Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (August 2016)
24 slides from Denison Mines's investor presentation, August 2016
Slide 1: Uranium Development & Exploration in the Eastern Athabasca Basin
Denison Mines Corp. Uranium Development & Exploration in the Eastern Athabasca Basin Investor Update August 2016 TSX: DML | NYSE MKT: DNN
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 Development & Exploration, Northern Saskatchewan, Canada
Uranium Development & Exploration Northern Saskatchewan, Canada Northern Saskatchewan, Canada TSX: DML | NYSE MKT: DNN | 3
Slide 4: Wheeler River PEA: +20% IRR at US$44/lb U3O8
Wheeler River PEA : +20% IRR at US$44/lb U3O8 (1) Strategy: Co-development of the high-grade Gryphon and Phoenix deposits as a single underground mining operation, leveraging existing regional infrastructure, including assumed processing at Denison’s 22.5% owned McClean Lake mill Price Protected: 20
Slide 5: Wheeler River: CAD$1.4B NPV at US$62.60/lb U3O8
Wheeler River: 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$62.60 Exchange Rate (CAD:USD) 1.35 1.35 Discount Rate 8.00% 8.00% Initial Capital Costs (100%) CAD$
Slide 6: 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 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.
Slide 7: Wheeler River: Strategic Development Plan
Wheeler River: Strategic Development Plan Phase 2: Phoenix Production Phase 1: Gryphon Production • Underground freezing + Jet Bore mining • Conventional underground mining • 9 years at 7.0M lbs U3O8 / year (73t/d) (1) • 7 years at 6.0M lbs U3O8 / year (399t/d) (1) • Drift to Phoenix while mining Gr
Slide 8: Wheeler PEA Assumes Processing at 22.5% Owned McClean Lake Mill
(1) See IMPORTANT CAUTION REGARDING PEA on slide 4. Licensed Capacity: 24M lbs/yr U3O8 18M lbs/yr reserved for Cigar Lake 6M lbs/yr expected excess capacity Positive Processing Metallurgical Test Gryphon (97% recovery) Phoenix (98.1% recovery) PEA Includes Minor Wheeler PEA1 Assumes processing at Mi
Slide 9: Eastern Athabasca Basin: Reduced Risk Profile
Eastern Athabasca Basin: Reduced Risk Profile Existing Infrastructure • Existing milling facility with excess capacity expected • Existing provincial highways and provincial power grid • Established mining Gryphon jurisdiction and social infrastructure 3 licensed uranium mills Provincial power g
Slide 10: 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 11: 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 12: Looking Ahead for the Wheeler River Project PFS
Looking Ahead for the Wheeler River Project Indicative Post-Tax Results to Denison (60%) Justify Advancement(1) Indicative Post-Tax Post-Tax IRR NPV (CAD) Post-Tax IRR NPV (CAD) Results to Denison Base Case 17.8% $206M Prod’n Case 29.2% $548M (60%) PFS Preliminary 2016/17 Feasibility Project Assessm
Slide 13: Exploration Continues at Wheeler River
Exploration Continues at Wheeler River Gryphon 2016 Exploration Plan K North Phoenix • ~50,000 metres of drilling ~ 6 km • CAD$10M Budget (Denison’s share CAD$6M) • Numerous targets in the vicinity of Gryphon - along K Central the K-North trend • Other high priority targets (O Zone and K Central) O
Slide 14: Potential for Gryphon Resource Growth
Potential for Gryphon Resource Growth Resource Expansion Continues North of Gryphon • Winter drill program discovered new mineralization occurring within 200 metres of the Gryphon deposit (D-lenses) • D-Series: The new D Series lenses extend a collective length of ~215 metres along the plunge direct
Slide 15: New D Series Lenses
New D Series Lenses Section 5200 Section 5200 New Mineralization Assay Highlights1: Section 5200 Drill Hole From (m) To (m) Length (m) 4 U3O8 % 2,3 WR-633D1 750.5 754.5 4.0 2.3 (and) 759.0 765.0 6.0 2.9 WR-641 718.5 729.5 11.0 5.3 (includes) 725.0 729.5 4.5 12.6 NEW • Gryphon mineralization Signific
Slide 16: New D Series Lenses
New D Series Lenses Section 5150 Section 5150 New Mineralization Assay Highlights1: Drill Hole From (m) To (m) Length (m) 4 U3O8 % 2,3 WR-646 584.5 587.0 2.5 6.2 WR-651 670.5 672.0 1.5 11.9 Notes: D-Series Lenses 1. Assay results were previously reported, see Denison news release dated May 26, 2016
Slide 17: Eastern Athabasca Exploration
Eastern Athabasca Exploration 2016 Exploration Overview • CAD$21.9M Total Budget • ~CAD$14.5M Denison’s share • ~74,000 metres planned • Focus on High Priority Properties • +80% of total metres on TOP 5 Properties • Wheeler, Murphy, Crawford and Waterbury • Follow up on discovery of uranium minerali
Slide 18: Internally Generated Cash Flow Minimizes S/H Dilution
Internally Generated Cash Flow Minimizes S/H Dilution McCLEAN LAKE MILL (Saskatchewan) (Denison owns 22.5%; AREVA 70%; OURD 7.5%) • Toll Milling from Cigar Lake Increasing CAD$5.9M • 16M lbs U3O8 production planned for 2016 (USD$4.5M) in toll milling • Mill Expansion Continues revenue estimated • Li
Slide 19: DML's Uniquely Diversified Asset Base
DML’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 • +C$6M/year in • PEA completed 1H16 Wheeler McClean tolling revenue with 20.4% IRR Riv
Slide 20: 2016 Budget Highlights
2016 Budget Highlights 2016 Budget Highlights (CAD, Millions) $10.00 $5.00 2.8 1.2 $- -1.1 -0.7 $(5.00) -3.5 2016 Financial Plan – CAD View: $(10.00) • Completed CAD$12.4M flow-through financing @$0.82/shr •~CAD$15.8M cash outflow $(15.00) • Majority of budget is CAD denominated -14.5 • Translated f
Slide 21: Denison & GoviEx Combine African Assets
Denison & GoviEx Combine African Assets ~25% Stake In GoviEx (TSX-V: GXU) Denison’s African Assets Transaction gives Denison exposure to GoviEx’s flagship Madaouela project in Niger, while finding a strategic home for Denison’s African assets Madaoulea is one of the world’s most advanced uranium
Slide 22: The Denison Advantage
The Denison Advantage • Flagship Wheeler River Project (60%) – Gryphon + Phoenix Deposits • Large scale and high-grade Eastern Athabasca Basin project • 20.4% Pre-Tax IRR (US$44/lb U3O8) with initial CAPEX CAD$336M to Denison • Pre-feasibility Study in progress • Strategic ownership of McClean Lake
Slide 23: Corporate Information
Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 533.4 M David Cates (President & CEO) Warrants(1) nil Mac McDonald (VP Finance & CFO) Options(1) 7.4 M Peter Longo (VP Project Development) Fully Dilu
Slide 24: Investor Update
Investor Update TSX: DML NYSE MKT: DNN Phone: Email: Online: 416.979.1991 x366 info@denisonmines.com www.denisonmines.com or 1.888.689.7842 @DenisonMinesCo