Denison Mines Corp 6-K, filed Mar 13, 2023
Denison Mines Corp. (DNN)
6-K
2023-03-13
For: 2023-03-13
View Original
Added on
April 07, 2026
About this 6-K
Denison Mines Corp filed this 6-K on March 13, 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: March 13, 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: March
13, 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
March 9, 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 Reports Financial and Operational Results for
2022,
Including Significant De-Risking and Regulatory
Milestones
Toronto, ON – March 9,
2023. Denison Mines Corp. (‘Denison’ or the
‘Company’) (TSX: DML, NYSE American: DNN) today filed
its Condensed Consolidated Financial Statements and
Management’s Discussion & Analysis
(‘MD&A’) for the year ended December 31, 2022. Both
documents will be available on the Company’s website
at www.denisonmines.com,
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, “Our results from 2022
reflect an incredibly successful year highlighted by significant
de-risking and regulatory milestones supporting the continued
advancement of our flagship Wheeler River
project.
We made history with the successful permitting, procurement,
construction, commissioning and operation of the Feasibility Field
Test (‘FFT’) facilities at the high-grade Phoenix
uranium deposit (‘Phoenix’) – where we achieved
the first known recovery of uranium bearing solution via in-situ
recovery (‘ISR’) mining in Saskatchewan’s
prolific Athabasca Basin region. The FFT was accomplished through
the tireless efforts of our Saskatoon-based technical team over the
past four years to systematically de-risk the use of ISR mining
through extensive field and laboratory testing programs. The highly
successful results of the FFT clearly demonstrate that the Phoenix
deposit is amenable to ISR mining and that the Company can move
confidently ahead with its plans to complete a feasibility study
for the project during the first half of 2023.
In parallel to our technical de-risking efforts, we achieved a
notable milestone in the permitting process for the planned Phoenix
ISR project with the submission of a draft Environmental Impact
Statement (‘EIS’), which follows from several years of
baseline environmental data collection, technical assessments, and
extensive engagement and consultation with Indigenous and
non-Indigenous interested parties. The draft EIS demonstrates that
the project can be constructed, operated, and decommissioned in a
manner that has fewer residual effects remaining after mitigation
than conventional open pit or underground mining and milling
operations – potentially achieving a superior standard of
environmental sustainability and re-shaping the future of uranium
mining in Saskatchewan.
I’m proud of the exceptional efforts of our growing and
highly motivated team to challenge the norm and achieve what others
may have previously considered impossible – with the result
positioning Denison as an industry leader on the cusp of deploying
the world’s lowest cost uranium mining method at one of the
world’s highest grade uranium deposits. Our timing is
excellent, as our success comes while we are observing sustained
improvements in both global sentiment towards nuclear
energy’s necessity in the battle against climate change and
the underlying uranium market.”
Highlights
■
Successfully completed 2022 ISR field work, including permitting,
constructing, and completing the leaching and neutralization phases
of the Feasibility Field Test at Phoenix
The
Company’s ambitious 2022 evaluation plan for the Wheeler
River project (‘Wheeler River’ or the
‘Project’) was designed to further de-risk the
technical elements of the ISR mining project planned for the
high-grade Phoenix uranium deposit. Central to this plan was the
FFT, which was designed to use the existing commercial-scale ISR
test pattern to perform a combined assessment of Phoenix’s
hydraulic flow properties along with the leaching characteristics
that have been assessed through the metallurgical core-leach
testing program. Overall, the FFT is intended to provide further
verification of the permeability, leachability, and containment
parameters needed for the successful application of the ISR mining
method at Phoenix.
During 2022,
the Company received approval to construct and operate a pollutant
control facility from the Saskatchewan Minister of Environment
(‘SKMOE’) and a License to Possess, Use, Store and
Transfer a Nuclear Substance (‘Nuclear Substance
License’) from the Canadian Nuclear Safety Commission
(‘CNSC’). With the receipt of these approvals, the
Company was fully permitted to operate the ISR FFT for Phoenix. The
Company completed the construction and commissioning of the
lixiviant injection system for the FFT and commenced the leaching
phase of the FFT in September 2022.
In November,
the Company announced the highlights of the highly successful
leaching phase, which:
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Recovered approximately 14,400 pounds of
U3O8
over ten days of active leaching
following completion of initial acidification of the leaching
area;
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Returned
maximum uranium head grade of recovered solution of 43 grams per
litre (‘g/L’) when the leaching phase of the FFT was
completed, with grades still rising (indicative of the ramp-up
segment of a well production profile);
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Achieved
suitable acidification for ISR mining within 7 days post initial
injection at 5 metre well spacing (GWR-041) and within 17 days for
10 metre well spacing (GWR-038);
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Demonstrated
the ability to achieve and maintain uranium mass flow rate
consistent with the assumptions in the Pre-Feasibility Study
(‘PFS’) prepared for the Project in 2018;
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Further
demonstrated hydraulic control of injected solution during the FFT,
reporting no responses in the monitoring wells outside of the
designed FFT test area; and
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Confirmed
breakthrough times between injection and recovery wells, consistent
with the Project's hydrogeological model and the previously
completed tracer test.
The Company
then successfully completed the neutralization phase of the FFT,
after which sampling of monitoring wells around the FFT site
confirmed the successful restoration of the leaching zone to
environmentally acceptable pH conditions, as outlined in the
applicable regulatory approvals for the FFT. The neutralization
phase was designed to confirm certain environmental assessment
assumptions and verify the efficiency and effectiveness of the
neutralization process planned for ISR mining at
Phoenix.
The final
phase of the FFT, which involves management of the recovered
solution, is expected to commence in the spring of
2023.
Other ISR
field work completed in 2022 included the installation of
additional test wells in multiple three-spot test patterns at the
Phoenix site in order to assess the ISR mining conditions in
additional areas of Phoenix, as well as the completion of extensive
hydrogeologic test work and a substantial borehole geophysics
program.
The results
of the FFT and additional test work completed in 2022 are expected
to inform and support the completion of the Feasibility Study
(‘FS’) initiated for Phoenix in late 2021.
■
Exceeded 97% recovery from long-term Phoenix ISR core leach
test
In December
2022, Denison announced the results from long-term core leach
metallurgical testing designed to support the establishment of ISR
production and recovery curves to be used in the FS. The Company
completed a long-term test of a representative intact core sample
(‘Core 4A’) using specialized equipment to replicate
the in-situ leaching conditions of the Phoenix
deposit.
The results
from long-term core leach testing of Core 4A were highlighted by
the following:
●
Overall
recovery of uranium in excess of 97% – demonstrating
excellent recovery of uranium from intact high-grade core, without
the use of permeability enhancement;
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Average
recovered solution uranium head grade of 18.3 g/L – exceeding
the assumed 15 g/L uranium head grade being used in FS plant
designs (see news release dated August 4, 2021);
●
Continuous
intact core leach testing over a period of 377 days, with uranium
recovery head grades consistently maintained above 5 g/L during the
final stages of the production curve and then declining during the
ramp-down stage; and
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Maximum
recovered solution uranium head grade of 49.8 g/L achieved using
similar lixiviant concentrations as to those used during the
FFT.
■
Achieved significant regulatory milestone for Wheeler River with
the submission of the draft EIS
In October
2022, Denison announced a significant regulatory milestone for
Wheeler River with the submission of the draft EIS to the SKMOE and
the CNSC. The EIS submission outlines the Company’s
assessment of the potential effects, including applicable
mitigation measures, of the proposed ISR uranium mine and
processing plant planned for Wheeler River, and reflects several
years of baseline environmental data collection, technical
assessments, plus extensive engagement and consultation with
Indigenous and non-Indigenous interested parties.
In November 2022, the Company announced that the
CNSC completed its conformity review of the draft EIS and
determined that the draft EIS met the requirements for the
advancement of the Environmental Assessment (‘EA’)
process. Denison also reported that the federal technical review of
the EIS, which is being completed under the provisions of
the Canadian Environmental
Assessment Act, 2012 (‘CEAA 2012’), had
commenced.
In 2022,
Denison entered into an exploration agreement with Kineepik
Métis Local #9 (‘KML’) and an exploration
agreement with the Ya'thi Néné Lands and Resources Office
(‘YNLRO’), Hatchet Lake Denesułiné First
Nation, Black Lake Denesułiné First Nation, Fond du Lac
Denesułiné First Nation (collectively, the 'Athabasca
Nations') and the Northern Hamlet of Stony Rapids, the Northern
Settlement of Uranium City, the Northern Settlement of Wollaston
Lake and the Northern Settlement of Camsell Portage (collectively,
the ‘Athabasca Communities’) in respect of
Denison’s exploration and evaluation activities within the
KML’s land and occupancy area and within the traditional
territories of the Athabasca Nations and Athabasca
Communities.
Each
exploration agreement expresses the respective parties’
intentions to build a long-term relationship and that Denison
wishes to conduct and advance its exploration activities in a
sustainable manner that respects the rights and interests of KML
and the Athabasca Nations’ Indigenous rights, advances
reconciliation with Indigenous peoples, and provides economic
opportunities and other benefits to the communities in an
authentic, cooperative and respectful way.
Denison also
entered into a participation and funding agreement with KML, which
expresses Denison's and KML's mutual commitment to co-develop an
agreement supporting the advancement of Wheeler River.
Finally,
Denison entered into a capacity and funding agreement with the
Métis Nation – Saskatchewan (‘MN-S’), which
expresses Denison’s commitment to ensure the MN-S’
participation in the regulatory process and associated documents
for Wheeler River.
■
Expanded high-grade uranium mineralization at McClean Lake
South
In September 2022, Denison announced that assays
received from exploration drilling completed at the Company's 22.5%
owned McClean Lake Joint Venture (‘McClean Lake’ or
‘MLJV’) during the winter of 2022 resulted in a
significant expansion of the high-grade unconformity-hosted zone of
uranium mineralization discovered in 2021 between the McClean South
8W and 8E pods (see news release dated April 14, 2021). Ten drill
holes completed during 2022 by Orano Canada Inc. (‘Orano
Canada’), 77.5% owner and operator of the MLJV, returned
notable uranium mineralization, including drill hole MCS-58, which
returned 2.96% U3O8
over 15.5 metres, including 24.49%
U3O8
over 1.5 metres, located approximately
54 metres to the southeast of drill hole MCS-34, which was
completed in 2021 and returned a mineralized interval of 8.67%
U3O8
over 13.5 metres. Overall, the results
from 2022 have successfully expanded the footprint of the
mineralized zone to approximately 180 metres in strike
length.
■
Intersected additional high-grade uranium mineralization at
Waterfound
In March 2022, multiple high-grade intercepts of
unconformity-hosted uranium mineralization were discovered in the
final three drill holes completed during the winter 2022
exploration program at the Orano Canada-operated Waterfound Joint
Venture (‘Waterfound’). The results were highlighted by
drill hole WF-68, which returned a broad zone of uranium
mineralization, including a peak interval of 5.91%
eU3O8
over 3.9 metres (0.05%
eU3O8
cut-off) with a sub-interval grading
25.30% eU3O8
over 0.7 m, located approximately 800
metres west, along the La Rocque conductive corridor, of the
previously discovered high-grade mineralization (including 4.49%
U3O8
over 10.53 metres) at the Alligator
Zone.
In September 2022, Denison announced that uranium
mineralization was encountered in three of the seven drill holes
completed during the summer exploration program at Waterfound,
highlighted by drill hole WF-74A, which intersected 4.75%
eU3O8
over 13.3 metres, including a
sub-interval grading 25.23% eU3O8
over 0.5 metres. The mineralized
intersection from WF-74A represents the best mineralized hole
drilled on the Waterfound property to date, and highlights the
potential for the discovery of additional high-grade uranium
mineralization further along strike to the west of the Alligator
Zone. Denison holds an effective 24.68% ownership interest in
Waterfound through its direct interest in the joint venture and its
50% ownership of JCU (Canada) Exploration Company Limited
(‘JCU’).
■
Completed the sale of 40,000 pounds of U3O8
from
MLJV production at a sales price of
$74.65 (US$59.25) per pound U3O8.
In April 2022, Denison completed the sale of
40,000 pounds of U3O8,
representing the Company’s share
of production from the SABRE test mining program completed by the
MLJV in 2021. The uranium was sold at a price of $74.65 (US$59.25)
per pound U3O8
for gross proceeds of
$2,986,000.
■
Obtained regulatory approval for the expansion of the McClean Lake
Tailings Management Facility
In January
2022, the CNSC approved an amendment to the operating license for
the MLJV and Midwest Joint Venture (‘MWJV’) operations,
which allows for the expansion of the McClean Lake Tailings
Management Facility (‘TMF”), along with the associated
revised Preliminary Decommissioning Plan (‘PDP’) and
cost estimate. The McClean Lake mill is a strategically significant
asset in the Athabasca Basin region and the approval of the TMF
expansion ensures the facility will be well positioned to serve as
a regional milling centre for current and future uranium mining
projects in the eastern portion of the Athabasca Basin for many
years to come.
As a result
of the updated PDP, the Company’s pro rata share of the
financial assurances required to be provided to the Province of
Saskatchewan decreased from $24,135,000 to $22,972,000.
Accordingly, in April 2022, the pledged amount of cash required
under the Company’s 2022 Credit Facility was decreased to
$7,972,000, and the additional cash collateral of $135,000 was
released – resulting in the return of $1,163,000 in
previously restricted cash to the Company.
■
Received US$4.8 million from Uranium Industry a.s
(‘UI’) pursuant to a Repayment Agreement
During 2022,
the Company received US$4.8 million from UI pursuant to the terms
of a Repayment Agreement (‘RA’) that was executed in
January 2022. Under the RA, UI has agreed to make scheduled
payments on account of an arbitration award in favour of Denison
(with respect to the arbitration proceedings between the Company
and UI related to the 2015 sale by Denison to UI of its mining
assets and operations located in Mongolia), plus additional
interest and fees. The total amount due to Denison under the RA,
including amounts already received in 2022, is approximately US$16
million, which is payable over a series of quarterly installments
and annual milestone payments ending on December 31,
2025.
About Denison
Denison Mines
Corp. was formed under the laws of Ontario and is a reporting
issuer in all Canadian provinces and territories. Denison’s
common shares are listed on the Toronto Stock Exchange 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. 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. A Pre-Feasibility Study
(‘PFS’) was completed for Wheeler River in late 2018,
considering the potential economic merit of developing Phoenix as
an ISR operation and the Gryphon deposit as a conventional
underground mining operation. Denison's interests in Saskatchewan
also include a 22.5% ownership interest in the MLJV, which includes
several uranium deposits and the McClean Lake uranium mill, which
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 67.41% 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.
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, which manages Denison's reclaimed mine
sites in the Elliot Lake region and provides related services to
certain third-party projects.
Technical Disclosure and Qualified Person
The technical
information contained in this press release has been reviewed and
approved by Chad Sorba, P.Geo., Denison’s Director, Technical
Services, and Andy Yackulic, P.Geo., Denison’s Director,
Exploration, who are both Qualified Persons 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.
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President and Chief Executive
Officer
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Mac McDonald
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(416) 979-1991 ext.
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Exec. Vice President &
Chief Financial Officer
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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: projections with respect to exploration,
development and expansion plans and objectives, including the
scope, objectives and interpretations of the Feasibility Study
process for the proposed ISR operation for the Phoenix deposit,
including the FFT and metallurgical testing programs described
herein and the interpretation of the results therefrom;
expectations regarding regulatory applications and approvals and
the elements thereof, including the EIS; expectations regarding the
performance of the uranium market and global sentiment regarding
nuclear energy; expectations regarding Denison’s joint
venture ownership interests; and expectations regarding the
continuity of its agreements with third parties. 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 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
its evaluation activities and/or the FS and/or otherwise
discontinue testing, evaluation and development work 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 Management’s
Discussion and Analysis dated March 9, 2023 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.