Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (October 2017)
32 slides from Denison Mines's investor presentation, Oct 11, 2017
Slide 1: Uranium Development & Exploration: The Athabasca Basin
Uranium Development & Exploration The Athabasca Basin Investor Update – October 11, 2017
Slide 2: Cautionary Statements & References
Cautionary Statements & References 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 e
Slide 3: Uranium Market: Shifting Fundamentals?
Uranium Market: Shifting Fundamentals? • Sustained low price environment Utility Uranium Requirements means very few new sources of (million pounds U3O8 - per UxC Q3'2017) supply in the pipeline 200 180 • Uncovered utility demand reaches 160 ~21% by 2020 and ~65% by 2025 140 120 Covered Demand • Rec
Slide 4: Denison's 60% owned Wheeler River Project: Top Producer Potential
Denison’s 60% owned Wheeler River Project: Top 5 Producer Potential Top Producing Uranium Mines 2017 est. vs. Wheeler Production Plan(1)(2) Million Pounds U3O8 M lbs. M lbs. 20 18.0 18.0 15 M lbs. ` 9.6 M lbs. 10 7.3 M lbs. M lbs. M lbs. M lbs. M lbs. M lbs. 6.6 6.3 5.8 5.5 5.5 5.0 5 - Source: UxC U
Slide 5: Located in The Top Mining Investment Jurisdiction Globally
Located in The Top Mining Investment Jurisdiction Globally Wheeler River Rated #1 for Mining Investment Attractiveness 4
Slide 6: 359K Hectares in The Athabasca Basin
359K Hectares in The Athabasca Basin McClean Lake Mill ` ` Athabasca Waterbury Project ` ` Basin Rabbit Lake Mill Cigar Lake Mine McArthur River Mine Wheeler River Project ` ` Key Lake Mine & Mill 5
Slide 7: Wheeler River Project Highlights (PEA)
(1) Wheeler River Project Highlights (PEA ) Ownership: Denison 60%, Cameco 30%, JCU 10% Denison increasing to ~66% by end of 2018 under one- time earn-in deal with Cameco (announced January 9, 2017) Location: Infrastructure rich eastern Athabasca Basin Deposits: 2 High Grade Deposits, 1 Mini
Slide 8: Wheeler River: Strategic Development Plan
Wheeler River: Strategic Development Plan PHASE 1: Gryphon • Conventional underground mining • USD$14.28/lb U3O8 est. OPEX • 6M lbs U3O8 / year (1) • 7 years PHASE 2: Phoenix • U/G freezing + Jet Bore mining • USD$22.15/lb U3O8 est. OPEX • 7M lbs U3O8 / year (1) • 9 years (1) See IMPORTANT CAUTION R
Slide 9: Assumes Processing at 22.5% Owned McClean Lake Mill
Assumes Processing at 22.5% Owned McClean Lake Mill McClean Lake Mill Licensed Capacity Processes ~11% of Global ` Uranium Production • 24M lbs/yr U3O8 • 18M lbs/yr reserved for Cigar Lake • 6M lbs/yr expected excess capacity Positive Processing Metallurgical Test • +97% recovery Granted 10-Year Lic
Slide 10: Infrastructure Rich Eastern Athabasca
Infrastructure Rich Eastern Athabasca • The robust existing infrastructure tailored to mining operations surrounding the Wheeler property allows for a low initial CAPEX & a lower risk profile throughout the development of the project • Wheeler is located within 50km & 100km of the two largest uraniu
Slide 11: Wheeler River PEA Economics
Wheeler River PEA Economics 2016 Wheeler River Project Preliminary Economic Assessment(1) (100%) Assumptions / Financial Results Base Case Production Case Uranium Price US$44.00 US$62.60 Exchange Rate (CAD:USD) 1.35 1.35 Discount Rate 8.00% 8.00% Pre-Tax IRR(2) 20.4% 34.1% Pre-Tax NPV(2) (100%) CAD$
Slide 12: Looking Ahead at Wheeler River
Looking Ahead at Wheeler River 2018 2016 PFS 2019 2021-22 2025 Preliminary Feasibility Project Assessment Production Study Construction Original 2017 Budget of CAD$12.5M • DML Share (75%) CAD$9.4M • Earning in to up to 66% from Cameco by 2018 • Pre-Feasibility Study (“PFS”) • Geotechnical, hydrogeol
Slide 13: Wheeler: Potential for Gryphon Resource Growth
Wheeler: Potential for Gryphon Resource Growth Gryphon Plan View Significant New Mineralization • Expansion of A and B Series Lenses • Discovery and expansion of D and E Series Lenses See Press Release dated July 24th, 2017 & August 30th, 2017 for additional details 12
Slide 14: Mineralization at Gryphon Continues to Grow: A Series
Mineralization at Gryphon Continues to Grow A Series Lenses – Inclined Longitudinal Section 2017: A Series Results • Potential for resource growth with higher than expected grades in certain portions of the deposit compared to the inferred grade model • Noteworthy mineralized intercepts outside of t
Slide 15: Mineralization at Gryphon Continues to Grow: B Series
Mineralization at Gryphon Continues to Grow B Series Lenses – Inclined Longitudinal Section 2017: B Series Results •Potential for resource growth with higher than expected grades in certain portions of the OPEN deposit compared to the inferred grade model •B Series Lenses that are not included in th
Slide 16: Mineralization at Gryphon Continues to Grow: C Series
Mineralization at Gryphon Continues to Grow C Series Lenses – Inclined Longitudinal Section 2017: C Series Results • Confirmed up plunge and down plunge limits • C Series Lenses that are not included in the current resource estimate are open to the northeast • Different structural controls suggested
Slide 17: Mineralization at Gryphon Continues to Grow: D Series
Mineralization at Gryphon Continues to Grow D Series Lenses – Inclined Longitudinal Section 2017: D Series Results • Expansion of D Series lenses with multiple high grade intersections • Following up WR-641 (5.3% U3O8 / 11.0m, incl. 12.6% U3O8 /4.5 metres) • WR-633D3 best hole to date outside of Gry
Slide 18: Newly Discovered E Series Lenses
Mineralization at Gryphon Continues to Grow Newly Discovered E Series Lenses Inclined longitudinal section 2017: E Series Results • Discovery of new high- grade unconformity- OPEN hosted mineralization in drill hole WR-689D3 (5.0% eU3O8 over 4.7 metres) and WR-690D3 (1.2% eU3O8 over 1.4 metres) • Im
Slide 19: 2017: Positioning for the Future
2017: Positioning for the Future Agreement to earn-in to Monetized Cigar Lake tolling CAD$20M bought deal additional 6% at Wheeler revenue to raise CAD$43.5M private placement January January February McClean Lake Mill Denison Environmental New high grade Discovery of New “E” series granted 10-year
Slide 20: Company Specific Catalysts on The Horizon
Company Specific Catalysts on The Horizon Ownership Increasing Wheeler River Wheeler River at Wheeler New high-grade Updated Resource Pre-Feasibility (66% owner by “Huskie” discovery at Estimate Study end of 2018) Waterbury Fall 2017 & Q4-2017 H1-2018 20172018 Winter 2018 Successful exploration & S
Slide 21: Huskie Zone: New High-Grade Basement Hosted Uranium Discovery
Huskie Zone: New High-Grade Basement Hosted Uranium Discovery at Waterbury Lake Summer 2017 drilling program: Designed to test an east-west trend, which shares interpreted geological similarities with the east-west trend that hosts the J Zone and Roughrider deposits (~1.5km south) Immediate success…
Slide 22: Huskie Zone: Early Days
Huskie Zone: New High-Grade Basement Hosted Uranium Discovery at Waterbury Lake “The basement plumbing system appears to be improving as we move west - as indicated by the increased number of mineralized lenses, a broader and stronger alteration halo and a widening of the structured, graphitic packa
Slide 23: Hook Carter: Long Term Potential
Hook Carter: Long Term Potential Strategic Acquisition… • Denison acquired 80% interest in the Hook-Carter property from ALX Uranium Corp. in 2016 • Also acquired Coppin Lake project to consolidate Hook-Carter property • 38 land claims = 19,572 hectares • Significantly underexplored, with only 8 hol
Slide 24: Denison's Uniquely Diversified Asset Base
Denison’s Uniquely Diversified Asset Base • Denison’s Flagship property in • Strategic high-grade AB uranium mill eastern Athabasca Basin (AB) • 6 M lbs/year excess • Gryphon + Phoenix milling capacity co-development • Currently tolling • PEA completed 1H16 Wheeler McClean Cigar Lake ore with 20.4%
Slide 25: DML Provides Strong Exposure to the Uranium Price
DML Provides Strong Exposure to the Uranium Price Denison Share Price vs. Uranium Spot Price Spot Price (USD) 1 Year Comparison Per lb U3O8 Stock Price (CAD) $29 $1.10 $27 $1.00 $25 $0.90 $23 $0.80 $21 $0.70 $19 $0.60 $17 $0.50 $15 $0.40 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Uranium Sp
Slide 26: The Advantage
The Advantage Wheeler River: Largest undeveloped uranium project in the infrastructure rich eastern Athabasca Basin Increasing our interest in Wheeler to up to ~66% by end of 2018 Potential to improve Wheeler River PEA economics through exploration and engineering activities ongoing through 2017 Ear
Slide 27: Appendix: Wheeler River PEA Results
Appendix: Wheeler River PEA Results 26
Slide 28: Wheeler River: High Grade Uranium Deposits
Wheeler River: High Grade Uranium Deposits 2015 Wheeler River Property Mineral Resource Estimate Summary(1) Million lbs Million lbs U3O8 Deposit Category Tonnes Grade (%U3O8) U3O8 (100%) (60% Denison) Gryphon Inferred 834,000 2.3 43.0 25.8 Phoenix Indicated 166,000 19.1 70.2 42.1 Phoenix Inferred 9,
Slide 29: DML's Initial CAPEX Estimated at CAD$336M
DML’s Initial CAPEX Estimated at CAD$336M 2016 Wheeler River Project Preliminary Economic Assessment(1) Capital Costs (CAD$ millions) Initial Sustaining Total Surface Infrastructure $166 $7 $174 Mine $220 $334 $554 Mineral Processing $19 $60 $79 Owners Costs $25 $0 $25 Decommissioning $0 $40 $40 Sub
Slide 30: Wheeler River: Avg. Operating Cost US$19.01
Wheeler River: Avg. Operating Cost US$19.01 2016 Wheeler River Project Preliminary Economic Assessment(1) Operating Costs (CAD$/lb U3O8) Gryphon Phoenix Mining $3.45 $17.45 Surface Transportation $1.63 $0.85 Mineral Processing (including tolling) $10.03 $8.03 General & Administration $4.17 $3.57 Tot
Slide 31: Corporate Information
Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 559.1 M David Cates (President & CEO) Warrants(1) 1.7 M Mac McDonald (VP Finance & CFO) Options(1) 12.5 M Peter Longo (VP Project Development) Fully D
Slide 32: Uranium Development & Exploration: The Athabasca Basin
Uranium Development & Exploration The Athabasca Basin Email: @DenisonMinesCo info@denisonmines.com denisonmines.com