Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (November 2015)
28 slides from Denison Mines's investor presentation, Nov 6, 2015
Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. Uranium Exploration & Development Investor Update November 6, 2015
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% in McClean mill with excess capacity Management: Minin
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: Uniquely Diversified Asset Base
Uniquely Diversified Asset Base High Grade Uranium Mill (22.5%) Advanced Athabasca • Strategic regional asset Development Projects • Expected to provide +$6M/year in • Midwest (25.17%) toll milling revenue from Cigar +48.7M lbs ind. • Access to excess milling capacity for • McClean (22.5%) Denison d
Slide 7: Strategic Project Portfolio
Strategic Project Portfolio 7
Slide 8: Exploration Update
Murphy Lake Project Exploration • Denison 59% • Eros Resources Corp. 41% Update Mann Lake Project • Denison 30% • Cameco 52.5% • AREVA 17.5% Wheeler River Project • Denison 60% • Cameco 30% • JCU 10% 8
Slide 9: Significant Resource Base at Wheeler
Significant Resource Base at Wheeler Wheeler River 60% Denison owned and operated (Cameco 30%, JCU 10%) 9
Slide 10: Gryphon Deposit
Gryphon Deposit • Basement hosted, starting at 580m below surface and measuring 450m by 80m 10
Slide 11: Gryphon Area - 2015 Summer Targets
Gryphon Deposit • Inclined Longitudinal Section Gryphon Area - 2015 Summer Targets (Oriented 020/55E) 11
Slide 12: Phoenix A Deposit
Phoenix A Deposit • Single large high grade core • Measures 350m by 50m at a depth of 400m below surface 12 12
Slide 13: K North Exploration Potential
K North Exploration Potential K North Gryphon Zone • Approximately 6 km of largely untested prospective strike Phoenix length • Potential for unconformity- and basement-hosted mineralization 13
Slide 14: Discovery of Uranium at Murphy Lake
Discovery of Uranium at Murphy Lake S Surface N Murphy Lake Project • Denison 59% (Operator), Eros Resources (formerly Anthem) 41% • Located 30 km NW of the McClean Lake mill (22.5% Denison) Bleaching and desilicification • Discovery of Uranium in Drill hole MP-15-03 intersected 0.2% eU3O8 Clay alte
Slide 15: High Grade at Mann Lake
High Grade at Mann Lake MN-070-1 Mann Lake Project • Cameco 52.5% (and Operator), Legend MN-068 Denison 30%, AREVA 17.5% Conductors Ground, Strong MN-069 Ground, Moderate • Located 5km North of Wheeler Ground, Weak MN-061-01 River and 20 km SW of Cameco’s Ground, Contact DDH McArthur River mine 2015
Slide 16: 2015 Exploration Overview
2015 Exploration Overview • Successful winter & summer exploration programs completed • Over 80,000 metres completed • Focus on High Priority Properties • +80% on TOP 5 Properties: Wheeler, Crawford, Mann, Wolly and Waterbury • Delineation of Gryphon Deposit • Discovery of new uranium mineralization
Slide 17: McClean Lake Mill
McCLEAN LAKE MILL (Saskatchewan) • Denison owns 22.5% • AREVA 70%, OURD 7.5% Mill Expansion Continues • 13M lbs to 24M lbs per year • Fully funded by Cigar Lake JV • Completion expected 2016 17
Slide 18: Toll Milling of Cigar Lake Ore
Toll Milling of Cigar Lake Ore Cash flow from toll milling increasing headed into 2016! • Forecasted 2015 toll milling revenue increased from CAD$2.5M to ~CAD$3.0M • Looking forward to guidance from Cigar Lake Joint Venture on 2016 production • ~ 26,000 lbs U3O8 from Denison’s share of McClean mater
Slide 19: Rising Cash Flow from Toll Milling
Rising Cash Flow from Toll Milling 20 $8.0 Denison Toll Milling Revenue (CAD$M) 18 $7.0 *CLJV Production (M lbs U3O8) 16 $6.0 14 12 $5.0 10 2015 Plan: $4.0 8 • May exceed 10M lbs U3O8 $3.0 6 • Denison’s toll milling 4 revenue expected to beat $2.0 initial estimate of C$2.5M $1.0 2 0 $‐ 2014 2015 201
Slide 20: 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 21: Appendix: References
Appendix: References Technical Reports: 1. McClean Lake “Technical Report on the Denison Mines Inc. Uranium Properties, Saskatchewan, Canada” dated February 16, 2006. Richard E. Routledge, M.Sc., P. Geo. and James W. Hendry, P. Eng., are the independent Qualified Persons for the McClean Technical Re
Slide 22: Nuclear Energy & Uranium Return to Forefront of Global News
Nuclear Energy & Uranium Return to Forefront of Global News • Global nuclear generating capacity to increase with addition of new reactors in Asia & Oceania “China Adding Nuclear Plants at Record Pace • China and India to lead Asia with focus on in Fight Against Smog” improving air quality by using
Slide 23: Demand for Nuclear Energy Continues to Grow
Demand for Nuclear Energy Continues to Grow World Nuclear Reactors – 2015 by Country (Source: World Nuclear Association – August 1, 2015) China 25 43 136 India 6 22 35 Russia 9 31 18 USA 5 5 17 Japan 3 9 3 • China, India and Russia will fuel significant growth in Global nuclear reactor fleet UAE 31
Slide 24: Demand for Nuclear Energy Continues to Grow
Demand for Nuclear Energy Continues to Grow World Nuclear Reactors – 2007 to 2015 (Source: World Nuclear Association – August 1, 2015) 600 61 65 71 67 500 53 63 72 156 166 400 43 142 156 168 173 174 34 108 300 93 200 327 322 343 317 314 322 299 266 100 222 0 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 25: Strong Demand Producing Favourable Market Fundamentals
Strong Demand Producing Favourable Market Fundamentals Market Demand vs. Low-Case Production (Q3-2015) Increasing Supply Shortage Demand to Exceed Suppy • In “low-case” new production may not replace existing production sources and fails to meet projected increase in demand by early 2020s • Projecte
Slide 26: Strong Demand Producing Favourable Market Fundamentals
Strong Demand Producing Favourable Market Fundamentals Uncovered Utility Uranium Requirements (Q3-2015) Uncovered Requirements Increasing Steeply • Near-term uncovered Increasing requirements remain low Uncovered suggesting minimal Requirements contracting in 12-18 month range • Long-term uncovered
Slide 27: Notes
Notes 27
Slide 28: Denison Mines Corp. Further Information
Denison Mines Corp. Investor Update Further Information TSX: DML NYSE MKT:DNN Phone: 416.979.1991 ext 366 Toll Free: 1.888.689.7842 Email: info@denisonmines.com Web: www.denisonmines.com
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