Denison Mines Corp 6-K, filed Jul 29, 2021
Denison Mines Corp. (DNN)
6-K
2021-07-29
For: 2021-07-29
View Original
Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on July 29, 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: July 29, 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: July
29, 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 PROVIDES INTERIM PROGRESS UPDATE ON ISR FIELD TEST
ACTIVITIES
AND ANNOUNCES DISCOVERY OF ADDITIONAL HIGH-GRADE
URANIUM MINERALIZATION AT PHOENIX
Toronto, ON – July 29,
2021. Denison Mines Corp. (“Denison” or the
“Company”) (DML: TSX, DNN: NYSE American) is pleased to
provide a progress update on the In-Situ Recovery
(“ISR”) field test activities occurring at Phase 1 of
the high-grade Phoenix uranium deposit (“Phoenix”) at
the Company’s 90% owned Wheeler River Uranium Project
(“Wheeler River” or the “Project”). The
Company is also pleased to announce the discovery of additional
high-grade uranium mineralization, including 22.0% eU3O8
over 8.6
metres in drill hole GWR-045,
located outside of the existing high-grade resource domain
associated with Zone A and Phase 1 of the phased mining approach
currently planned for Phoenix.
David Bronkhorst,
Denison’s VP Operations, commented, “We are pleased to
have safely and successfully completed a substantial portion of the
planned 2021 ISR field test program – including the
installation of the commercial-scale wells in our five-spot test
pattern (“Test Pattern”) and nine of eleven planned
monitoring wells. Baseline hydrogeologic testing and permeability
enhancement efforts completed within the Test Pattern thus far are
encouraging and will inform future test work as we progress towards
the initiation and completion of a full-scale tracer test during
the remainder of the program. The tracer test is planned to be
completed during the third quarter and is expected to provide a
more complete understanding of the operating parameters in Phase 1
and important information in support of our objective of permitting
and completing a lixiviant test in 2022 – which is considered
a key de-risking milestone for the project.
Additionally, the discovery of a thick interval of high-grade
uranium mineralization in GWR-045 is quite exciting, as it has the
potential to meaningfully increase the high-grade mineral resources
estimated within the area currently expected to represent the first
phase of ISR mining at Phoenix.”
Interim
progress highlights from the 2021 ISR field program include the
following:
●
Completed installation of
commercial-scale wells: All five new commercial-scale well
(“CSW”) installations planned for the Test Pattern,
located in the Phase 1 area of Phoenix, are complete. The Test
Pattern consists of the newly installed five-spot pattern (GWR-038
to GWR-042), and GWR-032, which was installed in 2019 (see Figure
1). Taken together, the CSWs are spaced between 5 and 30 metres
apart and are expected to facilitate further hydrogeologic testing
and assessment of down-hole permeability enhancement tools as part
of the ongoing field program.
●
Successful installation of
monitoring wells: Nine of
eleven monitoring wells (“MWs”) have been successfully
installed within the Phase 1 area (see Figure 1) and outfitted with
the associated materials and monitoring equipment to facilitate
ongoing observation of the current and future hydrogeological test
work – allowing for detailed hydrogeological assessment and
water quality sampling. The final two MWs are expected to be
completed in early August.
●
Collected baseline
hydrogeologic information and deployed permeability
enhancement: The MaxPERF
drilling tool was successfully deployed in all planned CSWs to
create a series of lateral drill holes (penetration tunnels)
designed to mechanically engineer increased access to the existing
permeability of the ore zone formation.
●
Discovery of High-Grade
Mineralization in GWR-045: GWR-045 was completed as part of the ISR field
test program to install MWs to the northwest of the five-spot Test
Pattern. Based on the Phoenix block model, GWR-045 was expected to
intersect low-grade uranium mineralization along the northwestern
margin of the deposit, approximately 5 metres outside of the
boundary of the Phoenix Zone A high-grade resource
domain.
The drill hole, however, intersected a thick
interval of high-grade unconformity-associated uranium
mineralization grading 22.0% eU3O8
over 8.6 metres (see Figures 1 and 2;
Table 1). The high-grade mineralization intersected by GWR-045
remains open to the northwest, representing an area for further
exploration and potential mineral resource expansion of Phoenix.
Denison’s exploration team is currently incorporating the
results of GWR-045 into the Phoenix geological model to evaluate
the potential to extend the high-grade domain with additional
exploration drilling in the Phase 1 area of
Phoenix.
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Table 1 – GWR-045 Mineralized Intersection
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Drill Hole
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From (m)
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To (m)
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Length (m)4
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eU3O8 (%)1,2,3
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GWR-045
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406.95
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415.55
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8.6
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22.0
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Notes:
1. eU3O8 is
radiometric equivalent U3O8 derived from
a calibrated total gamma down-hole probe.
2. Composited
above a cut-off grade of 0.1% eU3O8
3. Composited
using a 1.0 metre minimum mineralization thickness and 1.0 metre
maximum waste
4. The stated
length is interpreted to represent true thickness as the drill hole
is oriented vertically, and the unconformity mineralization is
interpreted to lie horizontally
Activities Planned for Remainder of 2021 ISR Field
Program
Once
the final two MWs are completed, the Test Pattern will be ready for
additional hydrogeologic test work, including the following planned
activities:
●
Multi-day
pump and injection tests to be conducted on the full-scale Test
Pattern. These tests are intended to assess the Test Pattern's
total permeability, and support an ongoing assessment of the
ability of various permeability enhancement tools to normalize the
varying levels of permeability associated with the natural
fracture/structure network of the deposit;
●
Ion tracer
tests will be conducted by injecting and recovering solution with
dissolved inorganic salts throughout the full-scale Test Pattern.
This process is expected to (1) establish breakthrough times for
each CSW, with injection from the centre well in the Test Pattern
and recovery from the outer ring wells, and (2) confirm modelling
of sub-surface pathways. Taken together, this test is expected to
provide a more complete understanding of the hydrogeologic
characteristics expected throughout Phase 1 and the necessary
datasets for the design and permitting of a lixiviant test planned
to make use of the same Test Pattern in 2022;
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Deployment
and evaluation of additional permeability enhancement techniques
based on individual well characteristics and associated
hydrogeological assessments; and
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Extensive
collection and analysis of permeameter samples from new and
historic drill core for the assessment of matrix permeability
spatially distributed throughout the areas representative of all of
the mining phases planned for Phoenix.
All
test work in 2021 will be conducted using site groundwater.
Following the field tests and associated data collection, detailed
hydrogeological and geochemical modelling of the test data will be
carried out by various Qualified Persons ("QPs").
COVID-19
The
Company is committed to ensuring that the Wheeler River site is a
safe operating environment for its staff and contractors and that
the Company's field activities do not compromise the health and
safety of the residents of northern Saskatchewan. In 2020, the
Company's Occupational Health and Safety Committee in Saskatoon
developed a comprehensive guide for the safe resumption of work at
Wheeler River. The protocols consider the unique health and safety
risks associated with operating a remote work camp amidst the
ongoing COVID-19 pandemic. Public health guidelines and best
practices (including testing) have been incorporated into the
Company's protocols.
Despite
the Company's current intentions, it is possible that the 2021 ISR
field program may be disrupted by the continuously evolving social
and/or economic disruptions associated with the COVID-19 pandemic,
which are outside of the control of the Company – for
example, provincial or local travel restrictions, or changing
public health guidelines, could impact the ability of Company or
contractor staff to attend to
the
site.
Use of Radiometric Equivalent Grades
The
Company typically reports results as preliminary radiometric
equivalent grades ("eU3O8"), derived from a calibrated downhole
total gamma probe, during active exploration programs and
subsequently reports definitive assay grades following sampling and
chemical analysis of the mineralized drill core. In the case where
core recovery within a mineralized intersection is less than 80%,
radiometric grades are considered to be more representative of the
mineralized intersection and may be reported in the place of assay
grades. Radiometric equivalent probe results are subject to
verification procedures by qualified persons employed by Denison
prior to disclosure. For further details on the total gamma
downhole probe methods employed by Denison, QAQC procedures and
data verification procedures please see Denison's Annual
Information Form dated March 26, 2021 available on Denison’s
website and under its profile on SEDAR and EDGAR.
About Phoenix Phase 1
Phase 1 of Phoenix is estimated to
contain approximately 22.2 million pounds U3O8
(37,242 tonnes at 27.1%
U3O8,
above a cut-off grade of 0.8% U3O8)
in Probable mineral reserves. Based on current designs, the Company
estimates approximately 6.6 million pounds U3O8
(7,717 tonnes at 39.2%
U3O8,
above a cut-off grade of 0.8% U3O8)
in Probable mineral reserves are contained within the expected
operating perimeter of the Test Pattern (see Figure 1). These
estimates are derived as a direct subset of those reported in the
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. The key assumptions,
parameters and methods used to estimate the mineral reserves herein
remain unchanged.
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 Pre-Feasibility Study (“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.
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 schedule
estimates provided therein, including with respect to 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 the Wheeler River project,
Denison's interests in the Athabasca Basin include a 22.5%
ownership interest in the McClean Lake joint venture ("MLJV"),
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 located within 20 kilometres of the
McClean Lake mill. In addition, Denison has an extensive portfolio
of exploration projects covering approximately 280,000 hectares in
the Athabasca Basin region.
Denison is also 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 care and
maintenance services to a variety of industry and government
clients.
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
The technical information contained in this release has been
reviewed and approved by Mr. David Bronkhorst, P.Eng, Denison's
Vice President, Operations and 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 ‘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 planned scope,
elements, and objectives of the 2021 ISR field programs, including
the drilling of CSWs and MWs and development and objectives of the
Test Pattern; other evaluation activities, including a planned
future lixiviant test; the results of the PFS and expectations with
respect thereto; expectations with respect to phased development,
and the estimates of reserves in each such phase; other development
and expansion plans and objectives, including plans for an
environmental assessment and 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 modelling and assumptions upon which the work
plans are based 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 its field test activities 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.) or
operations are otherwise affected by COVID-19 and its potentially
far-reaching impacts. 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 26, 2021 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 Measured, Indicated and Inferred
Mineral Resources and Probable Mineral Reserves: This press
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, these terms
are not defined under Industry Guide 7 under the United States
Securities Act and, until recently, have not been permitted to be
used in reports and registration statements filed with the United
States Securities and Exchange Commission ('SEC'). '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. In addition, the terms
"mineral reserve", "proven mineral reserve" and "probable mineral
reserve" for the purposes of NI 43-101 differ from the definitions
and allowable usage in Industry Guide 7. Effective February 2019,
the 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.
Figure 1: Plan Map Showing Location of Phoenix Deposit (Phase 1)
– ISR Test Pattern
Figure 2: Cross Section View of the Phoenix Deposit (Phase 1)
– Through GWR-045
Showing Location of Mineralized Intersection Relative to Existing
High-Grade
Resource Domain