Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (March 2015)
28 slides from Denison Mines's investor presentation, Mar 30, 2015
Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. Investor Update Investor Update March 30, 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: Uranium Exploration & Development in Saskatchewan
Uranium Exploration & Development in Saskatchewan • Focused: Strategic focus on uranium exploration & development in the Athabasca Basin region in northern Saskatchewan, Canada • Athabasca Basin is host to the prolific high-grade McArthur River and Cigar Lake mines operated by Cameco Corp., and othe
Slide 4: Long Term Uranium Fundamentals Remain Strong
Long Term Uranium Fundamentals Remain Strong Market Demand vs. Mid-Case Production Market Fundamentals • New production will be required to replace existing production sources and meet projected increase in demand • Projected supply shortage expected to place upward pressure on commodity price when
Slide 5: Denison's Strategic Strengths
Denison’s Strategic Strengths • Growing resource base underpinned by well situated exploration portfolio in the eastern portion of the Athabasca Basin – located near existing mining and milling infrastructure • 22.5% strategic stake in McClean Lake uranium mill provides toll milling revenue and acce
Slide 6: Project Portfolio
setisontDA A _ | MINES > . Project Portfolio Hatchet Lake ATHABASCA _R BASIN l Turkey Lake — ¥ Eagle Pt Waterbury — , aes ™@™ 100% Denison # alae Midwes ™®= Denison operated JV “Re Packra t= Areva operated JV == Cameco operated JV }é rt | oS — m= Candi =F Jasper Lake $2 Uranium mines and deposits =e
Slide 7: Project Portfolio
Project Portfolio Mann Lake Project • Denison 30% • Cameco 52.5% • AREVA 17.5% • Cameco is the operator Wheeler River Project • Denison 60% • Cameco 30% • JCU 10% • Denison is the operator 7
Slide 8: Wheeler River – 2014 Successes
Wheeler River – 2014 Successes Phoenix Deposit • High-grade expansion and updated 43-101 Phoenix Resource Gryphon Zone Discovery • Discovery hole WR-556 during Q1’2014 intersected 15.3 % U3O8 over 4.0 metres • Focus of Summer 2014 program • 3km NW of Phoenix Deposit 8
Slide 9: Phoenix Amongst the Largest
Phoenix Amongst the Largest Athabasca Basin Deposits (Contained M lbs U3O8) McArthur River Cigar Lake Triple R Shea Creek DML M&I Millenium Phoenix deposits Inf Roughrider Midwest PHOENIX RESOURCE ESTIMATE* Eagle Point Million Lbs. Horseshoe/Raven McClean Tonnes Grade U3O8 Horseshoe Category (100% B
Slide 10: Grade: Phoenix Leads the Pack
Grade: Phoenix Leads the Pack Athabasca Basin Deposits (Grade % U3O8) Phoenix Cigar Lake McArthur River Roughrider Midwest Millennium Tamarack Phoenix Deposit Dawn Lake Triple R • Highest grade deposit in McClean the Athabasca Basin J Zone Shea Creek Midwest A West Bear Eagle Point Horseshoe/Raven 0
Slide 11: Gryphon Discovery
SW Inclined Longitudinal Section NE Please see Press Release dated Mar. 30, 2015 for details Gryphon Discovery • Basement hosted • Multiple stacked lenses • Several high grade intersections • Increasing in size from 350m x 60m at start of 2015 program 11
Slide 12: Gryphon Discovery Potential
Gryphon Discovery Potential How big is it? How big could it be? Impact on development of Phoenix? Semi-massive foliation-controlled Intermittent pitchblende-hematite pitchblende and hematite Pseudo-breccia replacement (“worm-rock”) bands 12
Slide 13: New Uranium Mineralization Discovered South of Gryphon
New Uranium Mineralization Discovered South of Gryphon Inclined Longitudinal Section - Please see Press Release from Mar. 30, 2015 for details. Cross Section of New Zone of Uranium Mineralization Systematic Exploration • Unconformity hosted uranium mineralization 800m south of Gryphon zone • Several
Slide 14: Wheeler River – 2015 Targets
Wheeler River – 2015 Targets K North Phoenix North Phoenix Focus: Gryphon Zone & K North • Together with other target areas: • Drilling: 62 drill holes, 37,000 metres • Geophysics: 126 kilometres Q Central • Budget: Cdn $10M (Cdn $6M Denison share) K South O-Zone DC-Resistivity 14
Slide 15: High Grade at Mann Lake
High Grade at Mann Lake • Located 5km North of Wheeler River and 20 km SW of Cameco’s McArthur River mine • Acquired interest in 2014 • Currently drilling • 2015 Budget: Cdn$2.5M (Cdn$750K Denison) 15
Slide 16: High Grade at Mann Lake
High Grade at Mann Lake 2015 Program • Following up on drill holes MN-060 (2.94% over 4.8 metres) and MN-065 (4.8% over 1.0 metres) • 12 planned drill holes (8,000 m) • MN-066-01 (9.8% over 3.5 metres) • Represents best intersection to date on the property • Located 300 m along strike from MN-060 16
Slide 17: 2015 Plan:
2015 Plan: • Approx. 71,000 m in drilling •Near 50/50 Winter/Summer split • Focus on high priority properties 1. Wheeler River (60%) – 37,000 m 2. Mann Lake (30%) – 8,000 m 3. Waterbury (60%) – 3,350 m 4. Crawford Lake (100%) – 4,600 m 5. Moore Lake (100%) – 4,000 m 6. Wolly (22.5%) – 4,000 m 17
Slide 18: McClean Lake Mill (Saskatchewan)
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 • Completion expected 2015 18
Slide 19: Toll Milling of Cigar Lake Ore
Toll Milling of Cigar Lake Ore Cash flow from toll milling begins! • Cigar Lake ore processing began in September 2014 • First packaged drums produced in October 2014 • ~ 26,000 lbs U3O8 produced from Denison’s share of McClean material used to commission the mill 19
Slide 20: 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 $4.0 2015 Plan: 8 • 6 to 8 million lbs U3O8 $3.0 6 • Denison’s share of toll $2.0 4 milling revenue ~C$2.5M 2 $1.0 0 $‐ 2014 2015 2016 2017 2018 2019 2020 2021
Slide 21: Africa: Diversified Portfolio
Africa: Diversified Portfolio 2014 Update: • Interests reorganized in preparation for spin-out or disposal transaction • Waiting for market conditions Mutanga 2015 Program: • Focused on maintaining claims in good standing • $2.3M budget: additional target generation at Mutanga & Falea 21
Slide 22: Africa: Diversified Portfolio
Africa: Diversified Portfolio Mutanga Falea (Zambia) (Mali) Dome Exploration potential Exploration potential (Namibia) Infrastructure Historic resource Exploration potential Low political risk Includes significant Infrastructure copper & silver Metallurgy component Uranium district Open
Slide 23: Mongolia: Gurvan Saihan JV
Mongolia: Gurvan Saihan JV • Resources (on a 100% basis) • Indicated - 19.8 million lbs. (12.3 million tonnes @ 0.07% U3O8) • Inferred - 5.8 million lbs. (5.5 million tonnes @ 0.05% U3O8 ) • 2015 – focus continues on restructuring and strategic alternatives * Hrayr Agnerian, M.Sc. (Applied), P. Geo.
Slide 24: 2015 Budget Summary
2015 Budget Summary 2015 Consolidated Cash Flow by Segment (USD, Millions) $4.0 2.6 $2.0 $0.0 ‐0.6 ‐0.7 ‐0.5 ‐$2.0 ‐2.3 ‐2.6 ‐$4.0 ‐$6.0 • ~ US$24.0 M in cash, equivalents and ‐$8.0 investments at the end of 2014 ‐$10.0 • Fully funded for 2015 programs ‐$12.0 ‐$14.0 ‐14.2 ‐$16.0 Canadian Canadian De
Slide 25: The Denison Advantage
The Denison Advantage • Saskatchewan Focused: Key assets in the eastern Athabasca Basin – 60% interest in high-grade Phoenix deposit on Wheeler River property – Active portfolio of exploration properties with potential for future discoveries – 22.5% strategic interest in high-grade McClean Lake uran
Slide 26: Notes
Notes 26
Slide 27: Corporate Information
Corporate Information Market Summary Management & Directors (Dec. 31, 2014) Exchanges TSX, NYSE - MKT Ron Hochstein (Executive Chairman) Shares Outstanding 505.9 M David Cates (President & CEO) Warrants 1.1 M Steve Blower (V.P. Exploration) Options 6.2 M Peter Longo (V.P. Project Development) Fully
Slide 28: 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