Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (June 2015)
36 slides from Denison Mines's investor presentation, Jun 11, 2015
Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. Uranium Exploration & Development Investor Update June 11, 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: Nuclear Energy & Uranium Return to Forefront of Global News
Nuclear Energy & Uranium Return to Forefront of Global News “China Adding Nuclear Plants at Record Pace in Fight Against Smog”(April 27, 2015) “World’s Worst Air Spurs Modi’s $25 Billion Utility Clean-up Push”(May 4, 2015) “Asia’s $800 Billion Nuclear Splurge to Unlock Uranium Motherlode” (May 7, 20
Slide 5: Demand for Nuclear Energy Continues to Grow
Demand for Nuclear Energy Continues to Grow World Nuclear Reactors – 2015 by Country (Source: World Nuclear Association – June 1, 2015) China 24 44 136 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 10
Slide 6: Demand for Nuclear Energy Continues to Grow
Demand for Nuclear Energy Continues to Grow World Nuclear Reactors – 2007 to 2015 (Source: World Nuclear Association – June 1, 2015) 600 61 65 71 66 500 53 63 72 156 168 400 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 201
Slide 7: Strong Demand Producing Favourable Market Fundamentals
Strong Demand Producing Favourable Market Fundamentals Market Demand vs. Mid-Case Production (Q2-2015) Increasing Supply Shortage Demand to Exceed Suppy • New production will be required to replace existing production sources and meet projected increase in demand • Projected supply shortage expected
Slide 8: Strong Demand Producing Favourable Market Fundamentals
Strong Demand Producing Favourable Market Fundamentals Uncovered Utility Uranium Requirements (Q2-2015) 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 9: Denison's Strategic Strengths
Denison’s Strategic Strengths • Growing Resource Base: Underpinned by active and well situated exploration and development portfolio in the eastern portion of the Athabasca Basin – located near existing mine and mill infrastructure • McClean Lake Mill Ownership: 22.5% interest in the McClean Lake ur
Slide 10: Strategic Project Portfolio
Strategic Project Portfolio 10
Slide 11: Strategic Project Portfolio
Strategic 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 11
Slide 12: Wheeler River – Recent Successes
Wheeler River – Recent 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 & Winter 2015 exploration programs • Only 3km NW of Phoenix Deposit
Slide 13: Phoenix Deposit
Phoenix Deposit • Single large high grade core • Successfully expanded high grade core with 2014 drilling 13 13
Slide 14: Phoenix Among the Largest
Phoenix Among 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% Bas
Slide 15: 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 16: Wheeler River Continues to Grow
Wheeler River Continues to Grow 16
Slide 17: Gryphon Discovery
SW Inclined Longitudinal Section NE Please see Press Release dated June 4, 2015 for details Gryphon Discovery • Basement hosted • Multiple stacked lenses • Several high grade intersections • Increased mineralized zone from 350m x 60m to 450m x 60m in 2015 17
Slide 18: New Uranium Mineralization Discovered South of Gryphon
New Uranium Mineralization Discovered South of Gryphon Unconformity Mineralization Inclined Longitudinal Section - Please see Press Release from June 4, 2015 for details. Cross Section of New Zone of Uranium Mineralization Systematic Exploration • Unconformity hosted uranium mineralization 800m sout
Slide 19: Gryphon Discovery Potential
Gryphon Discovery Potential How big is the Gryphon Zone? Potential for mineralization nearby? Impact on the development of Phoenix? Semi-massive foliation-controlled Intermittent pitchblende-hematite pitchblende and hematite Pseudo-breccia replacement (“worm-rock”) bands 19
Slide 20: Wheeler River – 2015 Program Overview
Wheeler River – 2015 Program Overview • 2015 Budget: Cdn$10.0M (Cdn$6.0M Denison share) • Winter 2015 Program: Completed 17,700 metres (26 holes) – Successful expansion of main Gryphon Zone to 450m x 60m – Discovery of new unconformity hosted mineralization 800m south of Gryphon and series of priori
Slide 21: Gryphon Area – 2015 Summer Targets
Gryphon Area – 2015 Summer Targets SW Target Areas NE Section 4000GP Section 4200GP Section 4650GP Section 5300GP WR‐598 WR‐590 Gryphon WR‐597 0.37% over 1.0 m WR‐592 0.39% over 3.2 m Zone 3 2.8% over 4.0 m (BSMT) (UC) 0.54% over 1.8 m (BSMT) (BSMT) Unconformity Targets Along Strike 4 1 2 Legend Cla
Slide 22: Phoenix Area – 2015 Summer Targets
Phoenix Area – 2015 Summer Targets Gryphon as Analogue Garnetiferrous Pelite • Drilling to target Graphitic Pelite basement hosted Granite mineralization Pelite down- plunge of existing Semi Pelite Target Area drill holes Quartzite Calc Silicate • Aided by 3D Pegmatite 100 m resistivity following Fa
Slide 23: 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 • Operated by Cameco • 2015 Budget: Cdn$2.5M (Cdn$750K Denison) 23
Slide 24: High Grade at Mann Lake
High Grade at Mann Lake MN-070-1 2015 Program • Following up on 2014 drill holes Legend MN-068 (MN-060: 2.94% U3O8 over 4.8 m Conductors and MN-065: 4.8% U3O8 over 1.0 m) Ground, Strong MN-069 Ground, Moderate defining mineralized zone Ground, Weak Ground, Contact MN-061-01 DDH • Successful winter p
Slide 25: High Grade at Mann Lake
High Grade at Mann Lake MN-066-01 • 6.7% U3O8 over 3.9 m • Following up 30 m hanging wall to MN-066 • Optimal target is further east, on top of graphite UC 25
Slide 26: 2015 Exploration Overview
2015 Exploration Overview • Winter Program Completed • Over 43,000 metres completed • +80% on TOP 6 properties • Active Summer Program Planned • Estimated 34,000 metres • Focus remains Wheeler River • Drilling to support initial 43-101 resource estimate for Gryphon Zone • Other properties including:
Slide 27: 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 JV • Completion expected 2016 27
Slide 28: 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 28
Slide 29: 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 30: Diversified African Uranium Exploration & Development Portfolio
Diversified African Uranium Exploration & Development Portfolio 30
Slide 31: Portfolio Poised for Spin-out
Portfolio Poised for Spin-out 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 31
Slide 32: African Portfolio: Poised for Spin-out
Portfolio Poised for Spin-out Exploration potential is key differentiator: Majority of industry peers have Solid base for Resource Growth: advanced projects too far too soon 7.8M lbs U3O8 Indicated and Exploration 41.4M lbs U3O8 Inferred at Mutanga* given near‐term market conditions Potential + Hist
Slide 33: 2015 Budget Summary
2015 Budget Summary 2015 Consolidated Cash Flow by Segment (USD, Millions) $4.0 $2.0 1.6 0.2 $0.0 ‐0.7 ‐$2.0 ‐2.3 ‐2.5 ‐$4.0 • ~ US$16.7 M in planned spend ‐$6.0 • ~ US$24.0 M in cash, equivalents and ‐$8.0 investments at the end of 2014 ‐$10.0 • CAD$15M proceeds from recently completed “bought deal
Slide 34: 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 35: Corporate Information
Corporate Information Market Summary Management & Directors (Mar. 31, 2015) Exchanges TSX, NYSE - MKT Ron Hochstein (Executive Chairman) Shares Outstanding 506.4 M David Cates (President & CEO) Warrants 0.5 M Steve Blower (V.P. Exploration) Options 7.7 M Peter Longo (V.P. Project Development) Fully
Slide 36: 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