Form 6-K DENISON MINES CORP. For: Nov 17
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: November 18, 2016
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:
November 18, 2016
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Amanda
Willett
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Corporate Counsel and Corporate Secretary
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EXHIBIT
INDEX
Exhibit Number
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Description
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99.1
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Press
release dated November 17,
2016
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Denison
Mines Corp.
1100
– 40 University Ave
Toronto,
ON M5J 1T1
www.denisonmines.com
@DenisonMinesCo
PRESS RELEASE
DENISON
REPORTS 6.97% U3O8
OVER 4.5
METRES
AND CONFIRMS EXPANSION OF HIGH GRADE
MINERALIZATION
AT THE GRYPHON DEPOSIT, WHEELER RIVER
Toronto, ON – November 17, 2016 Denison Mines
Corp. (“Denison” or the “Company”) (DML:
TSX, DNN: NYSE MKT) is pleased to report increased grades with the
receipt of uranium assay results from the summer 2016 exploration
drilling program on its 60% owned Wheeler River property, located
in the infrastructure rich eastern portion of the Athabasca Basin
region in northern Saskatchewan. As with previous assays, the assay
results represent an overall increase in grade compared with
previously reported radiometric equivalent U3O8
(“eU3O8”) results
derived from a calibrated down-hole gamma probe.
Significantly
increased grades were reported for two key drill results, located
outside of the area included in the NI 43-101 mineral resource
estimate for the Gryphon deposit, which form priority areas for
potential resource expansion:
1)
Down-dip of the Gryphon deposit, an
increase in grade from 2.53% eU3O8 over 4.4 metres
to 6.97% U3O8
over 4.5 metres was reported in drill hole WR-674 (Section 4950
GP). This intersection, coupled with an additional down-dip
intersection of 0.94% U3O8 over 10.5 metres
in drill hole WR-602D1 (Section 4900 GP) highlight the potential
for resource growth beneath the Gryphon deposit, where
mineralization remains largely open.
2)
On the northernmost
section drill tested to date (Section 5350 GP), approximately 350
metres north of the Gryphon deposit, an increase in grade from
9.39% eU3O8 over 1.6 metres
to 19.31% U3O8
over 1.0 metre was reported in drill hole WR-507D2. This
intersection occurs approximately 25 metres below the unconformity
and is open to the northeast along
strike and down-plunge with the potential for this result to
represent a new lens of high-grade
mineralization.
Assay
results from the five initial Gryphon infill and delineation holes
also showed a significant increase in grades from 0.93%
eU3O8 over 14.1 metres
to 1.37% U3O8
over 14.5 metres in drill hole WR-668, and 1.51% eU3O8 over 14.4 metres
to 2.49% U3O8
over 12.5 metres in drill hole WR-668D2. These holes form part of a
drilling program designed to upgrade the NI 43-101 mineral resource
estimate for the Gryphon deposit from an inferred to indicated
level of confidence.
Denison’s
Vice President Exploration, Dale Verran, commented,
“Although we anticipate the
high grades from downhole probe results to increase following the
assay of core samples, it is especially encouraging to see these
higher grade assay results in areas where mineralization remains
open. While assays for the infill holes confirm the high-grade
nature of the Gryphon deposit itself, assays from our exploration
holes continue to demonstrate the growing footprint of
mineralization and the potential for resource expansion. Drilling
results to date indicate that the Gryphon deposit remains open in
numerous directions and work is underway refining drill targets for
2017.”
Expansion of Gryphon A and B Series Lenses
Toward
the end of the summer 2016 program, a total of six drill holes were
completed testing for extensions of mineralization up-dip (WR-673,
WR-675 and WR675-D1) and down-dip (WR-674, WR-602D1 and WR-679) of
the A and B Series lenses on the shallower, southwestern portion of
the Gryphon deposit. The drill holes were spaced at a minimum of 50
metres apart and located approximately 50 metres from the previous
drill holes that were used to define the current extents of the
deposit. Apart from WR-679, all the holes intersected significant
mineralization as provided in Table 1. Mineralization remains open
down-dip and up-dip of these intersections.
Table 1: Assay results for drill holes testing for expansion of the
A and B Series lenses
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Down-Hole Total Gamma Probe4,7
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Assay4,7
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||||||
Section
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Hole Number
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From (m)
|
To (m)
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Length8
(m)
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eU3O8 (%)2
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From (m)
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To (m)
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Length8
(m)
|
U3O8 (wt%)3
|
4800
GP
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WR-679
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No
significant mineralization
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No
significant mineralization
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||||||
4900
GP
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WR-602D11
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Below
cut-off grade of 0.05% eU3O8
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686.8
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687.8
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1.0
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0.09
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|||
(and)
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692.7
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704.1
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11.4
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1.22
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693.3
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703.8
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10.5
|
0.94
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(including)6
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693.2
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694.2
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1.0
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3.77
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693.3
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694.8
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1.5
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3.25
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(including)6
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699.4
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701.1
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1.7
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4.63
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698.8
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699.8
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1.0
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4.00
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4925
GP
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WR-6731
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Below
cut-off grade of 0.05% eU3O8
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625.6
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626.6
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1.0
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0.06
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|||
(and)
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627.2
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631.0
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3.8
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0.36
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628.3
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631.3
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3.0
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0.51
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(including)6
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627.6
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628.6
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1.0
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1.06
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628.3
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629.3
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1.0
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1.31
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(and)
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634.2
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652.9
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18.7
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0.18
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634.6
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637.6
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3.0
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0.07
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(and)1
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Merged
with above interval
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638.1
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639.1
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1.0
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0.07
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(and)1
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Merged
with above interval
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642.4
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651.4
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9.0
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0.30
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||||
(including)5
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642.1
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652.9
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10.8
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0.27
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642.4
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649.9
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7.5
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0.34
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4950
GP
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WR-674
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691.8
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692.8
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1.0
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0.13
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693.2
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694.2
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1.0
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0.16
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(and)1
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696.9
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697.9
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1.0
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0.06
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Below
cut-off grade of 0.05% U3O8
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||||
(and)1
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736.1
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737.1
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1.0
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0.07
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Below
cut-off grade of 0.05% U3O8
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||||
(and)
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740.9
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742.2
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1.3
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0.65
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742.0
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743.5
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1.5
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0.83
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(and)1
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Below
cut-off grade of 0.05% eU3O8
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742.0
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743.0
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1.0
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1.19
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||||
(and)
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744.8
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749.2
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4.4
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2.53
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746.0
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750.5
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4.5
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6.97
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(including)6
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745.5
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748.9
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3.4
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3.19
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746.5
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750.0
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3.5
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8.89
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5000
GP
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WR-6751
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605.5
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606.5
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1.0
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0.06
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Below
cut-off grade of 0.05% U3O8
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|||
(and)
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607.9
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608.9
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1.0
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1.36
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607.4
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608.4
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1.0
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1.38
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(and)
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613.4
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614.6
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1.2
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0.14
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613.5
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614.5
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1.0
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0.10
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(and)1
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618.1
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619.1
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1.0
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0.07
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Below
cut-off grade of 0.05% U3O8
|
||||
(and)1
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639.8
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640.8
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1.0
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0.07
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640.0
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641.0
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1.0
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0.09
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(and)1
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695.3
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696.3
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1.0
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0.07
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Below
cut-off grade of 0.05% U3O8
|
||||
(and)1
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710.4
|
711.4
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1.0
|
0.08
|
710.0
|
711.5
|
1.5
|
0.09
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(and)1
|
721.2
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722.2
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1.0
|
0.36
|
720.8
|
721.8
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1.0
|
0.32
|
|
WR-675D1
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600.3
|
601.5
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1.2
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0.12
|
600.5
|
601.5
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1.0
|
0.10
|
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(and)
|
627.4
|
630.5
|
3.1
|
0.43
|
628.0
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630.0
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2.0
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0.38
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Notes:
1.
Result not reported
previously
2.
eU3O8 is radiometric
equivalent U3O8 derived from a
calibrated total gamma down-hole probe
3.
U3O8 is chemical assay
of mineralized split core sample
4.
Composited above a cut-off grade of
0.05% eU3O8 or U3O8 unless otherwise
indicated
5.
Composited above a cut-off grade of
0.1% eU3O8 or U3O8
6.
Composited above a cut-off grade of
1.0% eU3O8 or U3O8
7.
Composites compiled using 1.0 metre
minimum mineralization thickness and 2.0 metres maximum
waste
8.
As the drill holes are oriented steeply toward
the northwest and the basement mineralization is interpreted to dip
moderately to the southeast, the true thickness of the
mineralization is expected to be approximately 75% of the
intersection lengths
Extension of Gryphon D Series Lenses
Following on from the discovery of the D Series lenses on Section
5200 GP during the winter 2016 exploration program, the lenses were
successfully extended along strike to the northeast and southwest
during the summer 2016 program. The D Series lenses are located
within 200 meters north and northwest of the Gryphon deposit,
within the pegmatite-dominated footwall (Basal Pegmatite), and are
interpreted to occur as a series of stacked, parallel lenses
conformable to the stratigraphy and dominant foliation - similar to
the A, B and C Series lenses of the Gryphon deposit.
Assay results from the 21 holes completed during the summer 2016
program, testing for D Series lens mineralization along strike to
the northeast and southwest, are presented in Table 2. The drill
holes are orientated steeply toward the northwest and therefore
test the entire package of prospective southeast dipping, basement
stratigraphy including the Quartz-Pegmatite Assemblage which hosts
the A and B Series lenses, the Lower Graphite which hosts the C
Series lenses and the Basal Pegmatite which hosts the D Series
lenses. The assay results indicate the D Series lens mineralization
totals 330 meters in collective strike extent, with mineralization
still open along strike in both directions. Highlight D Series lens
intersections include 1.39% U3O8
over 5.0 metres in drill hole
WR-671D1, 3.00% U3O8
over 1.0 metre in drill hole WR-669
and 2.93% U3O8
over 1.0 metre in WR-670. As noted,
many of the mineralized intersections in Table 2 refer to
mineralization intersected in the stratigraphic position of the A
or B Series lenses outside of the current NI 43-101 mineral
resource estimate. Of particular importance is drill hole WR-507D2,
which intersected 19.31% U3O8
over 1.0 metre approximately 25 metres
below the unconformity in the stratigraphic position of the A
Series lenses. This intersection is open to the northeast along
strike and down-plunge, with the potential to represent a new lens
of high-grade mineralization.
Table 2: Assay results for drill holes testing for extensions of
the D Series lenses
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|
Down-Hole Total Gamma Probe4,5
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Assay4,5
|
||||||
Section
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Hole Number
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From (m)
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To (m)
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Length6
(m)
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eU3O8 (%)2
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From (m)
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To (m)
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Length6
(m)
|
U3O8 (wt%)3
|
5050
GP
|
WR-565D1
|
668.3
|
669.3
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1.0
|
0.12
|
668.8
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669.8
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1.0
|
0.11
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(and)
|
678.2
|
679.2
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1.0
|
0.08
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678.7
|
679.7
|
1.0
|
0.08
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WR-659
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No
significant mineralization
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No
significant mineralization
|
|||||||
5100
GP
|
WR-613EXT
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No
significant mineralization
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No
significant mineralization
|
||||||
WR-6657
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683.1
|
685.6
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2.5
|
0.11
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685.5
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686.5
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1.0
|
0.21
|
|
(and)7
|
692.3
|
693.7
|
1.4
|
0.15
|
693.5
|
694.5
|
1.0
|
0.27
|
|
(and)1,7
|
713.5
|
714.5
|
1.0
|
0.07
|
714.5
|
715.5
|
1.0
|
0.09
|
|
(and)7
|
717.3
|
722.7
|
5.4
|
0.10
|
718.0
|
723.5
|
5.5
|
0.14
|
|
(and)1,7
|
762.5
|
763.5
|
1.0
|
0.08
|
Below
cut-off grade of 0.05% U3O8
|
||||
WR-6697
|
647.4
|
649.4
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2.0
|
0.17
|
648.4
|
649.9
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1.5
|
0.15
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(and)7
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652.2
|
653.4
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1.2
|
0.08
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652.6
|
653.6
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1.0
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0.07
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(and)
|
722.2
|
723.2
|
1.0
|
0.05
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)
|
746.2
|
747.3
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1.1
|
0.80
|
747.2
|
748.2
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1.0
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3.00
|
|
WR-6717
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583.5
|
584.7
|
1.2
|
2.26
|
584.5
|
585.5
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1.0
|
1.61
|
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(and)
|
670.0
|
671.1
|
1.1
|
0.33
|
670.7
|
671.7
|
1.0
|
0.58
|
|
(and)
|
697.9
|
700.0
|
2.1
|
0.14
|
698.5
|
699.5
|
1.0
|
0.22
|
|
(and)1
|
Below
cut-off grade of 0.05% eU3O8
|
700.5
|
701.5
|
1.0
|
0.05
|
||||
(and)
|
703.1
|
704.9
|
1.8
|
0.57
|
704.4
|
705.9
|
1.5
|
0.76
|
|
|
Down-Hole Total Gamma Probe4,5
|
Assay4,5
|
||||||
Section
|
Hole Number
|
From (m)
|
To (m)
|
Length6
(m)
|
eU3O8 (%)2
|
From (m)
|
To (m)
|
Length6
(m)
|
U3O8 (wt%)3
|
5100
GP
|
WR-671D1
|
656.7
|
662.0
|
5.3
|
0.11
|
656.5
|
662.0
|
5.5
|
0.15
|
(and)
|
662.8
|
663.8
|
1.0
|
0.06
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)
|
668.4
|
669.4
|
1.0
|
0.26
|
668.5
|
669.5
|
1.0
|
0.23
|
|
(and)
|
682.2
|
687.5
|
5.3
|
1.21
|
682.5
|
687.5
|
5.0
|
1.39
|
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WR-671D2
|
658.8
|
659.9
|
1.1
|
0.52
|
659.0
|
660.0
|
1.0
|
1.09
|
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(and)
|
664.2
|
667.3
|
3.1
|
0.68
|
664.5
|
667.0
|
2.5
|
0.66
|
|
(and)
|
675.4
|
676.4
|
1.0
|
0.76
|
675.2
|
676.2
|
1.0
|
0.63
|
|
(and)
|
686.0
|
687.0
|
1.0
|
0.27
|
685.9
|
686.9
|
1.0
|
0.12
|
|
WR-671D4
|
642.1
|
643.1
|
1.0
|
0.11
|
643.0
|
644.0
|
1.0
|
0.12
|
|
(and)
|
651.4
|
652.4
|
1.0
|
0.22
|
652.0
|
653.0
|
1.0
|
0.10
|
|
(and)
|
659.3
|
661.4
|
2.1
|
0.11
|
660.0
|
662.4
|
2.4
|
0.13
|
|
(and)
|
670.5
|
671.5
|
1.0
|
0.14
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)
|
678.4
|
679.4
|
1.0
|
0.07
|
Below
cut-off grade of 0.05% U3O8
|
||||
5150
GP
|
WR-658
|
No
significant mineralization
|
No
significant mineralization
|
||||||
5250
GP
|
WR-6577
|
550.9
|
551.9
|
1.0
|
0.10
|
552.0
|
553.0
|
1.0
|
0.08
|
(and)7
|
611.9
|
612.9
|
1.0
|
0.06
|
613.0
|
616.0
|
3.0
|
0.09
|
|
(and)7
|
614.3
|
615.3
|
1.0
|
0.07
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)7
|
616.7
|
619.8
|
3.1
|
0.09
|
618.5
|
619.5
|
1.0
|
0.18
|
|
(and)7
|
Below
cut-off grade of 0.05% eU3O8
|
620.0
|
621.0
|
1.0
|
0.06
|
||||
(and)7
|
629.3
|
630.3
|
1.0
|
0.18
|
630.5
|
631.5
|
1.0
|
0.14
|
|
(and)
|
698.0
|
700.1
|
2.1
|
0.39
|
699.5
|
701.5
|
2.0
|
0.51
|
|
(and)
|
711.7
|
712.9
|
1.2
|
0.68
|
713.0
|
714.0
|
1.0
|
0.51
|
|
WR-6617
|
554.0
|
555.0
|
1.0
|
0.27
|
554.0
|
555.0
|
1.0
|
0.21
|
|
(and)1
|
650.7
|
651.7
|
1.0
|
0.07
|
651.0
|
652.0
|
1.0
|
0.07
|
|
(and)1
|
652.8
|
654.1
|
1.3
|
0.06
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)1
|
690.2
|
691.2
|
1.0
|
0.05
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)
|
694.4
|
695.5
|
1.1
|
1.50
|
694.7
|
695.7
|
1.0
|
1.39
|
|
WR-6621,7
|
No
significant mineralization
|
764.5
|
765.5
|
1.0
|
0.10
|
||||
5300
GP
|
WR-664
|
No
significant mineralization
|
No
significant mineralization
|
||||||
WR-667A7
|
572.2
|
573.3
|
1.1
|
0.28
|
572.0
|
573.0
|
1.0
|
0.22
|
|
(and)1,7
|
594.0
|
595.6
|
1.6
|
0.08
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)1,7
|
599.7
|
600.7
|
1.0
|
0.05
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)
|
688.8
|
689.8
|
1.0
|
0.42
|
688.5
|
689.5
|
1.0
|
0.96
|
|
WR-6707
|
610.2
|
611.2
|
1.0
|
0.06
|
Below
cut-off grade of 0.05% U3O8
|
||||
(and)7
|
613.7
|
614.7
|
1.0
|
0.05
|
614.5
|
615.5
|
1.0
|
0.06
|
|
(and)
|
650.6
|
651.7
|
1.1
|
1.34
|
651.5
|
652.5
|
1.0
|
2.93
|
|
(and)
|
657.1
|
658.1
|
1.0
|
0.05
|
Below
cut-off grade of 0.05% U3O8
|
||||
WR-670D1
|
No
significant mineralization
|
No
significant mineralization
|
|
|
Down-Hole Total Gamma Probe4,5
|
Assay4,5
|
||||||
Section
|
Hole Number
|
From (m)
|
To (m)
|
Length6
(m)
|
eU3O8 (%)2
|
From (m)
|
To (m)
|
Length6
(m)
|
U3O8 (wt%)3
|
5350
GP
|
WR-507D1EXT
|
721.7
|
723.5
|
1.8
|
1.16
|
723.0
|
724.5
|
1.5
|
1.95
|
WR-507D27
|
557.3
|
559.2
|
1.9
|
0.22
|
558.5
|
560.5
|
2.0
|
0.15
|
|
(and)7
|
579.5
|
581.1
|
1.6
|
9.39
|
581.0
|
582.0
|
1.0
|
19.31
|
|
WR-672A7
|
588.8
|
589.8
|
1.0
|
0.28
|
589.1
|
590.1
|
1.0
|
0.30
|
|
(and)7
|
599.7
|
602.6
|
2.9
|
0.10
|
600.1
|
603.1
|
3.0
|
0.13
|
|
(and)7
|
613.1
|
614.4
|
1.3
|
0.83
|
613.6
|
614.6
|
1.0
|
1.05
|
|
WR-672AD17
|
596.8
|
597.8
|
1.0
|
0.09
|
597.3
|
598.3
|
1.0
|
0.17
|
Notes:
1.
Result not reported
previously
2.
eU3O8 is radiometric
equivalent U3O8 derived from a
calibrated total gamma down-hole probe
3.
U3O8 is chemical assay
of mineralized split core sample
4.
Composited above a cut-off grade of
0.05% eU3O8 or U3O8
5.
Composites compiled using 1.0 metre
minimum mineralization thickness and 2.0 metres maximum
waste
6.
As
the drill holes are oriented steeply toward the northwest and the
basement mineralization is interpreted to dip moderately to the
southeast, the true thickness of the mineralization is expected to
be approximately 75% of the intersection
lengths
7.
Mineralized intercept located in the
stratigraphic position of the A or B Series lenses (see Figure
3)
Gryphon Infill and Delineation Drilling
On
July 19, 2016 Denison announced the initiation of a Pre-Feasibility
Study ("PFS") for the Wheeler River project. An important step in
completing the PFS involves increasing the level of confidence of
the previously released inferred resources estimated for the
Gryphon deposit to an indicated level. A total of five initial
infill and delineation drill holes, totaling 2,620 metres, were
completed as part of the summer 2016 program, which included a
single parent hole (WR-668) and subsequent daughter holes (WR-668D1
to WR-668D4). Assay results for the initial five infill and
delineation drill holes are provided in Table 3 and drill hole
locations are shown in Figure 2.
Table 3: Assay results for infill and delineation drill holes on
the Gryphon Deposit A and B Series lenses
|
|
Down-Hole Total Gamma Probe6
|
Assay6
|
||||||
Section
|
Hole Number
|
From (m)
|
To (m)
|
Length7
(m)
|
eU3O8 (%)2
|
From (m)
|
To (m)
|
Length7
(m)
|
U3O8 (wt%)3
|
5025
GP
|
WR-668D14
|
763.5
|
768.6
|
5.1
|
0.33
|
764.4
|
768.9
|
4.5
|
0.24
|
WR-668D34
|
738.6
|
739.6
|
1.0
|
0.12
|
740.3
|
741.3
|
1.0
|
0.13
|
|
(and)1,4
|
Below
cut-off grade of 0.05% eU3O8
|
781.6
|
782.6
|
1.0
|
0.16
|
||||
5050
GP
|
WR-6684
|
754.7
|
768.8
|
14.1
|
0.93
|
754.8
|
769.3
|
14.5
|
1.37
|
(including)5
|
756.1
|
759.8
|
3.7
|
2.13
|
755.3
|
760.3
|
5.0
|
3.02
|
|
(including)5
|
765.5
|
766.8
|
1.3
|
1.43
|
765.3
|
767.3
|
2.0
|
1.59
|
|
(and)4
|
772.6
|
779.9
|
7.3
|
2.36
|
772.7
|
778.2
|
5.5
|
3.11
|
|
(including)5
|
773.8
|
778.3
|
4.5
|
3.65
|
773.7
|
774.7
|
1.0
|
1.49
|
|
(including)5
|
Merged
with above interval
|
775.2
|
777.7
|
2.5
|
6.15
|
||||
WR-668D21
|
Below
cut-off grade of 0.05% eU3O8
|
763.5
|
764.5
|
1.0
|
0.14
|
||||
(and)4
|
768.9
|
783.3
|
14.4
|
1.51
|
768.5
|
770.0
|
1.5
|
0.13
|
Section
|
|
Down-Hole Total Gamma Probe6
|
Assay6
|
||||||
|
Hole Number
|
From (m)
|
To (m)
|
Length7
(m)
|
eU3O8 (%)2
|
From (m)
|
To (m)
|
Length7
(m)
|
U3O8 (wt%)3
|
|
WR-668D24
|
Merged
with above interval
|
771.0
|
783.5
|
12.5
|
2.49
|
|||
5050
GP
|
(including)5
|
772.0
|
779.9
|
7.9
|
2.30
|
773.0
|
783.0
|
10.0
|
3.01
|
|
(including)5
|
781.7
|
782.7
|
1.0
|
1.46
|
Merged
with above interval
|
|||
|
WR-668D44
|
795.4
|
796.4
|
1.0
|
0.20
|
796.7
|
797.7
|
1.0
|
0.49
|
Notes:
1.
Result not reported
previously
2.
eU3O8 is radiometric
equivalent U3O8 derived from a
calibrated total gamma down-hole probe
3.
U3O8 is chemical assay
of mineralized split core sample
4.
Composited above a cut-off grade of
0.1% eU3O8 or U3O8
5.
Composited above a cut-off grade of
1.0% eU3O8 or U3O8
6.
Composites compiled using 1.0 metre
minimum mineralization thickness and 2.0 metres maximum
waste
7.
As the drill holes are oriented steeply toward
the northwest and the basement mineralization is interpreted to dip
moderately to the southeast, the true thickness of the
mineralization is expected to be approximately 75% of the
intersection lengths
Mineralization at K-West
Assay results confirmed weak uranium
mineralization at K-West, approximately 500 metres west of the
Gryphon deposit, in drill hole WR-663, including 0.06%
U3O8
over 0.5 metres (from 826.3 to 826.8
metres), 0.06% U3O8
over 1.5 metres (from 858.2 to 859.7
metres) and 0.04% U3O8
over 0.5 metres (from 867 to 867.5
metres). The two follow-up drill holes, WR-676 and WR-663D1, that
were drilled approximately 50 metres up-dip and down-dip of WR-663
respectively, did not encounter any significant mineralization;
however, a similar extensive alteration zone was intersected
indicating continued potential for higher grades. The zone is open
along strike within the basement and, given the proximity to
Gryphon and similar favorable geological setting, additional
follow-up is warranted.
Illustrative Figures & Further Details
A
property location and basement geology map is provided in Figure 1.
A plan map of the northeast plunging Gryphon deposit mineralized
lenses, projected up to the simplified basement geology at the
sub-Athabasca unconformity, is provided in Figure 2. The plan map
shows the location of the D Series lenses, interpreted from winter
2016 drilling results and the summer 2016 mineralized intercepts as
yellow stars. Figure 3 shows an inclined longitudinal section of
the Gryphon deposit A Series lenses. Shown on the section are drill
hole pierce points of the A Series plane indicating which holes
intersected A and/or B Series lens mineralization. Drill hole
pierce points in the upper right of the section relate to drill
holes that were targeting the D Series lenses, which are located
footwall to the A Series lenses (further into the page) and are
therefore not visible in this section. Similarly, the B and C
Series lenses occur footwall to (behind) the A Series lenses and
are therefore also not visible in the section. Further details and
illustrative figures regarding results from the summer 2016
exploration program can be found in Denison’s Press Releases
dated August 4,
September 7,
September 22 and
October 6,
2016.
Further
details regarding the Gryphon deposit and the current mineral
resource estimates are provided in the NI 43-101 Technical Report
for the Wheeler River project titled “Preliminary Economic
Assessment for the Wheeler River Uranium Project, Saskatchewan,
Canada" dated April 8, 2016 with an effective date of March 31,
2016. 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.
Sampling and Assay Procedures
Drill core with anomalous total gamma
radioactivity (>500 counts per second) was selected for sampling
and uranium assay over 0.5 metre intervals. Sampling is undertaken
on site by splitting the core in half, with one half submitted for
analysis and the other half retained in the core box for future
reference. Uranium assays are performed by the Saskatchewan
Research Council ("SRC") Geoanalytical Laboratories using an
ISO/IEC 17025:2005 accredited method for the determination of
U3O8
weight %. Sample preparation involves
crushing and pulverizing core samples to 90% passing -106 microns.
The resultant pulp is digested using aqua-regia and the solution
analyzed for U3O8
weight % using ICP-OES. Core recovery
at Gryphon is typically 100% and therefore radiometric equivalent
U3O8
grades (“eU3O8”)
are not required as a substitute for chemical U3O8
assays. In addition to internal checks
by SRC Geoanalytical Laboratories, the Company has rigorous quality
assurance and quality control (“QAQC”) procedures
including the insertion of standard reference materials, blanks and
field duplicates. For further details on the assay and QAQC
procedures please see Denison's Annual Information Form dated March
24, 2016 filed under the Company's profile on SEDAR
(www.sedar.com).
Qualified Persons
The
disclosure of a scientific or technical nature contained in this
news release was prepared by Dale Verran, MSc, Pr.Sci.Nat.,
Denison's Vice President, Exploration, who is a Qualified Person in
accordance with the requirements of NI 43-101.
About Wheeler River
The Wheeler River property is a joint venture between Denison (60%
and operator), Cameco Corp. (30%), and JCU (Canada) Exploration
Company Limited (10%), and is host to the high-grade Gryphon and
Phoenix uranium deposits discovered by Denison in 2014 and 2008,
respectively. The Gryphon deposit is hosted in basement rock and is
currently estimated to contain inferred resources of 43.0 million
pounds U3O8 (above a cut-off grade of 0.2%
U3O8) based on 834,000 tonnes of
mineralization at an average grade of 2.3% U3O8.
The Phoenix unconformity deposit is located approximately 3
kilometres to the southeast of Gryphon and is estimated to include
indicated resources of 70.2 million pounds U3O8
(above a cut-off grade of 0.8% U3O8)
based on 166,000 tonnes of mineralization at an average grade of
19.1% U3O8, and is the highest grade undeveloped
uranium deposit in the world.
On April 4th, 2016, Denison announced the results of a Preliminary
Economic Assessment (“PEA”) for the Wheeler River
Project, which considers the potential economic merit of
co-developing the high-grade Gryphon and Phoenix deposits as a
single underground mining operation. The PEA returned a base case
pre-tax Internal Rate of Return ("IRR") of 20.4% based on the
current long term contract price of uranium (US$44.00 per pound
U3O8), and Denison's
share of estimated initial capital expenditures ("CAPEX") of
CAD$336M (CAD$560M on 100% ownership basis). Exploration results
from the winter and summer 2016 drilling program have not been
incorporated into the resource estimate or the PEA. The PEA is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the economic
considerations applied to them to be categorized as mineral
reserves, and there is no certainty that the preliminary economic
assessment will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic viability. On
July 19th, 2016 Denison announced the initiation of a
Pre-Feasibility Study ("PFS") for the Wheeler River property and
the complimentary commencement of an infill drilling program at the
Gryphon deposit to bring the inferred resources to an indicated
level of confidence.
About
Denison
Denison is a uranium exploration and development company with
interests focused in the Athabasca Basin region of northern
Saskatchewan. Including its 60% owned Wheeler River project, which
hosts the high grade Phoenix and Gryphon uranium deposits,
Denison's exploration portfolio consists of numerous projects
covering over 350,000 hectares in the infrastructure rich eastern
Athabasca Basin. Denison's interests in Saskatchewan also include a
22.5% ownership interest in the McClean Lake joint venture, 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 deposit and a 63.01% interest in the J Zone deposit on the
Waterbury Lake property. Both the Midwest and J Zone deposits 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.
David
Cates
|
(416) 979-1991 ext.
362
|
President and Chief
Executive Officer
|
|
|
|
Sophia
Shane
|
(604)
689-7842
|
Investor
Relations
|
|
|
|
Follow Denison on Twitter
|
@DenisonMinesCo
|
Cautionary Statement Regarding
Forward-Looking Statements
Certain information contained in this press release constitutes
“forward-looking information”, within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and similar 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
(including drilling) and evaluation activities, plans and
objectives; potential mineralization of drill targets; the
estimates of Denison's mineral resources and the results of its
PEA.
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. Denison
believes that the expectations reflected in this forward-looking
information are reasonable but there can be no assurance that such
statements will prove to be accurate and 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 “Risk
Factors” in Denison’s Annual Information Form dated
March 24, 2016 available under its profile at www.sedar.com
and in its Form 40-F available
at www.sec.gov/edgar.shtml.
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. 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 its expectations except as otherwise
required by applicable legislation.
Cautionary Note to United States
Investors Concerning Estimates of Measured, Indicated and Inferred
Mineral Resources: This press release may use the terms
“measured”, “indicated” and
“inferred” mineral resources. United States investors
are advised that while such terms are recognized and required by
Canadian regulations, the United States Securities and Exchange
Commission 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.
Figure 1: Wheeler River property location and basement
geology
Figure 2: Plan map of the northeast plunging Gryphon mineralized
lenses projected up to the simplified basement geology at
the
sub-Athabasca unconformity. Yellow stars show the summer 2016
mineralized intersections.
Figure 3: Inclined longitudinal section of the Gryphon deposit A
Series lenses.
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