Business
Denison Mines Reports Results From Waterbury PEA, Including Base Case Pre-Tax NPV of $177M and IRR of +39.1%
ISR MINING METHOD ESTIMATED TO PRODUCE USD$12.23 PER LB U3O8 OPERATING COSTS J ZONE DEPOSIT RENAMED TTHE HELDETH TÚÉ ("THT") DEPOSIT TORONTO, Nov. 17, 2020 /C
About this update from Denison Mines Corp.
[{"type":"text","content":" ISR MINING METHOD ESTIMATED TO PRODUCE USD$12.23 PER LB U3O8 OPERATING COSTS J ZONE DEPOSIT RENAMED TTHE HELDETH TÚÉ (\"THT\") DEPOSIT TORONTO, Nov. 17, 2020 /CNW/ - 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 Túé (see below, formerly named J Zone) deposit (the \"Project\") with associated processing at Denison's 22.5% owned McClean Lake mill. The PEA was prepared by Engcomp Engineering & Computing Professionals (\"Engcomp\") of Saskatoon and demonstrates robust economics for a small-scale Athabasca Basin ISR uranium mining project – including low initial capital costs, low operating costs and globally competitive all-in costs, as follows: Mine life ~ 6 years (Avg. ~1.6 million lbs U3O8 per year) Projected mine production (1) 9.7 million lbs U3O8 (177,664 tonnes at 2.49%) Average cash operating costs USD$12.23 ($16.27) per lb U3O8 Initial capital costs (2) $112 million Base case pre-tax IRR (3) 39.1% Base case pre-tax NPV8% (3) $177 million Base case price assumption UxC spot price(4) (Avg. USD$53.59 per lb U3O8) Operating profit margin (5) 77% at USD$53.59 per lb U3O8 All-in cost (6) USD$24.93 ($33.16) per lb U3O8 (1) See Deposit, Geology & Projected Mine Plan section below for additional information regarding projected mine production. Scheduled tonnes and grade do not represent an estimate of mineral reserves. (2) Initial capital costs exclude $20.1 million of estimated pre-construction Project evaluation and development costs. (3) NPV and IRR are calculated to the start of pre-production activities for the THT operation. (4) Spot price forecast is based on \"Composite Midpoint\" scenario from UxC's Q3'2020 Uranium Market Outlook (\"UMO\") for the years 2028 to 2033, and is stated in constant (not-inflated) dollars. (5) Operating profit margin is calculated as uranium revenue less operating costs, divided by uranium revenue. Operating costs exclude all royalties, surcharges and income taxes. (6) All-in cost is estimated on a pre-tax basis and includes all project operating costs and capital c...