TORONTO - Denison Mines Corp. ('Denison' or the 'Company') (TSX: DML) (NYSE American: DNN) is pleased to announce the successful completion of an independent Preliminary Economic Assessment ('PEA') for the Waterbury Lake Property ('Waterbury') evaluating the potential use of the in-situ recovery ('ISR') mining method at the Tthe Heldeth Tue deposit (the 'Project') with associated processing at Denison's 22.5% owned McClean Lake mill.
David Cates, President and CEO of Denison, commented: 'The Waterbury PEA further demonstrates the potential for the ISR mining method to change Canada's global competitiveness in the uranium mining sector without requiring the discovery and development of massive-scale uranium mines. The selection of the ISR mining method for the Tthe Heldeth Tue deposit has transformed our expectations for the Project generating robust preliminary financial results with comparatively modest upfront capital costs and positioning the Project as Denison's second ISR amenable development asset with a cost profile that is highly competitive amongst undeveloped uranium mining assets globally.'
David Bronkhorst, VP Operations of Denison further added: 'Denison's technical team successfully modelled the application of the ISR mining method to the Tthe Heldeth Tue deposit in the internal concept study and the preliminary results have now been validated with the completion of an independent NI 43-101 compliant PEA. Denison's plan for the Project includes a 'freeze wall' design adapted from the 'freeze dome' outlined for the Phoenix deposit in the Wheeler River Pre-Feasibility Study ('Wheeler PFS'). The freeze wall design allows for the containment of a smaller area and a significant reduction in up front capital costs, as compared to the 'freeze dome'. Additionally, the freeze wall is expected to offer environmental advantages by providing containment of the ISR mining operation from the depth of the uranium deposit all the way to surface. With the positive results of the freeze wall design demonstrated in the Waterbury PEA, Denison is also evaluating the potential benefits of a freeze wall (rather than freeze dome) for use at Wheeler River's Phoenix deposit.'
Waterbury is owned by the Waterbury Lake Uranium Limited Partnership ('WLULP'), of which Denison Waterbury Corp. (a wholly-owned subsidiary of Denison) owns 66.90% and Korea Waterbury Lake Uranium Limited Partnership ('KWULP') owns 33.10%. KWULP is comprised of a consortium of investors, in which Korea Hydro & Nuclear Power ('KHNP') holds a majority position. KHNP is headquartered in Gyeongju, South Korea and is the country's largest electrical power generation company, operating 24 nuclear power reactors and supplying approximately one-quarter of the country's electricity. KHNP is also a significant shareholder in Denison.
The PEA is prepared on a Project (100% ownership) and pre-tax basis, as each of the partners to the WLULP are subject to different tax and other obligations. After-tax results attributable to Denison's ownership interest are provided below under the heading 'Indicative Denison Post-Tax Results'. All amounts are in Canadian dollars unless otherwise noted.
The PEA is a preliminary analysis of the potential viability of the Project's mineral resources, and should not be considered the same as a Pre-Feasibility or Feasibility Study, as various factors are preliminary in nature. There is no certainty that the results from the PEA will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability.
About Denison
Denison is a uranium exploration and development company with interests focused in the Athabasca Basin region of northern Saskatchewan, Canada. The Company's flagship project is the 90% owned 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. 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 deposits and a 66.90% interest in the THT and Huskie deposits on the Waterbury Lake property. The Midwest, THT and Huskie deposits are located within 20 kilometres of the McClean Lake mill. In addition, Denison has an extensive portfolio of exploration projects in the Athabasca Basin region.
Denison is engaged in mine decommissioning and environmental services through its Closed Mines group, which manages Denison's Elliot Lake reclamation projects and provides post-closure mine and maintenance services to industry and government clients.
Denison is also the manager of Uranium Participation Corporation, a publicly traded company listed on the TSX under the symbol 'U', which invests in uranium oxide in concentrates and uranium hexafluoride.
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 press release contains forward-looking information pertaining to the results of, and estimates, assumptions and projections provided in the PEA, including future development methods and plans, market prices, costs and capital expenditures; the Company's current plans with respect to the development of the Project; the results of, and estimates, assumptions and projections provided in, the Wheeler PFS; the Company's current intentions to evaluate the potential benefits of a freeze wall for use at the Wheeler River Phoenix deposit; assumptions regarding Denison's ability to obtain all necessary regulatory approvals to commence development in accordance with the PEA; Denison's percentage interest in its projects and its agreements with its joint venture partners and the availability of services to be provided by third parties. Statements relating to 'mineral resources' are deemed to be forward-looking information, as they involve the implied assessment that, based on certain estimates and assumptions, the 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, further studies, including a PFS, may not be undertaken if the results of the PEA are not maintained after further testing; Denison may decide or otherwise be required to discontinue the related work 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 13, 2020 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.
Contact:
David Cates
Tel: (416) 979-1991
DENISON MINES CORP. 
