Slide 1: Wheeler River NI 43-101 Resource Estimate Technical Report Teach-In
Wheeler River NI 43‐101 Resource Estimate Technical Report Teach‐In January 7th, 2016 Toronto, Ontario “TECHNICAL REPORT ON A MINERAL RESOURCE ESTIMATE FOR THE WHEELER RIVER PROPERTY, EASTERN ATHABASCA BASIN, NORTHERN SASKATCHEWAN, CANADA.” Nov. 25, 2015. William E. Roscoe Ph.D, P.Eng. and Mark B. M
Slide 2: Cautionary Statements
Cautionary Statements This presentation includes forward‐looking information or forward‐looking statements under Canadian and U.S. securities laws that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward‐
Slide 3: Significant Resource Base at Wheeler
Significant Resource Base at Wheeler 2015 Wheeler River Property Mineral Resource Estimate Summary Million lbs Million lbs Grade U3O8 U3O8 Deposit Category Tonnes (%U3O8 ) (100%) (Denison) Gryphon Inferred 834,000 2.3 43.0 25.8 Phoenix Indicated 166,000 19.1 70.2 42.1 Phoenix Inferred 9,000 5.8 1.1
Slide 4: Wheeler River: DML's 1-2 PUNCH
Wheeler River: DML’s 1‐2 PUNCH PHOENIX + GRYPHON POISED FOR CO-DEVELOPMENT Large Size: 70.2M lbs indicated + 44.1M lbs inferred High Grade: Over 70M lbs at Phoenix grading over 19% Infrastructure: Provincial power line and highway Milling: 22.5% owner of McClean mill with excess capacity Management:
Slide 5: Leading Development Pipeline
Leading Development Pipeline Leading Position in Athabasca Basin Development Projects • Controlling interest in the Wheeler River project and strategic interest in Midwest, McClean and Waterbury projects close to the McClean Lake mill (22.5% Denison) TOP 10 DEVELOPMENT PROJECTS - ATHABASCA BASIN Whe
Slide 6: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 6
Slide 7: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 7
Slide 8: Wheeler River Property Location
Wheeler River Property Location • Athabasca Basin region in northern Saskatchewan, Canada • Joint Venture: Denison (60%), Cameco (30%), and JCU (Canada) Exploration Co. Ltd. (10%) • Saskatchewan ranks 2nd in the world and 1st in Canada for Mining Investment Attractiveness (Fraser Institute, 2015) •
Slide 9: Eastern Athabasca Basin
Eastern Athabasca Basin • Infrastructure rich with established history of uranium mining and milling 3 operating uranium mills Provincial power grid Provincial highway Gryphon • Significant exploration potential remains in the region for material discoveries Phoenix Location and infrastructure
Slide 10: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, and Deposit Descriptions, 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 10
Slide 11: Regional Geology
Regional Geology 11 Figure courtesy of RPA, November 2015
Slide 12: Regional Geology
Regional Geology RTP Total Magnetic Intensity Vertical Integral of the RTP 12
Slide 13: Deposit Types
Deposit Types ‘oxidized’ sandstone sst fluid-bsmt fluid interaction ‐ simple mineralogy ‐ relatively monometallic (fluid mixing) ‐ complex mineralogy ‐ U with minor Cu or V ‐ lower total REE ‐ generally polymetallic ‐ U+Ni+Co+As+S+REE fluid flow u/c fluid fluid flow basinal fluid-bsmt rock interacti
Slide 14: Exploration Models
Exploration Models Key Lake Model McArthur River Model Basement‐Hosted Model Source: Empirical models for Canadian unconformity‐associated uranium deposits C.W. Jefferson et al., 2007 Evolving Models 14
Slide 15: Wheeler River Geology
Wheeler River Geology enison Mines [—) Pelites [ Graphitic Pelite & auartzite [2 Granite & Senmi-Pelite * Gryphon Deposit guy Caic-Silicate Phoenix Deposit = Pegmatite © Drill Hole Collar a Mafic P $365000Y —— Power Line Cross Faults ~. Major Faults ~ Thrust Faults === Main Road - ~ Access Road A Ca
Slide 16: Wheeler River Geology
Wheeler River Geology NW Recent Glacial Sediments SE Z Z’ Surface (0 m) MFd (0 – 140 m) MFc (30 – 150m) Athabasca Group ~400 m MFb (0 – 210 m) Unconformity Read (0 ‐ >200 m) ~550 m Phoenix Gryphon Basement 16
Slide 17: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, and Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 17
Slide 18: Exploration History Highlights
Exploration History Highlights 2014 – Gryphon 15.30% U3O8 over 4.0 m 2013 – 489 Zone (basement) 0.13% U3O8 over 5.5 m (unconformity) 1988 – K North Zone 0.17% U3O8 over 7.7 m (basement) 1986 – M Zone 0.79% U3O8 over 5.8 m (unconformity) 2006 – Q Zone 0.85% U3O8 over 3.8 m (unconformity) 2008 – Phoen
Slide 19: Exploration Drilling
Exploration Drilling Wheeler River ‐ Total Metres Drilled 45,000 40,000 Denison Mines Cameco 35,000 SMDC Total Metres Drilled 30,000 AGIP 25,000 20,000 15,000 10,000 5,000 0 Year Phoenix Gryphon discovered discovered 19
Slide 20: Exploration Drilling
Exploration Drilling Wheeler River ‐ Phoenix & Gryphon Drilling Statistics 40000 80 Phoenix Metres 35000 70 Gryphon Metres 30000 Phoenix Holes 60 Total Metres Drilled Number of Holes Gryphon Holes 25000 50 20000 40 15000 30 10000 20 5000 10 0 0 1988 2001 2008 2009 2010 2011 2012 2013 2014 2015 Year
Slide 21: Drilling Costs
Drilling Costs Wheeler River ‐ All‐In Drilling Costs 400 45,000 Total Metres Drilled 350 40,000 Cost/m 35,000 300 Total Metres Drilled Cost/Metre (C$) 30,000 250 25,000 200 20,000 150 15,000 100 10,000 50 5,000 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year • Discovery cost per lb U
Slide 22: Drilling in Action at Wheeler River
Drilling in Action at Wheeler River 22
Slide 23: Exploration Geophysics
Exploration Geophysics Geophysical Surveys since 2008: Wheeler River DC Resistivity coverage to end 2015 Ground Geophysical Surveys 2009 DC Resistivity 2010 Transient EM (TEM) 2011‐2012 DC Resistivity 2013 DC Resistivity 2014 DC Resistivity, Gravity and SWML EM 2015 DC Resistivity Survey Airborne Su
Slide 24: High Grade Phoenix Deposit
High Grade Phoenix Deposit Gryphon Phoenix 24
Slide 25: High Grade Phoenix Deposit
High Grade Phoenix Deposit 25 Figure courtesy of RPA, November 2015
Slide 26: High Grade Phoenix Deposit
High Grade Phoenix Deposit 26
Slide 27: High Grade Phoenix Deposit
High Grade Phoenix Deposit B NW SE B’ Cross Section Phoenix Zone A Higher Grade Shell Lower Grade Shell SANDSTONE WR-345 16.2% U3O8 / 5.0 m WR-525 43.8% U3O8 / 12.0 m WR-527 16.4% U3O8 / 1.7 m Sub-Athabasca Unconformity WR-318 7.7% U3O8 / 10.5 m PELITE GARNETIFEROUS PELITE QUARTZITE GRAPHITIC PELITE
Slide 28: High Grade Phoenix Deposit
High Grade Phoenix Deposit 28
Slide 29: High Grade Phoenix Deposit
High Grade Phoenix Deposit 29
Slide 30: Basement Hosted Gryphon Deposit
Basement Hosted Gryphon Deposit Gryphon Phoenix 30
Slide 31: Basement Hosted Gryphon Deposit
Basement Hosted Gryphon Deposit A A’ A A’ 31
Slide 32: Basement Hosted Gryphon Deposit
Basement Hosted Gryphon Deposit • Deposit starts ~580 m below surface • Plunges to the NE • Hosted entirely in competent basement rock • Measures roughly 450 m x 80 m 32
Slide 33: Basement Hosted Gryphon Deposit
Basement Hosted Gryphon Deposit 33
Slide 34: Basement Hosted Gryphon Deposit
Basement Hosted Gryphon Deposit A A’ 34
Slide 35: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, and Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 35
Slide 36: Downhole Gamma Surveys
Downhole Gamma Surveys Mount Sopris Triple Gamma Probe Synthetic Total Count from SN3688‐3818‐GM‐12 with Sampled Assay Results to February 2012 vs Grade% U3O8 100.0 80.0 3,475 3,741 3,535 3,450 3,475 Grade % eU3O8 3,430 3,481 60.0 3,327 3,190 2,832 3,160 40.0 2,214 2,7002,865 2,710 2,975 2,738 2,500
Slide 37: Sample Assay Methods
Sample Assay Methods Identification of mineralized interval Core recovery > 80 % Core recovery < 80 % SRC Laboratory Downhole Gamma Sample Preparation Radiometric eU3O8 Total and Partial Digest NaI: < 10 GT ICP‐OES GM: > 10 GT Up >= 1,000 ppm SRC Laboratory U3O8 Assay (wt%) Aqua Regia Digest ICP‐OES
Slide 38: Sample Assay QAQC
Sample Assay QAQC STANDARDS (1:40) • Six different Cameco standards inserted by SRC BLANKS (1:40) • Quartzite blank inserted by SRC FIELD DUPLICATES (1:20) • Collection of second core sample and submission by Denison SRC INTERNAL QAQC PROGRAM • ISO/IEC 17025 Laboratory for Mineral Analysis Testing •
Slide 39: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, and Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 39
Slide 40: Previous Mineral Resource Estimates
Previous Mineral Resource Estimates 80 Wheeler River – Resource Growth ? Phoenix Inferred U3O8 70 1.1 Mlbs 60 Phoenix Indicated U3O8 Million Pounds U3O8 Mlbs 7.6 7.6 50 40 3.8 3.8 70.2 30 52.3 52.3 20 35.6 35.6 10 0 2008 2009 2010 2011 2012 2013 2014 Phoenix Gryphon discovered discovered Phoenix Pho
Slide 41: Drill Hole Database - Phoenix
Drill Hole Database ‐ Phoenix Indicated resource ~ 25 x 10 m drill spacing Inferred resource ~ 35 x 10 m drill spacing 41 Figure courtesy of RPA, November 2015
Slide 42: Geological Modelling - Phoenix
Geological Modelling ‐ Phoenix Section 3D Wireframe Models (Grade Envelopes) Composite grades shown Higher grade (HG) domain: Zone A > 20% U3O8 Zone B > 10% U3O8 Lower grade (LG) domain: > 0.05% U3O8 Wireframe model dimensions: Zone A: 380 m x 36 m x 5 m Zone B: 290 m x 19 m x 3 m 42 Figure courtesy
Slide 43: Geological Modelling - Phoenix
Geological Modelling ‐ Phoenix Section 3D Wireframe Models (Grade Envelopes) Composite grades shown Higher grade (HG) domain: Zone A > 20% U3O8 Zone B > 10% U3O8 Lower grade (LG) domain: > 0.05% U3O8 Wireframe model dimensions: Zone A: 380 m x 36 m x 5 m Zone B: 290 m x 19 m x 3 m 43 Figure courtesy
Slide 44: Geological Modelling - Phoenix
Geological Modelling ‐ Phoenix Section 3D Wireframe Models (Grade Envelopes) Composite grades shown Higher grade (HG) domain: Zone A > 20% U3O8 Zone B > 10% U3O8 Lower grade (LG) domain: > 0.05% U3O8 Wireframe model dimensions: Zone A: 380 m x 36 m x 5 m Zone B: 290 m x 19 m x 3 m 44 Figure courtesy
Slide 45: Geological Modelling - Phoenix
Geological Modelling ‐ Phoenix 3D Wireframe Models (Grade Envelopes) Section Composite grades shown Higher grade (HG) domain: Zone A > 20% U3O8 Zone B > 10% U3O8 Lower grade (LG) domain: > 0.05% U3O8 Wireframe model dimensions: Zone A: 380 m x 36 m x 5 m Zone B: 290 m x 19 m x 3 m 45 Figure courtesy
Slide 46: Geological Modelling - Phoenix
Geological Modelling ‐ Phoenix Section Higher grade (HG) domain: Zone A > 20% U3O8 Zone B > 10% U3O8 Lower grade (LG) domain: > 0.05% U3O8 Wireframe model dimensions: Zone A: 380 m x 36 m x 5 m Zone B: 290 m x 19 m x 3 m 46 Figure courtesy of RPA, November 2015
Slide 47: Drill Hole Database - Gryphon
Drill Hole Database ‐ Gryphon Inclined Long Section C C’ C’ Plan Gryphon Mineralized Wireframes (Projected to Unconformity) 100 m C Garnetiferrous Pelite Graphitic Pelite Granite Pelite Inferred Resource Semi Pelite Quartzite ~50 x 50 m drill spacing LEGEND Calc Silicate Collar Location Pegmatite 47
Slide 48: Geological Modelling - Gryphon
Geological Modelling ‐ Gryphon 3D Wireframe Models (Grade Envelopes) • A‐Series (A1, A2, and A3) • B‐Series (B1, B2, and B3) • C‐Series (C1 and C2): • D‐Series (D1, D2, D3, and D4) not included • Grade threshold of 0.05% Upper Lens Lower Lens Section 5000 200 m 48 Figure courtesy of RPA, November 20
Slide 49: Geological Modelling - Gryphon
Geological Modelling ‐ Gryphon 49
Slide 50: Dry Bulk Density
Dry Bulk Density High Grade Phoenix Deposit Basement Hosted Gryphon Deposit • 196 density samples • 65 density samples Bulk density need to convert volume to tonnage Bulk density varies with grade Small volumes of high grade material contain large masses of uranium oxide 50
Slide 51: Resource Estimate Process
Resource Estimate Process Assays Composites Variography • 0.5 m intervals • G, D, GxD over 1 m • Phoenix only • Density assigned • Restricted to hard • GxD assigned boundaries • Gryphon capped Block Modelling Interpolation Estimation • D, GxD, G using ID2 & • Block grade = GxD/D • Phoenix 5 x 2 x 1
Slide 52: Resource Estimate Parameters
Resource Estimate Parameters Phoenix Gryphon Delineation Drill Holes 196 (89,835 m) 55 (40,041 m) Assay Samples 2,111 (chemical) 1019 (chemical) 166,287 (radiometric) Dry Bulk Density Samples 196 65 Composites (1 m) 703 419 Variography Yes No Block Size 5 x 2 x 1 m (Zone A & B) 2 x 10 x 1 m 2 x 1 x
Slide 53: Phoenix 3D Block Model
Phoenix 3D Block Model 53 Figure courtesy of RPA, November 2015
Slide 54: Phoenix 3D Block Model
Phoenix 3D Block Model 54 Figure courtesy of RPA, November 2015
Slide 55: Phoenix 3D Block Model
Phoenix 3D Block Model 55 Figure courtesy of RPA, November 2015
Slide 56: Gryphon 3D Block Model
Gryphon 3D Block Model Figure courtesy of RPA, November 2015 56
Slide 57: Block Model Validation
Block Model Validation Volume Comparison • Wireframe volumes vs block volumes Visual Comparison • Block grades vs drill hole composites Statistical Comparison • Statistics of block grades vs composite grades Checks by Different Estimation Methods • Phoenix: ID2 vs Contour Method 57
Slide 58: Mineral Resource Estimate
Mineral Resource Estimate TABLE 14-1 MINERAL RESOURCE ESTIMATE FOR THE WHEELER RIVER PROJECT AS OF SEPTEMBER 25, 2015 (100% BASIS) Denison Mines Corp. – Wheeler River Property Category Deposit Tonnes Grade Million lbs (% U3O8) U3O8 Indicated Phoenix - Zone A 147,200 19.81 64.3 Indicated Phoenix - Zo
Slide 59: Resources Summary
Resources Summary High Grade Phoenix Deposit Basement Hosted Gryphon Deposit 70.2Mlbs Ind 1.1Mlbs Inf 80 Zone A Basement 70 (Inferred) Zone B LG (Inferred) 60 43.0Mlbs Inf Zone B HG (Inferred) 50 50 C2 (Inferred) Zone B LG (Indicated) 40 40 C1 (Inferred) Zone B HG (Indicated) B3 (Inferred) 30 30 B2
Slide 60: 2015 Resource Estimate
2015 Resource Estimate Wheeler River – Resource Growth 140 Gryphon Inferred U3O8 Mlbs 120 Phoenix Inferred U3O8 Mlbs Million Pounds U3O8 100 Phoenix Indicated U3O8 Mlbs 43.0 80 1.1 1.1 60 7.6 7.6 40 3.8 3.8 70.2 70.2 52.3 52.3 20 35.6 35.6 0 2008 2009 2010 2011 2012 2013 2014 2015 Phoenix Gryphon di
Slide 61: Cut-Off Grade Sensitivities
Cut‐Off Grade Sensitivities Phoenix Gryphon Cut-off Grade Tonnes Lb U 3O8 Cut-off Grade Tonnes Mlb U3 O8 % U3O8 % U3 O8 Millions % U3 O8 % U 3O8 (000) 0.50 16.94 188,900 70.5 0.20 2.342 834 43 0.80 19.13 166,200 70.2 0.40 2.679 716 42 1.00 20.60 154,000 69.9 0.60 2.981 629 41 1.50 24.23 129,800 69.3
Slide 62: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, and Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 62
Slide 63: Looking Ahead at Wheeler River
Looking Ahead at Wheeler River 2016 Exploration Plan • 47,000 metres of drilling K North ~ 6 km • CAD$10M Budget (Denison’s share CAD$6M) • Numerous targets in the vicinity of Gryphon • Other high priority targets Q Central (O Zone and Q Central) O Zone ~3km 63
Slide 64: Looking Ahead at Wheeler River
Looking Ahead at Wheeler River K West Gryphon North Gryphon West Gryphon South Basement Gryphon South Unconformity 64
Slide 65: Looking Ahead at Wheeler River
Looking Ahead at Wheeler River Inclined Longitudinal Section SW NE Section Section Section Section Section Section Section Section Section Section Section Section 3200 3400 3600 3800 4000 4200 4400 4700 4900 5100 5500 5800 Unconformity WR‐615 WR‐558 WR‐628 WR‐625 WR‐595 WR‐618 WR‐617A WR‐612 WR‐592
Slide 66: Looking Ahead at Wheeler River
Looking Ahead at Wheeler River Section 3200 Section 3600 Section 4000 Section 4400 Section 5050 Increased Sandstone U‐p halo towards SW Decreased Basement U‐p halo towards SW Section 3200 Section 3600 Section 4000 Section 4400 Section 5050 66
Slide 67: Agenda
Agenda 1. Property Location, Land Tenure, Ownership 2. Geology, Deposit Types and Exploration Models 3. Exploration, Discovery, and Deposit Descriptions 4. Overview of Procedures 5. Geological Modelling and Resource Estimation 6. Looking Ahead at Wheeler River 7. 2016 Denison Budget Highlights 67
Slide 68: 2016 Budget Highlights
2016 Budget Highlights 2016 Budget Highlights (USD, Millions) $4.0 3.1 $2.0 0.9 $0.0 ‐0.4 ‐$2.0 ‐1.2 ‐1.3 ‐2.15 ‐$4.0 ‐$6.0 2016 Financial Plan – USD View: ‐$8.0 • ~USD$13.0M cash out‐flow ‐$10.0 • CAD denominated amounts translated at USD:CAD FX rate of 1:1.3 ‐$12.0 ‐11.8 ‐$14.0 Canadian Canadian C
Slide 69: 2016 Budget Highlights
2016 Budget Highlights 2016 Budget Highlights (CAD, Millions) $10.0 $5.0 4.1 1.2 $0.0 ‐0.5 ‐1.6 ‐1.7 ‐2.8 ‐$5.0 2016 Financial Plan – CAD View: ‐$10.0 • ~CAD$16.5M cash outflow ‐$15.0 • Translated to CAD using budgeted ‐15.3 USD:CAD FX rate of 1:1.3 ‐$20.0 Canadian Canadian Canadian Dev't Environmen
Slide 70: 2016 Exploration Overview
N 2016 Exploration Overview • CAD$22.0M Total Budget • CAD$15.3M Denison’s Share • ~75,000 metres planned • Focus on High Priority Properties • +80% of total metres on TOP 5 Properties • Wheeler, Murphy, Crawford, Wolly and Waterbury • Follow up on discovery of potentially significant uranium miner
Slide 71: McClean Lake Mill (Saskatchewan)
McCLEAN LAKE MILL (Saskatchewan) (Denison owns 22.5%; AREVA 70%; OURD 7.5%) • Toll Milling from Cigar Lake Increasing • 16M lbs U3O8 production planned for 2016 • Mill Expansion Continues • 13M lbs to 24M lbs per year, subject to licensing • Fully funded by Cigar Lake JV • Completion expected 2016 7
Slide 72: The Denison Advantage
The Denison Advantage • Leading Athabasca Basin Development Pipeline: • 60% interest in the Wheeler River project: Phoenix + Gryphon • Large scale & high grade estimated resources • Prospective exploration targets poised to add more mineralization • Located in proximity to key Eastern Athabasca Basi
Slide 73: Thank You!
Thank You! enison Mines