Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (July 2013)
36 slides from Denison Mines's investor presentation, July 2013
Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. Investor Update July 2013
Slide 2: Cautionary Statements
Cautionary Statements Statements contained herein which are not historical facts are forward-looking statements that involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that co
Slide 3: U3O8 Daily and Long-term Prices
U3O8 Daily and Long-term Prices $75.00 $70.00 $65.00 Daily Price (US$/lb U3O8) Long-term $60.00 Price $55.00 $50.00 Published by UxCo $45.00 $40.00 $35.00 January 2011 - June 2013 3
Slide 4: Uranium Market
Uranium Market • Fukushima events continue to impact the nuclear power industry • Market currently in an oversupply situation • Reduction in demand – Japan, Germany • Increase in production – Kazakhstan, Namibia • Brighter days on the horizon • Applications for restart of 10 reactors in Japan • Cont
Slide 5: Near Term Uncovered Demand
Near Term Uncovered Demand 250.0 200.0 Lbs. U3O8 (million) 200 M lbs. 150.0 Non-U.S. Utilities 100.0 U.S. Utilities Published by UxCo 50.0 - 5
Slide 6: Denison's Strategic Strengths
Denison’s Strategic Strengths • One of the best exploration projects combined with strong, growing portfolio near Athabasca Basin infrastructure • Canadian development projects with access to uranium milling in the Athabasca Basin • Access to novel mining technology (SABRE) ideal for Athabasca type
Slide 7: Athabasca Basin Portfolio
Athabasca Basin Portfolio (as of December 31, 2012) 7
Slide 8: Athabasca Basin Portfolio
Athabasca Basin Portfolio (as of June 30, 2013) 8
Slide 9: Athabasca Basin Portfolio: Wheeler River Project
Athabasca Basin Portfolio (as of June 30, 2013) Wheeler River Project • Denison 60% • Cameco 30% • JCU 10% • Denison is the operator 9
Slide 10: Increase in Phoenix Resources
Increase in Phoenix Resources 152,400 tonnes @ 15.6% U3O8 Indicated Resources 46% increase in lbs. 2012 11,600 tonnes @ 29.8% U3O8 2010 Inferred Resources 100% increase in lbs. 0 10,000 20,000 30,000 40,000 50,000 60,000 Lbs. U3O8 (000’s) Mineral Resources are not Mineral Reserves and do not have de
Slide 11: Athabasca Basin Deposits
Athabasca Basin Deposits Contained M lbs U3O8 as of April 2013 McArthur River Cigar Lake Shea Creek Millenium Phoenix Roughrider Midwest Eagle Point Horseshoe/Raven McClean Horseshoe Tamarack Raven J Zone M&I Dawn Lake Inf Midwest A West Bear All data from Public Sources. All Resource Categories hav
Slide 12: Athabasca Basin Deposits
Athabasca Basin Deposits Grade % U3O8 as of April 2013 Phoenix Cigar Lake McArthur River Roughrider Midwest Millennium Tamarack Dawn Lake McClean J Zone Shea Creek Midwest A West Bear Eagle Point Horseshoe/Raven 0 2 4 6 8 10 12 14 16 18 % AllUdata 3Ofrom 8 Public Sources. All Resource Categories hav
Slide 13: Athabasca Basin Deposits Depth (m)
Athabasca Basin Deposits Depth (m) All data from Public Sources. 13
Slide 14: Phoenix A and B Uranium Deposits
ornsont DAA DENISON MINES CORP. PHOENIX A and B URANIUM DEPOSITS Denison 60% Cameco 30% JCU 10% - Only the highest grade intersections are shown where drill holes have more than one mineralized interval. |. Reported highlights from 2013 summer drill programs using downhole probe equivalent grade. |
Slide 15: Cross-Section WR-525 - WR-527, Phoenix A Zone
oessoy'044 DENISON MINES CORP. CROSS-SECTION WR-525 - WR-527 PHOENIX A ZONE Denison 60% Cameco 30% JCU 10% Drill Intercepts (%U,0,0r %eU,O,) Hi 30.0 -100.0 i 10.0 - 30.0 D 5.0 - 10.0 SE Higher Grade Shell (Dec SANDSTONE 2012) WR-345 Lower Grade Shell (Dec 2012) 16.21%U,0,/5.0m WR-525 U 43.18%eU,0,/1
Slide 16: Athabasca Basin Portfolio: Waterbury Lake Project
Athabasca Basin Portfolio (as of June 30, 2013) Waterbury Lake Project • Denison 60% • KEPCO 40% • Denison is the operator 16
Slide 17: Waterbury Lake
Waterbury Lake Rainbow Dome Waterbury Dome Collins Bay Dome McClean Lake Dome 17
Slide 18: Waterbury Lake
Waterbury Lake Rainbow Dome Waterbury Dome Collins Bay Dome McClean Lake Dome 18
Slide 19: 2013 Summer Exploration
2013 Summer Exploration • Summer Exploration Activity • Wheeler River – 12,000 m • Waterbury – 2,500 m & geophysics • South Dufferin – 1,500 m • Johnston Lake – 2,800 m • Others – 6,800 m & Geophysics 19
Slide 20: McClean Lake Mill Location
McClean Lake Mill Location 20
Slide 21: McClean Lake Mill (Saskatchewan)
McCLEAN LAKE MILL (Saskatchewan) • Denison owns 22.5%, AREVA 70%, OURD 7.5% • Only mill designed for high-grade ore • Start-up preparations underway – costs met21by CLJV
Slide 22: McClean Lake Mill & Cigar Lake
McClean Lake Mill & Cigar Lake • Scheduled to begin processing of Cigar Lake uranium ore in 2013 • Mill expansion has begun • Capacity increase from 13 M to 24-26 M lbs/yr • Expected completion 2016 • ~Cdn$150 M funded by CLJV • Added flexibility • Opportunity to upgrade capacity for McClean in the
Slide 23: McClean Lake Milling Capacity
McClean Lake Milling Capacity Access to Mill Capacity Available Capacity 9 6 PRIORITY 1. McClean Lake / Midwest JV 2. Partners 3. Others Cigar Lake 18 18 Capacity - 24.0 M lbs. Capacity - 27.0 M lbs. 23
Slide 24: Surface Access Borehole Resource Extraction (SABRE)
Surface Access Borehole Resource Extraction (SABRE) • SABRE: combines surface drilling & hydraulic borehole mining • Advantages • Low capital costs • Production flexibility • Small environmental footprint 24
Slide 25: SABRE Process
SABRE Process Provided by AREVA Resources Canada Inc. 25
Slide 26: SABRE Process
SABRE Process 50m–300m 1m–15m • Depth ranges are estimates with current processes and equipment 26
Slide 27: Athabasca Basin Deposits Depth (m)
Athabasca Basin Deposits Depth (m) All data from Public Sources. 27
Slide 28: SABRE Today
SABRE Today • 2012: 2-hole SABRE test at McClean North • > 150,000 lbs. U3O8 recovered to date • 2013 – studies SABRE 1 SABRE 2 to evaluate SABRE for test mining of Caribou deposit 28
Slide 29: Mutanga Project – Zambia
Mutanga Project – Zambia • 100% owned by Denison • Existing infrastructure • power, roads, water • Project is licensed • 25-year mining licenses, EA & Radioactive Material License 180 km from Lusaka Mutanga 36 km from Kariba dam 29
Slide 30: Mutanga Project – Zambia
Mutanga Project – Zambia MUTANGA PROJECT NI 43-101 Resource Estimates Tonnes eU3O8 Lbs U3O8 Category (000’s) (ppm) (000’s) Measured 1,880 481 1,992 Indicated 8,400 314 5,817 Measured & 10,280 345 7,809 Indicated Inferred 65,270 288 41,400 •The resources have been prepared in accordance with NI 43-10
Slide 31: Mutanga Geological Programs
Mutanga Geological Programs High priority areas for soil geochemistry and radon surveying in 2013 Dibwe-Mutanga Corridor 31
Slide 32: Gurvan Saihan JV – Mongolia
Gurvan Saihan JV – Mongolia • Resources • Indicated - 19.8 million lbs. (12.3 million tonnes @ 0.07% U3O8) • Inferred - 5.8 million lbs. (5.5 million tonnes @ 0.05% U3O8 ) • Mining license applications filed • 2013 – focus on restructuring & obtaining mining licenses 32
Slide 33: 2013 Planned Exploration & Development Spending
2013 Planned Exploration & Development Spending • Canadian exploration $12.0 million • Up from previous guidance of $9.9 million • Canadian development $3.5 million • Majority on SABRE • Zambia $3.5 million • Mongolia $1.7 million 33
Slide 34: Management Objectives
Management Objectives • To build the strongest portfolio of strategic uranium deposits in the Athabasca Basin through resource development and strategic acquisitions • To ensure all environmental, health and safety laws and requirements are met • To maximize shareholder value and to position Denison
Slide 35: Corporate Information
Corporate Information Exchanges TSX, NYSE - MKT Ron Hochstein (Pres & CEO, Director) Shares Outstanding 461.4 M Steve Blower (V.P. Exploration) Warrants 1.7 M Lukas Lundin (Chairman) Options 10.3 M John Craig (Lead Director) Fully Diluted 473.4M Bob Dengler (Director) Market Cap. Brian Edgar (Direct
Slide 36: For further info, contact: Denison Mines Corp.
For further info, contact: Denison Mines Corp. Phone: 416.979.1991 ext 366 Toll Free: 1.888.689.7842 Email: info@denisonmines.com Web: www.denisonmines.com TSX:DML www.denisonmines.com NYSE MKT:DNN