testing of
additional core samples.
Overview of the 2020 Metallurgical Test Program
In
December 2019, the Company initiated the 2020 Metallurgical
Program, which is expected to provide important information for the
purpose of completing the Environmental Assessment
(“EA”) and a future Feasibility Study for the Phoenix
ISR operation (see Denison’s news release dated December 18,
2019). The 2020 Metallurgical Program has been designed to use the
mineralized drill core recovered through the installation of
various test wells during the 2019 ISR field test program (see
Denison’s news release dated December 18, 2019) and to build
upon the previous laboratory test data, which was collected as part
of the PFS process to assess the recovery of uranium. The 2020
Metallurgical Program has been planned in stages, allowing for the
initial results from each stage of testing to inform the design and
criteria of the further stages of testing.
The first stage of the 2020 Metallurgical Program
is expected to continue throughout the first half of 2020 using
core samples representative of the various ore types and grade
ranges (~1% U3O8
to up to
60% U3O8)
contained within Phoenix. The goal of the first stage of the
program is to determine the optimal lixiviant parameters for
various grade ranges within Phoenix, which will involve the testing
of several representative core samples. The uranium recovery
results from the first 50 days of testing of the first core sample
will allow refinement of the test program for the next core samples
planned for future intact core leach tests, and for the final
planning and design of the second stage of the 2020 Metallurgical
Program – which involves the completion of various column
leach tests.
The
column leach tests planned in the second stage of the program
involve the crushing and packing of mineralized core samples into
test columns, which are then expected to utilize the same lixiviant
composition as the core leach tests to provide additional data on
the recovery of uranium, and any other metals, from the various ore
types and grade ranges associated with the Phoenix deposit. The
purpose of the column leach tests is to correlate data from the
specialized core leach tests to the traditional ISR laboratory
testing methods used during the PFS. Additionally, the column leach
tests are able to generate uranium bearing solutions in larger
quantities for further laboratory testing of the process plant
flowsheet – which is planned as the third stage of the 2020
Metallurgical Program, and is expected to involve bench-scale
testing of the unit operations of the proposed process plant
flowsheet with uranium-bearing solutions produced during the leach
tests. The third stage of the program is in the planning stage and
will be refined pending the results of the leach
tests.
The
laboratory work for the first stage and second stage of the 2020
Metallurgical Program is being carried out at the Saskatchewan
Research Council ("SRC") Mineral Processing and Geoanalytical
Laboratories, in Saskatoon, under the supervision of Mr. Chuck
Edwards (P.Eng., FCIM).
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 (90% and operator) and JCU (Canada)
Exploration Company Limited (10%).
A PFS was completed for Wheeler River in late 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.
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 the Wheeler River project,
Denison’s Athabasca Basin exploration portfolio consists of
numerous projects covering approximately 280,000 hectares.
Denison’s interests in the Athabasca Basin also include a
22.5% ownership interest in the McClean Lake joint venture
(“MLJV”), which includes several uranium deposits and
the McClean Lake uranium mill, which is currently processing ore
from the Cigar Lake mine under a toll milling agreement, plus a
25.17% interest in the Midwest and Midwest A deposits, and a 66.57%
interest in the J Zone and Huskie deposits on the Waterbury Lake
property. Each of Midwest, Midwest A, J Zone and Huskie are located
within 20 kilometres of the McClean Lake mill.
Denison is also engaged in mine decommissioning and environmental
services through its Denison Environmental Services division and is
the manager of Uranium Participation Corp., a publicly traded
company which invests in uranium oxide and uranium
hexafluoride.
For more information, please contact
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David Cates
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(416) 979-1991 ext
362
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President and Chief Executive
Officer
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Sophia Shane
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(604) 689-7842
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Investor
Relations
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Follow Denison on
Twitter
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@DenisonMinesCo
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Qualified Persons
Description of the metallurgical test program and data contained in
this release was reviewed by Mr. Chuck Edwards, P. Eng., FCIM,
Principal at Chuck Edwards Extractive Metallurgy Consulting, an
independent Qualified Person in accordance with the requirements of
NI 43-101.
The other technical information contained in this release has been
reviewed and approved by Mr. Dale Verran, MSc, P.Geo, Pr.Sci.Nat.,
Denison's Vice President, Exploration, 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 ‘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’, ‘be
achieved’ or ‘has the potential to’.
In particular, this news release contains forward-looking
information pertaining to the following: the 2020 Metallurgical
Program, including its intended scope and timing, objectives and
evaluation interpretations; the current and continued use and
availability of third party technologies for testing; the results
of the PFS and expectations with respect thereto; development and
expansion plans and objectives, including plans for a feasibility
study; and expectations regarding its joint venture ownership
interests and the continuity of its agreements with its
partners.
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 initial results of the 2020 Metallurgical Program
discussed herein may not be maintained after further testing or be
representative of actual conditions within the Phoenix deposit. In
addition, Denison may decide or otherwise be required to
discontinue the 2020 Metallurgical Program or other testing,
evaluation and development work at Wheeler River 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 12, 2019 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 Measured, Indicated and Inferred
Mineral Resources and Probable Mineral Reserves: This news
release may use the terms 'measured', 'indicated' and 'inferred'
mineral resources. United States investors are advised that while
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, the United
States Securities and Exchange Commission ("SEC") does not
recognize them. '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 measured or
indicated mineral resources will ever be converted into mineral
reserves. United States
investors are also cautioned not to assume that all or any part of
an inferred mineral resource exists, or is economically or legally
mineable. The estimates of mineral reserves in this news
release have been prepared in accordance with NI 43-101. The
definition of probable mineral reserves used in NI 43-101 differs
from the definition used by the SEC in the SEC's Industry Guide 7.
Under the requirements of the SEC, mineralization may not be
classified as a "reserve" unless the determination has been made,
pursuant to a "final" feasibility study that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. Denison has not prepared a
feasibility study for the purposes of NI 43-101 or the requirements
of the SEC. Accordingly, Denison's probable mineral reserves
disclosure may not be comparable to information from U.S. companies
subject to the reporting and disclosure requirements of the
SEC.