Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (September 2018)
21 slides from Denison Mines's investor presentation, September 2018
Slide 1: Uranium Development & Exploration
Uranium Development & Exploration The Athabasca Basin, Northern Saskatchewan September 2018 | Investor Update
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: Diversified Athabasca Basin Asset Base with Superior Development Leverage
Diversified Athabasca Basin Asset Base with Superior Development Leverage Strategic Project Portfolio: • 63.3% interest in Flagship Wheeler River project – largest undeveloped uranium project in infrastructure rich eastern Athabasca Basin • 22.5% interest in operating McClean Lake Uranium Mill – 6M
Slide 4: ~320,000 Hectares of Prospective Exploration Ground in the Eastern Athabasca Basin
~320,000 Hectares of Prospective Exploration Ground Focused in the Infrastructure Rich Eastern Athabasca Basin Denison Land Position as of June 30, 2018 Waterbury (Denison 64.2%) McClean Lake Mill (Denison 22.5%) Hook-Carter (Denison 80%) Cigar Lake Mine Rabbit Lake Mill McArthur River Mine Wheeler
Slide 5: The Infrastructure Rich Eastern Athabasca Basin
The Infrastructure Rich Eastern Athabasca Basin Existing infrastructure supports mining operations in proximity of Wheeler River: • 4 licensed uranium mines (Cigar Lake, McArthur River, Eagle Point, McClean) + 3 licensed uranium mills (McClean, Key, Rabbit) • Provincial power grid – reliable, cost e
Slide 6: Flagship Wheeler River Uranium Project: Potential to be a Top-5 Producing Uranium Mine
Flagship Wheeler River Uranium Project Potential to be a Top-5 producing uranium mine Top Producing Uranium Mines 2017 est. vs. Wheeler PEA Production Plan(1)(2) Source: UxC Uranium Market Outlook Q4’17 M lbs. M lbs. 18.0 18.0 18 16 Million Pounds U3O8 14 M lbs. 12 9.6 10 M lbs. M lbs. M lbs. 7.3 M
Slide 7: Flagship Wheeler River: Poised to be the Next Uranium Development Project
Flagship Wheeler River Uranium Project Poised to be the next uranium development project in the Athabasca Basin Project Development Scorecard Wheeler River Ranking(1) Denison owns 22.5% of Ownership of licenced mill with excess capacity McClean Lake Mill 1st Provincial power line and Proximity to in
Slide 8: Flagship Wheeler River: Largest Undeveloped High-Grade Uranium Project in Eastern Athabasca
Flagship Wheeler River Uranium Project Largest Undeveloped High-Grade Uranium Project in Eastern Athabasca “Our strategy… involves the advancement of our flagship Wheeler River project towards development and production – intending to claim the ‘pole position’ as the next new uranium mine to be buil
Slide 9: Wheeler River: History of Exploration Success & Resource Growth
Flagship Wheeler River Uranium Project History of Exploration Success & Resource Growth 2018 Mineral Resource Estimate: 3.0 140 97% of Total Mineral Resources classified as Indicated 120 44.1 44.1 44.1 100 Million Pounds U3O8 80 1.1 7.6 7.6 132.1 60 3.8 3.8 40 70.2 70.2 70.2 70.2 52.3 52.3 20 35.6 3
Slide 10: Wheeler River 2016 PEA: 2 Phase Development Plan
Flagship Wheeler River Uranium Project 2016 PEA(1): 2 Phase Development Plan @ US$44/lb U3O8 • 20.4% Pre-Tax IRR @ US$44/lb U3O8 • CAD$560M (100%) Initial CAPEX • Avg. USD$19.01/lb U3O8 OPEX • CAD$1.4B NPV @ US$62.60/lb U3O8 Phase 1 - Gryphon • Conventional underground mining • USD $14.28/lb U3O8 es
Slide 11: Wheeler River PEA Assumes Processing at McClean Lake Mill
Wheeler River PEA Assumes Processing at 22.5% Denison owned McClean Lake Mill(1) Processes +12% of global uranium production: • Operating under 10-year license granted by Canadian Nuclear Safety Comm. in 2017 • Licensed for 24M lbs U3O8 annual production • 18M lbs U3O8/year reserved for Cigar Lake J
Slide 12: Diversified Asset Base with Company Specific Catalysts on the Horizon
Diversified Asset Base with Company Specific Catalysts on the Horizon Wheeler River Wheeler River Exploration Pipeline SABRE Mining Method Drilling Program Pre-Feasibility Study Projects Winter & Q1 to Q3 2018 Q3-2018 2019-2020 Test Mine Summer 2018 Completed 21,153 metre drill The PFS is expected t
Slide 13: Appendix: Diversified Project Portfolio – Project Profiles
Appendix: Diversified Project Portfolio – Project Profiles 13
Slide 14: McClean Lake Uranium Project
McClean Lake Uranium Project Processing Plant Licensed for Annual Production of 24M lbs U3O8 “(the APG) financing allows Denison to benefit immediately from the cash flow expected to be produced from the McClean Lake mill over the next several years, without the overhang of a bullet payment or conve
Slide 15: Midwest Uranium Project
Midwest Uranium Project Significant Increase in Mineral Resources with Updated Estimate “With the application of more rigorous and robust estimation procedures, in accordance with NI 43-101, we are pleased to see a significant increase in overall project resources, without additional recent drilling
Slide 16: Waterbury Lake Uranium Project
Waterbury Lake Uranium Project Mineral Resources in Close Proximity to Roughrider & McClean Lake “The high-grade mineralization at Huskie appears to be controlled by the intersection of east-west striking faults, associated with the graphitic gneiss unit, and cross-cutting northeast striking faults,
Slide 17: Hook-Carter Uranium Project
Hook-Carter Uranium Project Exploration on the Patterson Lake Corridor in the Western Athabasca Basin "This is Elephant country - a large property that has seen very little drilling on a geological trend with a precedent for large and high- grade uranium deposits.” Dale Verran, VP Exploration • 15 k
Slide 18: SABRE Mining Method
SABRE Mining Method Experimental Mining Method with Potential to Access Orebodies from Surface Surface Access Borehole Resource Extraction – or “SABRE” for short – is a proprietary mining method designed to excavate underground material from surface using a water jetting process • +CAD$50M invested
Slide 19: Appendix: 2016 Wheeler River Preliminary Economic Assessment
Appendix: 2016 Wheeler River Preliminary Economic Assessment 19
Slide 20: Appendix: 2016 Wheeler River Preliminary Economic Assessment
Appendix: 2016 Wheeler River Preliminary Economic Assessment(1) Production Capital Costs Assumptions Base Case Initial Sustain. Total Case (CAD$ millions) Uranium Price US$44.00 US$62.60 Surface Infrastructure $166 $7 $174 Exchange Rate (CAD:USD) 1.35 1.35 Mine $220 $334 $554 Discount Rate 8.00% 8.0
Slide 21: Capital Structure & Corporate Information
Capital Structure & Corporate Information Market Summary (1) Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Shares Outstanding 559.2 M • David Cates (President & CEO, Director) • Mac McDonald (VP Finance & CFO) Warrants 1.7 M • Peter Longo (VP Project Development) Options 17.5 M • Dale Ver
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