Denison Mines Corp 6-K, filed Mar 8, 2021
Denison Mines Corp. (DNN)
6-K
2021-03-08
For: 2021-03-04
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Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on March 8, 2021.
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: March 8, 2021
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: March
8, 2021
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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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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 A YEAR OF SIGNIFICANT PROJECT
AND COMPANY DE-RISKING
Toronto, ON – March 4,
2021. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE MKT) today filed its
Audited Consolidated Financial Statements and Management’s
Discussion & Analysis (“MD&A”) for the year
ended December 31, 2020. Both documents can be found on the
Company’s website at www.denisonmines.com
or on SEDAR (at www.sedar.com)
and EDGAR (at www.sec.gov/edgar.shtml).
The highlights provided below are derived from these documents and
should be read in conjunction with them. All amounts in this
release are in Canadian dollars unless otherwise
stated.
David Cates, President and CEO of Denison
commented, “Confronted
with the varied challenges of the global COVID-19 pandemic,
Denison’s resilient teams excelled in 2020 and early 2021
– accomplishing a significant de-risking of our flagship
Wheeler River project and the Company’s balance
sheet.
At Wheeler River, our technical team achieved a key milestone,
receiving an independent confirmation of ‘Proof of
Concept’ for the application of the In-Situ Recovery
(‘ISR’) mining method at the high-grade Phoenix
deposit. We also completed an important trade-off study leading to
the adoption of a freeze ‘wall’ design for containment
of the ISR operation at Phoenix – a decision that is expected
to be favourable from an environmental standpoint, reduce technical
complexity and operational risks, allow for a phased mining
approach with lower up-front capital costs, and strengthen project
sustainability. With the Environmental Assessment process fully
resumed and a $21.8 million budget (Denison’s share $19.4
million) approved and funded for evaluation and environmental
assessment work at Wheeler River in 2021, the entire team is now
focused on advancing Phoenix through the regulatory and community
consultation process to support a future Feasibility Study
(“FS”), with the objective of pairing Phoenix, the
world’s highest grade undeveloped uranium deposit, with ISR
mining, the world’s lowest cost uranium mining
method.
In 2020, the technical team also
delivered positive results from the Waterbury Lake Preliminary
Economic Assessment (‘PEA’), which considered the
potential future development of the Tthe Heldeth Túé
(‘THT’) uranium deposit as Denison’s second ISR
amendable project in the Athabasca Basin region. The results were
highlighted by low initial capital costs and globally competitive
operating costs. Adding to Wheeler River’s Phoenix and
Gryphon deposits, THT represents Denison’s third development
asset with fully loaded costs (including initial capital costs,
sustaining capital costs, and operating costs) estimated at under
US$25 per pound U3O8.
On the Corporate side, the Company’s financial situation has
also been significantly de-risked, having completed a round of
critical capital raising over the last 12 months that has
positioned the company with approximately [$x] million in cash and
investments, while remaining debt-free. Taken together, Denison is
uniquely positioned as a well-capitalized uranium developer, with
multiple low-cost assets, at a time when the uranium market is
showing signs of incremental improvement underpinned by growing
calls for nuclear energy to re-emerge as a leading technology
important to a sustainable global energy
transition.”
HIGHLIGHTS
■
Significant progress de-risking the Wheeler River project in
2020
In 2020, the
Company made significant progress on systematically de-risking the
technical risks identified for the ISR mining operation planned for
the Phoenix uranium deposit (‘Phoenix’) following
completion of the 2018 Pre-Feasibility Study (‘PFS’)
for the Company’s 90% owned Wheeler River Uranium Project
(‘Wheeler River’) (see Denison news releases dated June
4, 2020, Feb. 19, 2020, Oct. 28, 2020, and Dec. 1, 2020,
respectively):
o
Achieved
independent “Proof of Concept” for application of ISR
mining method at Phoenix;
o
Completed
initial core leach tests, reporting uranium concentrations up to
four times the amount assumed in the PFS for the Phoenix ISR
operation;
o
Completed a
2020 ISR Field Program designed to build additional confidence in
the results of the independent hydrogeologic model developed by
Petrotek Corporation (‘Petrotek’), and to support the
design and permitting of further field work expected to be
incorporated into a future FS; and
o
Completed a
trade-off study demonstrating the merit of adopting a freeze wall
design, rather than the freeze “dome” design included
in the PFS, as part of the ISR mining approach planned for
Phoenix.
■
Restarted the formal Environmental Assessment (‘EA’)
process for Wheeler River
In January
2021, Denison restarted the formal EA process for Wheeler River.
The decision to resume the EA process marked the end of the
temporary suspension announced in March 2020 amidst the significant
social and economic disruption that emerged as a result of the
onset of the COVID-19 pandemic.
■
Successful series of equity financings to fund the EA and FS
process for Wheeler River
Denison
completed equity financings for gross proceeds of over US$56
million (including approximately US$3 million from an At-the-Market
(‘ATM’) offering, excluding the flow-through
financings) in 2020 and early 2021. Subject to a decision to
advance to a formal FS for Phoenix, the proceeds from the offerings
are expected, based on current estimates, to be sufficient to
complete such FS process and the EA process.
■
Completed flow-through equity financings to fund Canadian
exploration
The Company
completed flow-through equity financings of $8.9 million in late
2020 and early 2021. Proceeds of the financings are expected to be
used for eligible Canadian exploration activities in 2021 and
2022.
■
2020 Phoenix expansion drilling returns best results to date at
Zone C
The primary focus of the Company’s 2020
exploration drilling program at Wheeler River centered on the area
proximal to the Phoenix deposit with the potential to expand the
extent of mineralization currently estimated for Phoenix. Expansion
drilling in the Zone C area of Phoenix, which does not currently
have an estimate of mineral resources, returned high grade
mineralization – including 5.69% U3O8
over 5.0 metres in WR-328D1, which
represents the best mineralized intersection at Zone C to date (see
Denison press release dated February 9, 2021).
■
Discovery of new high-grade uranium mineralization four kilometres
from Phoenix at Wheeler River
As part of the Company’s 2020 exploration
drilling program at Wheeler River, certain regional target areas
were also tested, which resulted in the discovery of new high-grade
unconformity-hosted uranium mineralization up to 7.66%
U3O8
along the K-West conductive trend (see
Denison press release dated January 28, 2021).
■
Completed a Preliminary THT deposit on the Waterbury Lake
Property
On Dec. 30, 2020, Denison filed the technical
report "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 for the 66.90% Denison-owned Waterbury Lake property. The
technical report includes a PEA that demonstrates robust economics
for the potential future development of THT as a small-scale
Athabasca Basin ISR uranium mining project – including low
initial capital costs, low average cash operating costs and
globally competitive all-in costs under US$25 per pound
U3O8.
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 and is a joint venture
between Denison (90% and operator) and JCU (Canada) Exploration
Company Limited (10%). The project is host to the high-grade
Phoenix and Gryphon uranium deposits, discovered by Denison in 2008
and 2014, respectively, estimated to have 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 PFS was completed 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 net present value (‘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 was 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.
Given the social,
financial and market disruptions related to COVID-19, and certain
fiscally prudent measures, Denison temporarily suspended certain
activities at Wheeler River starting in April 2020, including the
formal parts of the EA program, which is on the critical path to
achieving the project development schedule outlined in the PFS
Technical Report. While the formal EA process has resumed in early
2021, the Company is not currently able to estimate the impact to
the project development schedule, outlined in the PFS Technical
Report, and users are cautioned that certain of the estimates
provided therein, particularly regarding the start of
pre-production activities in 2021 and first production in 2024
should not be relied upon.
About Denison
Denison Mines
Corp. was formed under the laws of Ontario and is a reporting
issuer in all Canadian provinces. Denison’s common shares are
listed on the Toronto Stock Exchange (the ‘TSX’) under
the symbol ‘DML’ and on the NYSE American exchange
under the symbol ‘DNN’.
Denison is a
uranium exploration and development company with interests focused
in the Athabasca Basin region of northern Saskatchewan, Canada. In
addition to the Company’s flagship project, Wheeler River,
Denison's interests in Saskatchewan 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 deposits and a 66.90% interest in the THT and Huskie
deposits on the Waterbury Lake property. The Midwest, THT and
Huskie deposits are located within 20 kilometres of the McClean
Lake mill. In addition, Denison has an extensive portfolio of
exploration projects in the Athabasca Basin region.
Denison is
engaged in mine decommissioning and environmental services through
its Closed Mines group (formerly Denison Environmental Services),
which manages Denison’s Elliot Lake reclamation projects and
provides post-closure mine and maintenance services to a variety of
industry and government clients.
Denison is also
the manager of Uranium Participation Corporation
(‘UPC’), a publicly traded company listed on the TSX
under the symbol ‘U’, which invests in uranium oxide in
concentrates (‘U3O8’) and
uranium hexafluoride (‘UF6’).
Technical Disclosure and Qualified Person
The technical
information contained in this press release has been reviewed and
approved by David Bronkhorst, P.Eng, Denison's Vice President,
Operations and/or Andrew Yackulic, P. Geo, Denison's Director,
Exploration, each of whom is a Qualified Person in accordance with
the requirements of NI 43-101.
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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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
Certain
information contained in this press 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 press release contains forward-looking information pertaining
to the following: exploration, development and expansion plans and
objectives, including the results of, and estimates and assumptions
within, the PFS, the plans and objectives for ISR and the related
field and hydrogeological testing results, models, “proof of
concept”, plans and objectives; expectations, plans and
objectives of a future FS for Wheeler and any work to be undertaken
in respect thereto, including any “de-risking” and the
EA process; the impact of COVID-19 on Denison’s operations;
the results of, and estimates and assumptions within, the PEA for
the THT deposit at Waterbury Lake; projections with respect to use
of proceeds of recent financings; the estimates of Denison's
mineral reserves and mineral resources; expectations regarding
Denison’s joint venture ownership interests;
expectations
regarding the continuity of its agreements with third parties; and
its interpretations of, and expectations for, nuclear power and
uranium supply, demand and related market factors. Statements
relating to ‘mineral reserves’ or ‘mineral
resources’ are deemed to be forward-looking information, as
they involve the implied assessment, based on certain estimates and
assumptions that the mineral reserves and mineral resources
described can be profitably produced in the future.
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
results and underlying assumptions and interpretations of the PFS
as well as de-risking efforts such as the ISR field tests and
hydrogeological test programs discussed herein may not be
maintained after further testing or be representative of actual
conditions within the applicable deposits. In addition, Denison may
decide or otherwise be required to extend the EA and/or otherwise
discontinue testing, evaluation and development work, including a
FS at Wheeler River, if it is unable to maintain or otherwise
secure the necessary approvals or resources (such as testing
facilities, capital funding, 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 the MD&A for the year ended December 31, 2020
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 press
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 press release. Denison
does not undertake any obligation to publicly update or revise any
forward-looking information after the date of this press 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 press release may use terms such as
“measured”, “indicated” and/or
“inferred” mineral resources and “proven”
or “probable” mineral reserves, which are terms defined
with reference to the guidelines set out in the Canadian Institute
of Mining, Metallurgy and Petroleum (“CIM”) CIM
Definition Standards on Mineral Resources and Mineral Reserves
(“CIM Standards”). The Company’s descriptions of
its projects using CIM Standards may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the United States federal
securities laws and the rules and regulations thereunder. .
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.