Denison Mines Corp. · TSX:DML
Denison Mines — TD Securities Mining Conference 2021
17 slides from Denison Mines's conference presentation, Jan 28, 2021
Slide 1: Uranium Development & Exploration
Uranium Development & Exploration The Athabasca Basin, Northern Saskatchewan January 2021 | TD Securities Mining Conference
Slide 2: Cautionary Statements & References
Cautionary Statements & References This presentation and the information contained herein is designed to help you understand management’s current views, and may not be appropriate for other purposes. This presentation contains information relating to the uranium market, third party and provincial in
Slide 3: The Uranium Investment Thesis
The Uranium Investment Thesis: Fundamentals are improving, leading to a positive new uranium cycle Key Market Themes: Annual Utility Uranium Requirements (1) 1. Long-term contracts from the previous uranium (million pounds U3O8 - per UxC Q2’20) bull cycle have acted as a lifeline to high-cost 250 mi
Slide 4: Diversified Athabasca Basin Asset Base with Superior Development Leverage
Diversified Athabasca Basin Asset Base with Superior Development Leverage Strategic Asset Portfolio: • 90% interest in Flagship Wheeler River project • Development stage project • Largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin • Environmental Assessment (“EA”)
Slide 5: +250,000 Hectares of Prospective Exploration & Development Ground
+250,000 Hectares of Prospective Exploration & Development Ground Focused in the Infrastructure Rich Eastern Athabasca Basin Denison Land Position as of June 30, 2019 Orano Waterbury (Denison 66.9%) McClean Lake Mill (Denison 22.5%) Hook-Carter (Denison 80%) Cigar Lake Mine Rabbit Lake Mill McArthur
Slide 6: Flagship Wheeler River Development Project
Flagship Wheeler River Development Project(1) 90% Denison Owned (10% JCU): • Host to two high-grade uranium deposits • NI 43-101 compliant Pre-Feasibility Study (“PFS”) considers staged development plan • Phoenix estimated to potentially have lowest costs of any undeveloped uranium deposit • In-Situ
Slide 7: Wheeler River PFS: Staged development plan with combined 14-year mine life
Wheeler River PFS: Staged development plan with combined 14-year mine life(1) ***IMPORTANT*** The Wheeler River PFS estimated pre-production activities to begin in 2021, assuming receipt of required regulatory approvals, with first production from the Phoenix deposit expected in 2024. Given recent s
Slide 8: Wheeler River PFS: Uranium price assumptions, commercial strategy, and sensitivities
Wheeler River PFS: Uranium price assumptions, commercial strategy, and sensitivities Base Case Price Assumptions Reflect Commercial Strategy: • Phoenix Operation: PFS Pre-Tax NPV8% (100% Basis) 3000 • Low all-in cost per lb U3O8 suggests contract “base-loading” not required 2500 • Uranium selling pr
Slide 9: Phoenix De-Risking: Lowest-cost method with highest-grade deposit
Phoenix De-Risking: Combining the world’s lowest-cost uranium mining method with the world’s highest-grade undeveloped uranium deposit 9 ISR field testing at Wheeler River Phoenix Deposit, Summer 2019
Slide 10: ISR field testing at Wheeler River Phoenix Deposit, Summer 2019
10 10 ISR field testing at Wheeler River Phoenix Deposit, Summer 2019
Slide 11: Proof of Concept achieved for application of ISR mining method at Phoenix
ISR field testing at Wheeler River Phoenix Deposit, Summer 2019 Phoenix De-Risking: “Proof of Concept” achieved for application of ISR mining method at Phoenix(1) Petrotek Corporation – independent specialist with unique expertise in subsurface fluid flows and ISR projects • Comprehensive hydrogeolo
Slide 12: Conventional freeze wall design adopted for Phoenix ISR
Phoenix De-Risking: Conventional freeze wall design adopted for Phoenix ISR to replace novel freeze cap / dome design Post-PFS trade-off study supports decision to adopt freeze wall design to provide hydrogeologic containment(1) • Parallel vertical cased holes drilled from surface and anchored into
Slide 13: Freeze wall design shows potential for significant advantages
Phoenix De-Risking: Freeze wall design shows potential for significant advantages(1)(2) Enhanced environmental design • Full hydraulic containment of ISR well field to surface • Defined area for reclamation Lower technical complexity and operational risk • Existing diamond drilling methods • Red
Slide 14: Significant progress de-risking primary technical risks from PFS
Phoenix De-Risking: Significant progress de-risking primary technical risks from PFS(1) Nature Post PFS Mitigation Steps Current of Risk Assessment Completed in 2019-2020 Assessment Well field containment • Freeze containment trade-off study (2020) leading to selection of (PFS freeze dome design) co
Slide 15: Waterbury Lake: PEA demonstrates potential for ISR to transform portfolio projects
Waterbury Lake: PEA demonstrates potential for ISR to transform portfolio projects(1) Tthe Heldeth Túé (formerly J Zone) Deposit: • Independent NI 43-101 PEA prepared by Engcomp (Saskatoon) • Selection of ISR mining method + freeze wall containment ➢ Core samples collected for permeametry analyses v
Slide 16: Denison's Development Portfolio: lowest all-in cost assets
Denison’s Development Portfolio: Multiple projects positioned amongst the lowest all-in cost assets of UxC’s First Tier Sample of Global Production Costs(1)(2)(3) Planned and Producing Operations (with Mining Method) “Third/Fourth Tier” $50.00 “Second Tier” All-in / Full Costs – USD$/lb U3O8 $45.00
Slide 17: Capital Structure & Corporate Information
Capital Structure & Corporate Information Market Summary (1) Management & Directors Exchanges TSX: DML, NYSE American: DNN • David Cates (President & CEO, Director) Shares Outstanding 679.0 M • Mac McDonald (Exec. VP & CFO) Share Units 7.7 M • Dave Bronkhorst (VP Operations) • Tim Gabruch (VP Commer