Ticker: TSX: DML; NYSE: DNN
Project Stage: Development
Denison is a well-funded uranium exploration and development company with interests focused in the prolific Athabasca Basin region of northern Saskatchewan, Canada. Denison offers a diversified asset base with superior development leverage:
- 90% interest in flagship Wheeler River project – largest undeveloped uranium project in infrastructure rich eastern Athabasca Basin
- 22.5% interest in operating McClean Lake Uranium Mill – 6M lbs U3O8 excess licensed capacity, +12% of global uranium production
- Interests in NI 43-101 uranium mineral resources at McClean Lake, Midwest, and Waterbury Lake (Tthe Heldeth Túé Zone and Huskie) – in close proximity to the McClean Lake mill. A PEA was very recently completed on the Tthe Heldeth Túé Zone.
- ~280,000 hectares of prospective exploration ground in the Athabasca Basin
- Internal sources of cash flow from management of Uranium Participation Corp. (TSX-U), and Denison’s Closed Mines Services
Wheeler River – Largest and most advanced uranium development project in the infrastructure rich eastern Athabasca Basin, currently advancing through Environmental Assessment
- NI 43-101 Compliant Pre-Feasibility Study (“PFS”) completed in late 2018, evaluating development of the Phoenix deposit is designed as an In-Situ Recovery (“ISR”) mining operation and the Gryphon deposit as an underground mining operation – visit www.denisonmines.com for details and important cautionary statements.
- Taken together, the project (100% basis) is estimated to have mine production of 109.4 million pounds U3O8 over a 14-year mine life, with a base case pre-tax Net Present Value (“NPV”) of $1.31 billion (8% discount rate), Internal Rate of Return (“IRR”) of 38.7%, and initial pre-production capital expenditures of $322.5 million.
- Base case economics are based on sale of first production from Phoenix at uranium selling price of ~US$29/lb U3O8 – in line with the current spot price of uranium, and well below industry norm for projected future uranium prices.
- Phoenix ISR Operation – 10-year mine life; 59.7 million lbs U3O8 (141,000 tonnes at 19.1% U3O8) in Probable Reserves; US$3.33/lb U3O8 average cash operating costs; US$8.90/lb U3O8 fully-loaded all-in costs (including initial capita, sustaining capital, operating and closure costs); initial capital costs of CAD$322.5 million.
- Gryphon Underground Operation – 6.5 year mine life; 49.7M lbs U3O8 (1,257,000 tonnes at 1.8% U3O8) in Probable Reserves; US$11.70/lb U3O8 average cash operating costs; US$22.82/lb U3O8 fully-loaded all-in costs (including initial capita, sustaining capital, operating and closure costs); initial capital costs of CAD$623.1 million to be funded from Phoenix cash flows in staged development plan.
- Phoenix ISR operation approved for advancement through permitting process, with Environmental Assessment (“EA”) initiated in 2019
Denison Mines will be showcasing their projects to prospective investors at Mines and Money Online Connect. Apply for your complimentary investor pass here.