Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (April 2017)
28 slides from Denison Mines's investor presentation, April 2017
Slide 1: Uranium Development & Exploration: The Athabasca Basin
X Uranium Development & Exploration The Athabasca Basin Investor Update - April 2017
Slide 2: Cautionary Statements & References
Cautionary Statements & References 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 e
Slide 3: Uranium Market: Turning Around?
Uranium Market: Turning Around? • The uranium spot price is up over 25% since its bottom in late 2016, but still sits at an 11-year low Utility Uranium Requirements (million pounds U3O8 - per UxC Q1'2017) • Recent production cuts from world’s 250 largest producers 200 • 2015 & 2016: highest annual g
Slide 4: The High Grade Wheeler River Uranium Project
The High Grade Wheeler River Uranium Project Wheeler River • Highest Uranium Grades in the World • Rated #1 for Mining Investment Attractiveness 3
Slide 5: Over 370K Hectares in The Athabasca Basin
Over 370K Hectares in The Athabasca Basin The Athabasca Basin Wheeler River 4
Slide 6: Wheeler River PEA
Wheeler River PEA (1) • Co-development of the high-grade Gryphon and Phoenix deposits • Assumed processing at Denison’s 22.5% owned McClean Lake Mill Price Protected: 20.4% Pre-Tax IRR at LT price of US$44/lb Initial CAPEX to Denison (60%): CAD$336M (CAD$560M at 100%) Price Sensitive: Pre-Tax NPV of
Slide 7: Wheeler PEA: CAD$1.4B NPV at US$62.60/lb U3O8
Wheeler PEA(1): CAD$1.4B NPV at US$62.60/lb U3O8 2016 Wheeler River Project Preliminary Economic Assessment(1) (100%) Assumptions / Financial Results Base Case Production Case Uranium Price US$44.00 US$62.60 Exchange Rate (CAD:USD) 1.35 1.35 Discount Rate 8.00% 8.00% Pre-Tax IRR(2) 20.4% 34.1% Pre-T
Slide 8: One Project, Two High-Grade Deposits
One Project, Two High-Grade Deposits 2015 Wheeler River Property Mineral Resource Estimate Summary(1) Million lbs Million lbs U3O8 Deposit Category Tonnes Grade (%U3O8) U3O8 (100%) (60% 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.
Slide 9: Wheeler River: Strategic Development Plan
Wheeler River: Strategic Development Plan PHASE 1 Gryphon • Conventional underground mining • 6M lbs U3O8 / year (1) Phoenix • 7 years PHASE 2 Phoenix • Underground freezing + Jet Bore mining • 7M lbs U3O8 / year (1) Gryphon • 9 years (1) See IMPORTANT CAUTION REGARDING PEA on slide 5 8
Slide 10: 22.5% owned McClean Lake Mill
22.5% owned McClean Lake Mill Wheeler PEA1 Assumes processing at McClean Lake Licensed Capacity • 24M lbs/yr U3O8 • 18M lbs/yr reserved for Cigar Lake • 6M lbs/yr expected excess capacity Positive Processing Metallurgical Test • +97% recovery (22.5% Denison, 70% AREVA, 7.5% OURD) (1) See IMPORTANT C
Slide 11: Infrastructure Rich East vs. Grass Roots West
Infrastructure Rich East vs. Grass Roots West • Eastern Athabasca: Shorter Lead-Times, Reduced Risk • 3 licensed uranium mills • Existing provincial power grid and provincial highways • Established social infrastructure and precedent with local stakeholders • Western Athabasca: Long-term development
Slide 12: DML's Initial CAPEX Estimated at CAD$336M
DML’s Initial CAPEX Estimated at CAD$336M 2016 Wheeler River Project Preliminary Economic Assessment(1) Capital Costs (CAD$ millions) Initial Sustaining Total Surface Infrastructure $166 $7 $174 Mine $220 $334 $554 Mineral Processing $19 $60 $79 Owners Costs $25 $0 $25 Decommissioning $0 $40 $40 Sub
Slide 13: Wheeler River: Avg. Operating Cost US$19.01
Wheeler River: Avg. Operating Cost US$19.01 2016 Wheeler River Project Preliminary Economic Assessment(1) Operating Costs (CAD$/lb U3O8) Gryphon Phoenix Mining $3.45 $17.45 Surface Transportation $1.63 $0.85 Mineral Processing (including tolling) $10.03 $8.03 General & Administration $4.17 $3.57 Tot
Slide 14: Looking Ahead at Wheeler River
Looking Ahead at Wheeler River 2017-18 2016 PFS 2019 2021-22 2025 Preliminary Feasibility Project Assessment Production Study Construction 2017 Budget of CAD$12.5M • DML Share (75%) CAD$9.4M • Earning in to up to 66% from Cameco • Pre-Feasibility Study (“PFS”) • Geotechnical, hydrogeological, and en
Slide 15: Wheeler: Potential for Gryphon Resource Growth
Wheeler: Potential for Gryphon Resource Growth New Mineralization • Expansion of A and B Series Lenses • Discovery of new A & B Lenses • Discovery of D Series Lenses See Press Release dated March 29, 2017 for additional details 14
Slide 16: Mineralization at Gryphon Continues to Grow
Mineralization at Gryphon Continues to Grow 2017: A Series Results • Inclined longitudinal section • Improved thickness and/or equivalent grades from the A Series lenses from initial infill drilling up plunge and down plunge • eU3O8 is radiometric equivalent U3O8 from a calibrated total gamma downho
Slide 17: Mineralization at Gryphon Continues to Grow
Mineralization at Gryphon Continues to Grow 19.31% U3O8 / 1.0m 2017: B Series Results •Inclined longitudinal Section •New high-grade B Series lens intersections • 125 metres southwest along strike of WR-507D2 (19.31% U3O8 / 1.0m) • Remains open to the northeast • eU3O8 is radiometric equivalent U3O8
Slide 18: Mineralization at Gryphon Continues to Grow
Mineralization at Gryphon Continues to Grow 2017: C Series Results • Confirmed up plunge and down plunge limits • eU3O8 is radiometric equivalent U3O8 from a calibrated total gamma downhole probe. eU3O8 results are preliminary in nature and all mineralized intervals will be sampled and submitted for
Slide 19: Mineralization at Gryphon Continues to Grow
Mineralization at Gryphon Continues to Grow 2017: D Series Results • Expansion of D Series lenses with multiple high grade intersections • Following up WR-641 (5.3% U3O8 / 11.0m, incl. 12.6% U3O8 /4.5 metres) • eU3O8 is radiometric equivalent U3O8 from a calibrated total gamma downhole probe. eU3O8
Slide 20: 2016: Bold Moves…
2016: Bold Moves… Combined African Uranium Released Wheeler River CAD$12.4M Flow-Through Assets with GoviEx PEA: 20% Pretax IRR Bought Deal March April May Increased Licensed Optioned Moore Lake Initiation of Wheeler Strategic Hook Carter Capacity to 24M lbs. for Cash & Shares River PFS Property Acq
Slide 21: 2017: Positioning for the Future
2017: Positioning for the Future Agreement to Earn-in to Monetized Future Mill CAD$20M Bought Deal Additional 6% at Wheeler Revenue: CAD$43.5M Private Placement January January February DML to fund 50% of Cameco’s 2017 Over CAD$63M in proceeds with combined dilution & 2018 JV expenses to increase of
Slide 22: Hook Carter: Long Term Potential
Hook Carter: Long Term Potential Strategic Acquisition • Denison acquired 80% interest in the Hook-Carter property from ALX Uranium Corp. • Also acquired Coppin Lake project to consolidate Hook-Carter property • 38 land claims = 19,572 hectares • Significantly underexplored, with only 8 holes drille
Slide 23: Denison's Uniquely Diversified Asset Base
Denison’s Uniquely Diversified Asset Base • Denison’s Flagship property in • Strategic high-grade AB uranium mill eastern Athabasca Basin (AB) • 6 M lbs/year excess • Gryphon + Phoenix milling capacity co-development • Currently tolling • PEA completed 1H16 Wheeler McClean Cigar Lake ore with 20.4%
Slide 24: The Denison Advantage
The X Advantage Wheeler River: Largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin Increasing our interest in Wheeler to up to ~66% by end of 2018 Potential to improve Wheeler River PEA economics through exploration and engineering activities ongoing through 2017 D
Slide 25: Notes
Notes
Slide 26: Notes
Notes
Slide 27: Corporate Information
Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 559.1 M David Cates (President & CEO) Warrants(1) 1.6 M Mac McDonald (VP Finance & CFO) Options(1) 12.5 M Peter Longo (VP Project Development) Fully D
Slide 28: Uranium Development & Exploration: The Athabasca Basin
X Uranium Development & Exploration The Athabasca Basin Email: @DenisonMinesCo info@denisonmines.com denisonmines.com March 2017