Denison Mines Corp. · TSX:DML
Denison Mines — Investor Presentation (April 2016)
24 slides from Denison Mines's investor presentation, Apr 27, 2016
Slide 1: Denison Mines Corp. Investor Update
Denison Mines Corp. Uranium Development & Exploration in the Eastern Athabasca Basin Investor Update April 27, 2016 TSX: DML | NYSE MKT: DNN
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 Development & Exploration
Uranium Development & Exploration Northern Saskatchewan, Canada TSX: DML | NYSE MKT: DNN | 3 Northern Saskatchewan, Canada
Slide 4: Wheeler River PEA: +20% IRR at Current Prices
Wheeler River PEA : +20% IRR at Current Prices (1) Strategy: Co-development of the high-grade Gryphon and Phoenix deposits as a single underground mining operation, leveraging existing regional infrastructure, including assumed processing at Denison’s 22.5% owned McClean Lake mill Price Protected: 2
Slide 5: Wheeler River: CAD$1.4B NPV at US$62.60
Wheeler River: CAD$1.4B NPV at US$62.60 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% Initial Capital Costs (100%) CAD$560M Sus
Slide 6: One Project, Two High-Grade Deposits
One Project, Two High-Grade Deposits 2015 Wheeler River Property Mineral Resource Estimate Summary(1) Million lbs Million lbs Grade U3O8 U3O8 Deposit Category Tonnes (%U3O8) (100%) (Denison) Gryphon Inferred 834,000 2.3 43.0 25.8 Phoenix Indicated 166,000 19.1 70.2 42.1 Phoenix Inferred 9,000 5.8 1.
Slide 7: Wheeler River: Strategic Development Plan
Wheeler River: Strategic Development Plan Phase 2: Phoenix Production Phase 1: Gryphon Production • Underground freezing + Jet Bore mining • Conventional underground mining • 9 years at 7.0M lbs U3O8 / year (73t/d) (1) • 7 years at 6.0M lbs U3O8 / year (399t/d) (1) • Drift to Phoenix while mining Gr
Slide 8: McClean Lake Mill: Excess Capacity Expected
McClean Lake Mill: Excess Capacity Expected McClean Lake Joint Venture (22.5% Denison, 70% AREVA, 7.5% OURD) • Capacity: 24M lbs/yr U3O8 expected by EOY 2016 (currently 18M lbs) • 18M lbs/year reserved for Cigar Lake • 6M lbs/year expected excess capacity • Positive metallurgical test results from G
Slide 9: Eastern Athabasca Basin: Reduced Risk Profile
Eastern Athabasca Basin: Reduced Risk Profile Existing Infrastructure: • Operating uranium mill (McClean Lake) with Northern Saskatchewan, Canada CNSC licensed tailings facility, expected to have excess milling capacity • Existing Provincial highways and Provincial power grid already located on east
Slide 10: 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 11: 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 12: Looking Ahead for the Wheeler River Project
Looking Ahead for the Wheeler River Project Indicative Post-Tax Results to Denison (60%) Justify Advancement(1) Indicative Post-Tax Post-Tax IRR NPV (CAD) Post-Tax IRR NPV (CAD) Results to Denison Base Case 17.8% $206M Prod’n Case 29.2% $548M (60%) PFS Preliminary 2016/17 Feasibility Project Assessm
Slide 13: Exploration Continues at Wheeler River
Exploration Continues at Wheeler River 2016 Exploration Plan K North • 47,000 metres of drilling ~ 6 km • CAD$10M Budget (Denison’s share CAD$6M) • Numerous targets in the vicinity of Gryphon - along K Central the K-North trend • Other high priority targets (O Zone and K Central) O Zone ~3km TSX: DM
Slide 14: Gryphon Exploration Continues: New High Grade Discovery
Gryphon Exploration Continues: New High Grade Discovery Winter 2016 Exploration Results • Discovery: New mineralization ~100 metres north & northwest of Gryphon deposit • D-Series: WR-633D1, 641, 646 & 651 may represent the down plunge extent of the D-Series lenses roughly 180m up plunge • 21,800 me
Slide 15: Section View of Main Gryphon Lenses + New D Lenses
Section View of Main Gryphon Lenses + New D Lenses Section 5150 New Mineralization Highlights: Section 5150 Drill Hole From (m) To (m) Length (m) 5 % eU3O8 1 WR-6462 584.6 587.4 2.8 4.2 (includes)3 585.8 587.2 1.4 8.2 WR-6512 563.2 564.2 1 1 (and)2 669.9 671.9 2 7.1 (includes)3 670.2 671.7 1.5 9.3 *
Slide 16: New High Grade Results on Section 5200
New High Grade Results on Section 5200 Section 5200 New Mineralization Highlights: Section 5200 Drill Hole From (m) To (m) Length (m) 5 % eU3O8 1 Section 5200 WR-633D12,5 751.5 754.7 3.2 2 (includes)3,5 753.6 754.6 1 5.7 (and)2,5 757.7 765.3 7.6 1.7 (includes)3,5 760.3 762 1.7 6.3 (includes)3,5 764.
Slide 17: DML's Uniquely Diversified Asset Base
DML’s Uniquely Diversified Asset Base • Denison’s Flagship property in • Strategic high-grade AB uranium mill eastern Athabasca Basin (AB) • Expected to have up to • Gryphon + Phoenix 6 M lbs/year excess co-development milling capacity • PEA completed 1H16 Wheeler McClean by end of 2016 with 20.4% I
Slide 18: Eastern Athabasca Exploration
Eastern Athabasca Exploration 2016 Exploration Overview N • CAD$22.0M Total Budget • CAD$15.3M Denison’s Share • ~75,000 metres planned • Focus on High Priority Properties • +80% of total metres on TOP 5 Properties • Wheeler, Murphy, Crawford, Wolly and Waterbury • Follow up on discovery of uranium
Slide 19: McClean Lake Mill (Saskatchewan)
McCLEAN LAKE MILL (Saskatchewan) (Denison owns 22.5%; AREVA 70%; OURD 7.5%) • Toll Milling from Cigar Lake Increasing Denison to earn • 16M lbs U3O8 production planned for 2016 CAD$7.1M in • Mill Expansion Continues revenue • 13M lbs to 24M lbs per year, subject to licensing from McClean & • Fully f
Slide 20: 2016 Budget Highlights
2016 Budget Highlights 2016 Budget Highlights (CAD, Millions) $10.0 $5.0 4.1 1.2 $0.0 -0.5 -1.6 -1.7 -2.8 -$5.0 2016 Financial Plan – CAD View: -$10.0 • ~CAD$16.5M cash outflow • Majority of budget is CAD denominated -$15.0 • Translated from USD reported budget -15.3 using USD:CAD FX rate of 1:1.3 -
Slide 21: Denison & GoviEx to Combine African Assets
Denison & GoviEx to Combine African Assets 25% Stake In GoviEx (CSE: GXU) Denison’s African Assets Proposed transaction gives Denison exposure to GoviEx’s flagship Madaouela project in Niger, while finding a strategic home for Denison’s African assets Madaoulea is one of the world’s most advance
Slide 22: The Denison Advantage
The Denison Advantage • Flagship Wheeler River Project (60%) – Gryphon + Phoenix Deposits • Large scale and high-grade Eastern Athabasca Basin project • 20.4% Pre-Tax IRR (US$44/lb U3O8) with initial CAPEX CAD$336M to Denison • Pre-feasibility Study to commence immediately in 2016 • Strategic owners
Slide 23: Corporate Information
Corporate Information Market Summary Management & Directors Exchanges TSX: DML, NYSE MKT: DNN Lukas Lundin (Executive Chairman) Shares Outstanding(1) 518.4 M David Cates (President & CEO) Warrants(1) nil Mac McDonald (VP Finance & CFO) Options(1) 6.5 M Peter Longo (VP Project Development) Fully Dilu
Slide 24: Investor Update
Investor Update TSX: DML NYSE MKT: DNN Phone: Email: Online: 416.979.1991 x366 info@denisonmines.com www.denisonmines.com or 1.888.689.7842 @DenisonMinesCo